EXHIBIT 11
STATEMENTS REGARDING COMPUTATION OF PER SHARE EARNINGS
HISTORICAL EARNINGS PER SHARE
For the three months For the nine months ended
ended August 31, August 31,
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1996 1997 1996 1997
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Net income available to common
shareholders $ 477,786 $ 996,019 $ 930,670 $1,747,247
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Common stock and common stock
equivalents:
Weighted average shares outstanding 655,773 6,747,049 655,773 2,753,939
Convertible Securities:
Series B Preferred Stock 663,761 14,430 663,761 445,738
Series F Preferred Stock 135,025 2,935 135,025 90,674
Series G Preferred Stock 673,638 14,644 673,638 452,370
Options (calculated on Treasury Method)
1987 Plan 21,374 16,956 21,374 16,956
Options and warrants issued within one
year of the offering (calculated on
Treasury Method):
Vested options repriced or granted 207,020 297,690 207,020 296,162
Warrants repriced 65,782 89,547 65,782 80,391
---------- ---------- ---------- ----------
272,802 387,237 272,802 376,553
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Total common stock and common
stock equivalents 2,422,373 7,183,251 2,422,373 4,136,230
========== ========== ========== ==========
Net income per common share $ 0.20 $ 0.14 $ 0.38 $ 0.42
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EXHIBIT 11
STATEMENTS REGARDING COMPUTATION OF PER SHARE EARNINGS (CONTINUED)
PRO FORMA EARNINGS PER SHARE
TO GIVE EFFECT TO THE RECAPITALIZATION
(Presented on the face of the historical Statement of Operations)
For the three For the nine
months ended months ended
August 31, 1997 August 31, 1997
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Pro forma net income:
Net income $ 996,019 $ 1,747,427
Add back interest (tax affected at 40%) on debt included in
Recapitalization:
$2,000,000 subordinated note (7.74%) converted to stock
in Recapitalization - 46,440
$2,867,546 portion of subordinated note (12.0%)
converted to stock in Recapitalization
- 103,232
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Pro forma net income $ 996,019 $ 1,897,099
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Common stock and common stock equivalents:
Historical weighted average shares outstanding 7,183,251 4,136,230
Less common stock equivalents included in historical
earnings per share:
Series B Preferred Stock (14,430) (445,738)
Series F Preferred Stock (2,935) (90,674)
Series G Preferred Stock (14,644) (452,370)
Add effect of Recapitalization:
Series A Preferred Stock 1,870 57,754
Series B Preferred Stock 14,430 445,738
Series F & G Preferred Stock 16,603 512,882
Shares for $2,867,546 of subordinated debt 13,403 414,030
Shares for $2,000,000 of subordinated debt 9,348 288,769
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Total pro forma common stock and common stock
equivalents 7,206,896 4,866,621
============== ===============
Pro forma net income per common share $ 0.14 $ 0.39
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