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 ----------- ----------- ----------- 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 ----------- ----------- ----------- Total .................................................. 8,744,184 3,703,803 1,916,846 =========== =========== =========== Net Income ................................................... $11,537,318 $ 3,154,831 $ 381,804 =========== =========== =========== Per Share Amount ............................................. $ 1.32 $ 0.85 $ 0.20 =========== =========== =========== 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 ----------- ----------- ----------- Total .................................................. 9,084,769 3,780,882 1,916,846 =========== =========== =========== Net Income ................................................... $11,537,318 $ 3,154,831 $ 381,804 =========== =========== =========== Per Share Amount ............................................. $ 1.27 $ 0.83 $ 0.20 =========== =========== ===========
(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 98