EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at June 30, 2015 and 2014, are considered contingently returnable until the restrictions lapse and will not be included in the basic earnings per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain nonforfeitable rights to dividends and dividend equivalents.

Diluted earnings per share includes the effect of all potentially dilutive securities on earnings per share. Our unvested restricted shares, restricted stock units and stock options are potentially dilutive securities. The difference between basic and diluted weighted-average shares outstanding was the dilutive effect of unvested restricted shares, restricted stock units and stock options for the three and six months ended June 30, 2015 and 2014.

The following table represents a reconciliation of the basic and diluted earnings per share from continuing operations, or EPS, computations contained in our condensed consolidated financial statements (in thousands, except per share data):



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Net income from continuing operations	$	4,880	$	6,133	$	6,267	$	11,403
Weighted-average shares outstanding - basic and diluted:
Weighted-average shares outstanding - basic	44,029		45,859		44,479		46,121
Add effect of dilutive securities:
Unvested restricted stock	556		673		558		646
Stock options	—		18		—		17
Weighted-average shares outstanding - diluted	44,585		46,550		45,037		46,784
Basic net income per share from continuing operations	$	0.11	$	0.13	$	0.14	$	0.25
Diluted net income per share from continuing operations	$	0.11	$	0.13	$	0.14	$	0.24

The weighted-average diluted common shares outstanding for the three and six months ended June 30, 2015 excludes the effect of 115,384 and 130,144 restricted stock and out-of-the-money options, respectively, because their effect would be anti-dilutive. The weighted-average diluted common shares outstanding for the three and six months ended June 30, 2014 excludes the effect of 1,352 and 13,965 restricted stock and out-of-the-money options, respectively, because their effect would be anti-dilutive.