EXHIBIT 11 ATRIA COMMUNITIES, INC. COMPUTATION OF EARNINGS PER COMMON SHARE FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997 (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Quarter ---------------------- 1998 1997 ------- ------- BASIC EARNINGS PER COMMON SHARE: Net income........................................... $ 2,567 $ 1,578 ======= ======= Shares used in the computation: Weighted average shares outstanding................ 23,378 15,830 ======= ======= Basic earnings per common share...................... $ 0.11 $ 0.10 ======= ======= DILUTED EARNINGS PER COMMON SHARE: Net income........................................... $ 2,567 $ 1,578 ======= ======= Shares used in the computation: Weighted average common shares outstanding......... 23,378 15,830 Dilutive effect of common stock options............ 556 157 ------- ------- Shares used in computing earnings per share.......... 23,934 15,987 ======= ======= Diluted earnings per common share.................... $ 0.11 $ 0.10 ======= =======