EQUITY AND EARNINGS PER SHARE (Tables)
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9 Months Ended |
Sep. 30, 2019 |
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| Stockholders' Equity Note [Abstract] |
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| Schedule of outstanding options |
The following is a summary of the changes in the Company’s outstanding options for the nine months ended September 30, 2019:
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Number of Options |
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Weighted Average Strike Price |
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Weighted Average Life Remaining (in years) |
Balance at December 31, 2018 |
8,436,931 |
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|
$ |
3.72 |
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Granted (B) |
695,652 |
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|
4.66 |
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Balance at September 30, 2019 |
9,132,583 |
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$ |
3.79 |
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|
6.02 |
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Exercisable at September 30, 2019 |
3,627,578 |
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$ |
2.59 |
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|
3.49 |
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| Schedule of outstanding options summary |
As of September 30, 2019, the Company’s outstanding options were summarized as follows:
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Number of Options |
Held by the former Manager |
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3,627,245 |
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Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A) |
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1,382,998 |
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Issued to the independent directors |
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333 |
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Issued to Drive Shack employees (B) |
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4,122,007 |
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Total |
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9,132,583 |
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Weighted average strike price |
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$ |
3.79 |
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(A) |
The Company and the former Manager agreed that options held by certain employees formerly employed by the Manager would not terminate or be forfeited as a result of the Termination and Cooperation Agreement, and the vesting of such options relate to the relevant holder’s employment with the Company and its affiliates following January 1, 2018. In both February 2017 and April 2018, the former Manager issued 1,152,495 options to certain employees formerly employed by the Manager as part of their compensation. The options fully vest and are exercisable one year prior to the option expiration date, beginning March 2020 through January 2024. In July 2019, a certain employee was terminated by the Company and 921,992 options reverted back to the former Manager. The Company reversed $1.2 million in stock compensation expense related to these options.
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(B) |
In November 2018, the Company issued options to certain employees as provided in their employment agreements. The options fully vest and are exercisable as follows: 3,351,355 options vest in equal annual installments on each of the first three anniversaries of the grant date, and 75,000 options fully vest on the third anniversary of the grant date. In April 2019, the Company issued 695,652 options to an employee that vest and become exercisable in equal annual installment on each of the first three anniversaries of the grant date.
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| Schedule of stock option fair value assumptions |
The fair value of the options granted was determined using the following assumptions:
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Option Valuation Date |
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April 11, 2019 |
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Expected Volatility |
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36.80 |
% |
Expected Dividend Yield |
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0.00 |
% |
Expected Remaining Term |
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6.0 years |
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Risk-Free Rate |
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2.34 |
% |
Fair Value at Grant Date |
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$ |
1,280 |
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| Summary of changes in RSUs |
The following is a summary of the changes in the Company’s RSUs for the nine months ended September 30, 2019.
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Number of RSUs |
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Weighted Average Grant Date Fair Value (per unit) |
Balance at December 31, 2018 |
|
54,641 |
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$ |
5.02 |
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Granted |
|
589,967 |
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$ |
4.70 |
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Released |
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(17,452 |
) |
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$ |
5.73 |
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Forfeited |
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(95,284 |
) |
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$ |
4.68 |
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Balance at September 30, 2019 |
|
531,872 |
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$ |
4.71 |
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| Schedule of amounts used in computing basic and diluted EPS |
The following table shows the Company's basic and diluted earnings per share (“EPS”):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2019 |
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2018 |
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2019 |
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2018 |
Numerator for basic and diluted earnings per share: |
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Loss from continuing operations after preferred dividends and noncontrolling interests |
$ |
(13,414 |
) |
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$ |
(15,470 |
) |
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$ |
(43,763 |
) |
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$ |
(39,360 |
) |
Loss Applicable to Common Stockholders |
$ |
(13,414 |
) |
|
$ |
(15,470 |
) |
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$ |
(43,763 |
) |
|
$ |
(39,360 |
) |
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Denominator: |
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Denominator for basic earnings per share - weighted average shares |
67,040,692 |
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|
66,992,322 |
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|
67,032,519 |
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|
66,982,233 |
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Effect of dilutive securities |
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Options |
— |
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— |
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— |
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— |
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RSUs |
— |
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— |
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— |
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— |
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Denominator for diluted earnings per share - adjusted weighted average shares |
67,040,692 |
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|
66,992,322 |
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|
67,032,519 |
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|
66,982,233 |
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Basic earnings per share: |
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Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests |
$ |
(0.20 |
) |
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$ |
(0.23 |
) |
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$ |
(0.65 |
) |
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$ |
(0.59 |
) |
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Loss Applicable to Common Stock, per share |
$ |
(0.20 |
) |
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$ |
(0.23 |
) |
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$ |
(0.65 |
) |
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$ |
(0.59 |
) |
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Diluted earnings per share: |
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Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests |
$ |
(0.20 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.65 |
) |
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$ |
(0.59 |
) |
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Loss Applicable to Common Stock, per share |
$ |
(0.20 |
) |
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$ |
(0.23 |
) |
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$ |
(0.65 |
) |
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$ |
(0.59 |
) |
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