Exhibit 11
COMPUTATION OF EARNINGS PER COMMON SHARE ("EPS")
OMNICARE, INC. AND SUBSIDIARY COMPANIES
UNAUDITED
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
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2002 2001 2002 2001
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Basic Earnings:
Net income $29,066 $13,560 $87,200 $51,000
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Shares
Weighted average number of common
shares outstanding 94,245 93,345 94,129 92,992
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Basic EPS (c) $ 0.31 $ 0.15 $ 0.93 $ 0.55
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Diluted Earnings (a):
Net income $29,066 $13,560 $87,200 $51,000
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Shares
Weighted average number of common
shares outstanding 94,245 93,345 94,129 92,992
Additional shares assuming conversion of
stock options and stock warrants (b) 465 772 791 630
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Weighted average common shares outstanding,
as adjusted 94,710 94,117 94,920 93,622
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Diluted EPS (c) $ 0.31 $ 0.14 $ 0.92 $ 0.54
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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
nine months ended September 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 nine months ended September 30, 2002 and 2001, the
anti-dilutive effect associated with selected 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 September 30, 2002 and 2001 totaled 5.5 million and 3.8 million,
respectively. Further, 4.5 million and 3.8 million anti-dilutive options
and warrants were excluded from the year-to-date September 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 nine months
ended September 30, 2002. Goodwill amortization during the three and nine
months ended September 30, 2001 totaled $8.4 million before taxes ($5.2
million after taxes, or $0.06 per basic and diluted share) and $24.9
million before taxes ($15.4 million after taxes, or $0.17 per basic share
and $0.16 per diluted share), respectively.