Earnings (loss) per Share

6 Months Ended

Aug. 31, 2016

12. Earnings (loss) per Share

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

For the three months ended August 31, 2016, 42,500 shares related to stock options were not included in the diluted earnings per share computation because the exercise price of such shares exceeded the average fair market value of the Company’s stock. For the six months ended August 31, 2016, all shares related to stock options were included in the diluted loss per share computation because the average fair market value of such shares exceeded the exercise price of the Company’s stock. For the three and six months ended August 31, 2015, 172,543 and 203,961 shares, respectively, related to stock options were not included in the diluted earnings per share computation because their exercise price exceeded the average fair market value of the Company’s stock. The following table sets forth the computation for basic and diluted earnings (loss) per share for the periods indicated:


	Three months ended August 31,				Six months ended August 31,
	2016		2015		2016			2015
Basic weighted average common shares outstanding		25,893,218		25,662,828		25,847,051			25,636,203
Effect of dilutive options		17,157		30,428		21,748			21,316

Diluted weighted average common shares outstanding		25,910,375		25,693,256		25,868,799			25,657,519

Earnings (loss) per share - basic and diluted
Earnings per share on continuing operations	$	0.26	$	0.37	$	0.52		$	0.72

Earnings per share on discontinued operations		—		0.06		0.10			0.07
Loss per share on sale of discontinued operations		—		—		(1.01	)		—

Earnings (loss) on discontinued operations		—		0.06		(0.91	)		0.07

Net earnings (loss)	$	0.26	$	0.43	$	(0.39	)	$	0.79

Cash dividends	$	1.675	$	0.175	$	1.85		$	0.35