1 EXHIBIT 11 PONDER INDUSTRIES, INC., AND SUBSIDIARIES COMPUTATION OF EARNINGS (LOSS) PER SHARE (IN THOUSANDS, EXCEPT SHARE INFORMATION) YEARS ENDED AUGUST 31 ----------------------------------------- 1997 1996 1995 ---------- ----------- ---------- COMPUTATION OF PRIMARY LOSS PER SHARE: Net loss........................................... $ (9,921) $ (3,892) $ (3,092) ========== =========== ========== WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING........................................ 13,641,558 8,717,912 6,377,564 WEIGHTED AVERAGE INCREMENTAL SHARES OUTSTANDING UPON ASSUMED CONVERSION OF OPTIONS...................... -- -- -- ---------- ----------- ---------- WEIGHTED AVERAGE COMMON SHARES AND COMMON SHARE EQUIVALENTS USED FOR COMPUTATION................... 13,641,558 8,717,912 6,377,564 ========== =========== ========== PRIMARY LOSS PER COMMON SHARE AND COMMON SHARE EQUIVALENT......................................... $ (.73) $ (.45) $ (.48) ========== =========== ========== COMPUTATION OF FULLY DILUTED LOSS PER SHARE: Net loss........................................... $ (9,921) $ (3,892) $ (3,092) Interest not incurred upon assumed conversion of convertible debentures.......................... 422 254 -- ---------- ----------- ---------- Net loss available to common stockholders used for computation..................................... $ (9,499) $ (3,638) $ (3,092) ========== =========== ========== WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING........................................ 13,641,558 8,717,912 6,377,564 WEIGHTED AVERAGE INCREMENTAL SHARES OUTSTANDING UPON ASSUMED CONVERSION OF OPTIONS...................... 12,740 30,586 -- WEIGHTED AVERAGE INCREMENTAL SHARES OUTSTANDING UPON ASSUMED CONVERSION OF CONVERTIBLE DEBENTURES....... 9,609,159 2,790,506 -- ---------- ----------- ---------- WEIGHTED AVERAGE COMMON SHARES AND COMMON SHARE EQUIVALENTS USED FOR COMPUTATION................... 23,263,457 11,539,004 6,377,564 ========== =========== ========== LOSS PER COMMON SHARE AND COMMON SHARE EQUIVALENT ASSUMING FULL DILUTION............................. $ (.41)(a) $ (.32)(a) $ (.48) ========== =========== ========== - - --------------- (a) This calculation is submitted in accordance with Item 601(b)(11) of Regulation S-K although it is not required by APB Opinion No. 15 because it is antidilutive.