EARNINGS PER SHARE

Earnings per share for the three and nine months ended September 30, 2012 and 2013 is calculated based on the weighted average number of common and common equivalent shares outstanding during the periods. The following table sets forth the computation of the basic and diluted earnings per share for the three and nine months ended September 30, 2012 and 2013:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Numerator for basic earnings per share:
Numerator from continuing operations
Income from continuing operations	$	190		$	1,914		$	6,528		$	10,925
Less: Earnings allocated to unvested restricted stock	(17		)	(35		)	(222		)	(237		)
Income attributable to continuing operations	173			1,879			6,306			10,688

Numerator from discontinued operations
Income from discontinued operations	$	416		$	3,980		$	1,202		$	4,371
Less: Earnings allocated to unvested restricted stock	—			(74		)	—			(95		)
Income attributable to discontinued operations	416			3,906			1,202			4,276

Adjustment for diluted earnings per share:
Interest on convertible junior subordinated debentures, net of tax	—			—			—			2,463
	$	—		$	—		$	—		$	2,463
Numerator for diluted earnings per share:
Income attributable to continuing operations	$	173		$	1,879		$	6,306		$	13,151
Income attributable to discontinued operations	416			3,906			1,202			4,276
	$	589		$	5,785		$	7,508		$	17,427

Denominator
Denominator for basic earnings per common share - weighted average shares outstanding	18,051			17,892			18,129			17,794
Effect of dilutive securities:
Stock options	119			165			83			175
Convertible junior subordinated debentures	—			—			—			4,392
Denominator for diluted earnings per common share - weighted average shares outstanding	18,170			18,057			18,212			22,361

Basic earnings per common share:
Continuing operations	$	0.01		$	0.10		$	0.36		$	0.60
Discontinued operations	$	0.02		$	0.22		$	0.07		$	0.24
Basic earnings per common share	$	0.03		$	0.32		$	0.43		$	0.84

Diluted earnings per common share:
Continuing operations	$	0.01		$	0.10		$	0.35		$	0.59
Discontinued operations	$	0.02		$	0.22		$	0.07		$	0.19
Diluted earnings per common share	$	0.03		$	0.32		$	0.42		$	0.78

Share-based awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees and directors are considered participating securities, and we have prepared our earnings per share calculations attributable to common stockholders to exclude outstanding unvested restricted stock awards, using the two-class method, in the basic and diluted weighted average shares outstanding calculation.

The fully diluted weighted average shares outstanding for the nine months ended September 30, 2013, and the corresponding calculation of fully diluted earnings per share include approximately 4.4 million shares that would be issued upon conversion of our convertible junior subordinated debentures as a result of the application of the if-converted method prescribed by FASB ASC 260-10-45. For the three and nine months ended September 30, 2012 and the three months ended September 30, 2013, the conversion of our convertible junior subordinated debentures is excluded from the fully diluted earnings per share calculation and the fully diluted weighted average share count because the inclusion of such converted shares would result in an antidilutive impact.