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EXHIBIT 11
ENVIROTEST SYSTEMS CORP.
STATEMENT OF COMPUTATION OF INCOME (LOSS) PER SHARE
(Amounts in thousands, except per share amounts)
Income (Loss) per share is computed using the weighted average number of shares
outstanding plus incremental shares issuable upon exercise of outstanding
options and warrants using the treasury stock method.
Three Nine
Months Ended Months Ended
June 30, June 30,
1997 1996 1997 1996
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INCOME (LOSS)
Income (Loss) $ 4,133 $ (6,337) $ (7,768) $(17,164)
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INCOME (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE
Weighted average number of shares outstanding 16,620 16,620 16,620 16,530
Net effect of dilutive stock options based on
the treasury method using the average
market price of common stock(a) 621 652 642 740
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Common stock and common stock equivalents 17,241 17,272 17,262 17,270
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Income (Loss) per common and common
equivalent share $ 0.24 $ (0.37) $ (0.45) $ (0.99)
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INCOME (LOSS) PER COMMON SHARE -
ASSUMING FULL DILUTION
Weighted average number of shares outstanding 16,620 16,620 16,620 16,530
Net effect of dilutive stock options based on
the treasury method using the end of
period market price of common, if
higher than average(a) 727 652 806 740
-------- --------- --------- ---------
Common stock and common stock equivalents 17,347 17,272 17,426 17,270
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Income (Loss) per common and common
equivalent share(b) $ 0.24 $ (0.37) $ (0.45) $ (0.99)
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Notes:
(a) Common stock equivalents represent stock options and warrants.
(b) The calculations for the nine months ended June 30, 1997 are
submitted in accordance with Regulation S-K Item 601(b)(11) although it is
contrary to paragraph 40 of APB Opinion No. 15 because it produces an
anti-dilutive result.