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,
1997 1996 1997 1996
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PRIMARY EARNINGS PER SHARE
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INCOME:
Income from continuing
operations...................$ 2,825 $ 1,956 $ 8,276 $ 4,788
Income from discontinued
operations, net.............. - 531 - 1,558
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Net income....................$ 2,825 $ 2,487 $ 8,276 $ 6,346
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SHARES:
Weighted average common
shares outstanding........... 7,432 7,432 7,432 7,432
Shares assumed issued for
options...................... 170 68 117 57
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Average common and common
equivalents shares
outstanding.................. 7,602 7,500 7,549 7,489
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INCOME PER SHARE:
Primary income per share
from continuing operations...$ .37 $ .26 $ 1.10 $ .64
Primary income per share from
discontinued operations...... - .07 - .21
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Primary net income per share..$ .37 $ .33 $ 1.10 $ .85
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FULLY DILUTED EARNINGS
PER SHARE (A)
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USE OF PROCEEDS:
Assumed exercise of warrants.$ 32,182 $ 32,182 $ 32,182 $ 32,182
Assumed exercise of options.. 2,586 2,405 2,586 2,405
Repurchase of treasury stock
at average market price of
$11.14, $8.77, $8.80, and
$8.39, respectively......... (16,558) (13,036) (13,080) (12,471)
Assumed payment of debt
outstanding................. - (10,083) - (11,097)
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Assumed balance to be
invested....................$ 18,210 $ 11,468 $ 21,688 $ 11,019
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INCOME:
Net income from continuing
operations..................$ 2,825 $ 1,956 $ 8,276 $ 4,788
Pro-forma interest income.... 341 215 1,220 620
Pro-forma reduction of
interest expense............ - 189 - 624
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Adjusted net income from
continuing operations....... 3,166 2,360 9,496 6,032
Income from discontinued
operations, net............. - 531 - 1,558
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Adjusted net income..........$ 3,166 $ 2,891 $ 9,496 $ 7,590
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SHARES:
Weighted average shares
outstanding................. 7,432 7,432 7,432 7,432
Shares assumed issued for
warrants.................... 1,966 1,816 1,966 1,816
Shares assumed issued for
options..................... 383 338 383 338
Treasury stock assumed
purchased................... (1,486) (1,486) (1,486) (1,486)
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Adjusted average shares
outstanding................. 8,295 8,100 8,295 8,100
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INCOME PER SHARE:
Fully diluted income per
share from continuing
operations..................$ .38 $ .29 $ 1.14 $ .75
Fully diluted income per
share from discontinued
operations.................. - .07 - .19
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Fully diluted net income
per share...................$ .38 $ .36 $ 1.14 $ .94
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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.