EXHIBIT 11 ATRIA COMMUNITIES, INC. COMPUTATION OF EARNINGS PER COMMON SHARE FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997 (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) QUARTER SIX MONTHS -------------------- --------------------- 1998 1997 1998 1997 -------------------- --------------------- BASIC EARNINGS PER COMMON SHARE: Income from operations................................. $ 1.749 $ 1,479 $ 4,316 $ 3,057 Extraordinary loss on extinguishment of debt........... - (199) - (199) ------- ------- ------- ------- Net income............................................. $ 1,749 $ 1,280 $ 4,316 $ 2,858 ======= ======= ======= ======= Shares used in the computation: Weighted average shares outstanding................ 23,384 16,466 23,381 16,150 ======= ======= ======= ======= Basic earnings per common share: Income from operations.............................. $ 0.07 $ 0.09 $ 0.18 $ 0.19 Extraordinary loss on extinguishment of debt......... - (0.01) - (0.01) ------- ------- ------- ------- Net income........................................... $ 0.07 $ 0.08 $ 0.18 $ 0.18 ======= ======= ======= ======= DILUTED EARNINGS PER COMMON SHARE: Income from operations $ 1,749 $ 1,479 $ 4,316 $ 3,057 Extraordinary loss on extinguishment of debt........... - (199) - (199) ------- ------- ------- ------- Net income............................................. $ 1,749 $ 1,280 $ 4,316 $ 2,858 ======= ======= ======= ======= Shares used in the computation: Weighted average common shares outstanding......... 23,384 16,466 23,381 16,150 Dilutive effect of common stock options............ 568 194 598 172 ------- ------- ------- ------- Shares used in computing earnings per share............ 23,952 16,660 23,979 16,322 ======= ======= ======= ======= Diluted earnings per common share: Income from operations............................... $ 0.07 $ 0.09 $ 0.18 $ 0.19 Extraordinary loss on extinguishment of debt......... - (0.01) - (0.01) ------- ------- ------- ------- Net income........................................... $ 0.07 $ 0.08 $ 0.18 $ 0.18 ======= ======= ======= =======