EARNINGS PER SHARE

6 Months Ended

Aug. 31, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 9 - 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 composition 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,
	2016	2015	2016	2015
Basic weighted average number of common
shares outstanding	36,390	36,135	36,425	36,049
Effect of stock options and restricted stock units
computed on treasury stock method	459	581	-	642
Diluted weighted average number of common
shares outstanding	36,849	36,716	36,425	36,691

All outstanding options and restricted stock units at August 31, 2016 were excluded from the computation of diluted earnings per share for the six month period then ended because the Company reported a net loss and the effect of inclusion would be antidilutive. Shares subject to anti-dilutive stock options and restricted stock-based awards of 450,000 at August 31, 2016 were excluded from the calculations of diluted earnings per share for the three months then ended. Shares subject to anti-dilutive stock options and restricted stock-based awards of 238,000 at August 31, 2015 were excluded from the calculations of diluted earnings per share for the three and six 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. From the time of the issuance of Notes, the average market price of the Company’s common stock has been 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.