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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1996 1995 1996 1995
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PRIMARY:
Average number of common
shares outstanding 38,319 34,614 36,872 34,508
Incremental shares calculated
using the Treasury Stock
method 883 54 856 25
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39,202 34,668 37,728 34,533
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Net income $32,428 $21,297 $ 91,429 $ 54,401
Less cash dividends paid on
convertible preferred stock:
Series A ($0.40 per share) (195) (230) (616) (718)
Series B ($0.315 per share) (8,643) (9,616) (27,908) (28,749)
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Net income available to common
stockholders $23,590 $11,451 $ 62,905 $ 24,934
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Primary net income per share $0.60 $0.33 $1.67 $0.72
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FULLY DILUTED:
Average number of common
shares outstanding 38,319 34,614 36,872 34,508
Assumed conversion of
convertible preferred stock:
Series A 1,032 1,184 1,070 1,224
Series B 21,514 * 22,016 *
Incremental shares calculated
using the Treasury Stock
method 892 185 1,173 185
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61,757 35,983 61,131 35,917
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Net income $32,428 $21,297 $ 91,429 $ 54,401
Less cash dividends paid on
the Series B Preferred Stock - (9,616) - (28,749)
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Net income $32,428 $11,681 $ 91,429 $ 25,652
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Fully diluted net income per share $0.53 $0.32 $1.50 $0.72
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* THE SERIES B PREFERRED STOCK IS NOT CONSIDERED CONVERTIBLE FOR PURPOSES OF
CALCULATING FULLY DILUTED NET INCOME PER SHARE AS IT WAS ANTIDILUTIVE.