Prime Hospitality (PDQ) 10-Q 2001 Q3 Quarterly report

COMPUTATION OF EARNINGS PER COMMON SHARE
(Unaudited)
(in thousands, except per share amounts)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2001		2000		2001			2000
Basic Earnings
Income before extraordinary items	$	5,135	$	15,653	$	35,472		$	50,807
Extraordinary items - loss on discharge of indebtedness	34		--		(76		)	(302		)
Net income	$	5,169	$	15,653	$	35,396		$	50,505
Shares:
Weighted average number of common shares outstanding	44,671		44,886		44,744			45,982
Basic income per common share:
Income before extraordinary items	$	0.12	$	0.35	$	0.79		$	1.10
Extraordinary items - loss on discharge of indebtedness	--		--		--			--
Net income per common share	$	0.12	$	0.35	$	0.79		$	1.10
Diluted Earnings
Income before extraordinary items	$	5,135	$	15,653	$	35,472		$	50,807
Extraordinary items - loss on discharge of indebtedness	34		--		(76		)	(302		)
Net income, as adjusted	$	5,169	$	15,653	$	35,396		$	50,505
Shares:
Weighted average number of common shares outstanding	44,671		44,886		44,744			45,982
Options issued	1,087		959		1,168			769
Weighted average number of common shares outstanding, as adjusted	45,758		45,845		45,912			46,751
Diluted income per common share:
Income before extraordinary items	$	0.11	$	0.34	$	0.77		$	1.08
Extraordinary items - loss on discharge of indebtedness	--		--		--			--
Net income per common share	$	0.11	$	0.34	$	0.77		$	1.08