Drive Shack Inc. Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2015

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

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