EXHIBIT 11
ENVIROTEST SYSTEMS CORP.
EXHIBIT 11 -STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Earnings (loss) per share are computed using the weighted average number of
shares outstanding plus incremental shares issuable upon exercise of outstanding
options and warrants using the treasury stock method.
Three Nine
Months Ended Months Ended
June 30, June 30,
1996 1995 1996 1995
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INCOME (LOSS)
Net Income (loss) $ (6,337) $ (2,409) $ (17,164) $ (4,457)
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EARNINGS (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE (b)
Weighted average number of shares outstanding 16,620 16,134 16,530 16,026
Net effect of dilutive stock options based on
the treasury method using the average
market price of common stock (a) 652 1,159 740 1,282
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Common stock and common stock equivalents 17,272 17,293 17,270 17,308
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Earnings (loss) per common and common
equivalent share (b) $ (0.37) $ (0.14) $ (0.99) $ (0.26)
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EARNINGS (LOSS) PER COMMON SHARE -
ASSUMING FULL DILUTION (b)
Weighted average number of shares outstanding 16,620 16,134 16,530 16,026
Net effect of dilutive stock options based on
the treasury method using the end of
period market price of common, if
higher than average (a) 652 1,159 740 1,278
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Common stock and common stock equivalents 17,272 17,293 17,270 17,304
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Earnings (loss) per common and common
equivalent share (b) $ (0.37) $ (0.14) $ (0.99) $ (0.26)
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Notes:
(a) Common stock equivalents represent stock options and warrants.
(b) These calculations for the three and nine months ended June 30, 1996 are
submitted in accordance with Regulation S-K Item 601(b)(11) although it is
contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-
dilutive result.
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