EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
CALCULATION OF PRO FORMA BASIC AND DILUTED EARNINGS PER SHARE
(In thousands, except for per share data)
For the Fifty-Two Weeks Ended
January February
31, 1,
1998 1997
----------- --------
Income before extraordinary item......... $6,984 $30,441
Extraordinary item....................... 1,743 --
-------- ---------
Net income............................... $5,241 $30,441
======== =========
Pro forma basic weighted average
common shares outstanding (1)............ 21,821 20,421
------ ------
Pro forma basic income per common share:
Income before extraordinary item......... $0.32 $1.49
Extraordinary item....................... (0.08) --
----- ------
Pro forma basic net income per common
share (1).............................. $0.24 $1.49
===== =====
Pro forma diluted weighted average common
shares outstanding (2).................. 24,358 23,804
------ ------
Pro forma diluted income per common share:
Income before extraordinary item........... $0.29 $1.28
Extraordinary item......................... (0.07) --
------ ------
Pro forma diluted net income per
common share (2)......................... $0.22 $1.28
===== =====
(1) Pro forma basic income per common share for the fifty-two weeks ended
January 31, 1998 was calculated by dividing net income by the pro forma
basic weighted average common shares outstanding as if the Stock Split,
the Series B Conversion and the Reclassification (as discussed in Note
2-Initial Public Offering), occurred on the first day of fiscal 1997. Pro
forma basic net income per common share for the fifty-two weeks ended
February 1, 1997 was calculated by dividing net income by the pro forma
basic weighted average common shares outstanding as if (i) the Stock Split,
the Series B Conversion and the Reclassification, (ii) the 1996 Private
Placement of Common Stock (as discussed in Note 3-1996 Private Placement),
and (iii) the cancellation of outstanding preferred shares (as discussed in
Note 9-Stockholders' Equity), occurred on the first day of fiscal 1996.
(2) Pro forma diluted income per common share for the fifty-two weeks ended
January 31, 1998 was calculated by dividing net income by the pro forma
diluted weighted average common shares and common share equivalents
outstanding as if the Stock Split, the Series B Conversion and the
Reclassification occurred on the first day of fiscal 1997. Pro forma
diluted net income per common share for the fifty-two week ended February
1, 1997 was calculated by dividing net income by the pro forma diluted
weighted average common shares outstanding and common share equivalents as
if (i) the Stock Split, Series B Conversion and Reclassification, (ii) the
1996 Private Placement of Common Stock, (iii) the cancellation of the
outstanding preferred shares, and (iv) the granting of management options
in conjunction with the 1996 Private Placement, occurred on the first day
of fiscal 1996. For the fifty-two weeks ended January 31, 1998, common
share equivalents included the Noteholder Warrant and Legg Mason Warrant
prior to their exercise and management options to purchase common stock
under the 1996 Plan and the 1997 Plan using the treasury stock method. For
the fifty-two weeks ended February 1, 1997, common share equivalents
included the Noteholder Warrant and the Legg Mason Warrant (as discussed
in Note 3-1996 Private Placement), and management options to purchase
common stock under the 1996 Plan calculated using the treasury stock
method. Prior to the Offering, the Offering price was utilized for the
treasury stock calculations due to the lack of a public market. Subsequent
to the Offering, the average market price was utilized in accordance with
FAS No. 128.
EXHIBIT 11.1
THE CHILDRENS PLACE RETAIL STORES, INC.
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
CALCULATION OF PRO FORMA BASIC WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
# of
Shares Weighted
Fifty-two weeks ended January 31, 1998 Outstanding #of Months Average
- -------------------------------------- -------------- ----------- ---------
Outstanding common stock.............. 12,760,800 8 8,507,200
Series B conversion to common stock... 7,659,889 8 5,106,593
----------
13,613,793
Outstanding common stock(a)........... 24,622,103 4 8,207,367
-----------
21,821,160
===========
# of
Shares Weighted
Fifty-two weeks ended February 1, 1997 Outstanding #of Months Average
- ---------------------------------------- ----------- ---------- ----------------
Outstanding common stock............... 12,760,800 12 12,760,800
Series B conversion to common stock.... 7,659,889 12 7,659,889
-----------
20,420,689
==========
(a) Outstanding stock includes the 12,760,800 outstanding shares prior to the
initial public offering, the conversion of 7,659,889 shares of Series B
Common Stock into Common Stock, the initial public offering of
4,000,000 shares of Common Stock, and 201,414 shares of Common Stock issued
upon the exercise of one-third of the Legg Mason Warrant.
