Exhibit 11.1 Statement regarding computation of earnings per share.
The Company computes earnings per share in accordance with FAS No.
128, Earnings Per Share. For the three and nine month periods ended
September 30, 1996 and for the nine month period ended September
30, 1997, the Company was required to pay dividends on its
outstanding convertible stock. Such preferred stock was converted
into common stock on June 30, 1997. The preferred dividend
requirements for the periods in which the preferred stock was
outstanding have been added to the loss from continuing operations
for each period to arrive at net income available to common
stockholders in calculating basic earnings per share.
The Company has stock options and warrants outstanding which were
not included in the computation of diluted earnings per share
for the three and nine months ended September 30, 1996 and for the
nine months ended September 30, 1997 because to do so would have
been anti-dilutive for periods presented. Such options and
warrants were included in the computation of diluted earnings per
share for the three month period ended September 30, 1997.
Computations of basic and diluted earnings per share are set forth
below.
Basic EPS Computation
Three months ended Nine months ended
September 30, September 30,
--------------------------- ---------------------------
1997 1996 1997 1996
Income (loss) from
continuing operations $ 12,158 $ (47,077) $ (255,908) $ (280,940)
Preferred stock dividend requirement -- (122,500) (385,000) (281,529)
------------ ------------ ------------ ------------
Income available to common
shareholders 12,158 (169,577) (640,908) (562,469)
Discontinued operations:
Loss from operations -- (1,463,979) (6,114,408) (2,546,693)
Estimated loss on disposal including
provision for operating losses
through disposal date -- -- (7,455,966) --
----------- ------------ ------------ ------------
Net income (loss) available
to common shareholders $ 12,158 $ (1,633,556) $(14,211,282) $ (3,109,162)
=========== ============ ============ ============
Weighted-average shares for the nine months ended September 30,
1997 is calculated as follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------------- ----------- --------- --------------
January 1-May 2, 1997 3,758,671 122/273 1,679,699
Issuance of common
stock on May 2 3,387,187
-----------
May 3-June 10 7,145,858 39/273 1,020,837
Exercise of stock
warrant on June 10 25,000
-----------
June 11-June 30 7,170,858 20/273 525,338
Conversion of preferred
stock on June 30 4,323,922
-----------
July 1-July 11 11,494,780 11/273 463,160
Issuance of common
stock on July 11 1,733,000
-----------
July 12-August 15 13,227,780 36/273 1,744,323
Issuance of common
stock on August 15 1,544,509
-----------
August 16-August 29 14,772,289 13/273 703,442
Issuance of common
stock on August 29 4,166,666
-----------
August 30-September 11 18,938,955 13/273 901,855
Issuance of common
stock on September 11 79,856
-----------
September 12-September 30 19,018,811 19/273 1,323,654
-----------
Weighted average shares 8,362,307
===========
Weighted-average shares for the three months ended September 30,
1997 is calculated as follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Shares
----------------- ----------- --------- --------------
July 1-July 11 11,494,780 11/92 1,374,376
Issuance of common 1,733,000
stock on July 11
----------
July 12-August 15 13,227,780 36/92 5,176,088
Issuance of common 1,544,509
stock on August 15
----------
August 16-August 29 14,772,289 13/92 2,087,389
Issuance of common 4,166,666
stock on August 29
----------
August 30-September 11 18,938,955 13/92 2,676,157
Issuance of common 79,856
stock on September 11
---------
September 12-September 30 19,018,811 19/92 3,927,798
-------------
Weighted average shares 15,241,807
=============
Three months ended Nine months ended
September 30, September 30,
--------------------- ---------------------
1997 1996 1997 1996
Income (loss) per common
share - basic:
Continuing operations $ 0.00 $ (0.05) $ (0.08) $ (0.15)
Discontinued operations:
Loss from operations 0.00 (0.39) (0.73) (0.68)
Estimated loss on
disposal 0.00 -- (0.89) --
-------- --------- --------- --------
Total $ 0.00 $ (0.44) $ (1.70) $ (0.83)
======== ========= ========= ========
Weighted average number
common shares outstanding-
diluted 15,241,807 3,758,671 8,362,307 3,758,671
The diluted EPS computation is as follows:
Diluted EPS Computation
Three months ended Nine months ended
September 30, September 30,
---------------------------- ----------------------------
1997 1996 1997 1996
Income (loss) from
continuing operations $ 12,158 $ (47,077) $ (255,908) $ (280.940)
Preferred stock dividend requirement -- (122,500) (385,000) (281,529)
------------ ----------- ------------- --------------
Income available to common
shareholders 12,158 (169,577) (640,908) (562,469)
Discontinued operations:
Loss from operations -- (1,463,979) (6,114,408) (2,546,693)
Estimated loss on disposal
including provision for
operating losses through
disposal date -- -- (7,455,966) --
------------ ------------ ------------- ------------
Net income (loss) available
to common shareholders $ 12,158 $ (1,633,556) $ (14,211,282) $ (3,109,162)
============ ============ ============= ============
Weighted-average shares 15,241,807 3,758,671 8,362,307 3,758,671
Plus: Incremental shares from
assumed conversions
Warrants and Options 1,699,484 -- -- --
----------- ---------- ---------- ----------
Adjusted weighted average
shares 16,941,291 3,758,671 8,362,307 3,758,671
=========== =========== ========== ==========
Three months ended Nine months ended
September 30, September 30,
---------------------- ---------------------
1997 1996 1997 1996
Income (loss) per common
share - diluted:
Continuing operations $ 0.00 $ (0.05) $ (0.08) $ (0.15)
Discontinued operations:
Loss from operations 0.00 (0.39) (0.73) (0.68)
Estimated loss on
disposal 0.00 -- (0.89) --
---------- --------- -------- --------
Total $ 0.00 $ (0.44) $ (1.70) $ (0.83)
========== ========= ======== ========
Weighted average number
of common shares
outstanding-diluted 16,941,291 3,758,671 8,362,307 3,758,671
The equation for computing (basic and diluted) EPS is:
Income available to common stockholders
------------------------------------------------
Weighted-average shares
The incremental shares from assumed exercise of options and
warrants are not included in computing the diluted per-share
amounts for the three months ended September 30, 1997 and the nine
months ended September 30, 1997 and 1996 because the net income
available to shareholders from continuing operations was a loss,
not income.
TRANSIT GROUP, INC. AND SUBSIDIARY
Exhibit 27 - Financial Data Schedule