1 GSE SYSTEMS, INC. EXHIBIT 11.1 FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1996 STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) FOR THE PERIOD YEAR ENDED APRIL 14 DECEMBER 31, THROUGH ----------- DECEMBER 31, ------------ 1996 1995 1994 ---- ---- ---- Net income before preferred dividend....................................... $ 4,143 $ 3,676 $ 953 Preferred dividend......................................................... -- -- (76) ------- ------- ------- Net income available to common shares...................................... $ 4,143 $ 3,676 $ 877 ======= ======= ======= Weighted averaged common shares outstanding................................ 5,066 4,049 3,341 Dilutive effect of common stock equivalents - stock options........................................................ 7 10 -- ------- ------- ------- Total shares used for earnings per share................................... 5,073 4,059 3,341 ======= ======= ======= Earnings per share......................................................... $ .82 $ .91 $ 0.26 ======= ======= =======