Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE

v3.4.0.3
EQUITY AND EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2016
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 Newcastle’s outstanding options for the three months ended March 31, 2016:

 
Number of Options
 
Weighted Average Strike Price
 
Weighted Average Life Remaining (in years)
Balance at December 31, 2015
5,421,561

 
$
2.85

 
 
Granted (A)
333

 
3.78

 
 
Balance at March 31, 2016
5,421,894

 
$
2.86

 
6.54
 
 
 
 
 
 
Exercisable at March 31, 2016
5,054,766

 
$
2.78

 
6.37

(A)
Options granted to a non-employee director upon joining the board of directors.

As of March 31, 2016, Newcastle’s outstanding options were summarized as follows:
 
Issued Prior to 2011
 
Issued in 2011 and thereafter
 
Total
Held by the Manager
115,239

 
5,010,243

 
5,125,482

Issued to the Manager and subsequently transferred to certain of the Manager’s employees
29,422

 
266,657

 
296,079

Issued to the independent directors
—

 
333

 
333

Total
144,661

 
5,277,233

 
5,421,894

Weighted average strike price
$
13.18

 
$
2.57

 
$
2.86


 
On March 29, 2016, 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, 2016. Dividends totaling $9.4 million were paid in April 2016.



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,
 
2016
 
2015
Numerator for basic and diluted earnings per share:
 
 
 
Income (loss) from continuing operations after preferred dividends and noncontrolling interests
$
72,024

 
$
(2,207
)
Income from discontinued operations, net of tax
—

 
115

Income (loss) Applicable to Common Stockholders
$
72,024

 
$
(2,092
)
 
 
 
 
Denominator:
 
 
 
Denominator for basic earnings per share - weighted average shares
66,654,598

 
66,424,508

Effect of dilutive securities
 
 
 
Options
1,630,300

 
—

Denominator for diluted earnings per share - adjusted weighted average shares
68,284,898

 
66,424,508

 
 
 
 
Basic earnings per share:
 
 
 
Income (loss) from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
$
1.08

 
$
(0.03
)
Income from discontinued operations per share of common stock
$
—

 
$
—

Income (loss) Applicable to Common Stock, per share
$
1.08

 
$
(0.03
)
 
 
 
 
Diluted earnings per share:
 
 
 
Income (loss) from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
$
1.05

 
$
(0.03
)
Income from discontinued operations per share of common stock
$
—

 
$
—

Income (loss) Applicable to Common Stock, per share
$
1.05

 
$
(0.03
)
 
 
 
 


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, 2016 and 2015, Newcastle had 455,115 and 2,547,086 antidilutive options, respectively. During the three months ended March 31, 2016, Newcastle had 1,630,300 dilutive common stock equivalents resulting from its outstanding options. During the three months ended March 31, 2015, Newcastle had 1,069,463 potentially dilutive common stock equivalents which were excluded due to Newcastle’s loss position. Net income available for common stockholders is equal to net income less preferred dividends and net income attributable to noncontrolling interests.