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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2003 2002 2003 2002
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Basic Earnings:
Net income $ 43,501 $29,358 $ 83,924 $58,134
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Shares
Weighted average number of common shares outstanding 96,034 94,175 95,215 94,070
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Basic EPS $ 0.45 $ 0.31 $ 0.88 $ 0.62
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Diluted Earnings (a):
Net income $ 43,501 $29,358 $ 83,924 $58,134
Interest expense related to 5.0% Convertible Debentures, net of taxes 1,948 -- 4,870 --
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Net income, as adjusted, for purposes of calculating diluted EPS $ 45,449 $29,358 $ 88,794 $58,134
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Shares
Weighted average number of common shares outstanding 96,034 94,175 95,215 94,070
Additional shares assuming conversion of:
Stock options and stock warrants (b) 1,083 1,117 897 914
Convertible Debentures 5,808 -- 7,260 --
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Weighted average common shares outstanding, as adjusted 102,925 95,292 103,372 94,984
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Diluted EPS $ 0.44 $ 0.31 $ 0.86 $ 0.61
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(a) The three and six month periods ended June 30, 2003 include the dilutive
effect of the $345.0 million of 5.0% 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 at $39.60 per share, were outstanding during the three and six
months ended June 30, 2002, but were not included in the computation of
diluted EPS during the three and six months ended June 30, 2002 because the
impact was anti-dilutive.
(b) During the three months ended June 30, 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 June 30, 2003 and
2002 totaled 3.0 million and 4.2 million, respectively. Further, 4.8
million and 4.1 million anti-dilutive options and warrants were excluded
from the year-to-date June 30, 2003 and 2002, respectively.