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EXHIBIT 11
CAPSTEAD MORTGAGE CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
1997 1996 1995
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BASIC:*
Average number of common shares
outstanding 51,257,000 38,317,000 34,631,000
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Net income $ 159,926,000 $ 127,228,000 $ 77,359,000
Less cash dividends paid on
convertible preferred stock:
Series A ($1.60 paid per share) (683,000) (804,000) (939,000)
Series B ($1.26 paid per share) (24,774,000) (35,552,000) (38,395,000)
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Net income available to common
stockholders $ 134,469,000 $ 90,872,000 $ 38,025,000
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Basic net income per common share $ 2.62 $ 2.37 $ 1.10
DILUTED:*
Average number of common shares
outstanding 51,257,000 38,317,000 34,631,000
Assumed conversion of convertible
preferred stock:
Series A 889,000 1,048,000 1,204,000
Series B 14,776,000 21,176,000 **
Incremental shares calculated
using the treasury stock method 1,101,000 960,000 48,000
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68,023,000 61,501,000 35,883,000
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Net income $ 159,926,000 $ 127,228,000 $ 77,359,000
Less cash dividends paid on
Series B Preferred Stock - - (38,395,000)
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Net income $ 159,926,000 $ 127,228,000 $ 38,964,000
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Diluted net income per common share $ 2.35 $ 2.07 $ 1.09
* AMOUNTS PRIOR TO 1997 HAVE BEEN RESTATED AS REQUIRED TO COMPLY WITH
STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 128, "EARNINGS PER
SHARE." FOR FURTHER DISCUSSION OF NET INCOME PER COMMON SHARE, SEE THE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. AMOUNTS HAVE BEEN
ADJUSTED FOR 3-FOR-2 COMMON STOCK SPLITS EFFECTIVE OCTOBER 30, 1995 AND
JULY 31, 1996.
** THE SERIES B PREFERRED STOCK WAS NOT CONSIDERED CONVERTIBLE FOR PURPOSES OF
CALCULATING DILUTED NET INCOME PER SHARE AS IT WAS ANTIDILUTIVE.