EXHIBIT 11
CAPSTEAD MORTGAGE CORPORATION
COMPUTATION OF NET INCOME PER SHARE*
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1995 1994 1995 1994
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PRIMARY:
Average number of common
shares outstanding 15,384 15,266 15,337 15,236
Incremental shares calculated
using the Treasury Stock
method 24 11 11 34
------- ------- -------- --------
15,408 15,277 15,348 15,270
======= ======= ======== ========
Net income $21,297 $22,267 $ 54,401 $ 65,766
Less cash dividends paid on
convertible preferred stock:
Series A ($0.40 per share) (230) (254) (718) (796)
Series B ($0.315 per share) (9,616) (9,475) (28,749) (28,323)
------- ------- -------- --------
Net income available to common
stockholders $11,451 $12,538 $ 24,934 $ 36,647
======= ======= ======== ========
Primary net income per share $0.74 $0.82 $1.62 $2.40
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FULLY DILUTED:
Average number of common
shares outstanding 15,384 15,266 15,337 15,236
Assumed conversion of
convertible preferred stock:
Series A 526 587 544 608
Series B ** ** ** **
Incremental shares calculated
using the Treasury Stock
method 82 11 82 34
------- ------- -------- --------
15,992 15,864 15,963 15,878
======= ======= ======== ========
Net income $21,297 $22,267 $ 54,401 $ 65,766
Less cash dividends paid on
the Series B Preferred Stock (9,616) (9,475) (28,749) (28,323)
------- ------- -------- --------
Net income $11,681 $12,792 $ 25,652 $ 37,443
======= ======= ======== ========
Fully diluted net income per share $0.73 $0.81 $1.61 $2.36
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* NOT ADJUSTED FOR THE 3-FOR-2 COMMON STOCK SPLIT PAYABLE ON NOVEMBER 15, 1995
TO STOCKHOLDERS OF RECORD ON OCTOBER 30, 1995.
** THE SERIES B PREFERRED STOCK IS NOT CONSIDERED CONVERTIBLE FOR PURPOSES OF
CALCULATING FULLY DILUTED NET INCOME PER SHARE AS IT IS CURRENTLY
ANTIDILUTIVE.