EARNINGS PER SHARE

6 Months Ended

Aug. 31, 2013

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 7 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. In computing diluted earnings per share, the treasury stock method assumes that outstanding options are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options will have a dilutive effect under the treasury stock method only when the Company reports net income and the average market price of the common stock during the period exceeds the exercise price of the options.

The following is a summary of the calculation of weighted average shares used in the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended		Six Months Ended
	August 31,		August 31,
	2013	2012	2013	2012
Basic weighted average number of common
shares outstanding	34,808	28,476	34,687	28,201
Effect of stock options, restricted stock,
restricted stock units and warrants
computed on treasury stock method	1,025	1,216	1,061	1,277
Diluted weighted average number of common
shares outstanding	35,833	29,692	35,748	29,478

Shares underlying stock options of 65,000 and 457,000 at August 31, 2013 and August 31, 2012, respectively, were excluded from the calculations of diluted earnings per share for the three and six month periods then ended because based on the exercise prices of these derivative securities their inclusion would have been anti-dilutive under the treasury stock method.