EXHIBIT 11.1 SCHMITT INDUSTRIES, INC. SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE (UNAUDITED) Three Months Ended Six Months Ended 11/30/96 11/30/95 11/30/96 11/30/95 ------------------- ----------------- I. Net income for period $ 707,344 $ 208,099 $ 847,620 $ 291,492 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- II. Determination of shares Weighted average number of common shares outstanding 7,020,593 6,886,889 6,998,225 6,886,889 Common equivalent shares 516,032 256,949 423,724 228,367 (determined using the "treasury stock" method) representing shares issuable upon exercise of employee stock options Weighted average number of shares used 7,536,625 7,143,838 7,421,949 7,115,256 in calculation of primary income per share Shares issuable on exercise of stock options, 331 3,884 94,110 28,582 net of shares assumed to be purchased out of proceeds at market price Weighted average number of shares used in fully diluted income per share 7,536,956 7,147,722 7,516,059 7,143,838 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- III. Net income per common share and common share equivalent Primary .09 .03 .11 .04 --- --- --- --- --- --- --- --- Fully diluted .09 .03 .11 .04 --- --- --- --- --- --- --- --- Page 25