EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER SIX MONTHS
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1996 1995 1996 1995
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PRIMARY EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings:
Income from operations...................... $30,865 $21,087 $58,475 $42,259
Preferred stock dividend requirements....... - (1,795) - (3,588)
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Income available to common stockholders..... 30,865 19,292 58,475 38,671
Extraordinary loss on extinguishment of
debt, net of income tax benefit............ - (2,725) - (2,791)
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Net income................................ $30,865 $16,567 $58,475 $35,880
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Shares used in the computation:
Weighted average common shares outstanding.. 70,351 59,712 70,304 58,778
Dilutive effect of common stock
equivalents................................ 1,022 961 1,111 1,007
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Shares used in computing earnings per
common and common equivalent share....... 71,373 60,673 71,415 59,785
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Primary earnings per common and common
equivalent share:
Income from operations...................... $ .43 $ .32 $ .82 $ .65
Extraordinary loss on extinguishment of
debt....................................... - (.05) - (.05)
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Net income................................ $ .43 $ .27 $ .82 $ .60
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FULLY DILUTED EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings:
Income available to common stockholders..... $30,865 $19,292 $58,475 $38,671
Interest addback on convertible securities,
net of income taxes........................ - 2,370 - 4,835
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Adjusted income available to common
stockholders............................... 30,865 21,662 58,475 43,506
Extraordinary loss on extinguishment of
debt, net of income tax benefit............ - (2,725) - (2,791)
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Net income................................ $30,865 $18,937 $58,475 $40,715
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Shares used in the computation:
Weighted average common shares outstanding.. 70,351 59,712 70,304 58,778
Dilutive effect of common stock equivalents
and other dilutive securities.............. 1,022 12,742 1,111 12,819
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Shares used in computing earnings per
common and common equivalent share....... 71,373 72,454 71,415 71,597
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Fully diluted earnings per common and common
equivalent share:
Income from operations...................... $ .43 $ .30 $ .82 $ .61
Extraordinary loss on extinguishment of
debt....................................... - (.04) - (.04)
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Net income................................ $ .43 $ .26 $ .82 $ .57
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