EXHIBIT 11
INDEPENDENCE HOLDING COMPANY
Computation of Per Share Earnings
(In Thousands, Except Per Share Amounts)
THREE MONTHS ENDED
MARCH 31,
1996 1995
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PRIMARY EARNINGS PER SHARE
INCOME:
Income from continuing
operations..............................$ 1,363 $ 149
Income from discontinued
operations, net......................... 431 588
-------- --------
Net income...............................$ 1,794 $ 737
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SHARES:
Weighted average common
shares outstanding...................... 14,865 15,486
Shares assumed issued for options........ 66 5
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Average common and common
equivalents shares outstanding........... 14,931 15,491
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INCOME PER SHARE:
Primary income per share from
continuing operations...................$ .09 $ .01
Primary income per share from
discontinued operations................. .03 .04
-------- --------
Primary net income per share.............$ .12 $ .05
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FULLY DILUTED EARNINGS PER SHARE (A)
USE OF PROCEEDS:
Assumed exercise of warrants.............$ 32,182 $ 32,186
Assumed exercise of options.............. 2,203 1,521
Repurchase of treasury stock at
average market price of $3.83
and $3.09, respectively................. (11,387) (9,570)
Assumed payment of debt
outstanding............................. (12,111) (13,861)
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Assumed balance to be invested...........$ 10,887 $ 10,276
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INCOME:
Net income from continuing
operations..............................$ 1,363 $ 149
Pro-forma interest income............... 204 206
Pro-forma reduction of
interest expense....................... 227 277
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Adjusted net income from
continuing operations................... 1,794 632
Income from discontinued
operations, net......................... 431 588
-------- --------
Adjusted net income......................$ 2,225 $ 1,220
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SHARES:
Weighted average shares
outstanding.............................. 14,865 15,486
Shares assumed issued for warrants....... 3,633 3,633
Shares assumed issued for options........ 633 455
Treasury stock assumed purchased......... (2,973) (3,097)
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Adjusted average shares
outstanding............................. 16,158 16,477
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INCOME PER SHARE:
Fully diluted income per share
from continuing operations..............$ .11 $ .04
Fully diluted income per share
from discontinued operations............ .03 .03
-------- --------
Fully diluted net income per share.......$ .14 $ .07
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(A) The fully diluted earnings per share calculation, utilizing
the treasury stock method as prescribed by paragraphs 38(a)
and 38(b) of APB No. 15, is anti-dilutive.