1 EXHIBIT 11 PENFORD CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS Quarter Ended November 30 ----------------------------- 1997 1996 ----------- ----------- PRIMARY: Net income $ 497,000 $1,407,000 ========== ========== Weighted average number of shares outstanding 7,268,036 6,851,257 Net effect of dilutive stock options 262,454 141,801 ----------- ----------- Adjusted shares outstanding 7,530,490 6,993,058 =========== =========== Earnings per share $ 0.07 $ 0.20 =========== =========== FULLY DILUTED: Net income $ 497,000 $1,407,000 ========== ========== Weighted average number of shares outstanding 7,268,036 6,851,257 Net effect of dilutive stock options 266,514 141,801 ----------- ----------- Adjusted shares outstanding 7,534,550 6,993,058 =========== =========== Earnings per share $ 0.07 $ 0.20 =========== ===========