Earnings Per Share

6 Months Ended

Jun. 30, 2020

Note 10. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Numerator:
Income from continuing operations	$	21,479	$	16,614	$	58,341	$	54,179
Denominator:
Basic
Weighted average common shares outstanding		54,142		54,090		54,356		54,188
Diluted
Stock options (1)		760		1,188		869		1,247
Restricted stock units and awards (1)		146		176		222		225
Contingent shares (2)		68		41		68		41
Diluted weighted average common shares outstanding (3)		55,116		55,495		55,515		55,701
Basic earnings per share from continuing operations	$	0.40	$	0.31	$	1.07	$	1.00
Diluted earnings per share from continuing operations	$	0.39	$	0.30	$	1.05	$	0.97

(1)

A total of 0.4 million and 0.4 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2020, respectively, and a total of 0.5 million and 0.5 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2019, respectively, as their effect would be anti-dilutive.

(2)

Contingent shares represent additional shares to be issued for purchase price earned by former owners of businesses acquired by us once future considerations have been met. Refer to Note 11, Business Combinations, for further details.

(3)

The denominator used in calculating diluted earnings per share did not include 0.3 million performance share units for both the three and six months ended June 30, 2020, and the denominator used in calculating diluted earnings per share did not include 0.2 million performance share units for both the three and six months ended June 30, 2019. The performance conditions associated with these performance share units were not met and consequently none of these performance share units were considered as issuable for the three and six months ended June 30, 2020 and 2019.