EXHIBIT 11.1 MASTER GRAPHICS, INC. COMPUTATION OF NET EARNINGS PER COMMON SHARE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED MARCH 31, 2000 1999 ----------- ----------- Net earnings (loss) $ (7,487) $ 60 Less preferred stock dividends (28) (30) Less accretion of preferred stock discount (34) (30) ---------- ---------- Net earnings (loss) applicable stock discount $ (7,549) $ 0 ========== ========== Basic: Weighted average common shares outstanding 7,923,026 7,894,818 ========== ========== Basic earnings (loss) per share $ (0.95) $ 0.00 ========== ========== Diluted: Net earnings (loss) applicable to common shares $ (7,549) $ 0 Plus preferred stock dividends 28 30 Plus accretion of preferred stock discount 34 30 Plus deferred compensation provision 12 12 ---------- ---------- $ (7,475) $ 72 ========== ========== Weighted average common shares outstanding 7,923,026 7,894,818 Assumed exercise of lender warrants 220,000 220,000 Assumed exercise of the stock option clause in the deferred compensation agreements 100,000 100,000 Assumed conversion of preferred stock 177,776 177,776 ----------- ----------- 8,420,802 8,392,594 ========== ========== Diluted earnings (loss) per share $ (0.89) $ 0.01 ========== ==========