Exhibit 11
COMPUTATION OF EARNINGS PER COMMON SHARE ("EPS")
OMNICARE, INC. AND SUBSIDIARY COMPANIES
UNAUDITED
(in thousands, except per share data)
Three Months Ended
March 31,
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2003 2002
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Basic Earnings:
Net income $ 40,423 $28,776
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Shares
Weighted average number of common shares outstanding 94,386 93,963
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Basic EPS $ 0.43 $ 0.31
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Diluted Earnings (a):
Net income $ 40,423 $28,776
Interest expense related to 5.0% Convertible Debentures, net of taxes 2,922 --
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Net income, as adjusted, for purposes of calculating diluted EPS $ 43,345 $28,776
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Shares
Weighted average number of common shares outstanding 94,386 93,963
Additional shares assuming conversion of:
stock options and stock warrants (b) 931 635
Convertible Debentures 8,712 --
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Weighted average common shares outstanding, as adjusted 104,029 94,598
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Diluted EPS $ 0.42 $ 0.30
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(a) The three month period ended March 31, 2003 includes the dilutive effect of
the $345.0 million of Convertible Debentures, which assumes conversion
using the "if converted" method. Under that method, the Convertible
Debentures are assumed to be converted to common shares (weighted for the
number of days assumed to be outstanding during the period) and interest
expense, net of taxes, related to the Convertible Debentures is added back
to net income. The Convertible Debentures, convertible into 8.7 million
shares at $39.60 per share, were outstanding during the three months ended
March 31, 2002, but were not included in the computation of diluted EPS
during the 2002 first quarter because the impact was anti-dilutive.
(b) During the three months ended March 31, 2003 and 2002, 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 March 31, 2003
and 2002 totaled 5.1 million and 3.8 million, respectively.