The Morgan Group, Inc.
Exhibit 11 - Statement Re: Computation of Per Share Earnings
Year Ended December 31
1994 1995 1996
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Fully Diluted
Average Shares Outstanding 1,333,333 1,333,333 1,333,33
Issuance of 1.1 million
shares of Class A
Common stock on July 22, 1993 1,100,000 1,100,000 1,100,000
Net effect of exercisable
warrants, price based upon the
Treasury Stock Method using average
stock prices 120,730 0 0
Exercise of warrants,
net of tax benefit 0 34,469 88,888
Redemption of shares of Series A
Preferred Stock 0 4,932 150,000
Effect of non-qualified options
outstanding, price based upon the
Treasury Stock method using
average price 0 1,520 0
Treasury stock repurchased 0 (50,070) (121,311)
Automatic conversion of Series B
Redeemable Preferred Stock into
Class A Common Stock effected
contemporaneously
with the initial public offering 133,332 133,332 133,332
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Total 2,687,395 2,557,516 2,684,242
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Net income (loss) $ 2,212,000 $ 2,269,000 ($2,069,543)
Series A Redeemable
Preferred Stock dividends (244,273) (220,691) 0
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$ 1,968,035 $ 2,048,707 ($2,069,543)
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Per share amount $ 0.73 $ .80 ($ .77)
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