EXHIBIT 11
INDEPENDENCE HOLDING COMPANY
Computation of Per Share Earnings
(In Thousands, Except Per Share Amounts)
THREE MONTHS ENDED
MARCH 31,
1997 1996
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PRIMARY EARNINGS PER SHARE
INCOME:
Income from continuing
operations..............................$ 2,260 $ 1,363
Income from discontinued
operations, net......................... - 431
-------- --------
Net income...............................$ 2,260 $ 1,794
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SHARES:
Weighted average common
shares outstanding...................... 7,432 7,432
Shares assumed issued for options........ 42 33
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Average common and common
equivalents shares outstanding........... 7,474 7,465
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INCOME PER SHARE:
Primary income per share from
continuing operations...................$ .30 $ .18
Primary income per share from
discontinued operations................. - .06
-------- --------
Primary net income per share.............$ .30 $ .24
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FULLY DILUTED EARNINGS PER SHARE (A)
USE OF PROCEEDS:
Assumed exercise of warrants.............$ 32,182 $ 32,182
Assumed exercise of options.............. 2,591 2,203
Repurchase of treasury stock at
average market price of $7.32
and $7.66, respectively................. (10,880) (11,387)
Assumed payment of debt
outstanding............................. - (12,111)
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Assumed balance to be invested...........$ 23,893 $ 10,887
INCOME: ======== ========
Net income from continuing
operations..............................$ 2,260 $ 1,363
Pro-forma interest income............... 448 204
Pro-forma reduction of
interest expense....................... - 227
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Adjusted net income from
continuing operations................... 2,708 1,794
Income from discontinued
operations, net......................... - 431
-------- --------
Adjusted net income......................$ 2,708 $ 2,225
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SHARES:
Weighted average shares
outstanding.............................. 7,432 7,432
Shares assumed issued for warrants....... 1,966 1,817
Shares assumed issued for options........ 386 316
Treasury stock assumed purchased......... (1,486) (1,486)
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Adjusted average shares
outstanding............................. 8,298 8,079
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INCOME PER SHARE:
Fully diluted income per share
from continuing operations..............$ .33 $ .22
Fully diluted income per share
from discontinued operations............ - .06
-------- --------
Fully diluted net income per share.......$ .33 $ .28
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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.