1
EXHIBIT 11.1
JENNA LANE, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
FEBRUARY 14,
1995 NINE MONTHS ENDED
(INCEPTION) YEAR ENDED ------------------------------
TO MARCH 31, MARCH 31, DECEMBER 31, DECEMBER 31,
1995 1996 1995 1996
------------ ---------- ------------- -------------
PRIMARY EARNINGS PER SHARE --
HISTORICAL BASIS:
Net (loss) income................. $(43,926) $ 501,429 $ 257,710 $ 117,106
Deduct dividends on preferred
shares.......................... -- 100,000 -- 75,000
-------- ---------- ---------- ----------
Net (loss) income applicable
to common stock............ $(43,926) $ 401,429 $ 257,710 $ 42,106
======== ========== ========== ==========
Weighted average number of shares
outstanding..................... 963,482 2,164,916 2,173,387 2,052,175
======== ========== ========== ==========
Primary (loss) earnings per
share........................... $(.05) $.19 $.12 $.02
------- ---- ----- -----
------- ---- ----- -----
PRIMARY EARNINGS PER SHARE -- PRO
FORMA:
Net Income........................ $ 501,429 $ 117,106
========== ==========
Pro Forma weighted average number
of shares outstanding(a)........ 3,077,742 3,004,556
========== ==========
Pro Forma earnings per share...... $.16 $.04
---- -----
---- -----
SUPPLEMENTAL PRO FORMA PRIMARY EARNINGS PER
SHARE:
Net income........................ $ 501,429 $ 117,106
Add: Interest on November notes,
and Bridge notes, net of tax
effect(b)....................... 22,324 72,394
---------- ----------
Net income, as adjusted........... $ 523,753 $ 189,500
========== ==========
Weighted average number of shares
outstanding(a).................. 3,077,742 3,004,556
Add: Shares issuable from
application of assumed proceeds
from public offering (treasury
stock method)................... 39,452 149,818
---------- ----------
Weighted average number of shares
outstanding, as adjusted........ 3,117,194 3,154,374
========== ==========
Pro Forma earnings per share, as
adjusted........................ $.17(c) $.06(c)
---- -----
---- -----
- ---------------
(a) Assuming conversion of preferred stock.
(b) Adjustments to income have been shown net of tax effects which were
calculated at 46.3% and 29.8%, respectively (the Company's effective
tax rate) of the gross amounts of the adjustments.
(c) This calculation is submitted in accordance with Regulation S-K item
601(b)(ii) although it is contrary to paragraph 40 of APB Opinion No. 15
because it produces an anti-dilutive result.