Earnings Per Share

3 Months Ended

May 31, 2021

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 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,
	2021		2020
Basic weighted average common shares outstanding		26,029,355		25,975,010
Effect of dilutive RSUs		84,004		—
Diluted weighted average common shares outstanding		26,113,359		25,975,010
Earnings per share
Net earnings - basic	$	0.28	$	0.16
Net earnings - diluted	$	0.28	$	0.16
Cash dividends	$	0.225	$	0.225

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. No options were outstanding for the three months ended May 31, 2021 and May 31, 2020.