Exhibit 11 GENESIS HEALTH VENTURES STATEMENT RE COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (in thousands, except share and per share data) 6/30/97 6/30/96 ---------- ---------- Primary Earnings Per Share: Reported earnings before debenture conversion expense $ 15,556 $ 10,189 Debenture conversion expense, net of tax ($98) ---------- ----------- Reported net income $15,556 $ 10,091 ---------- ----------- Weighted average shares & CSE's: 36,311,392 27,507,276 ---------- ----------- Primary EPS- before debenture expense $ 0.43 $ 0.37 Primary EPS - Debenture conversion expense - - =========== =========== Primary EPS - Net income $ 0.43 $0.37 =========== =========== Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense $15,556 $10,189 Debenture conversion expense, net of tax - (98) ---------- ----------- Reported net income $15,556 $10,091 ---------- ----------- Interest expense, amortization and other costs related to the assumed conversion of the Convertible Debentures, net of tax 665 ---------- ----------- Adjusted net income $15,556 $10,756 ---------- ----------- Weighted average shares & CSE's: Common shares 36,311,392 27,507,276 Additional option shares 76,597 111,696 Convertible Debenture shares 3,489,419 ---------- ----------- Total 36,387,989 31,108,391 ---------- ----------- Fully diluted EPS before debenture conversion expense $ 0.43 $ 0.35 Fully diluted EPS - Debenture conversion expense - - =========== =========== Fully diluted EPS - Net income $ 0.43 $ 0.35 =========== =========== GENESIS HEALTH VENTURES STATEMENT RE COMPUTATION OF EARNINGS PER SHARE NINE MONTHS ENDED JUNE 30, 1997 AND 1996 (in thousands, except share and per share data) 6/30/97 6/30/96 ---------------- -------------- Primary Earnings Per Share: Reported earnings before debenture conversion expense and extraordinary item $ 40,558 $ 24,544 Debenture conversion expense, net of tax (785) Extraordinary item, net of tax (553) ----------- ----------- Reported net income $40,005 $23,759 ----------- ----------- Weighted average shares & CSE's: 35,563,491 25,438,335 ----------- ----------- Primary EPS before debenture conversion expense and extraordinary item $1.14 $0.96 Primary EPS - Debenture conversion expense ($0.03) Primary EPS - Extraordinary item, net of tax ($0.02) ----------- ----------- change in accounting principle Primary EPS - Net income $1.12 $0.93 Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense and extraordinary item $40,558 $24,544 Debenture conversion expense, net of tax (785) Extraordinary item, net of tax ($553) ----------- ----------- Reported net income 40,005 23,759 Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible Debentures, net of tax 303 2,150 ----------- ----------- Adjusted net income $40,308 $25,909 ----------- ----------- Weighted average shares & CSE's: Common shares 35,563,491 25,438,335 Additional option shares 125,807 55,000 Convertible Debenture shares 585,590 3,865,526 ----------- ----------- Total 36,274,888 29,358,861 ----------- ----------- Fully diluted EPS before debenture conversion expense and extraoordinary item $1.13 $0.91 Fully diluted EPS - Debenture conversion expense (0.03) Fully diluted EPS - Extraordinary item, net of tax ($0.02) ----------- ----------- Fully diluted EPS - Net income $1.11 $0.88 =========== ===========