Earnings Per Share

6 Months Ended

Feb. 29, 2016

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:

	Three Months Ended				Six Months Ended
	February 29, 2016		February 28, 2015		February 29, 2016		February 28, 2015
(In thousands, except share and per share amounts)
EPS:
Net income	$	731	$	1,119	$	1,231	$	1,514
Less: accrued preferred stock dividends		(19)		(19)		(38)		(38)
Net income available for common shareholders	$	712	$	1,100	$	1,193	$	1,476

Earnings per common share – basic and diluted	$	0.15	$	0.23	$	0.25	$	0.30

For the three and six months ended February 29, 2016 and February 28, 2015, 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 decrease in earnings per share when compared to the same period last year was primarily due to lower sales margins and higher SG&A in the current period.