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 November 30, 2017, all options were included in the diluted earnings per share computation because the average fair market value of the Company’s stock exceeded the exercise price of the options. For the nine months ended November 30, 2017, 42,500 shares related to stock options were not included in the diluted earnings per share computation because the exercise price exceeded the average fair market value of the Company’s stock. For the three and nine months ended November 30, 2016, 95,692 and 42,500 shares related to stock options were not included in the diluted earnings per share computation because the 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				Nine months ended
	November 30,				November 30,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		25,360,452		25,673,824		25,387,389		25,802,658
Effect of dilutive options		33,030		9,789		21,870		15,488
Diluted weighted average common shares outstanding		25,393,482		25,683,613		25,409,259		25,818,146
Earnings (loss) per share - basic and diluted
Earnings per share on continuing operations	$	0.33	$	0.22	$	0.97	$	0.74
Earnings per share on discontinued operations		—		—		—		0.10
Loss per share on sale of discontinued operations		—		—		—		(1.01	)
Loss on discontinued operations		—		—		—		(0.91	)
Net earnings (loss)	$	0.33	$	0.22	$	0.97	$	(0.17	)
Cash dividends	$	0.200	$	0.175	$	0.575	$	2.025