Exhibit 11
UNISOURCE ENERGY CORPORATION
COMPUTATION OF EARNINGS PER SHARE
Years Ended December 31,
1998 1997 1996
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- Thousands of Dollars -
(except per share data)
Basic Earnings Per Share:
Numerator: Net Income $28,032 $83,572 $120,852
Denominator:
Average Shares of Common Stock -
Outstanding 32,178 32,138 32,136
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Basic Earnings Per Share $ 0.87 $ 2.60 $ 3.76
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Diluted Earnings Per Share:
Numerator: Net Income $28,032 $83,572 $120,852
Denominator:
Average Shares of Common Stock -
Outstanding 32,178 32,138 32,136
Effect of Dilutive Securities:
Warrants 79 53 81
Options 90 87 36
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Total Shares 32,347 32,278 32,253
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Diluted Earnings Per Share $ 0.87 $ 2.59 $ 3.75
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Options to purchase 460,000 shares of common stock at $16.25
per share were outstanding at the end of the year 1998 but were not
included in the computation of diluted EPS because the options'
exercise price was greater than the average market price of the
common shares.
4.6 million of the 7.6 million warrants outstanding are
exercisable into TEP common stock. See Note 13. However, the
dilutive effect is the same as it would be if the warrants were
exercisable into UniSource Energy Common Stock.