EXHIBIT 11 CAPSTEAD MORTGAGE CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 CAPSTEAD MORTGAGE CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS 1994 1993 1992 ------------- ------------- ------------ Primary: Average number of common shares outstanding 15,251,000 15,053,000 14,333,000 Incremental shares calculated using the Treasury Stock method 27,000 93,000 61,000 ------------ ------------ ----------- 15,278,000 15,146,000 14,394,000 ============ ============ =========== Net income $ 85,579,000 $ 94,256,000 $53,191,000 Less cash dividends paid on convertible preferred stock: Series A ($1.60 paid per share) (1,042,000) (1,274,000) (1,823,000) Series B ($1.26 paid per share in 1994 and 1993; $0.10 paid per share in 1992) (37,834,000) (37,318,000) (2,884,000) ------------ ------------ ----------- Net income available to common stockholders $ 46,703,000 $ 55,664,000 $48,484,000 ============ ============ =========== Primary net income per share* $3.06 $3.68 $3.37 Fully diluted: Average number of common shares outstanding 15,251,000 15,053,000 14,333,000 Assumed conversion of convertible preferred stock: Series A 597,000 741,000 1,157,000 Series B ** ** ** Incremental shares calculated using the Treasury Stock method 27,000 136,000 101,000 ------------ ------------ ----------- 15,875,000 15,930,000 15,591,000 ============ ============ =========== Net income $ 85,579,000 $ 94,256,000 $53,191,000 Less cash dividends paid on Series B Preferred Stock (37,834,000) (37,318,000) (2,884,000) ------------ ------------ ----------- Net income $ 47,745,000 $ 56,938,000 $50,307,000 ============ ============ =========== Fully diluted net income per share $3.01 $3.57 $3.23 ______________ * During the year ended December 31, 1992, 1,382,551 shares of the Series A Preferred Stock was converted into 1,244,261 shares of common stock. If this conversion had occurred at the beginning of the 1992, primary net income per share would have been $3.32 per share for the year ended December 31, 1992. ** The Series B Preferred Stock is not considered convertible for purposes of calculating fully diluted net income per share as it is currently antidilutive.