Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.10.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017. All per share amounts, common shares outstanding and restricted shares for all periods presented reflect the Company’s one-for-two reverse stock split effected on November 1, 2017 (refer to Note 17 - Stockholders’ Equity for additional information).
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands, except share data)
2018
 
2017
 
2018
 
2017
Numerator:
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
139,490

 
$
(5,539
)
 
$
474,299

 
$
52,992

Income from discontinued operations, net of tax

 
14,197

 

 
27,651

Net income
139,490

 
8,658

 
474,299

 
80,643

Income from discontinued operations attributable to noncontrolling interest

 
40

 

 
40

Net income attributable to Two Harbors Investment Corp.
139,490

 
8,618

 
474,299

 
80,603

Dividends on preferred stock
13,747

 
4,285

 
27,494

 
4,285

Net income attributable to common stockholders - basic
125,743

 
4,333

 
446,805

 
76,318

Interest expense attributable to convertible notes (1)
4,689

 

 
9,390

 

Net income attributable to common stockholders - diluted
$
130,432

 
$
4,333

 
$
456,195

 
$
76,318

Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding
173,789,898

 
173,074,935

 
173,671,942

 
172,951,419

Weighted average restricted stock shares
1,662,091

 
1,398,233

 
1,627,880

 
1,426,676

Basic weighted average shares outstanding
175,451,989

 
174,473,168

 
175,299,822

 
174,378,095

Effect of dilutive shares issued in an assumed conversion
17,760,888

 

 
17,716,971

 

Diluted weighted average shares outstanding
193,212,877


174,473,168


193,016,793


174,378,095

Basic Earnings Per Share:

 


 

 


Continuing operations
$
0.72

 
$
(0.06
)
 
$
2.55

 
$
0.28

Discontinued operations

 
0.08

 

 
0.16

Net income
$
0.72

 
$
0.02

 
$
2.55

 
$
0.44

Diluted Earnings Per Share:
 
 
 
 
 
 
 
Continuing operations
$
0.68

 
$
(0.06
)
 
$
2.36

 
$
0.28

Discontinued operations


0.08




0.16

Net income
$
0.68


$
0.02


$
2.36


$
0.44


___________________
(1)
Includes a nondiscretionary adjustment for the assumed change in the management fee calculation.

For the three and six months ended June 30, 2017, excluded from the calculation of diluted earnings per share is the effect of adding back $4.6 million and $8.4 million of interest expense, respectively, net of a nondiscretionary adjustment for the assumed change in the management fee calculation, and 14,390,079 and 12,953,023 weighted average common share equivalents, respectively, related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive.