1 Exhibit 11 HARTE-HANKS, INC. AND SUBSIDIARIES EARNINGS PER SHARE COMPUTATIONS (in thousands, except per share data) Three Months Ended September 30, In thousands, except per share amount 1998 1997 - - ------------------------------------------------------------------------------------------------------------------------- BASIC EPS Income from continuing operations......................... $ 16,920 $ 10,470 Income from discontinued operations....................... -- 5,079 -------------- ------------- Net Income................................................ $ 16,920 $ 15,549 ============== ============= Weighted-average common shares outstanding used in net earnings per share computations............ 72,667 74,058 ============== ============= Basic earnings per common share: Continuing operations.................................. $ 0.23 $ 0.14 Discontinued operations................................ -- 0.07 -------------- ------------- Net income............................................. $ 0.23 $ 0.21 ============== ============= DILUTED EPS Income from continuing operations......................... $ 16,920 $ 10,470 Income from discontinued operations....................... -- 5,079 -------------- ------------- Net Income................................................ $ 16,920 $ 15,549 ============== ============= Shares used in net earnings per share computations....... 76,192 77,184 ============== ============= Diluted earnings per common share: Continuing operations.................................. $ 0.22 $ 0.13 Discontinued operations................................ -- 0.07 -------------- ------------- Net income............................................. $ 0.22 $ 0.20 ============== ============= Computation of shares used in net earnings per share computations: Average outstanding common shares......................... 72,667 74,058 Average common equivalent shares - dilutive effect of option shares....................... 3,525 3,126 -------------- ------------- Shares used in net earnings per share computations........ 76,192 77,184 ============== ============= Nine months ended September 30, In thousands, except per share amount 1998 1997 - - ------------------------------------------------------------------------------------------------------------------------- BASIC EPS Income from continuing operations......................... $ 48,035 $ 27,078 Income from discontinued operations....................... -- 14,833 -------------- ------------- Net Income................................................ $ 48,035 $ 41,911 ============== ============= Weighted-average common shares outstanding used in net earnings per share computations............ 73,230 74,293 ============== ============= Basic earnings per common share: Continuing operations.................................. $ 0.66 $ 0.36 Discontinued operations................................ -- 0.20 -------------- ------------- Net income............................................. $ 0.66 $ 0.56 ============== ============= DILUTED EPS Income from continuing operations......................... $ 48,035 $ 27,078 Income from discontinued operations....................... -- 14,833 -------------- ------------- Net Income................................................ $ 48,035 $ 41,911 ============== ============= Shares used in net earnings per share computations....... 76,844 77,438 ============== ============= Diluted earnings per common share: Continuing operations.................................. $ 0.63 $ 0.35 Discontinued operations................................ -- 0.19 -------------- ------------- Net income............................................. $ 0.63 $ 0.54 ============== ============= Computation of shares used in net earnings per share computations: Average outstanding common shares......................... 73,230 74,293 Average common equivalent shares - dilutive effect of option shares....................... 3,614 3,145 -------------- ------------- Shares used in net earnings per share computations........ 76,844 77,438 ============== =============