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Exhibit 11.1
JAYMARK, INC.
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except for share and per share amounts)
Nine months ended
October 31, Year ended January 31,
1996 1995 1996 1995 1994
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Income before cumulative effect of change in
acounting principle $436 $162 $336 $322 $489
Reduction of interest expense, net of income
tax expense on assumed retirement
of short-term debt(1) - - - - 71
--------- --------- --------- --------- ---------
436 162 336 322 560
Cumulative effect of change in method of
accounting for income taxes - - - - 231
--------- --------- --------- --------- ---------
Net income $436 $162 $336 $322 $791
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Weighted average number of common shares outstanding 1,897,433 1,935,515 1,924,461 1,980,048 2,039,524
Common stock equivalent shares(2) 151,391 151,391 151,391 151,391 151,391
Dilutive common stock options(1)(3) - - - - 487,520
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Total number of shares for computing primary and
fully diluted earnings per share 2,048,824 2,086,906 2,075,852 2,131,439 2,678,435
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Primary net earnings per share:
Income before cumulative effect of change
in accounting principle $0.21 $0.08 $0.16 $0.15 $0.21
Cumulative effect of change in method of
accounting for income taxes - - - - 0.09
--------- --------- --------- --------- ---------
Primary net earnings per share $0.21 $0.08 $0.16 $0.15 $0.30
========= ========= ========= ========= =========
Fully diluted net earnings per share(4):
Income before cumulative effect of change
in accounting principle $0.21 $0.08 $0.16 $0.15 $0.21
Cumulative effect of change in method of
accounting for income taxes - - - - 0.09
--------- --------- --------- --------- ---------
Fully diluted net earnings per share $0.21 $0.08 $0.16 $0.15 $0.30
========= ========= ========= ========= =========
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(1) Based on the modified treasury stock method pursuant to paragraph 38 of
Accounting Principles Board Opinion No. 15. No amounts are presented for
the nine month periods ended October 31, 1996 and 1995 or the fiscal years
ended January 31, 1996 and 1995 as the net effect is antidilutive for both
the primary and fully diluted computations.
(2) Represents common stock equivalent shares for stock granted since
March 6, 1996 using the treasury stock method and the $13.00 estimated
initial public offering price per share pursuant to Staff Accounting
Bulletin No. 83.
(3) There is no difference between the number of weighted average shares used
in the fiscal year 1994 primary and fully diluted computations as the
average fair value of the Company's Common Stock exceeded its fair value at
the end of the fiscal year.
(4) This computation is submitted in accordance with Regulation S-K Item
601(b)(11) although not required by Accounting Principles Board Opinion
No. 15 because it results in dilution of less than 3%.