- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EXHIBIT 11.1 SCHMITT INDUSTRIES, INC. SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE (UNAUDITED) Three Months Ended Nine Months Ended 02/28/97 02/29/96 02/28/97 02/29/96 -------------------- ---------------------- I. Net income for period $ 458,655 $ 484,287 $ 1,306,275 $ 775,779 --------- --------- ----------- --------- II. Determination of shares Weighted average number of common shares outstanding 7,042,886 6,886,889 7,012,557 6,886,889 Common equivalent shares 364,289 288,588 314,846 229,826 (determined using the "treasury stock" method) representing shares issuable upon exercise of employee stock options Weighted average number of shares used 7,407,175 7,175,477 7,327,403 7,116,715 in calculation of primary income per share Shares issuable on exercise of stock options, 87 26,635 56,999 50,815 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 7,407,262 7,202,112 7,384,402 7,167,530 --------- --------- --------- --------- III. Net income per common share and common share equivalent Primary .06 .07 .18 .11 --- --- --- --- Fully diluted .06 .07 .18 .11 --- --- --- --- Page 17 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------