Exhibit 11 GENESIS HEALTH VENTURES STATEMENT RE COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (in thousands, except share and per share data) 9/30/97 9/30/96 ------------ -------------- Primary Earnings Per Share: Reported earnings $ 7,586 $ 13,410 ----------- ----------- Reported net income $ 7,586 $ 13,410 ----------- ----------- Weighted average shares & commons stock equivalents 36,353,885 32,686,658 ----------- ----------- ----------- ----------- Primary EPS - Net income $ 0.21 $ 0.41 =========== =========== Fully Diluted Earnings Per Share: ----------- ----------- Reported net income $ 7,586 $ 13,410 ----------- ----------- Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible debentures, net of tax -- 662 ----------- ----------- Adjusted net income $ 7,586 $ 14,072 ----------- ----------- Weighted average shares & common stock equivalents Common shares 36,353,885 32,686,658 Additional option shares 196,404 27,285 Convertible debenture shares 2,895,853 ----------- ----------- Total 36,550,289 35,609,796 ----------- ----------- ----------- ----------- Fully diluted EPS - Net income $ 0.21 $ 0.40 =========== =========== GENESIS HEALTH VENTURES STATEMENT RE COMPUTATION OF EARNINGS PER SHARE TWELVE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (in thousands, except share and per share data) 9/30/97 9/30/96 ------------- -------------- Primary Earnings Per Share: Reported earnings before debenture conversion expense and extraordinary item $ 48,144 $ 37,966 Debenture conversion expense, net of tax (797) Extraordinary item, net of tax (553) ------------ ------------ Reported net income $ 47,591 $ 37,169 ------------ ------------ Weighted average shares & common stock equivalents 35,643,265 27,491,765 ------------ ------------ Primary EPS before debenture conversion expense and extraordinary item $ 1.35 $ 1.38 Primary EPS - Debenture conversion expense ( 0.03) Primary EPS - Extraordinary item, net of tax change in accounting principle ( 0.02) ------------ ------------ ------------ ------------ Primary EPS - Net income $ 1.33 $ 1.35 ============ ============ Fully Diluted Earnings Per Share: Reported earnings before debenture conversion expense and extraordinary item $ 48,144 $ 37,966 Debenture conversion expense, net of tax (797) Extraordinary item, net of tax ( 553) ------------ ------------ Reported net income 47,591 37,169 Adjustments to net income: Interest expense, amortization and other costs related to the assumed conversion of the Convertible debentures, net of tax 303 2,812 ------------ ------------ Adjusted net income $ 47,894 $ 39,980 ------------ ------------ Weighted average shares & common stock equivalents Common shares 35,643,265 27,491,765 Additional option shares 226,339 6,374 Convertible debenture shares 436,896 3,631,906 ------------ ------------ Total 36,306,500 31,130,045 ------------ ------------ Fully diluted EPS before debenture conversion expense and extraordinary item $ 1.34 $ 1.31 Fully diluted EPS - debenture conversion expense ( 0.02) Fully diluted EPS - extraordinary item, net of tax ( 0.02) ------------ ------------ Fully diluted EPS - net income $ 1.32 $ 1.29 ============ ============