EARNINGS PER SHARE

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 to exclude outstanding unvested restricted stock awards, using the two-class method, in the basic and diluted weighted average shares outstanding calculation.

The following table sets forth the computation of the basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2014:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2014			2013			2014
Numerator for basic earnings per share:
Numerator from continuing operations
Income from continuing operations	$	1,908		$	4,565		$	10,888		$	10,080
Less: Earnings allocated to unvested restricted stock	(35		)	(84		)	(236		)	(198		)
Income attributable to continuing operations	$	1,873		$	4,481		$	10,652		$	9,882

Numerator from discontinued operations
Income from discontinued operations	$	3,986		$	431		$	4,408		$	381
Less: Earnings allocated to unvested restricted stock	(74		)	(8		)	(96		)	(8		)
Income attributable to discontinued operations	$	3,912		$	423		$	4,312		$	373

Numerator for diluted earnings per share:
Adjustment for diluted earnings per share:
Interest on convertible junior subordinated debentures, net of tax	$	—		$	—		$	2,462		$	—
	$	—		$	—		$	2,462		$	—

Income attributable to continuing operations	$	1,873		$	4,481		$	13,114		$	9,882
Income attributable to discontinued operations	$	3,912		$	423		$	4,312		$	373

Denominator
Denominator for basic earnings per common share - weighted average shares outstanding	17,892			18,150			17,794			18,086
Effect of dilutive securities:
Stock options	165			126			175			137
Convertible junior subordinated debentures	—			—			4,392			—
Denominator for diluted earnings per common share - weighted average shares outstanding	18,057			18,276			22,361			18,223

Basic earnings per common share:
Continuing operations	$	0.10		$	0.25		$	0.60		$	0.55
Discontinued operations	0.22			0.02			0.24			0.02
Basic earnings per common share	$	0.32		$	0.27		$	0.84		$	0.57

Diluted earnings per common share:
Continuing operations	$	0.10		$	0.24		$	0.59		$	0.54
Discontinued operations	0.22			0.02			0.19			0.02
Diluted earnings per common share	$	0.32		$	0.26		$	0.78		$	0.56

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 months ended September 30, 2013, shares from the conversion of our convertible junior subordinated debentures and our convertible subordinated notes are excluded from the fully diluted earnings per share calculation because the inclusion of such converted shares would result in an antidilutive impact. The convertible junior subordinated notes were redeemed in March 2014 and there has been no impact on our 2014 calculation of fully diluted earnings per share.