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 six month periods ended June 30, 1997,
the Company was required to pay dividends on it's outstanding preferred
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 to arrive at net loss available to common shareholders 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 six month
periods ended June 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 and six month periods ended June
30, 1998.
Weighted-average shares for the three months ended June 30, 1997 is calculated
as follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
April 1-May 2, 1997 3,758,671 31/91 1,280,426
Issuance of common stock on May 2 3,387,187
---------------------
May 3-June 29 7,145,858 59/91 4,633,029
Conversion of preferred stock on June 30 4,323,922
---------------------
June 30 11,469,780 1/91 126,042
--------------------- ---------------------
Weighted average shares 6,039,497
=====================
Weighted-average shares for the six months ended June 30, 1997 is calculated as
follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
January 1-May 2, 1997 3,758,671 121/181 2,512,703
Issuance of common stock on May 2 3,387,187
---------------------
May 3-June 29 7,145,858 59/181 2,329,313
Conversion of preferred stock on June 30 4,323,922
---------------------
June 30 11,469,780 1/181 63,369
--------------------- ---------------------
Weighted average shares 4,905,385
=====================
Weighted-average shares for the three months ended June 30, 1998 is calculated
as follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
April 1 - April 2 20,940,583 2/91 460,233
Retirement of common stock on April 3 (20,833)
---------------------
April 3 - May 4 20,919,750 32/91 7,356,396
Issuance of common stock on May 5 1,072,165
---------------------
May 5 - June 16 21,991,915 43/91 10,391,784
Issuance of common stock on June 17 878,688
---------------------
June 17 - June 30 22,870,603 14/91 3,518,554
--------------------- ---------------------
Weighted average shares 21,726,967
=====================
Weighted-average shares for the six months ended June 30, 1998 is calculated as
follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
January 1 - January 29 20,574,626 29/181 3,296,487
Issuance of common stock on January 30 365,957
---------------------
January 30 - April 2 20,940,583 63/181 7,288,711
Retirement of common stock on April 3 (20,833)
---------------------
April 3 - May 4 20,919,750 32/181 3,698,519
Issuance of common stock on May 5 1,072,165
---------------------
May 5 - June 16 21,991,915 43/181 5,224,599
Issuance of common stock on June 17 878,688
---------------------
June 17 - June 30 22,870,603 14/181 1,768,997
--------------------- ---------------------
Weighted average shares 21,277,313
=====================
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
---- ---- ---- ----
Weighted-average shares: 21,726,967 6,039,497 21,277,313 4,905,385
Plus: Incremental shares from assumed
conversions of warrants and 1,540,379 ----- 1,389,488 -----
options
-------------- -------------- -------------- --------------
Adjusted weighted average shares
23,267,346 6,039,497 22,666,801 4,905,385
============== ============== ============== ==============
Income for EPS Computation
Three Months ended June 30, Six Months ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
---- ---- ---- ----
Income (loss) from continuing operations $ 1,163,637 $ (174,658) $ 2,005,878 $ (268,066)
Preferred stock dividend requirement (192,500) (385,000)
----- -----
-------------- -------------- -------------- ---------------
Income (loss) available to common 1,163,637 (367,158) 2,005,878 (653,066)
shareholders
Loss from discontinued operations (11,134,952) (13,570,374)
----- -----
-------------- -------------- -------------- ---------------
Net income (loss) available to common
shareholders $ 1,163,637 $(11,502,110) $ 2,005,878 $ (14,223,440)
============== ============== ============== ===============
The basic EPS computation is as follows:
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
---- ---- ---- ----
Income (loss) per common share - basic:
Continuing operations $ 0.05 $ (0.06) $ 0.09 $ (0.13)
Loss from discontinued operations ----- (1.84) ----- (2.77)
-------------- -------------- -------------- --------------
Total $ 0.05 $ (1.90) $ 0.09 $ (2.90)
============== ============== ============== ==============
Weighted average number of common
shares outstanding-basic 21,726,967 6,039,497 21,277,313 4,905,385
============== ============== ============== ==============
The diluted EPS computation is as follows:
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1998 1997 1997 1997
---- ---- ---- ----
Income (loss) per common share - diluted:
Continuing operations $ 0.05 $ (0.06) $ 0.09 $ (0.13)
Loss from discontinued operations ----- (1.84) ----- (2.77)
-------------- -------------- -------------- --------------
Total $ 0.05 $ (1.90) $ 0.09 $ (2.90)
============== ============== ============== ==============
Weighted average number of common
shares outstanding-diluted 23,267,346 6,039,497 22,666,801 4,905,385
============== ============== ============== ==============
The equation for computing (basic and diluted) EPS is:
Income available to common stockholders
---------------------------------------------------
Weighted-average shares