1 Exhibit 11.1 CITYSCAPE FINANCIAL CORP. COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------- ------------------------------ 1997(1) 1996 1997(1) 1996 ------------- ----------- ------------- ---------- PRIMARY Net (loss) earnings applicable to common $(70,678,017) $14,414,837 $(50,938,623) $34,813,977 stock ============ =========== ============ =========== Weighted average common shares 32,347,137 29,632,093 31,006,202 29,325,440 Adjustment to common shares: Assume exercise of stock options N/A 1,281,976 N/A 1,105,159 ------------ ----------- ------------ ----------- WEIGHTED AVERAGE PRIMARY SHARES 32,347,137 30,914,069 31,006,202 30,430,599 ============ =========== ============ =========== (LOSS) EARNINGS PER COMMON SHARE $(2.18) $0.47 $(1.64) $1.14 ============ =========== ============ =========== THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------- ------------------------------ 1997(1) 1996 1997(1) 1996 ------------- ----------- ------------- ---------- FULLY DILUTED Net (loss) earnings applicable to common $(70,678,017) $14,414,837 $(50,938,623) $34,813,977 stock Adjustment to net (loss)earnings: Add: After-tax interest expense from Convertible Debentures N/A 1,333,408 N/A 2,137,965 Preferred Stock dividends N/A -- N/A -- ------------ ----------- ------------ ----------- Adjusted net (loss) earnings applicable to common stock $(70,678,017) $15,748,245 $(50,938,623) $36,951,942 ============ =========== ============ =========== Weighted average common shares 32,347,137 29,632,093 31,006,202 29,325,440 Adjustment to common shares: Assume conversion of Convertible Debentures N/A 5,476,190 N/A 2,937,956 Assume conversion of Convertible Preferred Stock N/A -- N/A -- Assume exercise of stock options N/A 1,281,976 N/A 1,160,502 ------------ ----------- ------------ ----------- WEIGHTED AVERAGE FULLY DILUTED SHARES 32,347,137 36,390,259 31,006,202 33,423,898 ============ =========== ============ =========== EARNINGS PER COMMON SHARE $(2.18) $0.43 $(1.64) $1.11 ============ =========== ============ =========== (1) Common stock equivalents are excluded from these computations because their effect would be anti-dilutive since an increase in the number of shares outstanding would reduce the amount of loss per share. Thus, only the weighted average number of shares outstanding for the respective period are used in the calculation.