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EXHIBIT 11
REGENCY HEALTH SERVICES, INC.
SCHEDULE COMPUTING NET INCOME PER COMMON SHARE
FOR SIX MONTHS ENDED
YEAR ENDED JUNE 30, DECEMBER 31,
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1991 1992 1993 1992 1993
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PRIMARY NET INCOME:
Net Income.................................. $1,824,176 $3,246,314 $5,444,683 $2,589,000 $3,839,000
Add -- interest expense related to notes
payable, net of applicable income tax.... 163,200 72,000 -- -- --
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PRIMARY ADJUSTED NET INCOME................... $1,987,376 $3,318,314 $5,444,683 $2,589,000 $3,839,000
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FULLY DILUTED NET INCOME:
Primary adjusted net income................. $1,987,376 $3,318,314 $5,444,683 $2,589,000 $3,839,000
Add -- interest and amortization expense
related to Convertible Debentures, net of
applicable income tax.................... -- -- 557,000 -- 1,041,000
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FULLY DILUTED ADJUSTED NET INCOME............. $1,987,376 $3,318,314 $6,001,683 $2,589,000 $4,880,000
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WEIGHTED AVERAGE NUMBER OF SHARES:
Common and common equivalent shares......... 1,105,322 1,105,322 1,290,624 1,108,092 1,256,114
Conversion of preferred stock............... 1,506,684 1,506,684 1,506,684 1,506,684 1,506,684
Conversion of note payable.................. 529,510 529,510 529,510 529,510 529,510
Shares issued in connection with Hallmark
acquisition.............................. -- 541,206 1,092,378 1,092,378 1,092,378
Issuance of common stock in Initial Public
Offering................................. -- -- 2,358,334 2,500,251 2,528,634
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TOTAL SHARES IN COMPUTING PRIMARY INCOME PER
SHARE....................................... 3,141,516 3,682,722 6,777,530 6,736,915 6,913,320
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Convertible Debentures...................... -- -- 1,010,101 -- 4,040,404
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TOTAL SHARES IN COMPUTING FULLY DILUTED INCOME
PER SHARE................................... 3,141,516 3,682,722 7,787,631 6,736,915 10,953,724
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INCOME PER SHARE:
Primary..................................... $ 0.63 $ 0.90 $ 0.80 $ 0.38 $ 0.56
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Fully Diluted............................... $ 0.63 $ 0.90 $ 0.77 $ 0.38 $ 0.45
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