Earnings Per Share

6 Months Ended

Jun. 30, 2020

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						Six Months Ending
	June 30,						June 30,
	2020		2019		2020		2019
Numerator:
Earnings from continuing operations - basic	$	(105,162)	$	(26,632)	$	28,571	$	(3,998)
Gain from stock warrants revaluation, net of tax	—		—		(19,312)		—
Earnings from continuing operations - diluted	$	(105,162)	$	(26,632)	$	9,259	$	(3,998)

Denominator:
Weighted-average shares outstanding for basic earnings per share	59,130		58,909		59,085		58,874
Common equivalent shares:
Effect of stock-based compensation awards and warrants	—		—		9,019		—
Weighted-average shares outstanding assuming dilution	59,130		58,909		68,104		58,874
Basic earnings per share from continuing operations	$	(1.78)	$	(0.45)	$	0.48	$	(0.07)
Diluted earnings per share from continuing operations	$	(1.78)	(0.45)		0.14		(0.07)

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 June 30, 2020 and 2019 would have resulted in 39.5 million and 39.5 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 9.3 million and 0.1 million for the three and six month periods ended June 30, 2020, respectively, compared to 10.9 million and 10.8 million for the corresponding periods of 2019.