1 EXHIBIT 11.1 -- COMPUTATION OF PER-SHARE EARNINGS IXC COMMUNICATIONS, INC. COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE FOR THE THREE YEARS ENDED DECEMBER 31, 1993, 1994 AND 1995 AND THE THREE MONTH PERIODS ENDED MARCH 31, 1995 and 1996 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) YEAR ENDED DECEMBER 31, THREE MONTHS ENDED MARCH 31, ---------------------------------- ---------------------------- 1993 1994 1995 1995 1996 ---------------------------------- --------------------------- EARNINGS Adjusted net income (loss) $(23,317) $7,315 $(4,965) $1,267 $(11,699) Less: Dividends applicable to preferred stock (1,567) (1,752) (1,843) (479) (433) --------------------------------- -------------------------- Net income (loss) applicable to common stockholders (24,884) 5,563 (6,808) 788 (12,132) Extraordinary (gain) loss (8,495) (2,298) 1,747 -- -- --------------------------------- -------------------------- Net income (loss) applicable to common stockholders before extraordinary items $(33,379) $3,265 $(5,061) $ 788 $(12,132) ================================= ========================= PRIMARY Weighted average number of shares outstanding 23,333 24,310 24,335 24,335 24,335 Add: Effect for periods prior to the initial public offering (IPO), of common stock options issued within one year of the IPO 833 833 833 833 833 Add: Dilutive effect of outstanding stock options -- 9 120 236 -- Less: Assumed repurchase of shares under the treasury stock method (157) (159) (180) (201) (157) --------------------------------- -------------------------- Number of shares used to compute earnings (loss) applicable to common stockholders 24,009 24,993 25,108 25,203 25,011 ================================ ========================== FULLY DILUTED Weighted average number of shares outstanding 23,333 24,310 24,335 24,335 24,335 Add: Effect for periods prior to the initial public offering (IPO), of common stock options issued within one year of the IPO 833 833 833 833 833 Add: Dilutive effect of outstanding stock options -- 9 120 236 -- Less: Assumed repurchase of shares under the treasury stock method (157) (159) (180) (201) (157) --------------------------------- -------------------------- Number of shares used to compute earnings (loss) applicable to common stockholders 24,009 24,993 25,108 25,203 25,011 ================================= ========================== PRIMARY INCOME (LOSS) PER COMMON SHARE Before extraordinary item $(1.39) $0.13 $(0.20) $0.03 $(0.49) Extraordinary gain (loss) 0.35 0.09 (0.07) -- -- --------------------------------- -------------------------- Net income (loss) $(1.04) $0.22 $(0.27) $0.03 $(0.49) ================================= ========================== FULLY DILUTED INCOME (LOSS) PER COMMON SHARE Before extraordinary item $(1.39) $0.13 $(0.20) $0.03 $(0.49) Extraordinary gain (loss) 0.35 0.09 (0.07) -- -- --------------------------------- -------------------------- Net income (loss) $(1.04) $0.22 $(0.27) $0.03 $(0.49) ================================= ==========================