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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 MARCH 31,
1997 1996
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PRIMARY
Weighted average shares outstanding (1) 1,277,297 1,269,539
Net effect of dilutive stock options based on treasury
stock method using average market price 26,124 30,462
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TOTAL 1,303,421 1,300,001
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Net Income $4,575,000 $ 6,263,000
Effect of dividend requirements and the change in
redemption value of redeemable preferred stock 236,000 (184,000)
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NET EARNINGS USED IN COMPUTATION $4,811,000 $ 6,079,000
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Per share amount $ 3.69 $ 4.68
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FULLY DILUTED
Weighted average shares outstanding (1) 1,277,297 1,269,539
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 24,311 34,261
Assumed conversion of 8-1/2% convertible subordinated
debentures issued December 1983 50,892 50,892
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TOTAL 1,352,500 1,354,692
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Net Income $4,575,000 $ 6,263,000
Effect of dividend requirements and the change in
redemption value of redeemable preferred stock 236,000 (184,000)
8-1/2% convertible subordinated debentures interest, net
of income tax effect 35,000 35,000
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NET EARNINGS USED IN COMPUTATION $4,846,000 $ 6,114,000
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Per share amount $ 3.58 $ 4.51
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(1) Includes 94,686 shares and 80,003 shares for 1997 and 1996, respectively,
expected to be issued pursuant to the terms of the Senior Management Incentive
Plan.
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