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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1995 1994 1995 1994
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Primary Earnings Per Share:
(1) Weighted average shares of
common stock outstanding................... 123,947,087 123,060,083 123,772,849 122,665,312
(2) Effect of issuance of shares
from assumed exercise of
stock options
(treasury stock method).................... 5,571 (51,776) (5,200) (43,374)
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(3) Weighted average shares........................ 123,952,658 123,008,307 123,767,649 122,621,938
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(4) Net income..................................... $ 853,949 $ 235,968 $ 1,101,665 $ 388,591
(5) Primary earnings per share
(line 4/line 3)............................ $ 6.89 $ 1.92 $ 8.90 $ 3.17
Fully Diluted Earnings Per Share:
(6) Weighted average shares per
computation on line 3 above................ 123,952,658 123,008,307 123,767,649 122,621,938
(7) Shares applicable to options
included on line 2 above................... (5,571) 51,776 5,200 43,374
(8) Dilutive effect of stock
options based on the average
price for the period or period-
end price, whichever is higher,
of $44.13 and $35.25 for the
third quarter of 1995 and 1994,
respectively, and $44.13 and
$36.39 for the first nine months
of 1995 and 1994, respectively
(treasury stock method)......................... 8,610 (50,426) 8,610 (43,374)
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(9) Weighted average shares........................ 123,955,697 123,009,657 123,781,459 122,621,938
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(10) Net income..................................... $ 853,949 $ 235,968 $ 1,101,665 $ 388,591
(11) Fully diluted earnings per
share (line 10/line 9)..................... $ 6.89 $ 1.92 $ 8.90 $ 3.17
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 nine months ended September 30, 1995 and the three and
nine months ended September 30, 1994 are submitted in accordance with Regulation
S-K item 601(b) (11) although they are contrary to paragraphs 30 and 40 of APB
Opinion No. 15 because they produce anti-dilutive results.
For information about the common stock split recently declared by the Company,
see Note 9 of the notes to the Company's Consolidated Financial Statements in
Item 1 of this Report.