Exhibit 11.1
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARY
STATEMENT RE COMPUTATION OF EARNINGS PER SHARE
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1995 AND 1996
(in Thousands)
Three Months Ended Six Months Ended
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June 30, June 30, June 30, June 30,
1995 1996 1995 1996
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(Unaudited) (Unaudited)
PRIMARY (5)
Earnings applicable to common stock:
Net income $ 389 $ 1,340 $ 624 $ 2,013
Preferred dividends (1) (77) 0 (154) 0
Interest income (2) 61 347 198 521
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Net income applicable to common stock $ 373 $ 1,687 $ 668 $ 2,534
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Weighted average shares outstanding for primary:
Weighted average shares outstanding 5,968 20,641 5,968 18,399
Shares upon assumed exercise of stock options and warrants issued within
one year of initial public offering (3) 4,845 0 4,845 0
Other shares upon assumed exercise of stock options and warrants (4) 7,940 2,781 8,153 3,255
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Weighted average shares 18,753 23,422 18,966 21,654
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Primary net income per share $ 0.02 $ 0.07 $ 0.04 $ 0.12
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(1) Dividends on cumulative convertible preferred stock are deducted to arrive
at net income applicable to common stock as the preferred stock is not a
common stock equivalent and is therefore not considered as if converted for
primary earnings per share.
(2) Reflects adjustment to interest expense, net of related income tax effect,
on excess proceeds due to 20% limitation on assumed acquisition of shares
under the modified treasury stock method. Assumed proceeds from stock
options include an income tax benefit as the options are not qualified
options under the Internal Revenue Code.
(3) Options and warrants issued within one year of the initial filing of the
accompanying registration statement are assumed to be outstanding for all
periods using the modified treasury stock method at the assumed initial
public offering price, regardless of whether they are anti-dilutive.
(4) Options and warrants are assumed exercised using the modified treasury stock
method, except where the effect is anti-dilutive.
(5) Fully diluted net income per share is anti-dilutive. Accordingly, fully
diluted net income per share is not presented for all periods.
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