DECRANE AIRCRAFT HOLDINGS, INC.
CALCULATION OF EARNINGS PER COMMON SHARE
Year Ended December 31, 1996 (1)
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Pro Forma Pro Forma
for as
Recapitalization Adjusted
Shares outstanding at beginning of the year
Common shares 85,593 85,593
Common equivalent shares
Series A, B and C convertible preferred shares 1,140,718 1,140,718
Redeemable warrants (2) 356,635 356,635
Other warrants not subject to mandatory redemption (2) 16,585 16,585
Stock options, other than compensatory options (3) 200,549
Impact of cheap stock issued during 1996
Series C, D and E preferred stock 801,085 801,085
Redeemable warrants 151,073 151,073
Compensatory stock options 107,090 107,090
Common stock equivalents issued during 1996
Common stock warrants (4)
Stock options, other than compensatory options (3) 3,205
Sale of common shares in the Offering 2,500,000
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Pro forma weighted average number of shares outstanding 2,658,779 5,362,533
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Net income (loss) (5) $ (817,000) $3,519,000
Pro forma net loss per common share $ (0.31) $ 0.66
(1) All share data reflects the effect of the 3.53 for 1 reverse stock split.
(2) Represents warrants exercised and converted to common stock pursuant to the
Recapitalization, net of shares assumed to be repurchased under the treasury stock method.
(3) Not included in the pro forma for recapitalization computation as they are anti-dilutive.
(4) Not included in the computations as they are anti-dilutive.
(5) The weighted average number of shares assumes that the redeemable warrants and preferred
stock which will be converted into common stock pursuant to the Recapitalization had been
converted and thus outstanding since the dates of issuance. As a result, pro forma loss
per common share is computed using the reported net loss of the Company before deductions for
the adjustment in redemption value of redeemable warrants and preferred stock dividends.