1 EXHIBIT 11.1 IXC COMMUNICATIONS, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 1997 AND 1996 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- ------------------- 1997 1996 1997 1996 -------- -------- -------- -------- EARNINGS Net income (loss)................................. $(28,810) $(12,067) $(48,688) $(23,766) Less: Dividends applicable to preferred stock........................................ (2,288) (432) (2,758) (865) -------- -------- -------- -------- Net income (loss) applicable to common stockholders................................... $(31,098) (12,499) $(51,446) $(24,631) ======== ======== ======== ======== PRIMARY Weighted average number of shares outstanding..... 30,799 24,335 30,799 24,335 Add: Effect, for periods including and prior to the initial public offering (IPO), of common stock options issued within one year of the IPO............................................ -- 833 -- 833 Less: Assumed repurchase of shares under the treasury stock method.......................... -- (157) -- (157) -------- -------- -------- -------- Number of shares used to compute earnings (loss) applicable to common shareholders.............. 30,799 25,011 30,799 25,011 ======== ======== ======== ======== FULLY DILUTED Weighted average number of shares outstanding..... 30,799 24,335 30,799 24,335 Add: Effect, for periods including and prior to the IPO, of common stock options issued within one year of the IPO............................ -- 833 -- 833 Less: Assumed repurchase of shares under the treasury stock method.......................... -- (157) -- (157) -------- -------- -------- -------- Number of shares used to compute earnings (loss) applicable to common shareholders.............. 30,799 25,011 30,799 25,011 ======== ======== ======== ======== PRIMARY LOSS PER COMMON AND COMMON EQUIVALENT SHARE.......................................... $ (1.01) (0.50) $ (1.67) $ (0.99) ======== ======== ======== ======== FULLY DILUTED LOSS PER COMMON AND COMMON EQUIVALENT SHARE............................... $ (1.01) $ (0.50) $ (1.67) $ (0.99) ======== ======== ======== ========