EXHIBIT 11
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
AND COMMON EQUIVALENT SHARE
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED DECEMBER 31,
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1994 1993 1992
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Primary Earnings Per Share:
(1) Weighted average shares of common stock
outstanding.............................. 122,853,373 130,004,068 129,514,102
(2) Effect of issuance of shares from
assumed exercise of stock options
(treasury stock method).................. (39,524) 3,918 805
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(3) Weighted average shares.................... 122,813,849 130,007,986 129,514,907
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(4) Net income................................. $ 399,261 $ 416,036 $ 434,667
(5) Primary earnings per share
(line 4/line 3).......................... $ 3.25 $ 3.20 $ 3.36
Fully Diluted Earnings Per Share:
(6) Weighted average shares per computation
on line 3 above.......................... 122,813,849 130,007,986 129,514,907
(7) Shares applicable to options included
on line 2 above.......................... 39,524 (3,918) (805)
(8) Dilutive effect of stock options (treasury
stock method) based on higher of the average
price for the year or year-end price of
$36.00, $47.63 and $45.88 for 1994, 1993 and
1992, respectively....................... (39,524) 7,300 3,520
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(9) Weighted average shares.................... 122,813,849 130,011,368 129,517,622
============ ============ ============
(10) Net income................................. $ 399,261 $ 416,036 $ 434,667
(11) Fully diluted earnings per share
(line 10/line 9)......................... $ 3.25 $ 3.20 $ 3.36
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 percent dilutive test.
The calculations for year ended December 31, 1994 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.
The amounts for 1994 reflect the adoption, effective January 1, 1994, of the
American Institute of Certified Public Accountants Statement of Position 93-6
(SOP 93-6), "Employers' Accounting for Employee Stock Ownership Plans." See
Notes 1(i) and 12(b) to the Company's Consolidated and HL&P's Financial
Statements in Item 8 of this Report for information regarding the effects of SOP
93-6 on weighted average shares of common stock outstanding and net income,
respectively. In accordance with SOP 93-6, periods prior to 1994 have not been
restated.