EXHIBIT 11
INDEPENDENCE HOLDING COMPANY
Computation of Per Share Earnings
(In Thousands, Except Per Share Amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
------------------ -----------------
PRIMARY EARNINGS PER SHARE
INCOME:
Income from continuing
operations..................$ 1,956 $ 1,583 $ 4,788 $ 2,993
Income from discontinued
operations, net............. 531 442 1,558 1,558
-------- -------- -------- --------
Net income...................$ 2,487 $ 2,025 $ 6,346 $ 4,551
======== ======== ======== ========
SHARES:
Weighted average common
shares outstanding.......... 7,432 7,534 7,432 7,649
Shares assumed issued
for options................. 68 3 57 3
Average common and common -------- -------- -------- --------
equivalents shares
outstanding.................. 7,500 7,537 7,489 7,652
======== ======== ======== ========
INCOME PER SHARE:
Primary income per share from
continuing operations.......$ .26 $ .21 $ .64 $ .39
Primary income per share from
discontinued operations..... .07 .06 .21 .20
-------- -------- -------- --------
Primary net income per share.$ .33 $ .27 $ .85 $ .59
======== ======== ======== ========
(CONTINUED)
EXHIBIT 11
(CONTINUED)
INDEPENDENCE HOLDING COMPANY
Computation of Per Share Earnings
(In Thousands, Except Per Share Amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
------------------ -----------------
FULLY DILUTED EARNINGS
PER SHARE (A)
USE OF PROCEEDS:
Assumed exercise of warrants..$ 32,182 $ 32,182 $ 32,182 $ 32,182
Assumed exercise of options... 2,405 1,521 2,405 1,521
Repurchase of treasury stock at
average market price of $8.77,
$6.90, $8.39, and $6.50,
respectively................ (13,036) (10,396) (12,471) (9,944)
Assumed payment of debt
outstanding................. (10,083) (13,361) (11,097) (13,611)
-------- -------- -------- --------
Assumed balance to be
invested....................$ 11,468 $ 9,946 $ 11,019 $ 10,148
======== ======== ======== ========
INCOME:
Net income from continuing
operations..................$ 1,956 $ 1,583 $ 4,788 $ 2,993
Pro-forma interest income... 215 199 620 609
Pro-forma reduction of
interest expense........... 189 267 624 817
-------- -------- -------- --------
Adjusted net income from
continuing operations....... 2,360 2,049 6,032 4,419
Income from discontinued
operations, net............. 531 442 1,558 1,558
-------- -------- -------- --------
Adjusted net income..........$ 2,891 $ 2,491 $ 7,590 $ 5,977
======== ======== ======== ========
SHARES:
Weighted average shares
outstanding................. 7,432 7,534 7,432 7,649
Shares assumed issued
for warrants................ 1,816 1,816 1,816 1,816
Shares assumed issued
for options................. 338 228 338 228
Treasury stock assumed
purchased................... (1,486) (1,507) (1,486) (1,530)
-------- -------- -------- --------
Adjusted average shares
outstanding................. 8,100 8,071 8,100 8,163
======== ======== ======== ========
INCOME PER SHARE:
Fully diluted income per
share from continuing
operations..................$ .29 $ .26 $ .75 $ .54
Fully diluted income per
share from discontinued
operations.................. .07 .05 .19 .19
-------- -------- -------- --------
Fully diluted net income
per share...................$ .36 $ .31 $ .94 $ .73
======== ======== ======== ========
(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.