Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE

v2.4.1.9
EQUITY AND EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2015
Stockholders' Equity Note [Abstract]  
EQUITY AND EARNINGS PER SHARE

14.   EQUITY AND EARNINGS PER SHARE
 
A. Stockholder's Equity

The following is a summary of the changes in Newcastle's outstanding options for the three months ended March 31, 2015:

 
Number of Options
 
Weighted Average Strike Price
 
Weighted Average Life Remaining (in years)
Outstanding at December 31, 2014
5,500,599

 
$
4.26

 
 
Granted
—

 
—

 
 
Exercised
—

 
—

 
 
Expired
54,999

 
14.92

 
 
Forfeited
—

 
—

 
 
Outstanding at March 31, 2015
5,445,600

 
$
4.15

 
7.7
 
 
 
 
 
 
Exercisable at March 31, 2015
3,824,013

 
$
3.82

 
7.1

As of March 31, 2015, Newcastle’s outstanding options were summarized as follows:
 
Issued Prior to 2011
 
Issued in 2011 and thereafter
 
Total
Held by the Manager
114,479

 
4,833,961

 
4,948,440

Issued to the Manager and subsequently transferred to certain of the Manager's employees
30,182

 
466,645

 
496,827

Issued to the independent directors
333

 
—

 
333

Total
144,994

 
5,300,606

 
5,445,600

Weighted average strike price
$
14.62

 
$
3.86

 
$
4.15

 
On March 16, 2015, Newcastle declared a quarterly dividend of $0.12 per common share, and 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 quarter ended March 31, 2015. Dividends totaling $9.4 million were paid in April 2015.


B. Earnings Per Share

Newcastle 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,
 
 
2015
 
2014
Numerator for basis and diluted earnings per share:
 
 
 
 
(Loss) Income from continuing operations after preferred dividends and noncontrolling interests
 
$
(2,207
)
 
$
18,822

Income (loss) from discontinued operations, net of tax
 
115

 
(15,299
)
(Loss) Income Applicable to Common Stockholders
 
$
(2,092
)
 
$
3,523

 
 
 
 
 
Denominator:
 
 
 
 
Denominator for basic earnings per share - weighted average shares
 
66,425

 
58,576

Effect of dilutive securities
 
 
 
 
Options
 
—

 
1,936

Denominator for diluted earnings per share - adjusted weighted average shares
 
66,425

 
60,512

 
 
 
 
 
Basic earnings per share:
 
 
 
 
(Loss) Income from continuing operations per share of common stock,
after preferred dividends and noncontrolling interests
 
$
(0.03
)
 
$
0.32

Income (loss) from discontinued operations per share of common
stock
 
$
—

 
$
(0.26
)
(Loss) Income Applicable to Common Stock, per share
 
$
(0.03
)
 
$
0.06

 
 
 
 
 
Diluted earnings per share:
 
 
 
 
(Loss) Income from continuing operations per share of common stock,
after preferred dividends and noncontrolling interests
 
$
(0.03
)
 
$
0.31

Income (loss) from discontinued operations per share of common
stock
 
$
—

 
$
(0.26
)
(Loss) Income Applicable to Common Stock, per share
 
$
(0.03
)
 
$
0.06

 
 
 
 
 

Basic EPS is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing net income available for 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. Due to rounding, income per share from continuing operations and income per share from discontinued operations may not sum to the income per share of common stock. Newcastle’s common stock equivalents are its outstanding stock options. During the three months ended March 31, 2015 and 2014, Newcastle had 2,547,086 and 284,295 antidilutive options. During the three months ended March 31, 2015, based on the treasury stock method, Newcastle had 1,069,463 potentially dilutive common stock equivalents which were excluded due to Newcastle's loss position. During the three months ended March 31, 2014, Newcastle had 1,935,545 dilutive common stock equivalents, resulting from its outstanding options. Net income available for common stockholders is equal to net income less preferred dividends and net income attributable to noncontrolling interests.