EARNINGS PER SHARE

9 Months Ended

Nov. 30, 2015

NOTE 8 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended		Nine Months Ended
	November 30,		November 30,
	2015	2014	2015	2014
Basic weighted average number of common
shares outstanding	36,319	35,901	36,138	35,735
Effect of stock options, restricted stock and restricted
stock units computed on treasury stock method	484	625	590	773
Diluted weighted average number of common
shares outstanding	36,803	36,526	36,728	36,508

Shares subject to anti-dilutive stock options and restricted stock-based awards of 242,000 and 146,000 at November 30, 2015 and 2014, respectively, were excluded from the calculations of diluted earnings per share for the three and nine month periods then ended.

The Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. The Company's intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value, if any, in excess of the principal amounts of the Notes would be included in diluted earnings per share. During the three month and year-to-date periods ended November 30, 2015, the average market price of the Company's common stock was less than the $27.594 initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.