EXHIBIT 11
ELECTRONIC TELE-COMMUNICATIONS, INC.
COMPUTATION OF EARNINGS PER SHARE
Three-Month Periods Ended March 31, 2002 and 2001
Earnings net of dividends paid (undistributed earnings) are allocated equally
per share to weighted average Class A shares, as adjusted for the dilutive
effect of stock options using the treasury stock method, and weighted average
Class B shares outstanding during the year. Earnings per Class A and Class B
common share were computed, as shown in the table below, by adding dividends
paid per Class A and Class B common share (distributed earnings) to
undistributed earnings.
The following table sets forth the computation of basic and diluted earnings per
share:
Three Months Ended
March 31
2002 2001
--------------------------
Numerator for basic and diluted earnings per share:
Net earnings (loss) $ (136,432) $ (707,249)
Less dividends paid:
Class A common -- --
Class B common -- --
--------------------------
Undistributed earnings (loss) $ (136,432) $ (707,249)
Denominator for basic and diluted earnings per share:
Weighted average shares:
Class A common 2,009,149 2,009,149
Class B common 499,998 499,998
--------------------------
Total 2,509,147 2,509,147
Calculation of basic and diluted earnings per share:
Class A common:
Distributed earnings $ -- $ --
Undistributed earnings (loss) (0.05) (0.28)
--------------------------
Basic and diluted earnings (loss) per share $ (0.05) $ (0.28)
==========================
Class B common:
Distributed earnings $ -- $ --
Undistributed earnings (loss) (0.05) (0.28)
--------------------------
Basic and diluted earnings (loss) per share $ (0.05) $ (0.28)
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Options to purchase shares of Class A common stock under the Company's
Nonqualified Stock Option Plan were outstanding during the three-month periods
ended March 31, 2002 and 2001. However, these shares were not included in the
computation of diluted earnings per share because the options' exercise price
was greater than the average market price of the common shares and, therefore,
the effect would be antidilutive. The number of shares excluded from the
computation were 176,100 for the 2002 period and 229,100 for the 2001 period.