1
ALC COMMUNICATIONS CORPORATION AND SUBSIDIARY Exhibit 11.1
COMPUTATION OF EARNINGS PER SHARE
(Unaudited)
Year ended December 31,
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1994 1993 1992
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(in thousands except per share amounts)
EARNINGS PER SHARE
Income before extraordinary items and cumulative effect of accounting change $64,329 $39,676 $13,826
Accretion of discount on Class A Preferred Stock (364) (860)
Accrued dividends on Class A Preferred Stock (453) (3,254)
Accretion of payment to certain Class A Preferred Stockholders (268)
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Income before extraordinary items and cumulative effect of accounting
change available for Common Stockholders $64,329 $38,859 $9,444
Extraordinary items:
Loss related to early retirement of debt (7,490)
Utilization of operating loss carryforward 7,000
Cumulative effect of change in method of accounting for income taxes 13,500
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Net Income Available for Common Stockholders $64,329 $44,869 $16,444
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Weighted average common shares outstanding during the period 33,471 28,864 18,603
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Earnings per common and common equivalent share:
Income before extraordinary items and cumulative effect of accounting change $1.92 $1.35 $0.51
Extraordinary items:
Loss related to early retirement of debt (0.26)
Utilization of operating loss carryforward 0.37
Cumulative effect of change in method of accounting for income taxes 0.47
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Net Income $1.92 $1.56 $0.88
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PRIMARY EARNINGS PER SHARE
Income before extraordinary items and cumulative effect of accounting change $64,329 $39,676 $13,826
Accretion of discount on Class A Preferred Stock (364) (860)
Accrued dividends on Class A Preferred Stock (453) (3,254)
Accretion of payment to certain Class A Preferred Stockholders 0 (268)
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Income before extraordinary items and cumulative effect of accounting
change available for Common Stockholders $64,329 $38,859 $9,444
Extraordinary items:
Loss related to early retirement of debt 0 (7,490)
Utilization of operating loss carryforward 7,000
Cumulative effect of change in method of accounting for income taxes 0 13,500
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Net Income Available for Common Stockholders $64,329 $44,869 $16,444
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Weighted average common shares outstanding during the period 33,471 28,864 18,603
Common Stock Equivalents:
Average amount of Class B and Class C Preferred prior
to conversion to Common Stock 875 3,538
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Weighted Average Common and Common Equivalent Shares 33,471 29,739 22,141
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Earnings per common and common equivalent share:
Income before extraordinary items and cumulative effect of accounting change $1.92 $1.31 $0.43
Extraordinary items:
Loss related to early retirement of debt (0.25)
Utilization of operating loss carryforward 0.31
Cumulative effect of change in method of accounting for income taxes 0.45
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Net Income $1.92 $1.51 $0.74
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2
Year ended December 31,
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1994 1993 1992(1)
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(in thousands except per share amounts)
PRIMARY EARNINGS PER SHARE -- MODIFIED TREASURY STOCK METHOD
Income before extraordinary items and cumulative effect of accounting change $64,329 $39,676 $13,826
Accretion of discount on Class A Preferred Stock (364) (860)
Accrued dividends on Class A Preferred Stock (453) (3,254)
Accretion of payment to certain Class A Preferred Stockholders (268)
Effect of Modified Treasury Stock Method:
Reduction in interest (net of tax) 4,404
Income before extraordinary items and cumulative effect of accounting ------- ------- -------
change available for Common Stockholders $64,329 $38,859 $13,848
Extraordinary items:
Loss related to early retirement of debt (7,490)
Utilization of operating loss carryforward 8,569
Cumulative effect of change in method of accounting for income taxes 13,500
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Net Income Available for Common Stockholders $64,329 $44,869 $22,417
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Weighted average common shares outstanding during the period 33,471 28,864 18,603
Common Stock Equivalents:
Average amount of Class B and Class C Preferred prior
to conversion to Common Stock 875 3,538
Effect of Modified Treasury Stock Method:
Assumed exercise of all option and warrants 8,228 10,581 10,162
Assumed repurchase of up to 20% of Common Stock outstanding (3,346) (3,972) (3,721)
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Weighted Average Common and Common Equivalent Shares 38,353 36,348 28,582
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Earnings per common and common eqivalent share:
Income before extraordinary items and cumulative effect of accounting change $1.68 $1.07 $0.48
Extraordinary items:
Loss related to early retirement of debt (0.21)
Utilization of operating loss carryforward 0.30
Cumulative effect of change in method of accounting for income taxes 0.37
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Net Income $1.68 $1.23 $0.78
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Year ended
December 31, 1993
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FULLY DILUTED EARNINGS PER SHARE (2)
Weighted average common shares outstanding during the period 28,864
Common Stock Equivalents:
Average amount of Class B and Class C Preferred prior
to conversion to Common Stock 875
Effect of Modified Treasury Stock Method:
Assumed exercise of all option and warrants 10,581
Assumed repurchase of up to 20% of Common Stock outstanding (2,878)
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Weighted Average Common and Common Equivalent Shares 37,442
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Income before extraordinary items and cumulative effect of accounting change $1.04
Extraordinary items:
Loss related to early retirement of debt (0.20)
Utilization of operating loss carryforward
Cumulative effect of change in method of accounting for income taxes 0.36
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Net Income $1.20
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(1) Modified Treasury Stock Method is not used because the net effect is
anti-dilutive.
(2) This calculation is submitted in accordance with regulation S-K item
601(b)(11). The fully diluted earnings per share for 1994 and 1992 does
not differ from the primary earnings per share.