1
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,
----------------------------------------------------------------------------
1995 1994 1995 1994
----------------------------------------------------------------------------
PRIMARY
Average shares outstanding(1) 1,248,442 1,267,823 1,280,855 1,267,756
Net effect of dilutive stock options-
based on the treasury stock method
using average market price 31,494 16,631 26,137 17,789
----------------------------------------------------------------------------
TOTAL 1,279,936 1,284,454 1,306,992 1,285,545
============================================================================
Net Income $4,405,000 $3,348,000 $14,104,000 $11,638,000
Less: Effect of dividend requirements
and the change in redemption value
of redeemable preferred stock (300,000) (208,000) (943,000) (682,000)
----------------------------------------------------------------------------
NET EARNINGS USED IN
COMPUTATION $4,105,000 $3,140,000 $13,161,000 $10,956,000
============================================================================
Per share amount $3.21 $2.44 $10.07 $8.52
============================================================================
FULLY DILUTED
Average shares outstanding(1) 1,248,442 1,267,823 1,280,855 1,267,756
Net effect of dilutive stock options-
based on treasury stock method
using the period-end market price,
if higher than average market price 32,761 16,631 34,915 18,087
Assumed conversion of 8.5%
convertible subordinated debentures
issued December 1983 50,999 50,999 50,999 50,999
----------------------------------------------------------------------------
TOTAL 1,332,202 1,335,453 1,366,769 1,336,842
============================================================================
Net Income $4,405,000 $3,348,000 $14,104,000 $11,638,000
Less: Effect of dividend requirements
and the change in redemption value
of redeemable preferred stock (300,000) (208,000) (943,000) (682,000)
Add: 8.5% convertible subordinated
debentures interest net of income
tax effect 35,000 35,000 104,000 104,000
----------------------------------------------------------------------------
NET EARNINGS USED IN
COMPUTATION $4,140,000 $3,175,000 $13,265,000 $11,060,000
============================================================================
Per share amount $3.11 $2.38 $9.71 $8.27
============================================================================
(1) Includes 54,287 shares and 27,273 shares for 1995 and 1994, respectively,
expected to be issued pursuant to the terms of the Senior Management Incentive
Plan.
15