EXHIBIT 11
ATRIA COMMUNITIES, INC.
COMPUTATION OF PRO FORMA EARNINGS
PER COMMON AND COMMON EQUIVALENT SHARE
FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER NINE MONTHS
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1996 1995 1996 1995
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Earnings:
Income before extraordinary loss.................... $ 1,212 $ 612 $ 2,946 $ 2,243
Extraordinary loss on extinguishment of debt,
net of income tax benefit........................ - (146) - (146)
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Net income.................................... $ 1,212 $ 466 $ 2,946 $ 2,097
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Pro forma shares used in the computation:
Weighted average common shares outstanding (a)...... 12,484 10,095 10,897 10,095
Dilutive effect of common stock equivalents
consisting of common stock options............... 111 - 111 -
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Shares used in computing earnings per common
and common equivalent share................ 12,595 10,095 11,008 10,095
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Pro forma earnings per common and common
equivalent share:
Income before extraordinary loss.................... $ .10 $ .07 $ .27 $ .23
Extraordinary loss on extinguishment of debt........ - (.02) - (.02)
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Net income.................................... $ .10 $ .05 $ .27 $ .21
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(a) Reflects the issuance of 10,000,000 shares of Atria common stock to Vencor
in exchange for its contribution of assets to Atria and assumption by Atria of
related liabilities, and issuance of 95,000 shares of restricted stock. In
addition, the 1996 amounts also give effect to the 5,750,000 shares issued in
connection with the IPO.