Exhibit 11 HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE Three Months Ended March 31 --------------------------- Basic: 2004 2003 - ------- ------------ ----------- Income from continuing operations $ 1,193,565 $ 732,275 Income from discontinued operations 394,243 ----------- ----------- Net income $ 1,193,565 $ 1,126,518 =========== =========== Common shares: Weighted average number of common shares outstanding 3,551,846 3,469,930 =========== =========== Net income per common share: Continuing operations $ .34 $ .21 Discontinued operations .11 ----------- ----------- $ .34 $ .32 =========== =========== Diluted: - ------------- Income from continuing operations $ 1,193,565 $ 732,275 Income from discontinued operations 394,243 ----------- ----------- Net income $ 1,193,565 $ 1,126,518 =========== =========== Common and common equivalent shares: Weighted average number of common shares outstanding 3,551,846 3,469,930 Dilutive effect of convertible preferred shares outstanding 220,100 220,100 Dilutive effect of stock options outstanding after application of treasury stock method 92,790 49,853 Dilutive effect of Employee Stock Purchase Plan shares subscribed 3,131 5,993 ----------- ----------- 3,867,867 3,745,876 =========== =========== Diluted net income per share: Continuing operations $ .31 $ .20 Discontinued operations .10 ----------- ----------- $ .31 $ .30 =========== ===========