EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1995 1994 1993
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PRIMARY EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings (loss):
Income from operations........................... $ 8,363 $86,139 $68,976
Preferred stock dividend requirements............ (5,280) (7,574) (2,344)
Gain on redemption of preferred stock............ 10,176 - -
Other............................................ - (179) -
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Income from operations available to common
stockholders.................................... 13,259 78,386 66,632
Extraordinary loss on extinguishment of debt, net
of income
tax benefit..................................... (23,252) (241) (2,217)
Cumulative effect on prior years of a change in
accounting
for income taxes................................ - - (1,103)
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Income (loss) available to common
stockholders.................................. $ (9,993) $78,145 $63,312
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Shares used in the computation:
Weighted average common shares outstanding....... 61,196 55,522 51,985
Dilutive effect of common stock equivalents...... 1,122 1,515 2,570
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Shares used in computing earnings (loss) per
common
and common equivalent share................... 62,318 57,037 54,555
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Primary earnings (loss) per common and common
equivalent share:
Income from operations........................... $ .21 $ 1.37 $ 1.22
Extraordinary loss on extinguishment of debt..... (.37) - (.04)
Cumulative effect on prior years of a change in
accounting
for income taxes................................ - - (.02)
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Net income (loss).............................. $ (.16) $ 1.37 $ 1.16
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EXHIBIT 11
VENCOR, INC.
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1995 1994 1993
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FULLY DILUTED EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings (loss):
Income from operations available to common
stockholders..................................... $ 13,259 $78,386 $66,632
Interest addback on convertible securities, net of
income taxes..................................... 7,380 10,127 7,056
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Adjusted income from operations available to
common stockholders.............................. 20,639 88,513 73,688
Extraordinary loss on extinguishment of debt, net
of income
tax benefit...................................... (23,252) (241) (2,217)
Cumulative effect on prior years of a change in
accounting
for income taxes................................. - - (1,103)
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Income (loss) available to common stockholders.. $ (2,613) $88,272 $70,368
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Shares used in the computation:
Weighted average common shares outstanding........ 61,196 55,522 51,985
Dilutive effect of common stock equivalents and
other dilutive securities (a).................... 10,771 13,492 8,655
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Shares used in computing earnings (loss) per
common
and common equivalent share.................... 71,967 69,014 60,640
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Fully diluted earnings (loss) per common and common
equivalent share:
Income from operations............................ $ .29 $ 1.28 $ 1.22
Extraordinary loss on extinguishment of debt...... (.32) - (.04)
Cumulative effect on prior years of a change in
accounting
for income taxes................................. - - (.02)
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Net income (loss)............................... $ (.03) $ 1.28 $ 1.16
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(a) During 1995 all convertible debt securities were redeemed in exchange for
cash or converted into Vencor common stock. Accordingly, the computation
of fully diluted earnings per common share assumes that the equivalent
number of common shares underlying such debt securities were outstanding
during the entire year even though the result thereof is antidilutive.