Earnings Per Share

9 Months Ended

Nov. 30, 2023

14. 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. This is calculated using the treasury stock method.

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


	Three months ended				Nine months ended
	November 30,				November 30,
	2023		2022		2023		2022
Basic weighted average common shares outstanding		25,894,578		25,809,581		25,826,691		25,812,216
Effect of dilutive stock options, restricted stock and RSUs		188,723		79,234		164,876		80,657
Diluted weighted average common shares outstanding		26,083,301		25,888,815		25,991,567		25,892,873
Earnings per share
Net earnings - basic	$	0.38	$	0.44	$	1.26	$	1.36
Net earnings - diluted	$	0.38	$	0.44	$	1.25	$	1.36
Cash dividends per share	$	0.25	$	0.25	$	0.75	$	0.75

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 November 30, 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 nine months ended November 30, 2022.