Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ending
	September 30,				September 30,
	2020		2019		2020		2019
Numerator:
Earnings from continuing operations - basic	$	(5,745)	$	105,085	$	22,826	$	101,087
Gain from stock warrants revaluation, net of tax	—		(91,849)		—		(71,319)
Earnings from continuing operations - diluted	$	(5,745)	$	13,236	$	22,826	$	29,768

Denominator:
Weighted-average shares outstanding for basic earnings per share	59,146		58,919		59,106		58,889
Common equivalent shares:
Effect of stock-based compensation awards and warrants	—		9,799		757		10,493
Weighted-average shares outstanding assuming dilution	59,146		68,718		59,863		69,382
Basic earnings per share from continuing operations	$	(0.10)	$	1.78	$	0.39	$	1.72
Diluted earnings per share from continuing operations	$	(0.10)	0.19		0.38		0.43

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 number of equivalent shares that were not included in weighted average shares outstanding assuming dilution because their effect would have been anti-dilutive, were 13.3 million and 9.7 million for the three and nine month periods ended September 30, 2020, respectively.