3. Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding during each period. 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 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, | | | | | 2025 | | 2024 | | | | | | Numerator: | | | | | | | | | | Net income | | $ | 170,908 | | | $ | 39,602 | | | | | | | Series A Preferred Stock Dividends | | — | | | (1,200) | | | | | | | Redemption premium on Series A Preferred Stock | | — | | | (75,198) | | | | | | | Numerator for diluted earnings per share—net income (loss) available to common shareholders | | $ | 170,908 | | | $ | (36,796) | | | | | | | Denominator: | | | | | | | | | | Weighted average shares outstanding for basic earnings per share | | 29,941 | | | 26,751 | | | | | | | Effect of dilutive securities: | | | | | | | | | | Employee and director stock awards | | 276 | | | — | | | | | | | | | | | | | | | | Denominator for diluted earnings per share | | 30,217 | | | 26,751 | | | | | | | | | | | | | | | | Basic earnings (loss) per common share | | $ | 5.71 | | | $ | (1.38) | | | | | | | Diluted earnings (loss) per common share | | $ | 5.66 | | | $ | (1.38) | | | | | | For the three months ended May 31, 2025 and 2024, 50,927 and 310,787 shares, respectively, 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. For the three months ended May 31, 2024, all shares related to the Series A Preferred Stock (3.1 million weighted average shares) were excluded from the computation of diluted earnings per share, as their effect would be anti-dilutive.
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