1
Exhibit 11.1
WORLDCOM, INC. AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In thousands, except per share data)
For the Three Months Ended For the Nine Months Ended
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September 30, September 30,
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1996 1995 1996 1995
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Primary:
Weighted average shares outstanding 402,881 353,288 393,869 333,450
Common stock equivalents 7,724 8,984 -- 11,030
Common shares issuable upon conversion of:
Series 1 preferred stock -- 25,206 -- 37,572
Series 2 preferred stock -- 2,550 -- 2,982
5% convertible notes 4,584 -- -- --
--------- --------- --------- ---------
415,189 390,028 393,869 385,034
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Income (loss) applicable to common shareholders
before extraordinary items $ 109,051 $ 53,260 $ (48,755) $ 153,612
Extraordinary items -- -- (24,434) --
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Income (loss) applicable to common shareholders $ 109,051 $ 53,260 $ (73,189) $ 153,612
Add back:
Dividend paid on Series 1 preferred stock conversions -- 3,062 -- 15,312
Dividend paid on Series 2 preferred stock conversions -- 243 -- 858
Interest paid on 5% convertible notes conversions, net of taxes 1,489 -- -- --
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Net income (loss) applicable to common shareholders 110,540 56,565 (73,189) 169,782
One-time dividend payment on Series1 preferred stock conversion -- 15,000 -- 15,000
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Net income (loss) applicable to common shareholders before one-time dividend $ 110,540 $ 71,565 $ (73,189) $ 184,782
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Primary earnings (loss) per share:
Before one-time dividend payment to Series 1 preferred shareholder $ 0.27 $ 0.18 $ (0.18) $ 0.48
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Applicable to common shareholders before extraordinary items $ 0.27 $ 0.15 $ (0.12) $ 0.44
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Extraordinary items $ -- $ -- $ (0.06) $ --
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Applicable to common shareholders $ 0.27 $ 0.15 $ (0.18) $ 0.44
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Fully diluted:
Weighted average shares outstanding 402,881 353,288 393,869 333,450
Common stock equivalents 7,730 9,342 -- 11,512
Common stock issuable upon conversion of:
5% convertible notes 4,584 10,270 -- 10,270
Series 1 preferred stock -- 25,206 -- 37,572
Series 2 preferred stock -- 7,816 -- 8,248
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415,195 405,922 393,869 401,052
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Income (loss) applicable to common shareholders
before extraordinary items $ 109,051 $ 53,260 $ (48,755) $ 153,612
Extraordinary items -- -- (24,434) --
Add back:
Interest on 5% convertible notes, net of taxes 1,489 1,491 -- 4,472
Series 1 preferred dividend requirement -- 3,062 -- 15,312
Series 2 preferred dividend requirement -- 749 -- 2,374
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Income (loss) applicable to common shareholders $ 110,540 $ 58,562 $ (73,189) $ 175,770
One-time dividend payment on Series 1 preferred stock conversion -- 15,000 -- 15,000
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Net income (loss) applicable to common shareholders before one-time dividend $ 110,540 $ 73,562 $ (73,189) $ 190,770
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Fully diluted earnings per share:
Before one-time dividend payment to Series 1 preferred shareholder $ 0.27 $ 0.18 $ (0.18) $ 0.48
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Applicable to common shareholders before extraordinary items $ 0.27 $ 0.14 $ (0.12) $ 0.44
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Extraordinary items $ -- $ -- $ (0.06) $ --
========= ========= ========= =========
Applicable to common shareholders $ 0.27 $ 0.14 $ (0.18) $ 0.44
========= ========= ========= =========