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 years ended December 31, 2012, 2013 and 2014:



	Year Ended December 31,
	2012			2013			2014
	(in thousands, except per share data)
Numerator for basic earnings per share:
Numerator from continuing operations
Income from continuing operations	$	10,317		$	15,120		$	15,446
Less: Earnings allocated to unvested restricted stock	(361		)	(314		)	(295		)
Income attributable to continuing operations	$	9,956		$	14,806		$	15,151

Numerator from discontinued operations
Income from discontinued operations	$	1,086		$	4,176		$	392
Less: Earnings allocated to unvested restricted stock	—			(85		)	(8		)
Income attributable to discontinued operations	$	1,086		$	4,091		$	384

Numerator for diluted earnings per share:
Adjustment for diluted earnings per share:
Interest on convertible junior subordinated debentures, net of tax	$	—		$	3,454		$	—
	$	—		$	3,454		$	—

Income attributable to continuing operations	$	9,956		$	18,260		$	15,151
Income attributable to discontinuing operations	$	1,086		$	4,091		$	384

Denominator
Denominator for basic earnings per common share - weighted average shares outstanding	18,126			17,826			18,108
Effect of dilutive securities:
Stock options	100			175			149
Convertible junior subordinated debentures	—			4,392			—
Denominator for diluted earnings per common share - weighted average shares outstanding	18,226			22,393			18,257

Basic earnings per common share:
Continuing operations	$	0.57		$	0.83		$	0.84
Discontinued operations	0.06			0.23			0.02
Basic earnings per common share	$	0.63		$	1.06		$	0.86

Diluted earnings per common share:
Continuing operations	$	0.57		$	0.82		$	0.83
Discontinued operations	0.06			0.18			0.02
Diluted earnings per common share	$	0.63		$	1.00		$	0.85

The fully diluted weighted average shares outstanding for the year ended December 31, 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 ASC 260. For the year ended December 31, 2012, 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. The convertible junior subordinated debentures were redeemed in March and April 2014. As a result, there was no impact on our calculation of fully diluted earnings per share for the year ended December 31, 2014.

Options to purchase 0.5 million shares were not included in the computation of diluted earnings per share for the year ended December 31, 2012, because the effect would be anti-dilutive as the exercise prices exceeded the average market price of the common shares. There were no options excluded in the computation of diluted earnings per share for the years ended December 31, 2013 and 2014.