1
EXHIBIT 11
MCLEOD, INC.
COMPUTATION OF LOSS PER COMMON
AND COMMON EQUIVALENT SHARE
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
----------------------------- -----------------------------
1995 1996 1995 1996
-------------- ------------- -------------- ------------
Computation of weighted average
number of common shares
outstanding and common
equivalent shares:
Common shares, Class A,
outstanding at the beginning
of the period 14,478,481 16,410,519 14,455,981 16,387,081
Common shares, Class B,
outstanding at the beginning
of the period 7,670,457 15,625,929 7,670,457 15,625,929
Weighted average number of
shares issued during the
period (B) - - 2,913,333 - - 1,456,667
Weighted average number of
shares reissued from the
treasury during the period - - - - 22,000 - -
Common equivalent shares
attributable to stock options
granted (A) 5,018,605 5,018,605 5,018,605 5,018,605
Common stock issued (B) 9,887,510 - - 9,887,510 23,438
-------------- ------------- -------------- ------------
Weighted average number of
common and common equivalent
shares 37,055,053 39,968,386 37,054,553 38,511,720
============== ============= ============== ============
Net loss (2,765,137) (4,542,810) (5,721,857) (8,883,115)
============== ============= ============== ============
Loss per common and common
equivalent share (0.07) (0.11) (0.15) (0.23)
============== ============= ============== ============
(A) All stock options are anti-dilutive, however, pursuant to Securities and
Exchange Commission Staff Accounting Bulletin No. 83 (SAB 83), stock
options granted with exercise prices below the initial offering price
during the twelve-month period preceding June 10, 1996, the effective
date of the Registration Statement, have been included in the above
calculations of common stock equivalent shares.
(B) All stock issued during the year ended December 31, 1995 was within the
twelve-month period discussed in (A) above. As a result, the shares issued
at prices below the initial public offering price during this period have
been included in the calculation as if they were outstanding for all
periods presented. For the three months ended June 30, 1996, and the six
months ended June 30, 1996, the shares of Class A Common Stock and Class B
Common Stock issued during the year ended December 31, 1995 are shown as
shares outstanding at the beginning of the period.