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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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
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PRIMARY 1997 1996 1997 1996
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Weighted average shares outstanding(1) 1,278,972 1,266,181 1,277,800 1,267,860
Net effect of dilutive stock options -
based on the treasury stock method using
average market price 27,149 34,433 27,149 32,447
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TOTAL 1,306,121 1,300,614 1,304,949 1,300,307
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Net Income $7,700,000 $6,807,000 $12,275,000 $13,070,000
Less: Effect of dividend requirements and
the change in redemption value of
redeemable preferred stock (360,000) (253,000) (125,000) (437,000)
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NET EARNINGS USED IN COMPUTATION $7,340,000 $6,554,000 $12,150,000 $12,633,000
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Per share amount $5.62 $5.04 $9.31 $9.72
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FULLY DILUTED
Weighted average shares outstanding (1) 1,278,972 1,266,181 1,277,800 1,267,860
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 42,502 33,999 42,502 34,210
Assumed conversion of 8-1/2% convertible
subordinated debentures issued December 1983 51,017 50,892 51,017 50,892
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TOTAL 1,372,491 1,351,072 1,371,319 1,352,962
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Net Income $7,700,000 $6,807,000 $12,275,000 $13,070,000
Less: Effect of dividend requirements and the
change in redemption value of redeemable
preferred stock (360,000) (253,000) (125,000) (437,000)
Add: 8-1/2% convertible subordinated debentures
interest, net of income tax effect 35,000 35,000 70,000 70,000
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NET EARNINGS USED IN COMPUTATION $7,375,000 $6,589,000 $12,220,000 $12,703,000
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Per share amount $5.37 $4.88 $8.91 $9.39
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(1) Includes 94,097 shares and 78,248 shares for 1997 and 1996,
respectively, expected to be issued pursuant to the terms of the Senior
Management Incentive Plan.
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