1
EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER NINE MONTHS
-------------------- --------------------
1995 1994 1995 1994
-------- ------- -------- -------
PRIMARY EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings (loss):
Income (loss) from operations................... $(62,887) $20,515 $(20,628) $59,562
Preferred stock dividend requirements........... (1,692) (1,719) (5,280) (5,781)
Gain on preferred stock redemption.............. 10,176 - 10,176 -
Other........................................... - - - (179)
-------- ------- -------- -------
Income (loss) available to common
stockholders................................. (54,403) 18,796 (15,732) 53,602
Extraordinary loss on early extinguishment of
debt, net of income tax benefit.............. (19,196) (58) (21,987) (229)
-------- ------- -------- -------
Net income (loss)....................... $(73,599) $18,738 $(37,719) $53,373
======== ======= ======== =======
Shares used in the computation:
Vencor (prior to the Hillhaven Merger):
Weighted average common shares outstanding... 28,367 25,331 27,582 25,020
Dilutive effect of common stock equivalents
and other dilutive securities(a)........... - 852 - 840
-------- ------- -------- -------
Vencor common and common equivalent shares... 28,367 26,183 27,582 25,860
-------- ------- -------- -------
Hillhaven:
Weighted average common shares outstanding... 33,844 33,564 33,751 32,199
Dilutive effect of common stock equivalents
and other dilutive securities(a)........... - 274 - 750
-------- ------- -------- -------
Hillhaven common and common equivalent
shares..................................... 33,844 33,838 33,751 32,949
Merger exchange ratio........................ 0.935 0.935 0.935 0.935
-------- ------- -------- -------
Adjusted Hillhaven common and common
equivalent shares.......................... 31,644 31,639 31,557 30,807
-------- ------- -------- -------
Shares used in earnings (loss) per common
and common equivalent share
computations............................ 60,011 57,822 59,139 56,667
======== ======= ======== =======
Primary earnings (loss) per common and common
equivalent share:
Income (loss) from operations................... $ (.91) $ .32 $ (.27) $ .94
Extraordinary loss on early extinguishment of
debt......................................... (.32) - (.37) -
-------- ------- -------- -------
Net income (loss)....................... $ (1.23) $ .32 $ (.64) $ .94
======== ======= ======== =======
- ---------------
(a) Dilutive securities are excluded from the computation for net loss reporting
periods.
23
2
EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE (CONTINUED)
FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FULLY DILUTED EARNINGS (LOSS) PER COMMON AND COM-
MON EQUIVALENT SHARE:
Earnings (loss):
Income (loss) available to common
stockholders................................. $(54,403) $18,796 $(15,732) $53,602
Interest addback on convertible securities, net
of income taxes.............................. 2,102 2,557 6,937 7,797
-------- ------- -------- -------
Adjusted income (loss) available to common
stockholders............................... (52,301) 21,353 (8,795) 61,399
Extraordinary loss on early extinguishment of
debt, net of income tax benefit............ (19,196) (58) (21,987) (229)
-------- ------- -------- -------
Net income (loss)....................... $(71,497) $21,295 $(30,782) $61,170
======== ======= ======== =======
Shares used in the computation:
Vencor (prior to Hillhaven Merger):
Weighted average common shares outstanding... 28,367 25,331 27,582 25,020
Dilutive effect of common stock equivalents
and other dilutive securities(a)........... - 5,275 - 5,264
-------- ------- -------- -------
Vencor common and common equivalent shares... 28,367 30,606 27,582 30,284
-------- ------- -------- -------
Hillhaven:
Weighted average common shares outstanding... 33,844 33,564 33,751 32,199
Dilutive effect of common stock equivalents
and other dilutive securities(a)........... - 8,359 - 8,887
-------- ------- -------- -------
Hillhaven common and common equivalent
shares..................................... 33,844 41,923 33,751 41,086
Merger exchange ratio........................ 0.935 0.935 0.935 0.935
-------- ------- -------- -------
Adjusted Hillhaven common and common
equivalent shares.......................... 31,644 39,198 31,557 38,415
-------- ------- -------- -------
Shares used in earnings (loss) per
common and common equivalent share
computations.......................... 60,011 69,804 59,139 68,699
======== ======= ======== =======
Fully diluted earnings (loss) per common and
common equivalent share:
Income (loss) from operations................... $ (.91) $ .31 $ (.27) $ .90
Extraordinary loss on early extinguishment of
debt......................................... (.32) - (.37) -
-------- ------- -------- -------
Net income (loss)....................... $ (1.23) $ .31 $ (.64) $ .90
======== ======= ======== =======
- ---------------
(a) Dilutive securities are excluded from the computation for net loss reporting
periods.
24