Computation of Earnings Per Common Share (Tables)

3 Months Ended

Apr. 30, 2022

Schedule of Earnings Per Share Reconciliation

The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):


	For the Three Months Ended
	April 30, 2022		May 1, 2021
Net income available to common stockholders (numerator)	$	19,536	$	898

Weighted-average number of common shares (denominator)	29,638,833		30,675,625

Basic earnings per common share	$	0.66	$	0.03

Weighted-average number of common shares	29,638,833		30,675,625
Potential shares of common stock arising from stock options, and unvested restricted share units	480,728		623,844
Total shares-diluted (denominator)	30,119,561		31,299,469

Diluted earnings per common share	$	0.65	$	0.03

Anti-dilutive weighted shares excluded from the calculation of earnings per common share:
Stock-based awards	115,823		66,264
0.75% convertible senior notes due 2021(1) (2)	—		601,349
Warrants(1) (2)	—		601,349
Total	115,823		1,268,962

(1) The Company used the treasury stock method for calculating any potential dilutive impact on earnings per common share if our average stock price for the period exceeded the $96.89 per share conversion price. There was no dilutive impact on earnings per common share during any of the periods presented as our average stock price did not exceed the per share conversion price and the 2021 Convertible Notes (as defined in Note 13) matured on September 15, 2021. The warrants associated with our 2021 Convertible Notes would have had a dilutive impact on earnings per common share if our average stock price for the period had exceeded the $130.43 per share warrant strike price. As our average stock price did not exceed the strike price for the warrants for any periods presented, the underlying common shares were anti-dilutive as reflected in the table above. The warrants were scheduled to expire on a series of dates concluding on May 9, 2022. During the fourth quarter of fiscal 2022, we purchased the remaining warrants for $0.7 million and there are no additional warrants outstanding.

(2) In connection with the offering of the 2021 Convertible Notes, we entered into convertible note hedge transactions with counterparties for the purpose of reducing the potential dilution to common stockholders from the conversion of the 2021 Convertible Notes and offsetting any potential cash payments in excess of the principal amount of the 2021 Convertible Notes. Prior to conversion, the convertible note hedge was not included for purposes of the calculation of earnings per common share as its effect would be anti-dilutive. Upon any conversion, the convertible note hedge was expected to offset the dilutive effect of the 2021 Convertible Notes when the average stock price for the period was above $96.89 per share. The 2021 Convertible Notes matured on September 15, 2021. The convertible note hedge transactions expired on September 13, 2021. See Note 13, Debt, for additional information related to our 2021 Convertible Notes, warrant transactions, and hedge transactions.