EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES Year ended December 31, 1997 1996 1995 ---- ---- ---- Net income $ 14,825,000 $ 6,404,000 $ 888,000 ============ ============= ============ Basic: Weighted average shares 12,194,885 12,172,697 12,169,196 Dilutive stock options-based on treasury stock method using average market price 225,236 38,376 23,771 ------------ ------------- ------------ Dilutive potential Common Shares 12,420,121 12,211,073 12,192,967 ============ ============= ============ Earnings per share: Basic $ 1.22 $ .53 $ .07 ============== =============== ============== Diluted $ 1.19 $ .52 $ .07 ============== =============== ==============