Exhibit 11
Healthways, Inc.
Earnings Per Share Reconciliation
May 31, 2007
(Unaudited)
(In thousands, except earnings per share data)
The following is a reconciliation of the numerator and denominator of basic and diluted earnings per share: |
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| Three Months Ended |
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| Nine Months Ended |
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| May 31, |
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| May 31, |
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| 2007 |
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| 2006 |
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| 2007 |
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| 2006 |
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Numerator: |
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Net income - numerator for basic earnings per share |
| $ | 10,792 |
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| $ | 9,335 |
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| $ | 33,650 |
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| $ | 23,124 |
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Effect of dilutive securities |
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| — |
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| — |
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| — |
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| — |
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Numerator for diluted earnings per share |
| $ | 10,792 |
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| $ | 9,335 |
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| $ | 33,650 |
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| $ | 23,124 |
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Denominator: |
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Shares used for basic earnings per share |
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| 35,133 |
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| 34,517 |
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| 34,907 |
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| 34,267 |
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Effect of dilutive stock options outstanding |
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| 1,937 |
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| 1,998 |
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| 1,948 |
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| 2,000 |
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Shares used for diluted earnings per share |
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| 37,070 |
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| 36,515 |
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| 36,855 |
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| 36,267 |
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Earnings per share: |
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Basic |
| $ | 0.31 |
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| $ | 0.27 |
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| $ | 0.96 |
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| $ | 0.67 |
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Diluted |
| $ | 0.29 |
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| $ | 0.26 |
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| $ | 0.91 |
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| $ | 0.64 |
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