Note 13 - Per Share Calculation

3 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

13. Per Share Calculation

Basic earnings per share is computed by dividing net income (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation.   

All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings in periods when we have net income. The Company’s restricted common stock (“nonvested shares”) are considered participating securities.

Basic and diluted earnings per share for the periods presented below were calculated as follows:

	Three Months Ended
	January 31,
(In thousands, except per share data)	2022		2021
Numerator:
Numerator for basic and diluted earnings per share	$	19,950	$	17,360
Denominator:
Denominator for basic earnings per share – weighted average shares outstanding		6,389		6,225
Effect of dilutive securities:
Share based payments		112		78
Denominator for diluted earnings per share – weighted average shares outstanding		6,501		6,303
Basic earnings per share	$	3.12	$	2.79
Diluted earnings per share	$	3.07	$	2.75

Shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share were less than 0.1 million and 0.2 million for the three months ended January 31, 2022 and 2021, respectively, because to do so would have been anti-dilutive for the periods presented.