NOTE 3 — EARNINGS PER SHARE ("EPS")

The Company presents the computation of earnings per share on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted EPS reflects the potential dilution related to equity-based incentives (see Note 9 – Stock-Based Compensation for further discussion) using the treasury stock method. The composition of basic and diluted EPS is as follows:



	Three months ended July 31,				Six months ended July 31,
	2018		2017		2018		2017
(in thousands, except per share data)
Net income	$	75,866	$	47,459	$	109,565	$	78,113

Weighted average common shares - basic	38,428		38,174		38,356		37,720
Effect of dilutive securities:
Equity based awards	138		214		209		215
Weighted average common shares - diluted	38,566		38,388		38,565		37,935

Earnings per share:
Basic	$	1.97	$	1.24	$	2.86	$	2.07
Diluted	$	1.97	$	1.24	$	2.84	$	2.06

For the three months ended July 31, 2018 and 2017, there were 46,727 and 26,454 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the six months ended July 31, 2018 and 2017, there were 46,212 and 36,956 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive.