Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Computation of Basic and Diluted Earnings Per Share from Continuing Operations

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Numerator:
Income from continuing operations	$	20,096	$	18,006	$	78,437	$	72,185
Denominator:
Basic
Weighted average common shares outstanding		54,403		54,268		54,372		54,215
Diluted
Stock options (1)		738		1,279		825		1,267
Restricted stock awards (1)		135		185		192		212
Contingent shares (2)		84		84		84		84
Diluted weighted average common shares outstanding (3)		55,360		55,816		55,473		55,778
Basic earnings per share from continuing operations	$	0.37	$	0.33	$	1.44	$	1.33
Diluted earnings per share from continuing operations	$	0.36	$	0.32	$	1.41	$	1.29

(1)

A total of 0.3 million and 0.2 million share based awards were excluded from the calculation of diluted earnings per share for the three and nine months ended September 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 nine months ended September 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2020 and 2019.