Earnings Per Share

12 Months Ended

Dec. 31, 2019

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
	2019			2018			2017
Numerator:
Earnings from continuing operations - basic	$	59,983		$	67,883		$	21,740
Gain from stock warrants revaluation, net of tax	(6,219		)	(7,118		)	—
Earnings from continuing operations - diluted	$	53,764		$	60,765		$	21,740

Denominator:
Weighted-average shares outstanding for basic earnings per share	58,899			58,765			58,907
Common equivalent shares:
Effect of stock-based compensation awards and warrants	10,449			9,591			779
Weighted-average shares outstanding assuming dilution	69,348			68,356			59,686
Basic earnings per share from continuing operations	$	1.02		$	1.16		$	0.37
Diluted earnings per share from continuing operations	$	0.78		0.89			$	0.36

Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 317,600 shares, 329,600 shares and 241,000 shares of restricted stock for 2019, 2018 and 2017, 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 D), if such warrants have an 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, 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 7.8 million for the year ended December 31, 2017.

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.