CHESAPEAKE UTILITIES CORPORATION AND SUBSIDIARIES
EXHIBIT 11
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
For the Years Ended December 31,
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Item 1996 1995 1994
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Shares issued at beginning of year 3,721,589 3,668,791 3,605,152
Treasury stock at beginning of year 0 (15,609) (30,084)
Sale of treasury stock 0 15,609 14,475
Issuance of common stock for dividend reinvestment plan 33,926 38,660 30,928
Issuance of common stock pursuant to USI restricted stock
award agreements 21,859 14,138 32,418
Issuance of common stock for conversion of debentures 881 0 293
Exercised stock options 1,863 0 0
Sale of stock to Company's Retirement Savings Plan 20,398 0 0
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Shares outstanding at end of year 3,800,516 3,721,589 3,653,182
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Primary earnings per share calculation:
Weighted average number of shares 3,793,467 3,701,891 3,632,413
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Consolidated net income $6,910,428 $7,236,695 $4,459,922
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Primary earnings per share $1.82 $1.95 $1.23
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Fully diluted earnings per share calculation:
Weighted average number of shares 3,794,306 3,701,891 3,632,413
Contingent shares related to assumed conversion of
convertible debt 242,742 248,833 255,777
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Weighted average number of shares assuming full dilution 4,037,048 3,950,724 3,888,190
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Adjusted income
Net income $6,910,428 $7,236,695 $4,459,922
Interest on convertible debt 340,697 349,251 358,998
Less: Applicable income taxes (132,872) (136,208) (140,009)
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Adjusted net income $7,118,253 $7,449,738 $4,678,911
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Fully-diluted earnings per share $1.76 $1.89 $1.20 *
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Notes:
* This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion
No. 15 because it results in dilution of less than 3%.