EXHIBIT 11
VDI MEDIA
COMPUTATION OF EARNINGS PER SHARE
PRO FORMA EARNINGS PER SHARE
- ----------------------------
Historical number of shares outstanding 6,660,000
S Corporation distribution as of December 31, 1996 $ 4,050,000
Loss: current year earnings 3,836,000
------------
S Corporation distribution in excess of current 214,000
period earnings
Additional shares required to pay S Corporation
distribution in excess of current period earnings 34,503
------------
Pro forma weighted average shares outstanding 6,694,503
------------
Net Income $ 2,342,000
------------
Proforma earnings per share $ 0.35
------------
SUPPLEMENTAL PRO FORMA EARNINGS PER SHARE
- -----------------------------------------
Outstanding debt to be repaid with Offering
proceeds $ 1,937,000
Additional shares required to retire
outstanding debt 312,304
------------
Supplemental pro forma weighted shares 7,006,806
------------
Net Income $ 2,342,000
add: Interest expense associated with 174,600
outstanding debt (NET OF TAX) ------------
2,516,600
------------
Supplemental pro forma earnings per share $ 0.36
------------