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).