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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2003 2002 2003 2002
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Basic Earnings:
Net income $ 48,830 $29,066 $132,754 $87,200
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Shares
Weighted average number of common
shares outstanding 101,965 94,245 97,490 94,129
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Basic EPS $ 0.48 $ 0.31 $ 1.36 $ 0.93
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Diluted Earnings (a)(b):
Net income $ 48,830 $29,066 $132,754 $87,200
Interest expense related to 5.0% Convertible Debentures, net of taxes -- -- 4,870 --
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Net income, as adjusted, for purposes of calculating diluted EPS $ 48,830 $29,066 $137,624 $87,200
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Shares
Weighted average number of common
shares outstanding 101,965 94,245 97,490 94,129
Additional shares assuming conversion of:
Stock options and stock warrants (c) 979 465 687 791
Convertible Debentures -- -- 4,840 --
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Weighted average common shares outstanding,
as adjusted 102,944 94,710 103,017 94,920
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Diluted EPS $ 0.47 $ 0.31 $ 1.34 $ 0.92
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(a) The nine month period ended September 30, 2003 includes 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. On July 14, 2003, the Company
completed the early redemption of the entire $345.0 million aggregate
principal amount of the outstanding 5% Convertible Debentures. The
Convertible Debentures, which were convertible at $39.60 per share, were
outstanding during the three and nine months ended September 30, 2002, but
were not included in the computation of diluted EPS during the three and
nine months ended September 30, 2002 because the impact was anti-dilutive.
(b) The $345.0 millon of 4.0% convertible trust preferred securities due 2033,
which are convertible at $40.82 per share (under a contingent conversion
feature whereby the holders may convert their trust PIERS if the closing
sales price of Omnicare common stock for a predetermined period, beginning
with the quarter ending September 30, 2003, is more than 130% of the
then-applicable conversion price or, during a predetermined period, if the
daily average of the trading prices for the trust PIERS is less than 105%
of the average of the conversion values for the trust PIERS through 2028,
98% for any period thereafter through maturity), were outstanding during
the three and nine months ended September 30, 2003, but were not included
in the computation of diluted EPS because the impact was anti-dilutive.
(c) During the three months and nine months ended September 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 September 30, 2003 and 2002 totaled 2.7 million and 5.5 million,
respectively. Further, 3.0 million and 4.5 million anti-dilutive options
and warrants were excluded from the year-to-date September 30, 2003 and
2002, respectively.