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EXHIBIT 11
ARBOR DRUGS, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
Three Months Ended
(In thousands, except per share data) October 31,
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1997 1996
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A. Net Income $7,779 (a) $6,393 (a)
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Weighted average number of
common shares outstanding 39,446 37,715
Effect of the issuance of
stock options and assumed
exercise of stock options
at prices which are lower
than the average market
price of the common shares
during the period, using the
treasury stock method 1,532 1,092
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B. Average number of common
shares and common
equivalent shares for
primary earnings per share 40,978 (a) 38,807 (a)
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Weighted average number of common
shares outstanding 39,446 37,715
Effect of the issuance of stock
options and assumed exercise of
options at prices which are lower
than the market price of common
stock at end of the period when
such price is higher than average
market price of the common shares
during the period, using the treasury
stock method 1,665 1,209
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C. Average number of common shares
and common equivalent shares
for fully diluted earnings per share 41,111 (a) 38,924 (a)
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Primary earnings
per share: A / B $0.19 (a) $0.16 (a)
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Fully diluted earnings
per share: A / C $0.19 (a) $0.16 (a)
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(a) These amounts agree with the related amounts in the Consolidated
Statements of Income.
All share amounts have been restated to give effect to the stock split
declared on November 19, 1996 and distributed on December 17, 1996.