Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.19.3.a.u2
Earnings Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following table presents a reconciliation of the earnings (loss) and shares used in calculating basic and diluted earnings (loss) per share for the years ended December 31, 2019, 2018 and 2017:
 
Year Ended
 
December 31,
(in thousands, except share data)
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Net income (loss) from continuing operations
$
323,962

 
$
(44,290
)
 
$
308,239

Income from discontinued operations, net of tax
—

 
—

 
44,146

Net income (loss)
$
323,962

 
$
(44,290
)
 
352,385

Income from discontinued operations attributable to noncontrolling interest
—

 
—

 
3,814

Net income (loss) attributable to Two Harbors Investment Corp.
323,962

 
(44,290
)
 
348,571

Dividends on preferred stock
75,801

 
65,395

 
25,122

Net income (loss) attributable to common stockholders - basic
248,161

 
(109,685
)
 
323,449

Interest expense attributable to convertible notes (1)
—

 
—

 
17,867

Net income (loss) attributable to common stockholders - diluted
$
248,161

 
$
(109,685
)
 
$
341,316

Denominator:
 
 
 
 
 
Weighted average common shares outstanding
266,594,154

 
204,409,853

 
173,063,178

Weighted average restricted stock shares
1,232,585

 
1,610,649

 
1,370,821

Basic weighted average shares outstanding
267,826,739

 
206,020,502

 
174,433,999

Effect of dilutive shares issued in an assumed conversion
—

 
—

 
13,699,342

Diluted weighted average shares outstanding
267,826,739

 
206,020,502

 
188,133,341

Basic Earnings (Loss) Per Share:
 
 
 
 
 
Continuing operations
$
0.93

 
$
(0.53
)
 
$
1.62

Discontinued operations
—

 
—

 
0.23

Net income (loss)
$
0.93

 
$
(0.53
)
 
$
1.85

Diluted Earnings (Loss) Per Share:
 
 
 
 
 
Continuing operations
$
0.93

 
$
(0.53
)
 
$
1.60

Discontinued operations
—

 
—

 
0.21

Net income (loss)
$
0.93

 
$
(0.53
)
 
$
1.81


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

For the year ended December 31, 2019, excluded from the calculation of diluted earnings per share is the effect of adding back $19.0 million of interest expense, net of a nondiscretionary adjustment for the assumed change in the management fee calculation, and 18,128,792 weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive.
For the year ended December 31, 2018, excluded from the calculation of diluted earnings per share is the effect of adding back $18.9 million of interest expense, net of a nondiscretionary adjustment for the assumed change in the management fee calculation, and 17,806,090 weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive.