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EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
LANNETT COMPANY, INC AND SUBSIDIARIES
STATEMENT RE COMPUTATION OF EARNINGS PER SHARE
2004 2003 2002
-------------------------- ---------------------------- -----------------------------
NET INCOME SHARES NET INCOME SHARES NET INCOME SHARES
(NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR)
Basic earnings per share factors $13,215,454 20,831,750 $ 11,666,887 19,968,633 $ 7,195,990 19,895,757
Effect of potentially dilutive
option plans and debentures 222,194 152,681 122,791
----------- ---------- ------------ ---------- ----------- ----------
Diluted earnings per share factors $13,215,454 21,053,944 $ 11,666,887 20,121,314 $ 7,195,990 20,018,548
=========== ========== ============ ========== =========== ==========
Basic earnings per share $ 0.63 $ 0.58 $ 0.36
Diluted earnings per share $ 0.63 $ 0.58 $ 0.36
The number of shares have been adjusted for the Company's 3 for 2 stock split in
February 2003.
The number of anti-dilutive weighted average shares that have been excluded in
the computation of diluted earnings per share for the year ended June 30, 2004
was 178,500. These shares have been excluded because the options' exercise price
was greater than the average market price of the common stock. There were no
anti-dilutive weighted average shares excluded in the computation for 2003 and
2002.
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