Exhibit 11
COMPUTATION OF EARNINGS PER COMMON SHARE ("EPS")
OMNICARE, INC. AND SUBSIDIARY COMPANIES
UNAUDITED
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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2002 2001 2002 2001
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Basic Earnings:
Net income $29,358 $19,396 $58,134 $37,440
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Shares
Weighted average number of common
shares outstanding 94,175 93,198 94,070 92,812
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Basic EPS (c) $0.31 $0.21 $0.62 $0.40
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Diluted Earnings (a):
Net income $29,358 $19,396 $58,134 $37,440
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Shares
Weighted average number of common
shares outstanding 94,175 93,198 94,070 92,812
Additional shares assuming conversion of
stock options and stock warrants (b) 1,117 844 914 880
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Weighted average common shares outstanding,
as adjusted 95,292 94,042 94,984 93,692
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Diluted EPS (c) $ 0.31 $ 0.21 $ 0.61 $ 0.40
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(a) The $345.0 million of Convertible Debentures which are convertible into 8.7
million shares at $39.60 per share were outstanding during the three and
six months ended June 30, 2002 and 2001, but were not included in the
computation of diluted EPS because the impact was anti-dilutive.
(b) During the three and six months ended June 30, 2002 and 2001, the
anti-dilutive effect associated with options and warrants was excluded
from the computation of diluted earnings per share, since the exercise
price of these options and warrants was greater than the average market
price of the Company's common stock during these periods. The aggregate
anti-dilutive stock options and warrants excluded for the quarter ended
June 30, 2002 and 2001 totaled 4.2 million and 3.9 million, respectively.
Further, 4.1 million and 3.9 million anti-dilutive options and warrants
were excluded from the year-to-date June 30, 2002 and 2001, respectively.
(c) In accordance with the adoption of Statement of Financial Accounting
Standards No. 142, "Goodwill and Other Intangible Assets," Omnicare
discontinued amortization of goodwill as of January 1, 2002. Accordingly,
no goodwill amortization was recorded during the three and six months ended
June 30, 2002. Goodwill amortization during the three and six months ended
June 30, 2001 totaled $8.3 million before taxes ($5.2 million after taxes,
or $0.05 per basic and diluted share) and $16.5 million before taxes ($10.2
million after taxes, or $0.11 per basic and diluted share), respectively.