EXHIBIT 11 TOTAL RENAL CARE HOLDINGS, INC. COMPUTATION OF PER SHARE EARNINGS THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ---------------------- ------------------------ 1997 1996 1997 1996 ---------- ---------- ----------- ----------- Applicable Common Shares Average outstanding during the period................ 26,628,000 25,802,000 26,607,000 24,077,000 Outstanding stock options.. 683,000 841,000 705,000 825,000 Reduction in shares in connection with notes receivable from employees. (85,000) (64,000) (85,000) (65,000) ---------- ---------- ----------- ----------- Weighted average number of shares outstanding.......... 27,226,000 26,579,000 27,227,000 24,837,000 ========== ========== =========== =========== Net income................... $8,866,000 $5,726,000 $16,691,000 $10,002,000 ========== ========== =========== =========== Net income per common share.. $ 0.33 $ 0.22 $ 0.61 $ 0.40 ========== ========== =========== =========== PRO FORMA COMPUTATION OF PER SHARE EARNINGS In February 1997, Statement of Financial Accounting Standards No. 128, Earnings per Share (SFAS 128), was issued. This pronouncement modifies the calculation and disclosure of earnings per share (EPS) and will be adopted by the Company in its financial statements for the year ending December 31, 1997. The following discloses the earnings per share calculations in accordance with the provisions of SFAS 128. THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ---------------------- ------------------------ 1997 1996 1997 1996 ---------- ---------- ----------- ----------- Applicable Common Shares Average outstanding during the period................ 26,628,000 25,802,000 26,607,000 24,077,000 Reduction in shares in connection with notes receivable from employees. (85,000) (64,000) (85,000) (65,000) ---------- ---------- ----------- ----------- Weighted average number of shares outstanding for use in computing earnings per share....................... 26,543,000 25,738,000 26,522,000 24,012,000 Dilutive effect of outstanding stock options................. 683,000 841,000 705,000 825,000 ---------- ---------- ----------- ----------- Weighted average number of shares outstanding for use in computing earnings per share--assuming dilution.... 27,226,000 26,579,000 27,227,000 24,837,000 ========== ========== =========== =========== Net income................... $8,866,000 $5,726,000 $16,691,000 $10,002,000 ========== ========== =========== =========== Net income per common share.. $ 0.33 $ 0.22 $ 0.63 $ 0.42 ========== ========== =========== =========== Net income per common share-- assuming dilution........... $ 0.33 $ 0.22 $ 0.61 $ 0.40 ========== ========== =========== ===========