(13) Basic and Diluted Earnings per Share

Potential shares of common stock are included in the diluted earnings per share calculation when dilutive. Potential shares of common stock, consisting of common stock issuable upon exercise of outstanding employee stock options, are calculated using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share data) for the periods indicated:


	Years Ended December 31,
	2014		2013		2012
Numerator:
Income (loss) from:
Continuing operations, net of tax	$	5,035	$	26,550	$	22,473
Discontinued operations, net of tax		0		56,782		(1,927	)

Net income	$	5,035	$	83,332	$	20,546

Denominator:
Weighted average common shares of class A common stock		9,246		9,073		8,768
Weighted average common shares of class B common stock		2,055		2,227		2,227

Total weighted average common stock shares outstanding		11,301		11,300		10,995
Effect of dilutive securities:
Employee stock options		55		1		179

Adjusted weighted average shares		11,356		11,301		11,174


Earnings per share:
Basic earnings (loss) per share
From continuing operations	$	0.45	$	2.35	$	2.05
From discontinued operations		0		5.02		(0.18	)

Basic earnings per share	$	0.45	$	7.37	$	1.87

Diluted earnings (loss) per share:
From continuing operations	$	0.44	$	2.35	$	2.01
From discontinued operations		0		5.02		(0.17	)

Diluted earnings per share	$	0.44	$	7.37	$	1.84

For the year ended December 31, 2014, stock options issued under the 2013 Plan to purchase an aggregate of 735,000 shares of class A common stock were excluded from the diluted earnings per share computation because the effect of their inclusion would have been anti-dilutive. For the year ended December 31, 2013, stock options issued under the 2013 Plan to purchase an aggregate of 600,000 shares of class A common stock were excluded from the diluted earnings per share computation because the effect of their inclusion would have been anti-dilutive. No options to purchase shares of common stock were excluded from the diluted earnings per share computation for the year ended December 31, 2012.