Net Income per Share

3 Months Ended

Apr. 30, 2018

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average common shares and fully vested stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common

equivalent shares outstanding which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units, and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award.

Certain outstanding options and restricted stock units were excluded from the diluted net income per-share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per-share share calculation were as follows:



	Three Months Ended
	April 30, 2018	April 30, 2017
Anti-dilutive options and restricted stock units	16,304	470,265

The computation of earnings per share is presented below:



	Three Months Ended
	April 30, 2018		April 30, 2017
Numerator:
Net income attributable to Raven Industries, Inc.	$	22,135	$	12,348

Denominator:
Weighted average common shares outstanding	35,826,096		36,080,143
Weighted average fully vested stock units outstanding	87,716		98,787
Denominator for basic calculation	35,913,812		36,178,930

Weighted average common shares outstanding	35,826,096		36,080,143
Weighted average fully vested stock units outstanding	87,716		98,787
Dilutive impact of stock options and restricted stock units	466,768		359,795
Denominator for diluted calculation	36,380,580		36,538,725

Net income per share ─ basic	$	0.62	$	0.34
Net income per share ─ diluted	$	0.61	$	0.34