EXHIBIT II
Universal Heights, Inc.
Statement Regarding the Computation of Per Share Income
The following table reconciles the numerator (earnings) and denominator (shares)
of the basic and diluted earnings per share computations for net income for the
quarters ended March 31, 2000 and 1999.
Three Months Ended Three Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
Income Income
Available Available
to Common Per-Share to Common Per-Share
Stockholders Shares Amount Stockholders Shares Amount
------------ ------ ------ ------------ ------ ------
Net income $606,675 $519,019
Less: Preferred stock dividends (12,488) (12,488)
------- -------
Income available to common
stockholders 594,187 14,795,000 $0.04 $506,531 14,673,000 $0.03
==== ====
Effect of dilutive securities:
Stock options and warrants
--- 1,227,000 --- --- 445,000 ---
Preferred stock 12,488 568,000 --- 12,488 568,000 ---
------- -------- ----- -------- ---------- ------
Income available to common
stockholders and assumed
conversion $606,675 16,590,000 $0.04 $519,019 15,686,000 $0.03
======== ========== ===== ======== ========== =====
Options and warrants totaling 9,510,000 and 7,014,000 were excluded from the
calculation of diluted earnings per share as their effect was anti-dilutive for
the three months ended March 31, 2000 and 1999, respectively.
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