Earnings Per Share

12 Months Ended

Dec. 31, 2015

NOTE 10. EARNINGS PER SHARE (EPS)

The Company had dividend eligible shares of restricted common stock and Performance Units that were outstanding during the years ended December 31, 2015 and 2014. The basic and diluted per share computations include these unvested shares of restricted common stock and Performance Units if there is income available to common stock, as they have dividend participation rights. The shares of restricted common stock and Performance Units have no contractual obligation to share in losses. Because there is no such obligation, the shares of restricted common stock and Performance Units are not included in the basic and diluted EPS computations when no income is available to common stock even though they are considered participating securities.

The table below reconciles the numerator and denominator of EPS for the years ended December 31, 2015, 2014 and 2013.

(in thousands, except per-share information)
				2015		2014		2013
Basic and diluted EPS per common share:
Numerator for basic and diluted EPS per common share:
	Net income (loss) - Basic and diluted		$	1,071	$	24,519	$	(698)
Weighted average common shares:
	Common stock outstanding at the balance sheet date			21,749		16,700		3,342
	Unvested dividend-eligible share based compensation
		outstanding at the balance sheet date		24		24		-
	Effect of weighting			(1,506)		(6,834)		(330)
Weighted average shares-basic and diluted				20,267		9,890		3,012
Income (loss) per common share:
	Basic and diluted		$	0.05	$	2.48	$	(0.23)

On February 14, 2013, Orchid’s Board of Directors declared a stock dividend whereby 5.37 shares of common stock were issued for each share of common stock outstanding. The 827,555 shares distributed as the dividend were issued to Bimini on February 20, 2013, immediately prior to Orchid’s IPO. For the years ended December 31, 2013 and 2012, the 827,555 shares distributed as a stock dividend were treated as if outstanding for the entire period, as Bimini was the sole stockholder during the entire period prior to Orchid’s IPO.