1 EXHIBIT 11 STUART ENTERTAINMENT, INC. AND SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS Years Ended December 31, -------------------------------------- 1995 1994 1993 -------------------------------------- Shares of common stock outstanding at beginning of year(1) 6,538,788 3,405,353 3,367,543 Weighted-average shares issued during the year 115,270 155,495 25,541 Weighted-average shares assumed issued under stock option plans and exercise of warrants (using treasury stock method) during the year under primary(2) 51,846 - 131,028 --------- ----------- --------- Average common and common equivalent shares outstanding - primary 6,705,904 3,560,848 3,524,112 Weighted-average shares assumed issued under stock option plans and exercise of warrants (using treasury stock method) during the year under fully dilutive(2) 347,318 - - --------- ----------- --------- Average common and common equivalent shares outstanding - fully dilutive 7,053,222 3,560,848 3,524,112 ========= =========== ========= Net income (loss): Income (loss) before cumulative effect of change in accounting principle $ 786,000 $(1,608,000) $ 512,000 --------- ----------- --------- Cumulative effect of change in accounting principle - - 187,000 --------- ----------- --------- Net income (loss) $ 786,000 $(1,608,000) $ 699,000 --------- ----------- --------- Earnings (loss) per share - primary: Income (loss) before cumulative effect of change in accounting principle $0.12 $(0.45) $0.15 Cumulative effect of change in accounting principle - - .05 --------- ----------- --------- Earnings (loss) per share - primary $0.12 $(0.45) $0.20 --------- ----------- --------- Earnings (loss) per share - fully dilutive: Income (loss) before cumulative effect of change in accounting principle $0.11 $(0.45) $0.15 Cumulative effect of change in accounting principle - - .05 --------- ----------- --------- Earnings (loss) per share - fully dilutive $0.11 $(0.45) $0.20 ========= =========== ========= (1) This represents total outstanding shares of common stock less treasury shares. See Note 1 to the Consolidated Financial Statements and the Consolidated Statement of Stockholders' Equity in Item 14 for additional information. (2) No amount is included in 1994, as it would make the calculation anti- dilutive. If the calculation was not anti-dilutive, average common and common equivalent shares would be increased by $3,602.