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):



	December 31
	2017		2016		2015
Numerator:
Earnings from continuing operations	$	21,740	$	21,060	$	39,155

Denominator:
Weighted-average shares outstanding for basic earnings per share	58,907		61,330		64,242
Common equivalent shares:
Effect of stock-based compensation awards and warrants	779		1,664		885
Weighted-average shares outstanding assuming dilution	59,686		62,994		65,127
Basic earnings per share from continuing operations	$	0.37	$	0.34	$	0.61
Diluted earnings per share from continuing operations	$	0.36	$	0.33	$	0.60

Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 241,000 shares, 327,700 shares and 348,600 shares of restricted stock for 2017, 2016 and 2015, 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 diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding.

The underlying warrants recorded as a liability as of December 31, 2017 and 2016 would have resulted in 14.8 million and 11.1 million additional shares of the Company's common stock, respectively, if the warrants were settled by tendering cash. The warrants recorded in stockholders' equity as of December 31, 2017, would have resulted in 8.1 million additional shares of the Company's common stock, if the Company's stock price exceeded $41.35 and the warrants were settled in shares.

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.

The Company repurchased common stock during 2017, including 380,637 shares on June 6, 2017 from an underwriter in conjunction with an underwritten secondary offering by 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 $8.5 million. The share price of $22.42 was equal to the price per share paid by the underwriter to Red Mountain.