Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE

v3.7.0.1
EQUITY AND EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2017
Stockholders' Equity Note [Abstract]  
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE
 
A. Equity

The following is a summary of the changes in the Company’s outstanding options for the three months ended March 31, 2017:
 
Number of Options
 
Weighted Average Strike Price
 
Weighted Average Life Remaining (in years)
Balance at December 31, 2016
5,126,906

 
$
2.79

 
 
Expired
(40,330
)
 
14.44

 
 
Balance at March 31, 2017
5,086,576

 
$
2.70

 
5.91
 
 
 
 
 
 
Exercisable at March 31, 2017
3,934,081

 
$
2.77

 
5.81








As of March 31, 2017, the Company’s outstanding options were summarized as follows:
 
Issued Prior to 2011
 
Issued in 2011 and thereafter
 
Total
Held by the Manager
71,915

 
3,857,748

 
3,929,663

Issued to the Manager and subsequently transferred to certain of the Manager’s employees
4,085

 
1,152,495

 
1,156,580

Issued to the independent directors
—

 
333

 
333

Total
76,000

 
5,010,576

 
5,086,576

Weighted average strike price
$
12.44

 
$
2.55

 
$
2.70



On February 27, 2017, the Company declared dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning February 1, 2017 and ending April 30, 2017. Dividends totaling $1.4 million were paid on April 28, 2017.

In January 2017, the Company issued a total of 18,074 shares of its common stock to its independent directors as a component of their annual compensation.

B. Earnings Per Share

The Company is required to present both basic and diluted earnings per share (“EPS”). The following table shows the amounts used in computing basic and diluted EPS:
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Numerator for basic and diluted earnings per share:
 
 
 
 
(Loss) Income Applicable to Common Stockholders
 
$
(14,349
)
 
$
72,024

 
 
 
 
 
Denominator:
 
 
 
 
Denominator for basic earnings per share - weighted average shares
 
66,841,977

 
66,654,598

Effect of dilutive securities
 
 
 
 
Options
 
—

 
1,630,300

Denominator for diluted earnings per share - adjusted weighted average shares
 
66,841,977

 
68,284,898

 
 
 
 
 
Basic earnings per share:
 
 
 
 
(Loss) Income Applicable to Common Stock, per share
 
$
(0.21
)
 
$
1.08

 
 
 
 
 
Diluted earnings per share:
 
 
 
 
(Loss) Income Applicable to Common Stock, per share
 
$
(0.21
)
 
$
1.05


Basic EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. The Company’s common stock equivalents are its outstanding stock options. During the three months ended March 31, 2017 and 2016, the Company had 151,234 and 455,115 antidilutive options, respectively. During the three months ended March 31, 2017, based on the treasury stock method, the Company had 1,941,409 potentially dilutive common stock equivalents which were excluded due to the Company's loss position. During the three months ended March 31, 2016, based on the treasury stock method, the Company had 1,630,300 dilutive common stock equivalents, resulting from its outstanding options. Income (loss) applicable to common stockholders is equal to net income (loss) less preferred dividends and net income (loss) attributable to noncontrolling interest.