EXHIBIT 11.1
MCLEOD, INC.
COMPUTATION OF LOSS PER COMMON AND COMMON EQUIVALENT SHARE
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
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1997 1996
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Computation of weighted average number of
common shares outstanding and common
equivalent shares: (A)
Common shares, Class A, outstanding at the
beginning of the period 36,173 16,387
Common shares, Class B, outstanding at the
beginning of the period 15,626 15,626
Weighted average number of shares issued during
the period (C) 528 ----
Common equivalent shares attributable to stock
options granted (B) ---- 5,019
Common stock issued (C) ---- ----
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Weighted average number of common shares and
common equivalent shares 52,327 37,055
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Net loss $(13,355) $(4,340)
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Loss per common and common equivalent share $ (0.26) $ (0.12)
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(A) All shares have been adjusted to give effect to the 3.75 for 1 stock split
effected in the form of a stock dividend effective March 28, 1996.
(B) All stock options are anti-dilutive; however, pursuant to Securities and
Exchange Commission Staff Accounting Bulletin No. 83 (SAB 83), stock options
granted with exercise prices below the assumed initial offering price during
the twelve-month period preceding the date of the initial filing of the
Registration Statement filed in connection with the Company's initial public
offering have been included in the calculation of common stock equivalent
shares as if they were outstanding for all periods through June 30, 1996,
the quarter in which the initial public offering was completed.
(C) All stock issued during the three months ended March 31, 1996 was within the
twelve-month period discussed in (B) above. As a result, the shares issued
at prices below the assumed initial public offering price during this period
have been included in the calculation as if they were outstanding for all
periods presented.