El Paso Electric Company Exhibit 11
Computation of Earnings Per Share
(In Thousands Except for Share Data)
Year Year Year
Ended Ended Ended
December 31, December 31, December 31,
1999 1998 1997
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Net income applicable to common stock:
Income before extraordinary items $ 31,612 $ 42,366 $ 41,424
Extraordinary loss on repurchases of debt,
net of income tax benefit (3,336) - (2,775)
Extraordinary gain on discharge of debt,
net of income tax expense - 3,343 -
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Net income applicable to common stock $ 28,276 $ 45,709 $ 38,649
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Basic earnings per common share:
Weighted average number of common
shares outstanding 59,349,468 60,168,234 60,128,505
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Net income per common share:
Income before extraordinary items $ 0.533 $ 0.704 $ 0.689
Extraordinary loss on repurchases of debt,
net of income tax benefit (0.057) - (0.046)
Extraordinary gain on discharge of debt,
net of income tax expense - 0.056 -
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Net income $ 0.476 $ 0.760 $ 0.643
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Diluted earnings per common share:
Weighted average number of common
shares outstanding 59,349,468 60,168,234 60,128,505
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Effect of dilutive potential common stock options based on the treasury
stock method using average market price:
Quarter ended March 31 - 262,998 360,800
Quarter ended June 30 384,767 538,986 291,388
Quarter ended September 30 498,828 457,905 220,412
Quarter ended December 31 514,212 479,130 299,744
Effect of dilutive potential restricted common stock based on the treasury
stock method using average market price:
Quarter ended March 31 - 14,496 19,092
Quarter ended June 30 29,186 31,840 15,940
Quarter ended September 30 45,471 35,468 12,636
Quarter ended December 31 56,258 39,433 16,496
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1,528,722 1,860,256 1,236,508
Divided by number of quarters 4 4 4
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Net effect of dilutive potential common stock 382,181 465,064 309,127
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Weighted average number of common shares and
dilutive potential common shares outstanding 59,731,649 60,633,298 60,437,632
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Net income per common share:
Income before extraordinary items $ 0.529 $ 0.699 $ 0.685
Extraordinary loss on repurchases of debt,
net of income tax benefit (0.056) - (0.046)
Extraordinary gain on discharge of debt,
net of income tax expense - 0.055 -
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Net income $ 0.473 $ 0.754 $ 0.639
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