Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
9 Months Ended
Sep. 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 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):

 

     Three Months Ended
September 30, 2014
    Nine Months Ended
September 30, 2014
 

Numerator (Basic and Diluted):

    

Net income

   $ 13,523      $ 33,101   
  

 

 

   

 

 

 

Denominator:

    

Basic

    

Weighted average common shares issued and outstanding

     36,624        36,613   

Deduct: Unvested RSAs (1)

     (53     (42

Add: Fully vested DSUs (2)

     2,276        2,276   
  

 

 

   

 

 

 

Weighted Average Common Shares Outstanding

     38,847        38,847   
  

 

 

   

 

 

 

Basic earnings per common share

   $ 0.35      $ 0.85   
  

 

 

   

 

 

 

Diluted

    

Weighted Average Common Shares Outstanding from above

     38,847        38,847   

Add: Dilutive effect of RSUs and RSAs

     164        102   
  

 

 

   

 

 

 

Weighted Average Common Shares Outstanding

     39,011        38,949   
  

 

 

   

 

 

 

Diluted earnings per common share

   $ 0.35      $ 0.85   
  

 

 

   

 

 

 

 

(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 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.