EXHIBIT 11.1
HENRY SCHEIN, INC. AND SUBSIDIARIES
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
Three Months Ended Twelve Months Ended
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December 28, December 30, December 28, December 30,
1996 1995 1996 1995
------------ ------------ ------------ ------------
Pro forma net income per consolidated statements of
operations (in thousands) ................................... $ 8,626 $ 4,755 $ 21,326 $ 10,289
============ ============ ============ ============
Pro forma weighted average common shares outstanding:
Shares outstanding at December 25, 1993 ..................... 12,460,544 12,460,544 12,460,544 12,460,544
1994 issuances:
Shares issued, in part, to extinguish liability under long-
term executive incentive compensation plan .............. 489,456 489,456 489,456 489,456
Shares issued to ESOP trust in 12/94 ...................... 128,257 128,257 128,257 128,257
Stock options granted and to be granted in 1995 at an
exercise price of $4.21 per share (1) ................... 221,397 237,897 221,397 237,897
IPO Options (Class B) ..................................... 408,400 263,486 408,400 65,871
1995 issuances:
IPO Shares ................................................ 5,090,000 3,244,176 5,090,000 811,044
Shares issued as of September 1, 1995 in connection
with one of the Acquisitions ............................ 1,260,416 1,227,478 1,260,416 410,749
------------ ------------ ------------ ------------
20,058,470 18,051,294 20,058,470 14,603,818
Less: Treasury stock ...................................... (59,275) -- (55,401) --
------------ ------------ ------------ ------------
19,999,195 18,051,294 20,003,069 14,603,818
1996 issuances:
Secondary Offering Shares ................................. 3,734,375 -- 1,959,521 --
Shares issued to ESOP trust on August 9, 1996 ............. 24,210 -- 9,378 --
Shares issued on July 10, 1996 in connection with one
of the Acquisitions ..................................... 37,197 -- 17,577 --
Additional Class B Options ................................ 42,800 -- 42,800 --
Stock options granted pursuant to the 1996 Non-
Employee Director Stock Option Plan ..................... 10,000 -- 7,802 --
Shares issued on November 1, 1996 in connection with
one of the Acquisitions ................................. 75,200 -- 18,800 --
------------ ------------ ------------ ------------
23,922,977 18,051,294 22,058,957 14,603,818
Less assumed repurchase of shares under treasury stock
method based on an average price of $34.129 per share
(2):
Stock options--221,397 shares
x $4.21
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$932,081/$34.129 ........................... (24,820)(4) (42,313)(3) (27,311)(5) (42,313)(3)
Non-Employee Stock Options--10,000 shares
x $29.00
--------
$290,000/$34.129 .............. (7,722)(4) -- (6,630)(5) --
IPO options--403,200 shares
x $16.00
--------
$6,451,200/$34.129 ........................... (171,785)(4) (178,106) (189,024)(5) (44,526)
New Options--35,000 shares
x $29.50
--------
$1,032,500/$34.129 ........................... (27,494)(4) -- (30,253)(5) --
New Options--10,000 shares
x $31.00
--------
$310,000/$34.129 ............................. (8,255)(4) -- (9,083)(5) --
New Options--3,000 shares
x $36.25
--------
$108,750/$34.129 ............................. (3,000)(4) -- (3,000)(5) --
------------ ------------ ------------ ------------
Pro forma weighted average common shares outstanding .......... 23,679,907 17,830,875 21,793,646 14,516,979
============ ============ ============ ============
Pro forma net income per common share ......................... $ 0.36 $ 0.27 $ 0.98 $ 0.71
============ ============ ============ ============
HENRY SCHEIN, INC. AND SUBSIDIARIES
COMPUTATION OF PRO FORMA EARNINGS PER SHARE (Continued)
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(1) Considered "cheap stock" and treated outstanding since January 1, 1995.
(2) The treasury stock method was not used for the shares issued to settle the
long-term incentive plan liability and the conpensatory portion of the
stock options granted because the related special compensation charges have
been/will be excluded from pro forma net income and, therefore, were not
assumed to be proceeds.
(3) Computed using IPO value per share of $16.00 for 237,897 stock options.
(4) Computed using the average closing value per share for the three months
ended December 28, 1996 of $37,554.
(5) Computed using the average closing value per share for the twelve months
ended December 28, 1996 of $34,129.