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GARDEN BOTANIKA, INC.
CALCULATION OF EARNINGS
PER COMMON AND COMMON EQUIVALENT SHARE
(EXHIBIT 11)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
FISCAL YEAR ENDED
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JANUARY 31, FEBRUARY 1, FEBRUARY 3,
1998 1997 1996
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PRIMARY:
Earnings -
Net earnings (loss) applicable to common and common equivalent shares $(15,580) $(4,933) $(1,664)
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Shares -
Weighted average common shares outstanding 7,069 6,146 265
Weighted average preferred shares outstanding (1) -- -- 3,491
Net effect of stock options, based on treasury stock method using average
market price (2) -- -- --
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Weighted average common and common equivalent shares 7,069 6,146 3,756
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Primary earnings (loss) per common and common equivalent share $ (2.20) $ (0.80) $ (0.44)
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FULLY DILUTED:
Fully diluted earnings (loss) per share is not presented, as there were
no potentially dilutive securities.
NOTES:
(1) In connection with its initial public offering of common stock completed
on May 22, 1996, all of the Company's outstanding preferred stock
automatically converted to common on a one-for-one basis. Therefore,
losses per common and common equivalent share are based on the weighted
average number of common and preferred shares outstanding.
(2) In the calculation of weighted average common and common equivalent
shares, nonqualified stock options and warrants to purchase common stock
are considered common stock equivalents. Such options and warrants are
converted using the treasury stock method, which assumes that the shares
issuable upon exercise of the options or warrants were outstanding for
the full period. In accordance with generally accepted accounting
principles, no common stock equivalents are shown as their effect would
have been anti-dilutive for each period presented.
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