EXHIBIT 11.1
INDIVIDUAL, INC.
COMPUTATION OF WEIGHTED AVERAGE SHARES
USED IN COMPUTING LOSS PER SHARE AMOUNTS
FULLY
PRIMARY DILUTED PRO FORMA SUPPLEMENTAL
TYPE OF SECURITY SHARES SHARES SHARES SHARES
- ---------------- ---------- ---------- ----------- ------------
(UNAUDITED) (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 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
June 30, 1995:
Common stock less shares
held in treasury, beginning
of period.................. 1,667,127 1,667,127 1,667,127
Cheap stock outstanding
during the period.......... 346,210 346,210 346,210
Weighted average common
stock issued during the
period..................... 713 713 713
Conversion of preferred
stock and redeemable
preferred stock into common
stock...................... -- -- 7,625,210
---------- ---------- ---------
Weighted average shares of
common stock outstanding. 2,014,050 2,014,050 9,639,260
========== ========== =========
Net loss per common share. $ (0.90) $ (0.90) $ (0.15)
========== ========== =========
For the six months ended June
30, 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..................... 1,345 1,345 1,345
Conversion of preferred
stock and redeemable
preferred stock into common
stock...................... -- -- 7,625,210
---------- ---------- ---------
Weighted average shares of
common stock outstanding. 2,013,557 2,013,557 9,638,767
========== ========== =========
Net loss per common share. $ (1.88) $ (1.88) $ (0.32)
========== ========== =========
FULLY
PRIMARY DILUTED PRO FORMA SUPPLEMENTAL
TYPE OF SECURITY SHARES SHARES SHARES SHARES
- ---------------- ---------- ---------- ----------- ------------
(UNAUDITED) (UNAUDITED)
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 June
30, 1996:
Common stock less shares held
in treasury, beginning of
period...................... 11,958,410 11,958,410 11,958,410
Weighted average common stock
issued during the period.... 466,468 466,468 466,468
Weighted average treasury
stock repurchased during the
period...................... (404) (404) (404)
---------- ---------- ----------
Weighted average shares of
common stock outstanding.. 12,424,474 12,424,474 12,424,474
========== ========== ==========
Net loss per common share.. $ (3.09) $ (3.09) $ (3.09)
========== ========== ==========
For the six months ended June
30, 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.... 1,796,992 1,796,992 1,796,992
Weighted average treasury
stock repurchased during the
period...................... (801) (801) (801)
Weighted average conversion
of preferred stock and
redeemable preferred stock
into common stock........... 4,273,470 4,273,470 7,625,210
========== ========== ==========
Weighted average shares of
common stock outstanding... 7,782,757 7,782,757 11,134,497
========== ========== ==========
Net loss per common share... $ (5.31) $ (5.31) $ (3.67)
========== ========== ==========
- --------
(1) All common share amounts have been restated to reflect a 3-for-2 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 and supplemental
earnings per share calculations have 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
assumed initial public offering price of $13.00 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. For the years ended 1993, 1994 and 1995, cheap
stock has been calculated using the treasury stock method, using the
assumed public offering price of $13.00. For the three months and six
months ended June 30, 1995, cheap stock has been calculated using the
treasury stock method, using the actual initial public offering price of
$14.00.
(4) Due to losses incurred during the periods presented, the inclusion of
common stock equivalents (other than common stock equivalents considered
to be cheap stock) would be anti-dilutive and therefore are not included
in the loss per share calculation.