Net Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2018

Calculation of Basic Net (Loss) Income Per Share

The following table presents the calculation of basic net (loss) income per share for periods presented:

(in thousands, except per share data):

	Three months ended March 31, 2018			Three months ended March 31, 2017
Numerator for basic net (loss) income per share:
Net (loss) income	$	(5,583	)	$	17,789
Less: Series B preferred stock dividends		(200	)		(4,500	)
Less: undistributed earnings attributed to participating securities (basic calculation)		—			(8,445	)
Basic net (loss) income attributable to common stockholders	$	(5,783	)	$	4,844
Denominator for basic net (loss) income per share:
Weighted-average shares outstanding		206,714,132			206,380,800
Weighted-average unvested restricted shares outstanding		(4,021,988	)		(3,956,831	)
Denominator for basic net (loss) income per share		202,692,144			202,423,969
Basic net (loss) income per share attributable to common stockholders	$	(0.03	)	$	0.02

Calculation of Diluted Net (Loss) Income Per Share

The following table presents the calculation of diluted net (loss) income per share for periods presented:

	Three months ended March 31, 2018			Three months ended March 31, 2017
Numerator for diluted net (loss) income per share:
Net (loss) income	$	(5,583	)	$	17,789
Less: Series B preferred stock dividends		(200	)		(4,500	)
Less: undistributed earnings attributed to participating securities (diluted calculation)		—			(8,428	)
Diluted net (loss) income attributable to common stockholders	$	(5,783	)	$	4,861
Denominator for diluted net (loss) income per share:
Weighted-average shares outstanding		206,714,132			206,380,800
Weighted-average unvested restricted shares outstanding		(4,021,988	)		(3,956,831	)
Effect of dilutive potential shares		—			11,199,990
Denominator for diluted net (loss) income per share		202,692,144			213,623,959
Diluted net (loss) income per share attributable to common stockholders	$	(0.03	)	$	0.02

Schedule of Potential Dilutive Common Shares

The following table summarizes shares subject to exercise or vesting conditions as more fully described in Note 9: Capital Stock and Derivative Instruments. These shares could potentially be dilutive in future periods if we realize net income attributable to common and participating stockholders and the contingent or unvested stock is converted to WMIH common stock. The cash payment of $84.4 million, which would be received upon exercise of the warrants, has not been considered as an offset to the dilutive shares under warrants outstanding below. The Warrant Exchange, which is conditioned upon the closing of the Merger and which would reduce the number of warrants received from 61,400,000 shares to 21,197,619 shares, is not reflected below.

	Potential dilution to common
	Minimum shares		Maximum shares
Restricted shares subject to vesting		3,834,512		3,834,512
Series A Preferred Stock		10,065,629		10,065,629
Warrants outstanding		61,400,000		61,400,000
Maximum number of restricted shares to be issued if Nationstar Transaction is consummated		—		1,015,872
Series B Preferred Stock ($1.35 conversion)		444,444,444		444,444,444
Potential common shares issued to satisfy Series B Preferred Stock dividends (full term)		—		64,285,714
Potential common shares issued to satisfy Series B Preferred Stock acquisition conversion payment		—		11,428,572
Potential dilutive shares if converted to common		519,744,585		596,474,743