Basic and Diluted Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2021

Basic and Diluted Earnings (Loss) per Share


Note 17 – Basic and Diluted Earnings (Loss) per Share

Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the period. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Ocwen by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding restricted stock awards, stock options and warrants as determined using the treasury stock method. For the three months ended March 31, 2020, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss.


	Three Months Ended March 31,
	2021		2020
Basic earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589

Basic earnings (loss) per share	$	0.98	$	(2.84)

Diluted earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589
Effect of dilutive elements
Common stock warrants	34,309		—

Common stock awards	155,174		—
Dilutive weighted average shares of common stock	8,877,492		8,990,589

Diluted earnings (loss) per share	$	0.96	$	(2.84)

Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive (1)	180,225		249,188
Market-based (2)	157,581		125,397

(1)Includes stock options that are anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock, and stock awards that are anti-dilutive based on the application of the treasury stock method.

(2)Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.

As disclosed in Note 13 – Equity, Ocwen implemented a reverse stock split in a ratio of one-for-15 effective on August 13, 2020. The above computations of earnings (loss) per share reflect the number of common stock shares after consideration for the reverse stock split. All common share and loss per share amounts have been adjusted retrospectively to give effect to the reverse stock split as if it occurred at the beginning of the first period presented.