Exhibit 11 PLY GEM INDUSTRIES, INC. AND SUBSIDIARIES SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE Three and Nine Months Ended September 30, Three months ended Nine months ended September 30, 1996 September 30, 1996 ------------------------ ------------------------ Fully Fully Primary Diluted Primary Diluted ----------- ----------- ----------- ---------- Weighted average number of common shares outstanding during the period......... 13,915,000 13,915,000 14,139,000 14,139,000 Excess of weighted average number of shares issuable upon exercise of employee stock options over 20% of shares outstanding at end of the period.... 2,432,000 2,432,000 2,176,000 2,176,000 ---------- ----------- ----------- ----------- Weighted average number of shares....... 16,347,000 16,347,000 16,315,000 16,315,000 ========== =========== =========== =========== Proceeds available to repay debt: From exercise of options, including tax benefits, at average market price.......................... $36,903,000 $71,419,000 From exercise of options, including tax benefits, at end of period market price............ $37,431,000 $69,657,000 ----------- ----------- ----------- ----------- $36,903,000 $37,431,000 $71,419,000 $69,657,000 ----------- ----------- ----------- ----------- Interest saved, net of taxes............ 377,000 382,000 971,000 1,095,000 Net income as reported.................. 6,915,000 6,915,000 8,434,000 8,434,000 ----------- ----------- ----------- ----------- Adjusted net income.................... $ 7,292,000 $ 7,297,000 $ 9,405,000 $ 9,529,000 =========== =========== =========== =========== Per share............................... $.45 $.45 $.58 $.58 =========== =========== =========== ===========