Earnings Per Share

3 Months Ended

May 31, 2023

4. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year.

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,
	2023		2022
Numerator:
Net income from continuing operations	$	28,522	$	15,353
Dividends on preferred stock	(3,600)		—
Numerator for basic earnings per share continuing operations	24,922		15,353
After-tax interest expense for Convertible Notes	—		547
Dividends on preferred stock	3,600		—
Numerator for diluted earnings per share continuing operations	$	28,522	$	15,900

Net income from discontinued operations	$	—	$	8,724

Net income available to common shareholders	$	24,922	$	24,077
After-tax interest expense for Convertible Notes	—		547
Dividends on preferred stock	3,600		—
Numerator for diluted earnings per share—net income available to common shareholders	$	28,522	$	24,624

Denominator:
Weighted average shares outstanding for basic earnings per share	24,940		24,709
Effect of dilutive securities:
Employee and director stock awards	93		161
Convertible Notes	—		805
Series A Convertible Preferred Stock	4,117		—
Denominator for diluted earnings per share	29,150		25,675

Basic earnings per share
Earnings per common share from continuing operations	$	1.00	$	0.62
Earnings per common share from discontinued operations	$	—	$	0.35
Earnings per common share	$	1.00	$	0.97
Diluted earnings per share
Earnings per common share from continuing operations	$	0.98	$	0.62
Earnings per common share from discontinued operations	$	—	$	0.34
Earnings per common share	$	0.98	$	0.96

For the three months ended May 31, 2023 and 2022, approximately 121,509 and 81,647 employee equity awards were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. These shares could be dilutive in future periods.