EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE
EXHIBIT 11.1
JENNA LANE, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
February 14
1995
Year Ended (Inception)
March 31, to
------------------- March 31,
1997 1996 1995
------------ --------- ---------
Primary Earnings Per Share:
Net income (loss) $ 136,260 $ 501,429 $ (43,926)
Adjustment of net income:
Interest income, net of tax effect resulting from excess proceeds in
applying 20% rule on treasury stock method (a) 4,920 - -
----------- ----------- ------------
Adjusted net income 141,180 501,429 (43,926)
Deduct dividends on preferred shares 75,000 100,000 -
----------- ----------- -----------
Net (loss) income applicable to common stock $ 66,180 $ 401,429 $ (43,926)
=========== =========== ============
Weighted average number of shares outstanding 2,345,419 2,164,916 963,482
=========== =========== ============
Primary earnings (loss) per share $ 0.03 $ 0.19 $ (0.05)
=========== =========== ============
Fully Diluted Earnings Per Share:
Adjusted net income $ 141,180 $ 501,429 $ (43,926)
=========== =========== ============
Weighted average number of shares outstanding 3,263,880 3,077,742 963,482
=========== =========== ============
Fully diluted earnings per share $ 0.04 (b) $0.16 $(0.05)
=========== =========== ============
Supplemental Primary Earnings Per Share:
Adjusted net income $ 66,180
Add: Interest on November Notes and Bridge Notes, net of tax effect (a) 120,077
-----------
Net income, as adjusted $ 186,257
===========
Weighted average number of share outstanding 2,345,419
Add: Shares issuable from application of assumed proceeds from public
offering (treasury stock method) 162,466
-----------
Weighted average number of shares outstanding, as adjusted 2,507,885
===========
Earnings per share, as adjusted $ 0.07 (b)
===========
Supplemental Fully Diluted Earnings Per Share:
Adjusted net income $ 141,180
Add: Interest on November Notes and Bridge Notes, net of tax effect (a) 120,077
-----------
$ 261,257
===========
Weighted average number of shares outstanding 3,263,880
Add: Shares issuable from application of assumed
proceeds from public offering (treasury stock method) 162,466
-----------
Weighted average number of shares outstanding, as adjusted 3,426,346
===========
Earnings per share, as adjusted $ 0.08 (b)
===========
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Exhibit 11.1
JENNA LANE, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
(CONTINUED)
Year Ended
March 31, 1997
-----------------------
Pro forma Earnings Per Share:
Primary
Net income applicable to common stock $ 66,180
Compensation cost to be recognized pursuant to FAS 123, net of
tax effect (a) 14,522
----------
Pro forma Net Income $ 51,658
==========
Weighted average number of shares outstanding 2,345,419
Incremental Shares:
Amount employees would pay if all options expected to vest were
exercised $1,287,460
Average unrecognized compensation balance during year 153,259
----------
Assumed proceeds 1,440,719
----------
Repurchase shares at market value ($1,486,272 / 10) 149,072
Incremental shares (297,492 - 144,072) 153,420
----------
Pro forma weighted average number of shares 2,498,839
==========
Proforma primary earnings per share $ 0.02
==========
Fully diluted
Adjusted net income $ 141,180
Compensation cost, as above 14,522
----------
Pro forma Net Income $ 126,658
==========
Weighted average number of shares outstanding 3,263,880
Incremented shares, as above 153,420
----------
Pro forma weighted average number of shares $3,417,300
==========
Pro forma fully diluted earnings per share $ 0.04 (b)
==========
(a) Adjustments to income have been shown net of tax effects which were
calculated at 34.8% (the Company's effective tax rate) of the gross amounts
of the adjustments.
(b) This calculation is submitted in accordance with Regulation S-K item 601
(b)(II) although it is contrary to paragraph 40 of APB Opinion No. 15
because it produces an anti-dilutive result.
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