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Grey Advertising Inc. and Consolidated Subsidiary Companies
Exhibit - 11
Statement Re: Computation of Net Income Per Common Share (Unaudited)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1994 1993 1994 1993
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PRIMARY
Average shares outstanding(1) 1,267,823 1,245,016 1,267,756 1,245,884
Net effect of dilutive
stock options-based on the
treasury stock method
using average market price 16,631 19,254 17,789 15,838
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TOTAL 1,284,454 1,264,270 1,285,545 1,261,722
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Net Income $3,348,000 $3,100,000 $11,638,000 $12,127,000
Less: Effect on divident
requirements and the
change in redemption value
of redeemable preferred stock (208,000) (94,000) (682,000) (382,000)
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NET EARNINGS USED IN
COMPUTATION $3,140,000 $3,006,000 $10,956,000 $11,745,000
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Per share amount $2.44 $2.38 $8.52 $9.31
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FULLY DILUTED
Average shares outstanding(1) 1,267,823 1,245,016 1,267,756 1,245,884
Net effect of dilutive stock
options-based on treasury
stock method using the
period-end market price,
if higher than average
market price 16,631 19,379 18,087 20,108
Assumed conversion of 8.5%
convertible subordinated
debentures issued December 1983 50,999 51,000 50,999 51,000
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TOTAL 1,335,453 1,315,395 1,336,842 1,316,992
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NET INCOME $3,348,000 $3,100,000 $11,638,000 $12,127,000
Less: Effect of dividend
requirements and the
change in redemption
value of redeemable
preferred stock (208,000) (94,000) (682,000) (382,000)
Add: 8.5% convertible
subordinated debentures
interest net of income
tax effect 35,000 35,000 104,000 105,000
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NET EARNINGS USED IN
COMPUTATION $3,175,000 $3,041,000 $11,060,000 $11,850,000
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Per share amount $2.38 $2.31 $8.27 $9.00
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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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