Earnings Per Share

3 Months Ended

Mar. 31, 2020

6. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted average number of potentially dilutive common and common equivalent shares outstanding during the period. Common equivalent shares are composed of incremental common shares issuable upon the exercise of stock options and RSUs subject to vesting. The dilutive effect of common equivalent shares is included in diluted earnings per share by application of the treasury stock method. The total number of common equivalent shares excluded from the calculations of diluted earnings per share, due to their anti-dilutive effect or contingent performance conditions, was approximately 106,000 and 136,000 for the three months ended March 31, 2020 and 2019, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 (in thousands, except per share data):

	Three Months Ended March 31,
	2020		2019
Numerator:
Income from continuing operations	$	7,092	$	4,780
Income from discontinued operations		—		1,194
Net income	$	7,092	$	5,974
Denominator:
Weighted-average shares outstanding		32,334		32,337
Effect of dilutive shares		23		40
Weighted-average diluted shares		32,357		32,377

Net income per share - basic:
Continuing operations	$	0.22	$	0.15
Discontinued operations		—		0.03
Net income per share - basic	$	0.22	$	0.18

Net income per share - diluted:
Continuing operations	$	0.22	$	0.15
Discontinued operations		—		0.03
Net income per share - diluted	$	0.22	$	0.18