Earnings Per Share

3 Months Ended

May 31, 2023

13. Earnings Per Share

Basic earnings per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur if stock options, performance-based RSUs or other contracts to issue common shares were exercised or converted into common stock.

The following table sets forth the computation for basic and diluted earnings per share for the periods indicated:


	Three months ended
	May 31,
	2023		2022
Basic weighted average common shares outstanding		25,839,651		25,812,078
Effect of dilutive stock options, restricted stock and RSUs		139,882		43,292
Diluted weighted average common shares outstanding		25,979,533		25,855,370
Earnings per share
Net earnings - basic	$	0.45	$	0.45
Net earnings - diluted	$	0.45	$	0.45
Cash dividends per share	$	0.250	$	0.250

The Company treats unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share. Our unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation above is prepared on a combined basis. At May 31, 2023, 52,500 shares related to outstanding stock options were not included in the computation of earnings per diluted share as they were considered anti-dilutive. No options were outstanding for the three months ended May 31, 2022.