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,
	2019			2018
Numerator:
Earnings from continuing operations - basic	$	22,634		$	15,682
Gain from stock warrants revaluation, net of tax	(7,653		)	—
Earnings from continuing operations - diluted	$	14,981		$	15,682

Denominator:
Weighted-average shares outstanding for basic earnings per share	58,838			58,840
Common equivalent shares:
Effect of stock-based compensation awards and warrants	1,599			718
Weighted-average shares outstanding assuming dilution	60,437			59,558
Basic earnings per share from continuing operations	$	0.38		$	0.27
Diluted earnings per share from continuing operations	$	0.25		$	0.26

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 C), 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 March 31, 2019 and 2018 would have resulted in 39.5 million and 14.8 million additional shares of the Company's common stock, respectively, if the warrants were 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, were 9.2 million and 9.7 million for the three month period ended March 31, 2019 and 2018, respectively.