Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
11. Earnings Per Share

Earnings per share information has not been presented for periods prior to the IPO, as the holders of MMREIS Series A Redeemable Preferred Stock (issued and outstanding shares were cancelled subsequent to the IPO) were entitled to receive dividends at a rate determined by the Board of Directors, payable in preference and priority to any distribution on MMREIS common stock. Since MMREIS typically distributed its earnings to the Series A Preferred stockholders on a quarter-in-arrears basis, earnings per common share information for MMREIS common stock was not meaningful.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 (in thousands, except per share data):

 

     Three Months Ended
June 30, 2014 		    Six Months Ended
June 30, 2014 		 

Numerator (Basic and Diluted):

     

Net income

    $ 12,796      $ 19,578   
  

 

 

    

 

 

  

Denominator:

     

Basic

     

Weighted average common shares issued and outstanding

      36,615        36,608   

Deduct: Unvested RSAs (1)

      (44 )      (37 ) 

Add: Fully vested DSUs (2)

      2,276        2,276   
  

 

 

    

 

 

  

Weighted Average Common Shares Outstanding

      38,847        38,847   
  

 

 

    

 

 

  

Basic earnings per common share

    $ 0.33      $ 0.50   
  

 

 

    

 

 

  

Diluted

     

Weighted Average Common Shares Outstanding from above

      38,847        38,847   

Add: Dilutive effect of RSUs and RSAs

      79        70   
  

 

 

    

 

 

  

Weighted Average Common Shares Outstanding

      38,926        38,917   
  

 

 

    

 

 

  

Diluted earnings per common share

    $ 0.33      $ 0.50   
  

 

 

    

 

 

  

 

(1)  RSAs were issued and outstanding to the non-employee directors and have a three year vesting term subject to service requirements. See Note 9 – “Stock-Based Compensation” for additional information.
(2)  DSUs of 2.3 million shares are included in weighted average common shares outstanding as the DSUs were fully vested upon receipt and will be settled in actual stock issued at a rate of 20% per year if the participant remains employed by the Company during that period (or otherwise all unsettled shares of stock upon termination of employment will be settled five years from the termination date). See Note 9 – “Stock-Based Compensation” for additional information.

RSUs totaling 644,000 shares and 639,000 shares, primarily pertaining to grants to the Company’s independent contractors, were excluded from the calculation of diluted earnings per common share for the three and six months ended June 30, 2014, respectively, as the effects were antidilutive.