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EXHIBIT 11
MCLEOD, INC.
COMPUTATION OF LOSS PER COMMON AND COMMON EQUIVALENT SHARE
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1996 1995 1996 1995
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Computation of weighted average number of
common shares outstanding and common
equivalent shares:
Common shares, Class A, outstanding at the
beginning of the period 16,410 14,478 16,387 14,456
Common shares, Class B, outstanding at the
beginning of the period 15,626 7,670 15,626 7,670
Weighted average number of shares issued during
the period (B) 14,197 ---- 5,806 ----
Weighted average number of shares reissued from
the treasury during the period ---- ---- ---- 22
Common equivalent shares attributable to stock
options granted (A) ---- 5,019 3,346 5,019
Common stock issued (B) ---- 9,888 23 9,888
Weighted average number of common shares and
common equivalent shares
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46,233 37,055 41,188 37,055
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Net loss $(4,535) $(2,442) $(13,418) $(8,164)
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Loss per common and common equivalent share $ (0.10) $ (0.07) $ (0.33) $ (0.22)
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(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 assumed initial offering
price during the twelve-month period preceding the date of the initial
filing of the Registration Statement filed in connection with the
Company's initial public offering have been included in the calculation of
common stock equivalent shares as if they were outstanding for all periods
through June 30, 1996, the quarter in which the initial public offering
was completed.
(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 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 three months ended
September 30, 1996, and the nine months ended September 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.
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