Capital Stock and Share Repurchase

9 Months Ended

May 31, 2022

Note 11. Earnings per Share and Shareholders' Equity

The Company's Board of Directors has authorized the repurchase of shares of the Company's common stock under publicly announced share repurchase programs. Since the inception of the initial share repurchase program in fiscal 2012, the Company has repurchased 24,554,305 shares of common stock for $704.0 million. The Company suspended the share repurchase program in response to the COVID-19 pandemic in the third quarter of fiscal 2020 and, accordingly, did not repurchase shares in the nine months ended May 31, 2021. Subsequently, in the three months ended May 31, 2022, the Company started repurchasing shares in market transactions following the Company's Board of Directors rescinding its prior share repurchase authorization and authorizing the repurchase of a total of 10,000,000 shares. The Company repurchased 1,755,075 shares for $36.3 million during the three months ended May 31, 2022. As of May 31, 2022, the maximum number of shares that may yet be purchased under the programs is 8,244,925 shares.

The reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share amounts):


	Three Months Ended May 31,				Nine Months Ended May 31,
	2022		2021		2022		2021
Numerator:
Net earnings from continuing operations	$	4,061	$	25,257	$	9,367	$	33,663
Net loss from discontinued operations	(2,418)		(226)		(3,715)		(852)
Net earnings	$	1,643	$	25,031	5,652		32,811

Denominator:
Weighted average common shares outstanding - basic	60,227		60,144		60,292		59,964
Net effect of dilutive securities - stock based compensation plans	383		430		348		348
Weighted average common shares outstanding - diluted	60,610		60,574		60,640		60,312

Earnings per common share from continuing operations:
Basic	$	0.07	$	0.42	$	0.16	$	0.56
Diluted	$	0.07	$	0.42	$	0.15	$	0.56

Loss per common share from discontinued operations:
Basic	$	(0.04)	$	(0.00)	$	(0.06)	$	(0.01)
Diluted	$	(0.04)	$	(0.00)	$	(0.06)	$	(0.01)

Earnings per common share:*
Basic	$	0.03	$	0.42	$	0.09	$	0.55
Diluted	$	0.03	$	0.41	$	0.09	$	0.54

Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation)	951		548		945		990

*The total of Earnings per share from continuing operations and Loss per share from discontinued operations may not equal Earnings per share due to rounding.

The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2022 (in thousands):


	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Stock Held in Trust		Deferred Compensation Liability		Total Shareholders’ Equity
	Issued Shares	Amount
Balance at August 31, 2021	83,022	$	16,604	$	202,971	$	(667,732)	$	953,339	$	(92,984)	$	(3,067)	$	3,067	$	412,198
Net earnings	—	—		—		—		2,788		—		—		—		2,788
Other comprehensive loss, net of tax	—	—		—		—		—		(10,044)		—		—		(10,044)
Stock contribution to employee benefit plans and other	2	1		84		—		—		—		—		—		85
Vesting of equity awards	67	17		(17)		—		—		—		—		—		—
Stock based compensation expense	—	—		6,147		—		—		—		—		—		6,147
Tax effect related to net share settlement of equity awards	—	—		(1,393)		—		—		—		—		—		(1,393)
Stock issued to, acquired for and distributed from rabbi trust	1	—		25		—		—		—		(25)		25		25
Balance at November 30, 2021	83,092	$	16,622	$	207,817	$	(667,732)	$	956,127	$	(103,028)	$	(3,092)	$	3,092	$	409,806
Net earnings	—	—		—		—		1,221		—		—		—		1,221
Other comprehensive income, net of tax	—	—		—		—		—		1,744		—		—		1,744
Stock contribution to employee benefit plans and other	5	1		64		—		—		—		—		—		65
Vesting of equity awards	247	46		(46)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,142		—		—		—		—		—		2,142
Tax effect related to net share settlement of equity awards	—	—		(1,980)		—		—		—		—		—		(1,980)
Stock issued to, acquired for and distributed from rabbi trust	1	—		25		—		—		—		3		(3)		25
Balance at February 28, 2022	83,345	$	16,669	$	208,022	$	(667,732)	$	957,348	$	(101,284)	$	(3,089)	$	3,089	$	413,023
Net earnings	—	—		—		—		1,643		—		—		—		1,643
Other comprehensive loss, net of tax	—	—		—		—		—		(16,030)		—		—		(16,030)
Stock contribution to employee benefit plans and other	4	1		65		—		—		—		—		—		66
Treasury stock repurchases	—	—		—		(36,295)		—		—		—		—		(36,295)
Stock based compensation expense	—	—		3,828		—		—		—		—		—		3,828
Tax effect related to net share settlement of equity awards	—	—		(3)		—		—		—		—		—		(3)
Stock issued to, acquired for and distributed from rabbi trust	1	—		40		—		—		—		(59)		59		40
Balance at May 31, 2022	83,350	$	16,670	$	211,952	$	(704,027)	$	958,991	$	(117,314)	$	(3,148)	$	3,148	$	366,272

The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2021 (in thousands):


	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Stock Held in Trust		Deferred Compensation Liability		Total Shareholders’ Equity
	Issued Shares	Amount
Balance at August 31, 2020	82,594	$	16,519	$	193,492	$	(667,732)	$	917,671	$	(100,724)	$	(2,562)	$	2,562	$	359,226
Net earnings	—	—		—		—		4,598		—		—		—		4,598
Other comprehensive income, net of tax	—	—		—		—		—		1,629		—		—		1,629
Stock contribution to employee benefit plans and other	6	1		100		—		—		—		—		—		101
Vesting of equity awards	20	4		(4)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,581		—		—		—		—		—		2,581
Tax effect related to net share settlement of equity awards	—	—		(275)		—		—		—		—		—		(275)
Stock issued to, acquired for and distributed from rabbi trust	5	1		85		—		—		—		(81)		81		86
Balance at November 30, 2020	82,625	$	16,525	$	195,979	$	(667,732)	$	922,269	$	(99,095)	$	(2,643)	$	2,643	$	367,946
Net earnings	—	—		—		—		3,182		—		—		—		3,182
Other comprehensive income, net of tax	—	—		—		—		—		9,157		—		—		9,157
Stock contribution to employee benefit plans and other	4	1		80		—		—		—		—		—		81
Vesting of equity awards	235	47		(47)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,647		—		—		—		—		—		2,647
Tax effect related to net share settlement of equity awards	—	—		(1,706)		—		—		—		—		—		(1,706)
Stock issued to, acquired for and distributed from rabbi trust	15	3		83		—		—		—		(353)		353		86
Balance at February 28, 2021	82,879	$	16,576	$	197,036	$	(667,732)	$	925,451	$	(89,938)	$	(2,996)	$	2,996	$	381,393
Net earnings	—	—		—		—		25,031		—		—		—		25,031
Other comprehensive income, net of tax	—	—		—		—		—		6,538		—		—		6,538
Stock contribution to employee benefit plans and other	5	1		96		—		—		—		—		—		97
Vesting of equity awards	17	3		(3)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,157		—		—		—		—		—		2,157
Stock option exercises	89	18		2,008		—		—		—		—		—		2,026
Tax effect related to net share settlement of equity awards	—	—		(356)		—		—		—		—		—		(356)
Stock issued to, acquired for and distributed from rabbi trust	1	—		25		—		—		—		(3)		3		25
Balance at May 31, 2021	82,991	$	16,598	$	200,963	$	(667,732)	$	950,482	$	(83,400)	$	(2,999)	$	2,999	$	416,911