Net Earnings Per Share

9 Months Ended

Sep. 30, 2015

NET 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 of shares issuable under its equity compensation plans described in Note 9 of the consolidated financial statements. The weighted average number of shares and conversions utilized in the calculation of diluted earnings per share does not include potential anti-dilutive common shares aggregating 759,000 and 485,000 for the three months ended September 30, 2015 and 2014, respectively, and 567,000 and 511,000 for the nine months ended September 30, 2015 and 2014, respectively. 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 and nine months ended September 30, (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015			2014
Numerator:
Income from continuing operations	$	13,632	$	9,571		$	23,256		$	13,916
Loss from discontinued operations	—		(31		)	(28		)	(31		)
Net income available to common shareholders	$	13,632	$	9,540		$	23,228		$	13,885
Denominator for basic earnings per share:
Weighted average shares outstanding	31,242		31,083			31,214			31,046
Denominator for diluted earnings per share:
Weighted average shares outstanding	31,242		31,083			31,214			31,046
Common stock options and restricted stock	316		215			265			210
Weighted average shares and conversions	$	31,558	$	31,298		$	31,479		$	31,256