Earnings per Share

3 Months Ended

Nov. 30, 2017

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 (in thousands, except per share data):

	Three Months Ended November 30,
	2017		2016
Earnings Per Share:
Net income	$	1,195	$	661
Less: cummulative preferred stock dividends		(19)		(19)
Net income available to common shareholders	$	1,176	$	642

Earnings per common share – basic and diluted	$	0.24	$	0.13

For the three months ended November 30, 2017 and 2016, 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 inclusion would be anti-dilutive since the conversion price was greater than the average market price of the common stock.