EXHIBIT 11.1 INDIVIDUAL INC. COMPUTATION OF WEIGHTED AVERAGE SHARES USED IN COMPUTING LOSS PER SHARE AMOUNTS PRIMARY FULLY PRO FORMA TYPE OF SECURITY SHARES DILUTED SHARES - ---------------- ---------- ---------- ----------- (UNAUDITED) For the year ended December 31, 1993: Common stock less shares held in treasury, beginning of period........... 1,662,725 1,662,725 Cheap stock outstanding during the period.................................. 315,864 315,864 Weighted average common stock issued during the period....................... -- -- ---------- ---------- Weighted average shares of common stock outstanding........................... 1,978,589 1,978,589 ========== ========== Net loss per common share.............. $ (2.28) $ (2.28) ========== ========== For the year ended December 31, 1994: Common stock less shares held in treasury, beginning of period........... 1,662,725 1,662,725 Cheap stock outstanding during the period.................................. 315,864 315,864 Weighted average common stock issued during the period....................... 2,712 2,712 ---------- ---------- Weighted average shares of common stock outstanding........................... 1,981,301 1,981,301 ========== ========== Net loss per common share.............. $ (2.90) $ (2.90) ========== ========== For the three months ended March 31, 1995: Common stock less shares held in treasury, beginning of period........... 1,666,002 1,666,002 1,666,002 Cheap stock outstanding during the period.................................. 346,210 346,210 346,210 Weighted average common stock issued during the period....................... 852 852 852 Conversion of preferred stock and redeemable preferred stock into common stock................................... -- -- 7,625,210 ---------- ---------- ---------- Weighted average shares of common stock outstanding........................... 2,013,064 2,013,064 9,638,274 ========== ========== ========== Net loss per common share.............. $ (0.98) $ (0.98) $ (0.17) ========== ========== ========== For the year ended December 31, 1995: Common stock less shares held in treasury, beginning of period........... 1,666,002 1,666,002 1,666,002 Cheap stock outstanding during the period.................................. 315,821 315,821 315,821 Weighted average common stock issued during the period....................... 12,341 12,341 12,341 Conversion of preferred stock and redeemable preferred stock into common stock................................... -- -- 7,625,210 ---------- ---------- ---------- Weighted average shares of common stock outstanding........................... 1,994,164 1,994,164 9,619,374 ========== ========== ========== Net loss per common share.............. $ (4.05) $ (4.05) $ (0.67) ========== ========== ========== For the three months ended March 31, 1996: Common stock less shares held in treasury, beginning of period........... 1,713,096 1,713,096 1,713,096 Weighted average common stock issued during the period....................... 506,690 506,690 506,690 Weighted average treasury stock repurchased during the period........... (476) (476) (476) Weighted average conversion of preferred stock and redeemable preferred stock into common stock....................... 921,729 921,729 7,625,210 ---------- ---------- ---------- Weighted average shares of common stock outstanding........................... 3,141,039 3,141,039 9,844,520 ========== ========== ========== Net loss per common share.............. $ (0.95) $ (0.95) $ (0.25) ========== ========== ========== - ------- (1) All common share amounts have been restated to reflect a 3-for-2 reverse stock split. (2) Upon completion of the initial public offering on March 20, 1996, the redeemable preferred stock and preferred stock converted to 7,625,210 shares of common stock. Accordingly, the pro forma earnings per share calculation has assumed the conversion of all shares of Preferred Stock, effected for the 3-for-2 split, at the beginning of each period presented. (3) In accordance with the Securities and Exchange Commission, issuances of common stock and common stock equivalents, within one year prior to the initial filing of the registration statement, at share prices below the initial public offering price of $14.00 per share (cheap stock), are considered to have been made in anticipation of the contemplated public offering. Accordingly, these stock issuances are treated as if issued and outstanding, using the treasury stock method, since the inception of the Company. (4) Due to losses incurred during the periods presented, the inclusion of common stock equivalents (other than pursuant to cheap stock) would be anti-dilutive and therefore are not included in the loss per share calculation.