Basic and Diluted Earnings (Loss) per Share

9 Months Ended

Sep. 30, 2021

Basic and Diluted Earnings (Loss) per Share


Note 18 – 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 and nine months ended September 30, 2020, we have excluded the effect of all stock options, common stock awards and warrants from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic earnings (loss) per share
Net income (loss)	$	21,552	$	(9,420)	$	19,773	$	(32,955)

Weighted average shares of common stock	9,189,030		8,669,550		8,960,696		8,770,102

Basic earnings (loss) per share	$	2.35	$	(1.09)	$	2.21	$	(3.76)

Diluted earnings (loss) per share
Net income (loss)	$	21,552	$	(9,420)	$	19,773	$	(32,955)

Weighted average shares of common stock	9,189,030		8,669,550		8,960,696		8,770,102
Effect of dilutive elements
Common stock warrants	65,593		—		97,426		—

Common stock awards	147,235		—		161,049		—
Contingent issuance of common stock	—		—		51,580		—
Dilutive weighted average shares of common stock	9,401,858		8,669,550		9,270,751		8,770,102

Diluted earnings (loss) per share	$	2.29	$	(1.09)	$	2.13	$	(3.76)

Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive (1)	166,153		193,144		155,213		218,020
Market-based (2)	87,509		125,395		87,509		125,395

(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 14 – 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.