Capital Stock and Share Repurchase

9 Months Ended

May 31, 2023

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 27,402,654 shares of common stock for $763.7 million. The Company suspended the initial share repurchase program in response to the COVID-19 pandemic in the third quarter of fiscal 2020. In March 2022, the Company's Board of Directors rescinded its prior share repurchase authorization and approved a new share repurchase program authorizing the repurchase of a total of 10,000,000 shares of the Company's outstanding common stock. The Company repurchased 843,689 shares for $20.8 million in the three months ended May 31, 2023 and repurchased 1,755,075 shares for $36.3 million in the three months ended May 31, 2022. As of May 31, 2023, the maximum number of shares that may yet be purchased under the program is 5,396,576 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,
	2023		2022		2023		2022
Numerator:
Net earnings from continuing operations	$	16,976	$	4,061	$	30,544	$	9,367
Net loss from discontinued operations	(4,596)		(2,418)		(6,214)		(3,715)
Net earnings	$	12,380	$	1,643	$	24,330	$	5,652

Denominator:
Weighted average common shares outstanding - basic	57,052		60,227		56,993		60,292
Net effect of dilutive securities - stock based compensation plans	380		383		424		348
Weighted average common shares outstanding - diluted	57,432		60,610		57,417		60,640

Earnings per share from continuing operations:
Basic	$	0.30	$	0.07	$	0.54	$	0.16
Diluted	$	0.30	$	0.07	$	0.53	$	0.15

Loss per share from discontinued operations:
Basic	$	(0.08)	$	(0.04)	$	(0.11)	$	(0.06)
Diluted	$	(0.08)	$	(0.04)	$	(0.11)	$	(0.06)

Earnings per share:*
Basic	$	0.22	$	0.03	$	0.43	$	0.09
Diluted	$	0.22	$	0.03	$	0.42	$	0.09

Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation)	397		951		1,067		945

*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, 2023 (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, 2022	83,397	$	16,679	$	212,986	$	(742,844)	$	966,751	$	(134,961)	$	(3,209)	$	3,209	$	318,611
Net earnings	—	—		—		—		7,453		—		—		—		7,453
Other comprehensive loss, net of tax	—	—		—		—		—		6,024		—		—		6,024
Stock contribution to employee benefit plans and other	3	1		41		—		—		—		—		—		42
Vesting of equity awards	84	17		(17)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,155		—		—		—		—		—		2,155
Stock option exercises	42	8		922		—		—		—		—		—		930
Tax effect related to net share settlement of equity awards	—	—		(969)		—		—		—		—		—		(969)
Stock issued to, acquired for and distributed from rabbi trust	3	1		76		—		—		—		(30)		30		77
Balance at November 30, 2022	83,529	$	16,706	$	215,194	$	(742,844)	$	974,204	$	(128,937)	$	(3,239)	$	3,239	$	334,323
Net earnings	—	—		—		—		4,497		—		—		—		4,497
Other comprehensive income, net of tax	—	—		—		—		—		1,243		—		—		1,243
Stock contribution to employee benefit plans and other	2	—		49		—		—		—		—		—		49
Vesting of equity awards	173	34		(34)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,120		—		—		—		—		—		2,120
Tax effect related to net share settlement of equity awards	—	—		(1,505)		—		—		—		—		—		(1,505)
Stock issued to, acquired for and distributed from rabbi trust	28	6		55		—		—		—		(81)		81		61
Balance at February 28, 2023	83,732	$	16,746	$	215,879	$	(742,844)	$	978,701	$	(127,694)	$	(3,320)	$	3,320	$	340,788
Net earnings	—	—		—		—		12,380		—		—		—		12,380
Other comprehensive loss, net of tax	—	—		—		—		—		1,993		—		—		1,993
Stock contribution to employee benefit plans and other	2	1		58		—		—		—		—		—		59
Vesting of equity awards	12	2		(2)		—		—		—		—		—		—
Treasury stock repurchases	—	—		—		(20,831)		—		—		—		—		(20,831)
Stock based compensation expense	—	—		2,207		—		—		—		—		—		2,207
Stock option exercises	2	—		43		—		—		—		—		—		43
Tax effect related to net share settlement of equity awards	—	—		(110)		—		—		—		—		—		(110)
Stock issued to, acquired for and distributed from rabbi trust	4	1		89		—		—		—		(85)		85		90
Balance at May 31, 2023	83,752	$	16,750	$	218,164	$	(763,675)	$	991,081	$	(125,701)	$	(3,405)	$	3,405	$	336,619

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 income, 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 income, 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