EXHIBIT 11
CHATTEM, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
FOR THE YEARS ENDED NOVEMBER 30, 2000, 1999 AND 1998
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
2000 1999 1998
----------- ----------- -----------
NET INCOME:
Income (loss) before extraordinary loss and
change in accounting principle........... $ (197) $ 22,541 $ 18,128
Extraordinary loss......................... (920) (2,385) (2,859)
Change in accounting principle............. (542) -- --
----------- ----------- -----------
Net income (loss)...................... $ (1,659) $ 20,156 $ 15,269
=========== =========== ===========
NUMBER OF COMMON SHARES:
Weighted average outstanding.............. 9,411 9,747 9,374
Issued upon assumed exercise of
outstanding stock options and stock
warrants................................ -- 277 361
----------- ----------- -----------
Weighted average and dilutive potential
outstanding............................. 9,411 10,024 9,735
=========== =========== ===========
NET INCOME (LOSS) PER COMMON
SHARE:
Basic:
Income (loss) before extraordinary loss
and change in accounting principle... $ (.02) $ 2.31 $ 1.93
Extraordinary loss..................... (.10) (.24) (.30)
Change in accounting principle......... (.06) -- --
----------- ----------- -----------
Total basic.......................... $ (.18) $ 2.07 $ 1.63
=========== =========== ===========
Diluted:
Income (loss) before extraordinary loss
and change in accounting principle... $ (.02) $ 2.25 $ 1.86
Extraordinary loss..................... (.10) (.24) (.29)
Change in accounting principle......... (.06) -- --
----------- ----------- -----------
Total diluted........................ $ (.18) $ 2.01 $ 1.57
=========== =========== ===========
30