Exhibit 11.1 Statement regarding computation of earnings per share.
The company computes earnings per share in accordance with FAS No, 128, Earnings
Per Share. For the three and six month periods ended June 30, 1999, the Company
paid dividends on it's outstanding convertible preferred convertible stock.
Because the impact of these preferred dividends and assumed conversion of the
preferred stock into common shares was anti-dilutive, the weighted average
number of shares resulting from this "as-if" conversion have not been included
in the weighted average share calculation.
The following tables represents the reconciliation of weighted average shares
for purposes of calculating basic and diluted earnings per share for the three
and six month periods ended June 30, 1999 and 1998.
Weighted-average shares for the three months ended June 30, 1999 is calculated
as follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
April 1 - April 4 26,046,701 4/91 1,144,910
Retirement of common stock on April 5 (29,229)
----------
April 5 - April 22 26,017,472 18/91 5,146,313
Issuance of common stock on April 23 20,823
----------
April 23 - June 8 26,038,295 47/91 13,448,350
Issuance of common stock on June 9 10,081
----------
June 9 - June 15 26,048,376 7/91 2,003,721
Issuance of common stock on June 16 10,000
----------
June 16 - June 30 26,058,376 15/91 4,295,337
---------- ----------
Weighted average shares 26,038,631
==========
Weighted-average shares for the six months ended June 30, 1999 is calculated as
follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
January 1 - January 3 23,610,190 3/181 391,329
Retirement of common stock on January 4 (384,637)
-----------
January 4 - January 18 23,225,553 15/181 1,924,770
Issuance of common stock on January 19 890,000
-----------
January 19 - February 22 24,115,553 35/181 4,663,228
Issuance of common stock on February 23 50,130
-----------
20
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
February 23 - March 2 24,165,683 8/181 1,068,096
Issuance of common stock on March 3 1,069,518
-----------
March 3 - March 18 25,235,201 16/181 2,230,736
Issuance of common stock on March 19 811,500
-----------
March 19 - April 4 26,046,701 17/181 2,446,375
Retirement of common stock on April 5 (29,229)
-----------
April 5 - April 22 26,017,472 18/181 2,587,373
Issuance of common stock on April 23 20,823
-----------
April 23 - June 8 26,038,295 47/181 6,761,325
Issuance of common stock on June 9 10,081
-----------
June 9 - June 15 26,048,376 7/181 1,007,396
Issuance of common stock on June 16 10,000
-----------
June 16 - June 30 26,058,376 15/181 2,159,534
----------- ----------
Weighted average shares 25,240,162
==========
Weighted-average shares for the three months ended June 30, 1998 is calculated
as follows:
Dates Shares Fraction Weighted
----- ------ -------- ---------
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
April 1 - April 2 20,940,583 2/91 460,233
Retirement of common stock on April 3 (20,833)
----------
April 3 - May 4 20,919,750 32/91 7,356,396
Issuance of common stock on May 5 1,072,165
----------
May 5 - June 16 21,991,915 43/91 10,391,784
Issuance of common stock on June 17 878,688
----------
June 17 - June 30 22,870,603 14/91 3,518,554
---------- ----------
Weighted average shares 21,726,967
==========
Weighted-average shares for the six months ended June 30, 1998 is calculated as
follows:
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
January 1 - January 29 20,574,626 29/181 3,296,487
Issuance of common stock on January 30 365,957
-----------
21
Dates Shares Fraction Weighted
Outstanding Outstanding of Period Average Shares
----------- ----------- --------- --------------
January 30 - April 2 20,940,583 63/181 7,288,711
Retirement of common stock on April 3 (20,833)
-----------
April 3 - May 4 20,919,750 32/181 3,698,519
Issuance of common stock on May 5 1,072,165
-----------
May 5 - June 16 21,991,915 43/181 5,224,599
Issuance of common stock on June 17 878,688
-----------
June 17 - June 30 22,870,603 14/181 1,768,997
----------- ----------
Weighted average shares 21,277,313
==========
Three months ended June 30, Six months ended June 30,
--------------------------- ---------------------------
1999 1998 1999 1998
----------- ---------- ---------- -----------
Weighted-average shares: 26,038,631 21,726,967 25,240,163 21,277,313
Plus: Incremental shares from assumed
conversions of warrants and options 1,044,862 1,540,379 910,206 1,389,488
------------- ------------ ---------- -----------
Adjusted weighted average shares 27,083,493 23,267,346 26,150,369 22,666,801
============= ============ ========== ===========
Income for EPS Computation
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1999 1998 1999 1998
----- ---- ---- ----
Net income available to common
shareholders $3,977 $1,164 $4,910 $2,006
====== ====== ====== ======
The basic EPS computation is as follows:
Three months ended June 30, Six months ended June 30,
---------------------------------- -----------------------------
1999 1998 1999 1998
---- ---- ---- ----
Income per common share - basic:
Total $ 0.15 $ 0.05 $ 0.19 $ 0.09
============ ============ ============ ============
Weighted average number of common
shares outstanding-basic 26,038,031 21,726,967 25,240,163 21,277,313
============ ============ ============ ============
22
The diluted EPS computation is as follows:
Three months ended June 30, Six months ended June 30,
------------------------------------ ---------------------------------------
1999 1998 1999 1998
-------------- ---------------- ------------------ ---------------
Income per common share - diluted:
Total $ 0.15 $ 0.05 $ 0.19 $ 0.09
=========== =========== =========== ===========
Weighted average number of common
shares outstanding-diluted 27,083,493 23,267,346 26,150,369 22,666,801
============ =========== =========== ===========
The equation for computing (basic and diluted) EPS is:
Income available to common stockholders
---------------------------------------
Weighted-average shares
23