Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE

v3.8.0.1
EQUITY AND EARNINGS PER SHARE
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 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
(116,330
)
 
13.13

 
 
Balance at September 30, 2017
5,010,576

 
$
2.55

 
5.84
 
 
 
 
 
 
Exercisable at September 30, 2017
3,858,081

 
$
2.58

 
5.86


As of September 30, 2017, the Company’s outstanding options were summarized as follows:
 
 
Issued in 2011 and thereafter
Held by the Manager
 
3,857,748

Issued to the Manager and subsequently transferred to certain of the Manager’s employees
 
1,152,495

Issued to the independent directors
 
333

Total
 
5,010,576

Weighted average strike price
 
$
2.55



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.

On May 4, 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 May 1, 2017 and ending July 31, 2017. Dividends totaling $1.4 million were paid on July 31, 2017.

On August 1, 2017, the Company declared dividends of $0.609375, $0.503125, $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 August 1, 2017 and ending October 31, 2017. Dividends totaling $1.4 million were paid on October 31, 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. In May 2017, the Company issued a total of 90,366 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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator for basic and diluted earnings per share:
 
 
 
 
 
 
 
(Loss) Income from continuing operations after preferred dividends and noncontrolling interests
$
(1,864
)
 
$
18,923

 
$
(22,314
)
 
$
92,598

(Loss) Income Applicable to Common Stockholders
$
(1,864
)
 
$
18,923

 
$
(22,314
)
 
$
92,598

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share - weighted average shares
66,932,744

 
66,730,583

 
66,883,291

 
66,688,962

Effect of dilutive securities
 
 
 
 
 
 
 
Options
—

 
2,342,093

 
—

 
2,064,570

Denominator for diluted earnings per share - adjusted weighted average shares
66,932,744

 
69,072,676

 
66,883,291

 
68,753,532

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
$
(0.03
)
 
$
0.28

 
$
(0.33
)
 
$
1.39

 
 
 
 
 
 
 
 
(Loss) Income Applicable to Common Stock, per share
$
(0.03
)
 
$
0.28

 
$
(0.33
)
 
$
1.39

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
$
(0.03
)
 
$
0.27

 
$
(0.33
)
 
$
1.35

 
 
 
 
 
 
 
 
(Loss) Income Applicable to Common Stock, per share
$
(0.03
)
 
$
0.27

 
$
(0.33
)
 
$
1.35


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 and nine months ended September 30, 2017, the Company had 566,894 and 269,311 antidilutive options, respectively. During the three and nine months ended September 30, 2016, the Company had 267,706 and 335,725 antidilutive options, respectively. During the three and nine months ended September 30, 2017, based on the treasury stock method, the Company had 1,180,858 and 1,556,898 potentially dilutive common stock equivalents, respectively, which were excluded due to the Company's loss position. During the three and nine months ended September 30, 2016, based on the treasury stock method, the Company had 2,342,093 and 2,064,570 dilutive common stock equivalents, respectively, 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.