Exhibit 11 GENESIS HEALTH VENTURES COMPARATIVE EARNINGS PER SHARE CALCULATION YEARS ENDED SEPTEMBER 30, 1996 AND 1995 (in thousands, except share and per share data) 9/30/96 9/30/95 ----------------- ---------------- Primary Earnings Per Share: Reported earnings before debenture conversion expense $37,966 $25,531 Debenture conversion expense, net of tax (797) Extraordinary item, net of tax (1,923) ----------------- ---------------- Reported net income $37,169 $23,608 ----------------- ---------------- Weighted average shares & CSE's: 27,491,765 22,587,038 ----------------- ---------------- Primary EPS before debenture conversion expense $1.38 $1.13 Primary EPS - Debenture conversion expense ($0.03) Primary EPS - Extraordinary item, net of tax ($0.08) change in accounting principle ----------------- ---------------- Primary EPS - Net income $1.35 $1.05 Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense $37,966 $25,531 Debenture conversion expense, net of tax (797) Extraordinary item, net of tax (1,923) ----------------- ---------------- Reported net income 37,169 23,608 Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible Debentures, net of tax 2,812 3,793 ----------------- ---------------- Adjusted net income $39,980 $27,401 ----------------- ---------------- Weighted average shares & CSE's: Common shares 27,491,765 22,587,038 Additional option shares 6,374 154,992 Convertible Debenture shares 3,631,906 5,710,407 ----------------- ---------------- Total 31,130,045 28,452,437 ----------------- ---------------- Fully diluted EPS before debenture conversion expense $1.31 $1.03 Fully diluted EPS - Debenture conversion expense ($0.02) Fully diluted EPS - Extraordinary item, net of tax (0.06) ----------------- ---------------- Fully diluted EPS - Net income $1.29 $0.97 ================= ================