1 EXHIBIT 11 SPACEHAB, INCORPORATED AND SUBSIDIARY COMPUTATION OF EARNINGS PER COMMON SHARE NINE MONTHS YEAR YEAR ENDED ENDED ENDED JUNE 30, JUNE 30, JUNE 30, --------------- ---------------- ----------------- 1996 1997 1998 --------------- ---------------- ----------------- Net Income and Adjusted Earnings: Net income applicable to common shareholders used for primary computations $29,828,743 $13,831,625 $ 9,604,465 ----------- ----------- ----------- Fully diluted adjustments: Savings in convertible note payable interest expense, net of tax 59,017 - 2,624,875 ----------- ----------- ----------- Adjusted net income applicable to common shareholders assuming full dilution $29,887,760 $13,831,625 $12,229,340 =========== =========== =========== Average number of shares of common stock used for basic computation 9,139,465 11,118,825 11,154,271 ----------- ----------- ----------- Diluted adjustments (1): Weighted Average Shares and Share Equivalents Outstanding: Stock options assumed exercised at ending fair market value 128,553 14,168 269,898 Assumed conversion of convertible debt 75,000 27,329 3,147,109 ----------- ----------- ----------- Total number of shares assumed to be Outstanding assuming full dilution 9,343,018 11,186,886 14,571,278 ----------- ----------- ----------- Earnings Common Per Share: Income per common share: Income before extraordinary item $ 3.26 $ 0.95 $ 0.86 Extraordinary item - 0.29 - ----------- ----------- ----------- Basic $ 3.26 $ 1.24 $ 0.86 =========== =========== =========== Income before extraordinary item $ 3.19 $ 0.95 $ 0.84 Extraordinary item - 0.29 - ----------- ----------- ----------- Diluted (1): $ 3.19 $ 1.24 $ 0.84 ----------- ----------- ----------- (1) The assumed exercise of options and warrants and the conversion of convertible debt is anti-dilutive but are included in the calculation of dilutive earnings per share in accordance with Regulation S-K Item 601 (a)(11).