EXHIBIT 11.1
MASTER GRAPHICS, INC.
COMPUTATION OF NET EARNINGS PER COMMON SHARE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1999 1998 1999
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Net earnings (loss) $ 734 $ (2,626) $ 1,177 $ (2,567)
Less preferred stock dividends (28) (28) (28) (58)
Less accretion of preferred stock discount (29) (30) (29) (60)
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Net earnings (loss) applicable to common shares --
before extraordinary loss 677 (2,684) 1,120 (2,685)
Extraordinary loss (2,098) 0 (2,098) 0
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Net loss applicable to common shares $ (1,421) $ (2,684) $ (978) $ (2,685)
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Basic:
Weighted average common shares outstanding 4,841,023 7,923,026 4,422,835 7,909,000
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Basic earnings (loss) per share --
before extraordinary loss $ 0.14 $ (0.34) $ 0.25 $ (0.34)
Basic extraordinary loss per share (0.43) 0.00 (0.47) 0.00
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Basic loss per share $ (0.29) $ (0.34) $ (0.22) $ (0.34)
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Diluted:
Net earnings (loss) applicable to common shares $ 677 $ (2,684) $ 1,120 $ (2,685)
Plus preferred stock dividends 0 28 0 58
Plus accretion of preferred stock discount 0 30 0 60
Plus deferred compensation provision 15 12 30 23
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Net earnings (loss) applicable to common shares --
before extraordinary loss 692 (2,614) 1,150 (2,544)
Extraordinary loss (2,098) 0 (2,098) 0
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Net loss applicable to common shares $ (1,406) $ (2,614) $ (948) $ (2,544)
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Weighted average common shares outstanding 4,841,023 7,923,026 4,422,835 7,909,000
Assumed exercise of lender warrants 243,443 220,000 231,786 220,000
Assumed exercise of the stock option clause in the
deferred compensation agreements 100,000 100,000 100,000 100,000
Assumed conversion of preferred stock 0 177,776 0 177,776
---------- --------- ---------- ---------
5,184,466 8,420,802 4,754,621 8,406,776
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Diluted earnings (loss) per share --
before extraordinary loss $ 0.13 $ (0.31) $ 0.24 $ (0.30)
Diluted extraordinary loss per share (0.40) 0.00 (0.44) 0.00
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Diluted loss per share $ (0.27) $ (0.31) $ (0.20) $ (0.30)
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