Earnings Per Share

3 Months Ended

May 31, 2022

Earnings Per ShareBasic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if stock awards vested and were converted into common shares during the period.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended May 31,
	2022		2021
Numerator:
Net income	$	24,077	$	22,337
After-tax interest expense for Convertible Notes	547		—
Numerator for diluted earnings per share	$	24,624	$	22,337
Denominator:
Weighted average shares outstanding for basic earnings per share	24,709		25,051
Effect of dilutive securities:
Employee and director stock awards	161		219
Convertible Notes	805		—
Denominator for diluted earnings per share	25,675		25,270
Earnings per share basic and diluted:
Basic earnings per share	$	0.97	$	0.89
Diluted earnings per share	$	0.96	$	0.88

For the three months ended May 31, 2022 and 2021, 81,647 and 154,259 shares, respectively, were excluded from the calculation of diluted earnings per share because the effect would be antidilutive. These shares could be dilutive in future periods.