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
CALCULATION OF PRO FORMA DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
# of Shares Weighted
Fifty-two weeks ended January 31, 1998 Outstanding # of Months Average
- ------------------------------------------ ----------- ----------- -------
Outstanding common stock................ 12,760,800 8 8,507,200
Series B conversion to common stock..... 7,659,889 8 5,106,593
Legg Mason Warrant (a).................. 604,240 8 402,827
Noteholder Warrant (b).................. 1,611,305 8 1,074,203
1996 Management Options (c)............. 1,167,951 8 778,634
--------- --------------
15,869,457
--------------
Outstanding common stock (g)............ 24,622,103 4 8,207,368
1996 Management Options (i)............. (i) 4 280,830
1997 Management Options (e)............. -- 4 --
Options issued to a 10% owner (f)....... -- 4 --
---------- ----------------
8,488,198
----------------
24,357,655
================
Options or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
initial public offering Option or Warrant Price Offering Price Equivalents
- ----------------------------------------- ------------------ --------- --------------- -------------
(a) Legg Mason Warrant.................. 747,096 $2.677 $14.00 604,240
(b) Noteholder Warrant.................. 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Options............. 1,444,080 2.677 14.00 1,167,951
Options subsequent to the initial public
offering for the 13 weeks ended # of Shares under Exercise Average Common Share
November 1, 1997 Option Price Market Price Equivalents
- ----------------------------------------- ------------------ ----------- ------------- -------------
(d) 1996 Management Options.............. 1,444,080 $2.677 $10.84 1,087,456(i)
(e) 1997 Management Options.............. 451,600 14.00 10.84 (j)
(f) 1997 Options issued to a 10% owner... 99,660 15.40 10.84 (j)
Options subsequent to the initial public
offering for the 13 weeks ended # of Shares Exercise Average Market Common Share
January 31, 1998 under Option Price Price Equivalents
- ------------------------------------------ ------------ ------------ --------------- --------------
(h) 1996 Management Options............. 1,444,080 $2.677 $5.66 760,835(i)
(e) 1997 Management Options............. 451,600 14.00 5.66 (j)
(f) 1997 Options issued to a 10% owner.. 99,660 15.40 5.66 (j)
(g) Outstanding stock includes the 12,760,800 outstanding shares prior to the
initial offering, the conversion of 7,659,889 shares of Series B Common
Stock into Common Stock, the initial public offering of 4,000,000 shares of
Common Stock, and 201,414 shares of Common Stock issued upon the exercise of
one-third of the Legg Mason Warrant.
(i) For the fifty two weeks ended January 31, 1998, the 1996 Management Options
have a weighted average value of:
Treasury Stock # of Common Share
Method Months Equivalents
---------------- ------- -------------
(d) 13 weeks ended November 1, 1997 1,087,456 1 90,621
(h) 13 weeks ended January 31, 1998 760,835 3 190,209
----------
280,830
==========
(j) The 1997 Management Options and 1997 Management Options issued to a 10% owner
are anti-dilutive since the exercise price is greater than the average
market price.
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
CALCULATION OF PRO FORMA DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
# of Shares Weighted
Fifty-two weeks ended February 1, 1997 Outstanding # of Months Average
- ------------------------------------------- ----------- ----------- --------
Outstanding common stock................... 12,760,800 12 12,760,800
Series B conversion to common stock........ 7,659,889 12 7,659,889
Legg Mason Warrant (a)..................... 604,240 12 604,240
Noteholder Warrant (b)..................... 1,611,305 12 1,611,240
1996 Management Options (c)................ 1,167,951 12 1,167,951
----------- -------------
23,804,185
=============
Option or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
the initial public offering Option of Warrant Price Offering Price Equivalents
- ------------------------------------------ ----------------- --------- --------------- ------------
(a) Legg Mason Warrant ............... 747,096 $2.677 $14.00 604,240
(b) Noteholder Warrant................ 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Options........... 1,444,080 2.677 14.00 1,167,951