1 36 EXHIBIT 11 HARTE-HANKS, INC. AND SUBSIDIARIES EARNINGS PER SHARE COMPUTATIONS (in thousands, except per share data) Three Months Ended June 30, In thousands, except per share amount 1998 1997 - ----------------------------------------------------------------------------------------------------- BASIC EPS Income from continuing operations .................................... $ 17,010 $ 10,640 Income from discontinued operations .................................. -- 5,705 -------- -------- Net Income ........................................................... $ 17,010 $ 16,345 ======== ======== Weighted-average common shares outstanding used in net earnings per share computations ..................... 73,541 74,558 ======== ======== Basic earnings per common share: Continuing operations ........................................... $ 0.23 $ 0.14 Discontinued operations ......................................... -- 0.08 -------- -------- Net income ...................................................... $ 0.23 $ 0.22 ======== ======== DILUTED EPS Income from continuing operations .................................... $ 17,010 $ 10,640 Income from discontinued operations .................................. -- 5,705 -------- -------- Net Income ........................................................... $ 17,010 $ 16,345 ======== ======== Shares used in net earnings per share computations .................. 77,212 77,664 ======== ======== Diluted earnings per common share: Continuing operations ........................................... $ 0.22 $ 0.14 Discontinued operations ......................................... -- 0.07 -------- -------- Net income ...................................................... $ 0.22 $ 0.21 ======== ======== Computation of shares used in net earnings per share computations: Average outstanding common shares .................................... 73,541 74,558 Average common equivalent shares - dilutive effect of option shares ................................ 3,671 3,106 -------- -------- Shares used in net earnings per share computations ................... 77,212 77,664 ======== ======== Six Months Ended June 30, In thousands, except per share amount 1998 1997 - ---------------------------------------------------------------------------------------------------- BASIC EPS Income from continuing operations .................................... $ 31,115 $ 16,608 Income from discontinued operations .................................. -- 9,754 -------- -------- Net Income ........................................................... $ 31,115 $ 26,362 ======== ======== Weighted-average common shares outstanding used in net earnings per share computations ..................... 73,511 74,410 ======== ======== Basic earnings per common share: Continuing operations ........................................... $ 0.42 $ 0.22 Discontinued operations ......................................... -- 0.13 -------- -------- Net income ...................................................... $ 0.42 $ 0.35 ======== ======== DILUTED EPS Income from continuing operations .................................... $ 31,115 $ 16,608 Income from discontinued operations .................................. -- 9,754 -------- -------- Net Income ........................................................... $ 31,115 $ 26,362 ======== ======== Shares used in net earnings per share computations .................. 77,170 77,566 ======== ======== Diluted earnings per common share: Continuing operations ........................................... $ 0.40 $ 0.21 Discontinued operations ......................................... -- 0.13 -------- -------- Net income ...................................................... $ 0.40 $ 0.34 ======== ======== Computation of shares used in net earnings per share computations: Average outstanding common shares .................................... 73,511 74,410 Average common equivalent shares - dilutive effect of option shares ................................ 3,659 3,156 -------- -------- Shares used in net earnings per share computations ................... 77,170 77,566 ======== ========