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Grey Advertising Inc. and Consolidated Subsidiary Companies
Exhibit - Statement Re: Computation of Net Income Per Common Share (unaudited)
For the Three For the Six
Months Ended June 30, Months Ended June 30,
1994 1993 1994 1993
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PRIMARY
Average shares outstanding (1) 1,267,359 1,245,362 1,267,722 1,246,326
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 18,504 16,089 18,368 14,131
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TOTAL 1,285,863 1,261,451 1,286,090 1,260,457
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Net Income $5,080,000 $5,800,000 $8,290,000 $9,027,000
Less: Effect of dividend requirements
and the change in the redemption
value of redeemable preferred stock (329,000) (259,000) (474,000) (288,000)
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NET EARNINGS USED IN COMPUTATION $4,751,000 $5,541,000 $7,816,000 $8,739,000
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Per share amount $3.69 $4.39 $6.08 $6.93
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FULLY DILUTED
Average shares outstanding(1) 1,267,359 1,245,362 1,267,722 1,246,326
Net effect of dilutive stock options -
based on the treasury stock method
using the period-end market price, if
higher than the average market price 18,504 17,751 18,816 18,387
Assumed conversion of 8.5% convertible
subordinated debentures issued
December 1983 50,999 51,000 50,999 51,000
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TOTAL 1,336,862 1,314,113 1,337,537 1,315,713
=============== =============== =============== ===============
Net Income $5,080,000 $5,800,000 $8,290,000 $9,027,000
Less: Effect of dividend requirements
and the change in the redemption
value of redeemable preferred stock (329,000) (259,000) (474,000) (288,000)
Add: 8.5% convertible subordinated
debentures interest, net of income
tax effect 35,000 35,000 69,000 70,000
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NET EARNINGS USED IN COMPUTATION $4,786,000 $5,576,000 $7,885,000 $8,809,000
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Per share amount $3.58 $4.24 $5.90 $6.70
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(1) Includes 27,273 shares and 8,628 shares for 1994 and 1993, respectively,
expected to be issued pursuant to the terms of the Senior Management
Incentive Plan
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