| 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 years ended December 31, 2017, 2016 and 2015. 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 21 - Stockholders’ Equity for additional information).
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Year Ended |
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December 31, |
(in thousands, except share data) |
2017 |
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2016 |
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2015 |
Numerator: |
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Net income from continuing operations |
$ |
308,239 |
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$ |
317,921 |
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$ |
492,072 |
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Income from discontinued operations, net of tax |
44,146 |
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35,357 |
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138 |
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Net income |
352,385 |
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353,278 |
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492,210 |
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Income from discontinued operations attributable to noncontrolling interest |
3,814 |
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— |
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— |
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Net income attributable to Two Harbors Investment Corp. |
348,571 |
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353,278 |
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492,210 |
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Dividends on preferred stock |
25,122 |
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— |
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— |
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Net income attributable to common stockholders - basic |
323,449 |
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353,278 |
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492,210 |
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Interest expense attributable to convertible notes (1)
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17,867 |
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— |
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— |
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Net income attributable to common stockholders - diluted |
341,316 |
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353,278 |
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492,210 |
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Denominator: |
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Weighted average common shares outstanding |
173,063,178 |
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172,523,497 |
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181,527,614 |
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Weighted average restricted stock shares |
1,370,821 |
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1,513,355 |
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1,096,255 |
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Basic weighted average shares outstanding |
174,433,999 |
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174,036,852 |
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182,623,869 |
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Effect of dilutive shares issued in an assumed conversion |
13,699,342 |
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— |
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— |
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Diluted weighted average shares outstanding |
188,133,341 |
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174,036,852 |
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182,623,869 |
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Basic Earnings Per Share: |
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Continuing operations |
$ |
1.62 |
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$ |
1.83 |
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$ |
2.70 |
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Discontinued operations |
0.23 |
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0.20 |
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— |
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Net income |
$ |
1.85 |
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$ |
2.03 |
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$ |
2.70 |
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Diluted Earnings Per Share: |
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Continuing operations |
$ |
1.60 |
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$ |
1.83 |
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$ |
2.70 |
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Discontinued operations |
0.21 |
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0.20 |
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— |
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Net income |
$ |
1.81 |
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$ |
2.03 |
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$ |
2.70 |
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___________________
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(1) |
Includes a nondiscretionary adjustment for the assumed change in the management fee calculation. |
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