1
EXHIBIT 11.1
MCLEOD, INC.
COMPUTATION OF LOSS PER COMMON
AND COMMON EQUIVALENT SHARE
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED JUNE 30,
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1993 1994 1995 1995 1996
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Computation of weighted average
number of common shares
outstanding and common
equivalent shares:(A)
Common shares, Class A,
outstanding at the beginning
of the period . . . . . . . . . 18,750 11,993,760 14,455,981 14,455,981 16,387,081
Common shares, Class B,
outstanding at the beginning
of the period . . . . . . . . . -- 5,625,000 7,670,457 7,670,457 15,625,929
Weighted average number of
shares issued during the
period (C) . . . . . . . . . . 14,730,198 3,859,959 -- -- 1,456,667
Weighted average number of
shares purchased for the
treasury during the period . . -- (14,918) -- -- --
Weighted average number of
shares reissued from the
treasury during the period . . -- -- 22,191 22,000 --
Common equivalent shares
attributable to stock options
granted(B) . . . . . . . . . . 5,018,605 5,018,605 5,018,605 5,018,605 5,018,605
Common stock issued(c) . . . . . . . 9,887,510 9,887,510 9,887,510 9,887,510 23,438
----------- ------------ ------------ ----------- -----------
Weighted average number of
common and common equivalent
shares . . . . . . . . . . . . 29,655,063 36,369,916 37,054,744 37,054,553 38,511,720
=========== ============ ============ =========== ===========
Net loss . . . . . . . . . . . . . . $(2,439,617) $(11,425,963) $(11,328,939) $(5,721,857) $(8,883,115)
=========== ============ ============ =========== ===========
Loss per common and common
equivalent share . . . . . . . $ (0.08) $ (0.31) $ (0.31) $ (0.15) $ (0.23)
=========== ============ ============ =========== ===========
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(A) All shares have been adjusted to give effect to the 3.75 for 1 stock
split effected in the form of a stock dividend effective March 28,
1996.
(B) 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 assumed initial
offering price during the twelve-month period preceding the date of
the initial filing of the Registration Statement have been included in
the calculation of common stock equivalent shares as if they were
outstanding for all periods presented.
(C) All stock issued during the year ended December 31, 1995 was within
the twelve-month period discussed in (B) above. As a result, the
shares issued at prices below the assumed initial public offering
price during this period have been included in the calculation as if
they were outstanding for all periods presented. For the six months
ended June 30, 1996, the shares of Class A and B common stock issued
during the year ended December 31, 1995 are shown as shares
outstanding at the beginning of the period.