EARNINGS PER SHARE

12 Months Ended

Feb. 28, 2017

NOTE 11 – 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 (loss) per share (in thousands, except per share amounts):

	Year Ended February 28,
	2017			2016		2015
Net income (loss)	$	(7,904	)	$	16,940	$	16,508
Basic weighted average number of common
shares outstanding		35,917			36,448		35,784
Effect of stock options and restricted stock units
computed on treasury stock method		-			502		746
Diluted weighted average number of common
shares outstanding		35,917			36,950		36,530

Earnings (loss) per share:
Basic	$	(0.22	)	$	0.46	$	0.46
Diluted	$	(0.22	)	$	0.46	$	0.45

All outstanding options and restricted stock units in the amount of 955,000 and 1,239,000, respectively, at February 28, 2017 were excluded from the computation of diluted earnings per share for the year 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 199,000 and 159,000 at February 28, 2016 and 2015, respectively, were excluded from the calculations of diluted earnings per share for the years 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 amount 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.