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GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES
EXHIBIT - STATEMENT RE: COMPUTATION OF NET INCOME PER COMMON SHARE (UNAUDITED)
EXHIBIT - 11
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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PRIMARY 1996 1995 1996 1995
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Weighted average shares outstanding(1) 1,262,740 1,248,442 1,263,117 1,280,855
Net effect of dilutive stock options -
based on the treasury stock method using
average market price 33,024 31,494 32,640 26,137
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TOTAL 1,295,764 1,279,936 1,295,757 1,306,992
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Net Income $5,047,000 $4,405,000 $18,117,000 $14,104,000
Less: Effect of dividend requirements and
the change in redemption value of
redeemable preferred stock (238,000) (300,000) (675,000) (943,000)
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NET EARNINGS USED IN COMPUTATION $4,809,000 $4,105,000 $17,442,000 $13,161,000
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Per share amount $3.71 $3.21 $13.46 $10.07
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FULLY DILUTED
Weighted average shares outstanding (1) 1,262,740 1,248,442 1,263,117 1,280,885
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 37,372 32,761 37,456 34,915
Assumed conversion of 8-1/2% convertible
subordinated debentures issued December 1983 50,892 50,999 50,892 50,999
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TOTAL 1,351,004 1,332,202 1,351,465 1,366,769
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Net Income $5,047,000 $4,405,000 $18,117,000 $14,104,000
Less: Effect of dividend requirements and the
change in redemption value of redeemable
preferred stock (238,000) (300,000) (675,000) (943,000)
Add: 8-1/2% convertible subordinated debentures
interest, net of income tax effect 35,000 35,000 104,000 104,000
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NET EARNINGS USED IN COMPUTATION $4,844,000 $4,140,000 $17,546,000 $13,265,000
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Per share amount $3.58 $3.11 $12.98 $9.71
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(1) Includes 73,696 shares and 54,287 shares for 1996 and 1995, respectively,
expected to be issued pursuant to the terms of the Senior Management
Incentive Plan.
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