1
Exhibit 11.1 CITYSCAPE FINANCIAL CORP.
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
---- ---- ---- ----
Earnings (loss) from continuing operations ($ 46,559,664) ($ 47,371,328) ($133,630,551) ($ 32,410,967)
Preferred stock dividends (2,436,488) (1,035,315) (6,097,567) (2,102,189)
Preferred stock default payments (5,792,899) -- (13,615,115) --
------------- ------------- ------------- -------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK (54,789,051) (48,406,643) (153,343,233) (34,513,156)
Earnings (loss) from discontinued operations -- (22,271,374) -- (16,425,467)
------------- ------------- ------------- -------------
NET EARNINGS (LOSS) APPLICABLE TO COMMON STOCK ($ 54,789,051) ($ 70,678,017) ($153,343,233) ($ 50,938,623)
------------- ------------- ------------- -------------
ADJUSTMENT TO NET EARNINGS (LOSS):
Add: After-tax interest expense from Convertible
Debentures -- -- -- --
Preferred stock dividends -- -- -- --
------------- ------------- ------------- -------------
TOTAL ADJUSTMENTS -- -- -- --
------------- ------------- ------------- -------------
Earnings (loss) applicable to common stock ($ 54,789,051) ($ 48,406,643) ($153,343,233) ($ 34,513,156)
Earnings (loss) from discontinued operations -- (22,271,374) -- (16,425,467)
------------- ------------- ------------- -------------
ADJUSTED NET EARNINGS (LOSS) APPLICABLE TO COMMON
STOCK ($ 54,789,051) ($ 70,678,017) ($153,343,233) ($ 50,938,623)
============= ============= ============= =============
WEIGHTED AVERAGE COMMON SHARES 64,878,969 32,346,059 56,566,295 30,936,205
Effect of dilutive securities:
Warrants -- -- -- --
Stock options -- -- -- --
Convertible preferred stock -- -- -- --
Convertible Debentures -- -- -- --
------------- ------------- ------------- -------------
ADJUSTED WEIGHTED AVERAGE COMMON SHARES 64,878,969 32,346,059 56,566,295 30,936,205
============= ============= ============= =============
EARNINGS (LOSS) PER COMMON SHARE: (1)
BASIC
Continuing operations ($0.84) ($1.50) ($2.71) ($1.12)
Discontinued operations -- (0.69) -- (0.53)
------------- ------------- ------------- -------------
NET (LOSS) EARNINGS ($0.84) ($2.19) ($2.71) ($1.65)
============= ============= ============= =============
DILUTED
Continuing operations ($0.84) ($1.50) ($2.71) ($1.12)
Discontinued operations -- (0.69) -- (0.53)
------------- ------------- ------------- -------------
NET (LOSS) EARNINGS ($0.84) ($2.19) ($2.71) ($1.65)
============= ============= ============= =============
(1) For the three and nine months ended September 30, 1998 and 1997, the
incremental shares from assumed conversions are not included in computing
the diluted share amounts because their effect would be antidilutive since
an increase in the number of shares would reduce the amount of loss per
share. Therefore, basic and diluted EPS figures are the same amount.