EXHIBIT 11.1 CALCULATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE PRIMARY EARNINGS PER SHARE Computation for Statement of Operations Three Months Six Months - --------------------------------------- Ended March 31, Ended March 31, --------------- --------------- Reconciliation of net income per statement of operations to amount used in primary earnings per share computation: 1997 1996 1997 1996 ---- ---- ---- ---- Net income $ 2,534,478 $ 1,555,105 $ 4,819,662 $ 3,153,167 Add-Interest on short-term debt, net of tax effect, on application of assumed proceeds from exercise of options and warrants in excess of 20% limitation - 27,641 - 35,476 ----------- ----------- ----------- ----------- Net income, as adjusted $ 2,543,478 $ 1,582,746 4,819,662 3,188,643 Additional Primary Computation - ------------------------------ Net income, as adjusted per primary computation above $ 2,534,478 $ 1,582,746 $ 4,819,662 $ 3,188,643 Additional adjustment to weighted average number of shares outstanding: Weighted average number of shares outstanding 3,551,900 1,895,500 3,032,700 1,889,400 Add-Dilutive effect of outstanding options and warrants (as determined by the application of the treasury stock method) 1,073,300 952,300 1,012,700 780,200 =========== =========== =========== =========== Weighted average number of shares outstanding 4,625,200 2,847,800 4,045,400 2,669,600 =========== =========== =========== =========== Primary earnings per share, as adjusted $.55 $.56 $1.19 $1.19 =========== =========== =========== =========== FULLY DILUTED EARNINGS PER SHARE Computation for Statement of Operations - --------------------------------------- Reconciliation of net income per statement of operations to amount used in fully diluted earnings per share computation: Income before extraordinary items $ 2,534,478 $ 1,555,105 $ 4,819,662 $ 3,153,167 Add-Interest on short-term debt, net of tax effect, on application of assumed proceeds from exercise of options and warrants in excess of 20% limitation - 10,198 - 11,303 ----------- ----------- ----------- ----------- Net income, as adjusted $ 2,534,478 $ 1,565,303 $ 4,819,662 $ 3,164,470 Additional Primary Computation - ------------------------------ Net income, as adjusted per primary computation above $ 2,534,478 $ 1,565,303 $ 4,819,662 $ 3,164,470 Additional adjustment to weighted average number of shares outstanding: Weighted average number of shares outstanding 3,551,900 1,895,500 3,032,700 1,889,400 Add-Dilutive effect of outstanding options and Warrants (as determined the application of the treasury stock method) 1,090,100 976,700 1,053,300 780,200 ----------- ----------- ----------- ----------- Weighted average number of shares outstanding 4,642,000 2,872,200 4,086,000 2,669,600 =========== =========== =========== =========== Fully diluted earnings per share, as adjusted $.55 $.54 $1.18 $1.18 =========== =========== =========== ===========