EXHIBIT 11
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PRO FORMA PER SHARE EARNINGS*
SIX MONTHS ENDED
NOVEMBER 30,
------------------------ YEAR ENDED
1994 1993 MAY 31, 1994
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(AMOUNTS IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
FOR PRIMARY EARNINGS PER SHARE
Shares outstanding at beginning of period................................ 166,081 165,898 165,898
Shares issued upon exercise of stock options............................. 171 8 60
Dilutive effect of outstanding stock options............................. 2,138 198 1,114
Shares issued as grants of restricted stock, net of
cancellations........................................................... -- (11) (48)
Shares assumed issued in the Merger...................................... 33,190 33,190 33,190
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Weighted average number of shares and share equivalents outstanding...... 201,580 199,283 200,214
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Income from continuing operations before cumulative effect of a change in
accounting principle.................................................... $ 103,146 $ 75,008 $ 214,521
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Earnings per share from continuing operations before cumulative effect of
a change in accounting principle........................................ $ 0.51 $ 0.38 $ 1.07
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FOR FULLY DILUTED EARNINGS PER SHARE
Weighted average number of shares used in primary calculation............ 201,580 199,283 200,214
Additional dilutive effect of stock options.............................. 168 44 97
Assumed conversion of dilutive convertible debentures.................... 12,909 13,978 13,966
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Fully diluted weighted average number of shares.......................... 214,657 213,305 214,277
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Income from continuing operations used in primary calculation............ $ 103,146 $ 75,008 $ 214,521
Adjustments for interest expense, contractual allowances and income
taxes................................................................... 3,728 2,491 5,981
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Adjusted income from continuing operations used in fully diluted
calculation............................................................. $ 106,874 $ 77,499 $ 220,502
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Earnings per share from continuing operations before cumulative effect of
a change in accounting principle........................................ $ 0.50 $ 0.36 $ 1.03
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<FN>
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* All shares in these tables are weighted on the basis of the number of days
the shares were outstanding or assumed to be outstanding during each
period.