EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1996 1995 1994
------- -------- -------
PRIMARY EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings (loss):
Income from operations............................. $48,005 $ 8,363 $86,139
Preferred stock dividend requirements.............. - (5,280) (7,574)
Gain on preferred stock redemption................. - 10,176 -
Other.............................................. - - (179)
------- -------- -------
Income from operations available to common
stockholders...................................... 48,005 13,259 78,386
Extraordinary loss on extinguishment of debt, net
of income tax benefit............................. - (23,252) (241)
------- -------- -------
Income (loss) available to common stockholders... $48,005 $ (9,993) $78,145
======= ======== =======
Shares used in the computation:
Weighted average common shares outstanding......... 69,704 61,196 55,522
Dilutive effect of common stock equivalents........ 998 1,122 1,515
------- -------- -------
Shares used in computing earnings (loss) per
common and common equivalent share.............. 70,702 62,318 57,037
======= ======== =======
Primary earnings (loss) per common and common
equivalent share:
Income from operations............................. $ 0.68 $ 0.21 $ 1.37
Extraordinary loss on extinguishment of debt....... - (0.37) -
------- -------- -------
Net income (loss)................................ $ 0.68 $ (0.16) $ 1.37
======= ======== =======
EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1996 1995 1994
------- -------- -------
FULLY DILUTED EARNINGS (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE:
Earnings (loss):
Income from operations available to common
stockholders...................................... $48,005 $ 13,259 $78,386
Interest addback on convertible securities, net of
income taxes...................................... - 7,380 10,127
------- -------- -------
Adjusted income from operations available to common
stockholders...................................... 48,005 20,639 88,513
Extraordinary loss on extinguishment of debt, net
of income tax benefit............................. - (23,252) (241)
------- -------- -------
Income (loss) available to common stockholders.... $48,005 $ (2,613) $88,272
======= ======== =======
Shares used in the computation:
Weighted average common shares outstanding......... 69,704 61,196 55,522
Dilutive effect of common stock equivalents and
other dilutive securities (a)..................... 998 10,771 13,492
------- -------- -------
Shares used in computing earnings (loss) per
common
and common equivalent share...................... 70,702 71,967 69,014
======= ======== =======
Fully diluted earnings (loss) per common and common
equivalent share:
Income from operations............................. $ 0.68 $ 0.29 $ 1.28
Extraordinary loss on extinguishment of debt....... - (0.32) -
------- -------- -------
Net income (loss)................................. $ 0.68 $ (0.03) $ 1.28
======= ======== =======
- --------
(a) During 1995 all convertible debt securities were redeemed in exchange for
cash or converted into Vencor common stock. Accordingly, the computation
of fully diluted earnings per common share assumes that the equivalent
number of common shares underlying such debt securities were outstanding
during the entire year even though the result thereof is antidilutive.