EXHIBIT 11.1
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
For the period
August 19, 1994 (date
Twelve Months Twelve Months of commencement)
Ended Ended of operations) to
December 31, 1996 December 31, 1995 December 31, 1994
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PRIMARY:
Average common shares outstanding ......................... 7,950,175 2,305,275 208,332
Average Class A preferred shares outstanding (A) ............. n/a 1,008,767 1,467,748
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method .. 175,391 173,716 187,022
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method .. 618,618 216,046 53,744
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Total .................................................. 8,744,184 3,703,803 1,916,846
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Net Income ................................................... $11,537,318 $ 3,154,831 $ 381,804
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Per Share Amount ............................................. $ 1.32 $ 0.85 $ 0.20
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FULLY DILUTED:
Average common shares outstanding ............................ 7,950,175 2,305,275 208,332
Average Class A preferred shares outstanding (A) ............. n/a 1,008,767 1,467,748
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method .. 209,427 170,144 187,022
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method .. 858,279 296,696 53,744
Net effect of dilutive Class B preferred stock outstanding
during the period -- based on the treasury stock method .. 66,888 n/a n/a
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Total .................................................. 9,084,769 3,780,882 1,916,846
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Net Income ................................................... $11,537,318 $ 3,154,831 $ 381,804
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Per Share Amount ............................................. $ 1.27 $ 0.83 $ 0.20
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(A) Class A Preferred shares were considered common stock equivalents for all
periods outstanding as there was no stated yield and there was an automatic
conversion feature to convert the Class A preferred to common with no
additional proceeds to the company
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