Exhibit 11
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
AND COMMON EQUIVALENT SHARE
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------- ----------------------------
1994 1993 1994 1993
Primary Earnings Per Share:
(1) Weighted average shares of
common stock outstanding................. 130,708,985 129,849,302 130,707,875 129,725,481
(2) Effect of issuance of shares
from assumed exercise of
stock options
(treasury stock method).................. (66,344) (619) (42,705) 2,543
------------ ------------ ------------ ------------
(3) Weighted average shares........................ 130,642,641 129,848,683 130,665,170 129,728,024
============ ============ ============ ============
(4) Net income..................................... $ 133,828 $ 100,209 $ 164,003 $ 127,264
(5) Primary earnings per share
(line 4/line 3).......................... $ 1.02 $ .77 $ 1.26 $ .98
Fully Diluted Earnings Per Share:
(6) Weighted average shares per
computation on line 3 above.............. 130,642,641 129,848,683 130,665,170 129,728,024
(7) Shares applicable to options
included on line 2 above................. 66,344 619 42,705 (2,543)
(8) Dilutive effect of stock
options based on the average
price for the period or period-
end price, whichever is higher,
of $33.63 and $44.67 for the
second quarter of 1994 and 1993,
respectively, and $37.06 and
$45.77 for the first six months
of 1994 and 1993, respectively.
(treasury stock method).................. (66,344) (619) (42,705) 2,543
------------ ------------ ------------ ------------
(9) Weighted average shares........................ 130,642,641 129,848,683 130,665,170 129,728,024
============ ============ ============ ============
(10) Net income..................................... $ 133,828 $ 100,209 $ 164,003 $ 127,264
(11) Fully diluted earnings per
share (line 10/line 9)................... $ 1.02 $ .77 $ 1.26 $ .98
Notes:
These calculations are submitted in accordance with Regulation S-K item
601(b) (11) although it is not required for financial presentation
disclosure per footnote 2 to paragraph 14 of Accounting Principles Board
(APB) Opinion No. 15 because it does not meet the 3% dilutive test.
The calculations for the quarters and six months ended June 30, 1994 and
1993 are submitted in accordance with Regulation S-K item 601(b) (11)
although they are contrary to paragraphs 30 and 40 of APB No. 15 because
they produce anti-dilutive results.