15. EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company's case, comprise shares issuable under its equity compensation plans described in Note 10 of the consolidated financial statements. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options assumed to be exercised and the unrecognized expense related to the restricted stock and restricted stock unit awards assumed to have vested.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31 (in thousands):


		2012			2011
Numerator:
Income from continuing operations	$	1,449		$	1,441
(Loss) income from discontinued operations		(87	)		6,968
Net income available to common shareholders	$	1,362		$	8,409

Denominator for basic earnings per share:
Weighted average shares outstanding		30,718			30,425

Denominator for diluted earnings per share:
Weighted average shares outstanding		30,718			30,425
Common stock options and restricted stock		133			169
Weighted average shares and conversions		30,851			30,594