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EXHIBIT 11
PAGE 1 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------- -------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
PRIMARY EPS
Weighted Average Shares Outstanding .............. 5,938,132 6,051,392 5,965,086 5,985,463
Weighted Average Options Outstanding (Table I) ... 391,573 313,259 398,041 262,114
Weighted Average Warrants Outstanding (Table II).. 9,911 -- 4,918 --
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding .................................. 6,339,616 6,364,651 6,368,045 6,247,576
========== ========== ========== ==========
Net Income ....................................... $ 345,000 $1,590,000 $4,132,000 $4,682,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent
Share ......................................... $ 0.05 $ 0.25 $ 0.65 $ 0.75
========== ========== ========== ==========
FULLY-DILUTED EPS
Weighted Average Shares Outstanding .............. 5,938,132 6,051,392 5,965,086 5,985,463
Weighted Average Options Outstanding (Table I) ... 391,248 363,991 406,172 397,274
Weighted Average Warrants Outstanding
(Table II) ................................... 9,911 -- 4,918 --
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding .................................. 6,339,291 6,415,383 6,376,176 6,382,737
========== ========== ========== ==========
Net Income ....................................... $ 345,000 $1,590,000 $4,132,000 $4,682,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent
Share ......................................... $ 0.05 $ 0.25 $ 0.65 $ 0.73
========== ========== ========== ==========
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EXHIBIT 11
PAGE 2 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
TABLE I - WEIGHTED AVERAGE OPTIONS OUTSTANDING
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------ ------------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
PRIMARY EPS
Weighted Average Options Outstanding .................. 1,215,565 1,213,118 1,261,101 1,284,032
Anti-Dilution Adjustment .............................. -- (2,490) -- (542,747)
------------ ------------ ------------ ------------
Adjusted Shares Outstanding ........................... 1,215,565 1,210,628 1,261,101 741,285
Average Exercise Price ................................ $ 9.537 $ 8.987 $ 9.3545 $ 5.717
------------ ------------ ------------ ------------
Exercise Proceeds ..................................... $ 11,592,984 $ 10,879,626 $ 11,797,008 $ 4,237,655
============ ============ ============ ============
Average FMV Per Share During Period ................... $ 16.0595 $ 13.358 $ 15.5881 $ 10.635
Shares Repurchased (limited to 20% of shares
outstanding) ..................................... (722,240) (814,496) (744,668) (398,474)
Shares Repurchased Assuming Utilization of Tax
Benefit on Exercise of Non-Qualified Options (1).. (102,077) (82,873) (110,261) (80,697)
------------ ------------ ------------ ------------
Total Shares Repurchased .............................. (824,317) (897,369) (854,929) (479,171)
------------ ------------ ------------ ------------
Incremental Shares from Options ....................... 391,248 313,259 406,172 262,114
============ ============ ============ ============
FULLY-DILUTED EPS
Weighted Average Options Outstanding .................. 1,215,565 1,213,118 1,261,101 1,284,032
Anti-Dilution Adjustment .............................. -- (603) -- (353)
------------ ------------ ------------ ------------
Adjusted Shares Outstanding ........................... 1,215,565 1,212,515 1,261,101 1,283,679
Average Exercise Price ................................ $ 9.537 $ 8.995 $ 9.3545 $ 8.639
------------ ------------ ------------ ------------
Exercise Proceeds ..................................... $ 11,592,984 $ 10,906,517 $ 11,797,008 $ 11,089,164
============ ============ ============ ============
FMV Per Share End of Period ........................... $ 16.0595 (2) $ 14.50 $ 16.0595 (2) $ 14.50
Shares Repurchased (limited to 20% of shares
outstanding) ..................................... (721,877) (747,987) (756,796) (767,236)
Shares Repurchased Assuming Utilization of Tax
Benefit on Exercise of Non-Qualified Options (1).. (102,114) (100,537) (106,265) (119,169)
------------ ------------ ------------ ------------
Total Shares Repurchased .............................. (823,991) (848,524) (863,061) (886,405)
------------ ------------ ------------ ------------
Incremental Shares from Options ....................... 391,573 363,991 398,041 397,274
============ ============ ============ ============
(1) Non-qualified options generate a tax deduction for the Company in the
amount of the employee's taxable gain, if any, on exercise. The savings in
taxes payable are also assumed to be used to purchase outstanding shares of
common stock.
(2) FMV at end of period was less than the average FMV during the period.
Average FMV per share was therefore used for fully-diluted computation.
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3
EXHIBIT 11
PAGE 3 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
TABLE II - WEIGHTED AVERAGE WARRANTS OUTSTANDING
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------- --------------------------------
1996 1995 1996 1995
---------- -------------- ---------- --------------
PRIMARY EPS
Weighted Average Warrants Outstanding.. 175,000 175,000 175,000 175,000
Exercise Price ........................ $ 15.15 $ 15.15 $ 15.15 $ 15.15
---------- -------------- ---------- --------------
Exercise Proceeds ..................... $2,651,250 $ 2,651,250 $2,651,250 $ 2,651,250
========== ============== ========== ==============
Average FMV Per Share During Period ... $ 16.0595 $ 13.358 $ 15.5881 $ 10.635
Shares Repurchased .................... 165,089 -- 170,082 --
---------- -------------- ---------- --------------
Incremental Shares from Warrants ...... 9,911 -- 4,918 --
========== ============== ========== ==============
FULLY-DILUTED EPS
Weighted Average Warrants Outstanding.. 175,000 175,000 175,000 175,000
Exercise Price ........................ $ 15.15 $ 15.15 $ 15.15 $ 15.15
---------- -------------- ---------- --------------
Exercise Proceeds ..................... $2,651,250 $ 2,651,250 $2,651,250 $ 2,651,250
========== ============== ========== ==============
FMV Per Share End of Period ........... $ 15.5881(1) $ 14.50 $ 15.5881(1) $ 14.50
Shares Repurchased .................... 165,089 -- 170,082 --
---------- -------------- ---------- --------------
Incremental Shares from Warrants ...... 9,911 -- 4,918 --
========== ============== ========== ==============
(1) FMV at end of period was less than the average FMV during the period.
Average FMV per share was therefore used for fully-diluted computation.
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