PUBLIC STORAGE, INC.
Exhibit 11 - Statement Re: Computation of Earnings Per Share
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
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PRIMARY EARNINGS PER SHARE: 1997 1996 1997 1996
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Net income $46,548 $40,366 $133,117 $110,446
Less: Preferred Stock dividends:
10% Cumulative Preferred Stock, Series A (1,141) (1,141) (3,422) (3,423)
9.20% Cumulative Preferred Stock, Series B (1,372) (1,372) (4,116) (4,116)
Variable Rate Preferred Stock, Series C (557) (582) (1,673) (1,630)
9.50% Cumulative Preferred Stock, Series D (712) (712) (2,138) (2,138)
10.0% Cumulative Preferred Stock, Series E (1,372) (1,372) (4,116) (4,116)
9.75% Cumulative Preferred Stock, Series F (1,402) (1,402) (4,205) (4,205)
8.875% Cumulative Preferred Stock, Series G (3,827) (3,827) (11,482) (11,652)
8.45% Cumulative Preferred Stock, Series H (3,564) (3,564) (10,694) (9,783)
8.625% Cumulative Preferred Stock, Series I (2,156) - (6,468) -
8.000% Cumulative Preferred Stock, Series J (1,085) - (1,085) -
8.25% Convertible Preferred Stock (1,128) (1,168) (3,407) (3,523)
Mandatory Convertible Participating Preferred Stock - - - (1,700)
Mandatory Convertible Preferred Stock, Series CC - (1,916) (15,328) (3,832)
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Total preferred dividends (18,316) (17,056) (68,134) (50,118)
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Net income allocable to common shareholders $28,232 $23,310 $64,983 $60,328
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Weighted Average common and common equivalent shares outstanding:
102,964 78,052 96,586 74,440
Weighted average common shares outstanding
Net effect of dilutive stock options - based on
treasury stock method using average market price 572 286 568 250
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Total 103,536 78,338 97,154 74,690
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Primary earnings per common and common equivalent
share $0.27 $0.30 $0.67 $0.81
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For the Three Months Ended For the Nine Months Ended
September 30, September 30,
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Fully-diluted Earnings per Common and Common
Equivalent Share: 1997 1996 1997 1996
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Net income allocable to common shareholders per
Primary calculation above $28,232 $23,310 $64,983 $60,328
Add dividends paid to holders of Convertible Preferred Stocks:
* 8.25% Convertible Preferred Stock 1,128 1,168 3,407 3,523
* Mandatory Convertible Participating
Preferred Stock - - - 1,700
* Series CC Preferred Stock - 1,916 1,916 3,832
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Net income allocable to common shareholders for
purposes of determining Fully-diluted Earnings per
Common and Common Equivalent Share $29,360 $26,394 $70,306 $69,383
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Weighted average common and common equivalent shares
outstanding 103,536 78,338 97,154 74,690
Proforma weighted average common shares
assuming conversion of Convertible
Preferred Stock:
* 8.25% Convertible Preferred Stock 3,717 3,814 3,690 3,837
* Mandatory Convertible Participating
Preferred Stock - - - 985
* Series CC Preferred Stock (1) - 2,064 688 1,376
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Weighted average common and common equivalent
shares for purposes of computation
of Fully-diluted Earnings per Common
and Common Equivalent Share 107,253 84,216 101,532 80,888
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Fully-diluted Earnings per Common and Common
Share (2)
$0.27 $0.31 $0.69 $0.86
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(1) The 1997 three and nine month earnings per common share have been
negatively impacted by a non-recurring special dividend on preferred stock
totaling $13,412,000 ($0.14 per common share.) At the end of the first
quarter of 1997, the Company paid a special dividend totaling $13,412,000
to its Series CC Convertible Preferred Stock. As a result of the special
dividend, the Company would not have to pay another dividend with respect
to this stock until the quarter ended March 31, 1999. During the second
quarter of 1997, the Series CC Convertible Preferred Stock converted into
common stock of the Company. Accordingly, all of the $13,412,000 of
dividends were treated in the second quarter of 1997 as an allocation of
net income to the preferred shareholders in determining the allocation of
net income to the common shareholders.
(2) Such amounts are anti-dilutive and are not presented in the Company's
consolidated financial statements.
In addition, the Company has 7,000,000 shares of Class B Common Stock which
are convertible into shares of the Company's Common Stock subject to
certain contingencies such as the passage of time and the attainment of
certain earnings milestone by the Company. The assumption of such earnings
and the pro forma conversion of the Class B Common Stock into Common Stock
in the above computations would have resulted in an increase in the
fully-diluted earnings per common share, and accordingly, is anti-dilutive.