Earnings Per Common Share
 3 Months Ended
Oct. 31, 2016
Earnings Per Common Share  
Earnings Per Common Share

Note 11.Earnings Per Common Share

 

Basic EPS is computed based upon the weighted average number of common shares outstanding during the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding during the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year.

 

We include participating securities (unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of unvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities.

 

The following table sets forth the computation of basic and diluted EPS available to shareholders of common stock (excluding participating securities):

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

October 31, 

 

 

    

2016

    

2015

    

Numerator for basic and diluted earnings per share:

 

 

 

 

 

 

 

Net income

 

$
18,800,000

 

$
14,254,000

 

Less income allocated to participating securities

 

 
(134,000)

 

 
(118,000)

 

Net income available to common shareholders

 

$
18,666,000

 

$
14,136,000

 

 

 

 

 

 

 

 

 

Denominator for basic and diluted earnings per share, as adjusted for participating securities:

 

 

 

 

 

 

 

Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock

 

 
41,403,050

 

 
41,283,245

 

 

 

 

 

 

 

 

 

Dilutive effect of stock options using the treasury stock method and the average market price for the year

 

 
72,015

 

 
38,875

 

 

 

 

 

 

 

 

 

Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock

 

 
41,475,065

 

 
41,322,120

 

 

 

 

 

 

 

 

 

Earnings per share attributable to common stock:

 

 

 

 

 

 

 

Basic earnings per share

 

$
0.45

 

$
0.34

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$
0.45

 

$
0.34

 

 

 

 

 

 

 

 

 

Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive

 

 

 —

 

 
15,000

 

 

A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to the Company’s total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

October 31, 

 

 

    

2016

    

2015

    

Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock

 
41,475,065

 
41,322,120

 

 

 

 

 

 

 

Participating securities

 
309,831

 
344,663

 

 

 

 

 

 

 

Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities

 
41,784,896

 
41,666,783