1 EXHIBIT 11 NATIONAL CONVENIENCE STORES INCORPORATED AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Reorganized Company ----------------------------------------- Period from Inception Year Ended (March 1, 1993) to June 30, 1994 June 30, 1993 (1) ------------- --------------------- Primary Earnings Per Share - - -------------------------- Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,835,000 $4,389,000 Interest expense adjustment assuming conversion of stock options, net of tax . . . . . . . . . . . . . . . . . . . . . . 200,000 72,000 ---------- ---------- Net earnings applicable to common stock . . . . . . . . . . . . . . . . . . $7,035,000 $4,461,000 ========== ========== Average Common Shares and Common Share Equivalents: Average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 6,015,000 6,000,000 Dilutive effect of stock options . . . . . . . . . . . . . . . . . . . . . 540,000 574,000 ---------- ---------- Average number of common shares and common share equivalents outstanding for primary calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,555,000 6,574,000 ========== ========== Primary Earnings Per Common Share and Common Share Equivalents . . . . . . . . . . . . . . . . . . . . . . . . $ 1.07 $ 0.68 ========== ========== Fully Diluted Earnings Per Share - - -------------------------------- Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,835,000 $4,389,000 Interest expense adjustment assuming conversion of stock options, net of tax . . . . . . . . . . . . . . . . . . . . . . 200,000 72,000 ---------- ---------- Net earnings applicable to common stock . . . . . . . . . . . . . . . . . . $7,035,000 $4,461,000 ========== ========== Average Common Shares and Common Share Equivalents: Average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 6,015,000 6,000,000 Dilutive effect of stock options . . . . . . . . . . . . . . . . . . . . . 540,000 581,000 ---------- ---------- Average number of common shares and common share equivalents outstanding for fully diluted calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,555,000 6,581,000 ========== ========== Fully Diluted Earnings Per Common Share and Common Share Equivalents . . . . . . . . . . . . . . . . . . . . . . . . $ 1.07 $ 0.68 ========== ========== (1) Represents earnings per share calculations of the reorganized company since March 1, 1993. Earnings per share calculations for the predecessor company are not presented because they are not meaningful as a result of the confirmation of the Plan of Reorganization and adoption of fresh-start reporting effective March 1, 1993 (See Note 9 of the Notes to Consolidated Financial Statements incorporated by reference in Item 8 herein). Pursuant to Accounting Principles Board Opinion No. 15, "Earnings Per Share", earnings per share have been calculated using a combination of the "if converted" method and the "Treasury Stock" method due to requirements under the Company's debt instruments that limit the purchase of treasury stock and require remaining proceeds from the sale of stock to be applied toward the retirement of the debt.