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
MARCH 31,
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1995 1994
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Primary Earnings Per Share:
(1) Weighted average shares of
common stock outstanding.............................................. 123,598,379 122,421,159
(2) Effect of issuance of shares from assumed
exercise of stock options
(treasury stock method)............................................... (20,145) (23,017)
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(3) Weighted average shares................................................ 123,578,234 122,398,142
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(4) Net income............................................................. $ 114,456 $ 25,898
(5) Primary earnings per share
(line 4 divided by line 3)............................................ $ .93 $ .21
Fully Diluted Earnings Per Share:
(6) Weighted average shares per
computation (line 3).................................................. 123,578,234 122,398,142
(7) Shares applicable to options
included (line 2)..................................................... 20,145 23,017
(8) Dilutive effect of stock options based on the
average price for the quarter or quarter-end
price, whichever is higher, of $38.75 and
$40.50 for 1995 and 1994, respectively
(treasury stock method)............................................... (20,145) (23,017)
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(9) Weighted average shares................................................ 123,578,234 122,398,142
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(10) Net income............................................................. $ 114,456 $ 25,898
(11) Fully diluted earnings per
share (line 10 divided by line 9) .................................... $ .93 $ .21
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 three months ended March 31, 1995 and 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.