EXHIBIT 11.1
MCLEODUSA INCORPORATED
COMPUTATION OF LOSS PER COMMON AND COMMON EQUIVALENT SHARE
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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1997 1996 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........................ 36,920 16,410 36,173 16,387
Common shares, Class B, outstanding at
the beginning of the period (B).................... 15,626 15,626 15,626 15,626
Weighted average number of shares issued
during the period (C).............................. 37 2,913 657 1,457
Common equivalent shares attributable
to stock options granted (D)....................... --- 5,019 --- 5,019
Common stock issued (C)............................. --- --- --- 23
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Weighted average number of common shares
and common equivalent shares...................... 52,583 39,968 52,456 38,512
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Net loss............................................ $(16,496) $(4,543) $(29,851) $(8,883)
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Loss per common and common equivalent share........ $(0.31) $(0.11) $(0.57) $(0.23)
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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) The Class B common stock, $.01 par value per share is convertible on a one-
for-one basis at any time at the option of the holder into Class A common
stock. As of June 30, 1997, all shares of Class B common stock had been
converted into shares of Class A common stock.
(C) All stock issued during the three months ended March 31, 1996 was within the
twelve-month period discussed in (D) below. 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 the
entire period.
(D) 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.