Earnings per share information has not been presented for periods
prior to the IPO, as the holders of MMREIS Series A Redeemable
Preferred Stock 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 nine months ended
September 30, 2014 (in thousands, except per share data):
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Three Months Ended
September 30, 2014 |
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Nine Months Ended
September 30, 2014 |
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Numerator (Basic and Diluted):
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Net income
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$ |
13,523 |
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$ |
33,101 |
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Denominator:
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Basic
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Weighted average common shares issued and outstanding
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36,624 |
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36,613 |
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Deduct: Unvested RSAs (1)
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(53 |
) |
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(42 |
) |
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Add: Fully vested DSUs (2)
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2,276 |
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2,276 |
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Weighted Average Common Shares Outstanding
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38,847 |
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38,847 |
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Basic earnings per common share
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$ |
0.35 |
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$ |
0.85 |
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Diluted
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Weighted Average Common Shares Outstanding from above
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38,847 |
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38,847 |
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Add: Dilutive effect of RSUs and RSAs
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164 |
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102 |
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Weighted Average Common Shares Outstanding
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39,011 |
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38,949 |
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Diluted earnings per common share
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$ |
0.35 |
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$ |
0.85 |
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(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. |
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(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 67,000 shares and 618,000 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 nine months ended
September 30, 2014, respectively, as the effects were
antidilutive.
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