EXHIBIT 11 MATTHEWS STUDIO EQUIPMENT GROUP AND SUBSIDIARIES Computation of Primary and Fully Diluted Per Share Earnings (Unaudited) ($ in thousands, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 1997 1997 ------------------ ----------------- PRIMARY PER SHARE EARNINGS: Weighted average shares outstanding..................... 10,527 10,398 Net effect of dilutive stock options and warrants....... 2,030 2,056 ------- ------- Total................................................... 12,557 12,454 Net income.............................................. $ 324 $ 1,214 Reduction in interest expense resulting from the assumed exercise of stock options and warrants to purchase common stock and the assumed reduction of outstanding notes payable, net of income taxes...... 52 205 ------- ------- Net income, as adjusted................................. $ 376 $ 1,419 ======= ======= Per Share amount........................................ $ 0.03 $ 0.11 ======= ======= FULLY DILUTED PER SHARE EARNINGS: Weighted average shares outstanding..................... 10,527 10,398 Net effect of dilutive stock options and warrants....... 2,030 2,056 ------- ------- Total................................................... 12,557 12,454 Net income.............................................. $ 324 $ 1,214 Reduction in interest expense resulting from the assumed exercise of stock options and warrants to purchase common stock and the assumed reduction of outstanding notes payable, net of income taxes...... 46 140 ------- ------- Net income, as adjusted................................. 370 1,354 ======= ======= Per Share amount........................................ $ 0.03 $ 0.11 ======= =======