Earnings Per Share

3 Months Ended

Mar. 31, 2017

COMMON STOCK AND 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):



	Three Months Ending March 31,
	2017			2016
Numerator:
Earnings from continuing operations - basic	$	9,796		$	8,171
Gain from stock warrant revaluation, net of tax	(1,539		)	—
Earnings from continuing operations - diluted	$	8,257		$	8,171

Denominator:
Weighted-average shares outstanding - basic	59,133			63,636
Common equivalent shares:
Effect of stock-based compensation awards	684			809
Effect of stock warrants	5,132			612
Weighted-average shares outstanding assuming dilution	64,949			65,057

Basic earnings per share from continuing operations	$	0.17		$	0.13
Diluted earnings per share from continuing operations	$	0.13		$	0.13

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 underlying warrants as of March 31, 2017, could result in 12.3 million additional shares of the Company's common stock if the warrants are settled by tendering cash. 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 none and none during the three month periods ending March 31, 2017 and 2016, respectively.