EXHIBIT 11.1 COMPUTATION OF EARNINGS PER SHARE LEXINGTON HEALTHCARE GROUP, INC. FOR THE PERIOD FROM JULY 1, 1995 (COMMENCEMENT OF FOR THE SIX MONTHS ENDED OPERATIONS) TO JUNE 30, DECEMBER 31, 1996 1996 -------------------------- -------------------------- HISTORICAL PRO FORMA HISTORICAL PRO FORMA ------------ ------------ ------------ ------------ Net income (loss)........................................ $ 136,000 $ 476,000 $ 266,000 $ 658,000 ------------ ------------ ------------ ------------ Shares: Weighted average number of common shares outstanding (1).................................................. 3,092,000 3,092,000 3,092,000 3,092,000 Shares assumed sold with proceeds used for: Repayment of debt.................................... 109,000 109,000 Payment of the cash portion of the PRN acquisition price.............................................. 389,000 389,000 Shares to be issued in connection with the acquisition of Professional Relief Nurses, Inc. and Balz Medical Services, Inc........................................ 408,000 408,000 ------------ ------------ ------------ ------------ Weighted average number of shares outstanding.......... 3,092,000 3,998,000 3,092,000 3,998,000 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net Income per share................................... $ .04 $ .12 $ .09 $ .16 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ - ------------------------ (1) In accordance with Securities and Exchange Commission requirements, all common shares issued including the shares, including the shares issued in the proposed reorganization by the Company, at a price below the proposed offering price during the twelve-month period prior to the filing of the initial public offering have been included in the calculation as if they were outstanding for all periods prior to the offering.