EXHIBIT 11 GENESIS HEALTH VENTURES COMPARATIVE EARNINGS PER SHARE CALCULATION QUARTERS ENDED MARCH 31, 1996 AND 1995 (in thousands, except share and per share data) 3/31/96 3/31/95 --------- --------- Primary Earnings Per Share: Reported earnings before debenture conversion expense $ 7,809 $ 5,813 Debenture conversion expense, net of tax ----------- ----------- Reported net income $ 7,809 $ 5,813 ----------- ----------- Weighted average shares & CSE's: 25,306,685 22,674,336 ----------- ----------- Primary EPS before debenture conversion expense $ 0.31 $ 0.26 Primary EPS - Debenture conversion expense =========== =========== Primary EPS - Net income $ 0.31 $ 0.26 =========== =========== Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense $ 7,809 $ 5,813 Debenture conversion expense, net of tax ----------- ----------- Reported net income $ 7,809 $ 5,813 ----------- ----------- Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible Debentures, net of tax 697 975 ----------- ----------- Adjusted net income $ 8,506 $ 6,788 ----------- ----------- Weighted average shares & CSE's: Common shares 25,306,685 22,674,336 Additional option shares 26,591 Convertible Debenture shares 3,491,048 5,710,407 ----------- ----------- Total 28,797,732 28,411,334 ----------- ----------- Fully diluted EPS before debenture conversion expense $ 0.30 $ 0.24 and cumulative effect of a change in Fully diluted EPS - Debenture conversion expense =========== =========== Fully diluted EPS - Net income $ 0.30 $ 0.24 =========== =========== GENESIS HEALTH VENTURES COMPARATIVE EARNINGS PER SHARE CALCULATION SIX MONTHS ENDED MARCH 31, 1996 AND 1995 (in thousands, except share and per share data) 3/31/96 3/31/95 --------- ---------- Primary Earnings Per Share: Reported earnings before debenture conversion expense $ 14,355 $ 10,623 Debenture conversion expense, net of tax (687) ------------ ------------ Reported net income $ 13,668 $ 10,623 ------------ ------------ Weighted average shares & CSE's: 24,730,820 22,618,641 ------------ ------------ Primary EPS before debenture conversion expense $ 0.58 $ 0.47 Primary EPS - Debenture conversion expense ($ 0.03) ------------ ------------ Primary EPS - Net income $ 0.55 $ 0.47 Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense $ 14,355 $ 10,623 Debenture conversion expense, net of tax (687) Cumulative effect on prior years of changing to a different method of accounting for income taxes ------------ ------------ Reported net income 13,668 10,623 Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible Debentures, net of tax 1,485 1,966 ------------ ------------ Adjusted net income $ 15,153 $ 12,589 ------------ ------------ Weighted average shares & CSE's: Common shares 24,730,820 22,618,641 Additional option shares 40,449 Convertible Debenture shares 4,085,900 5,710,407 ------------ ------------ Total 28,816,719 28,369,497 ------------ ------------ Fully diluted EPS before debenture conversion expense $ 0.55 $ 0.44 Fully diluted EPS - Debenture conversion expense ($ 0.02) ============ ============ Fully diluted EPS - Net income $ 0.53 $ 0.44 ============ ============