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EXHIBIT 11
CAPSTEAD MORTGAGE CORPORATION
COMPUTATION OF NET INCOME PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1999 1998 1997
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BASIC:
Average number of common shares outstanding 58,348 60,948 51,257
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Net income (loss) $ 57,909 $(234,764) $ 159,926
Less cash dividends paid on convertible
preferred shares:
Series A ($1.60 paid per share) (598) (610) (683)
Series B ($1.26 paid per share) (21,391) (21,732) (24,774)
Series C ($0.03 paid per share) (185) -- --
Series D ($0.02 paid per share) (131) -- --
Repurchase price in excess of recorded value (251) -- --
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Net income available to common stockholders $ 35,353 $(257,106) $ 134,469
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Basic net income (loss) per common share $ 0.61 $ (4.22) $ 2.62
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DILUTED:*
Average number of common shares outstanding 58,348 60,948 51,257
Assumed conversion of dilutive convertible
preferred shares:
Series A -- -- 889
Series B -- -- 14,776
Series C 339 -- --
Series D 339 -- --
Incremental shares calculated using the
treasury stock method 20 -- 1,101
59,046 60,948 68,023
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Net income (loss) $ 57,909 $(234,764) $ 159,926
Less cash dividends paid on antidilutive
convertible preferred shares:
Series A ($1.60 paid per share) (598) (610) --
Series B ($1.26 paid per share) (21,391) (21,732) --
Repurchase price in excess of recorded value (251) -- --
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Net income available to common stockholders $ 35,669 $(257,106) $ 159,926
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Diluted net income (loss) per common share $ 0.60 $ (4.22) $ 2.35
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* The Series A and B shares were not considered convertible for purposes
of calculating diluted net income (loss) per common share in 1999 and
1998 because the effects of conversion were antidilutive. The Series C
and D shares were issued in December 1999.