Earnings Per Share

12 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE

Earnings per Share

The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):



	December 31
	2016		2015		2014
Earnings from continuing operations	$	21,060	$	39,155	$	32,074
Weighted-average shares outstanding for basic earnings per share	61,330		64,242		64,253
Common equivalent shares:
Effect of stock-based compensation awards	1,664		885		958
Weighted-average shares outstanding assuming dilution	62,994		65,127		65,211
Basic earnings per share from continuing operations	$	0.34	$	0.61	$	0.50
Diluted earnings per share from continuing operations	$	0.33	$	0.60	$	0.49

Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 327,700 shares, 348,600 shares and 435,600 shares of restricted stock for 2016, 2015 and 2014, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note B), if such warrants have a anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average shares outstanding was calculated using the treasury method. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants by the average stock price during the period and comparing that amount with the number of warrants outstanding. The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution, because their effect would have been anti-dilutive, was 1.9 million, eleven thousand and none at December 31, 2016, 2015 and 2014, respectively. The underlying warrants as of December 31, 2016, could result in 11.1 million additional shares of the Company's common stock if the warrants are settled by tendering cash.

Purchase of Common Stock

The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital.

On July 5, 2016 the Company purchased 3,825,554 shares of the Company's common stock from its largest shareholder, Red Mountain Partners, L.P., a fund that is affiliated with Red Mountain Capital Partners, LLC (“Red Mountain”), a related party, for an aggregate purchase price of $50.0 million. The purchase price was previously negotiated based on the closing price of the shares on June 20, 2016. The purchase price of $13.07 per share represents a large block discount of 2.5% and 6.2%, respectively, from the volume-weighted average prices of $13.41 for the 10 trading days and $13.93 for the 60 trading days prior to June 20, 2016.