Earnings per Share

3 Months Ended

Nov. 30, 2015

Note 4. Earnings per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted computations for earnings per common share:

	For the Three Months Ended November 30,
	2015		2014
(In thousands, except per share data)
EPS:
Net income	$	500	$	395
Less: accrued preferred stock dividends		(19)		(19)
Net income available for common shareholders	$	481	$	376

Earnings per common share – basic and diluted	$	0.10	$	0.08

For the three months ended November 30, 2015 and 2014, 40,000 potential common shares (issuable upon conversion of 36,000 shares of the Company’s Series A Cumulative Convertible Preferred Stock) have been excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. The increase in earnings per share when compared to the same period last year was primarily due to higher sales margins in the current period.