1
EXHIBIT 11
PAGE 1 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
YEAR ENDED DECEMBER 31,
----------------------------------------
1996 1995 1994
---------- ---------- ----------
PRIMARY EPS
Weighted Average Shares Outstanding ........................... 5,963,394 5,998,009 5,792,333
Weighted Average Options Outstanding (Table I) ................ 335,455 260,031 310,578
Weighted Average Warrants Outstanding (Table II) .............. -- -- --
========== ========== ==========
Weighted Average Shares and Share Equivalents Outstanding .....
6,298,849 6,258,040 6,102,911
========== ========== ==========
Net Income .................................................... $1,825,000 $6,755,000 $ 46,000
========== ========== ==========
Earnings Per Common and Common Equivalent Share ............... $ 0.29 $ 1.08 $ 0.01
========== ========== ==========
FULLY-DILUTED EPS
Weighted Average Shares Outstanding ........................... 5,963,394 5,998,009 5,792,333
Weighted Average Options Outstanding (Table I) ................ 312,497 348,768 309,921
Weighted Average Warrants Outstanding (Table II) .............. -- -- --
---------- ---------- ----------
Weighted Average Shares and Share Equivalents Outstanding .....
6,275,891 6,346,777 6,102,254
========== ========== ==========
Net Income .................................................... $1,825,000 $6,755,000 $ 46,000
========== ========== ==========
Earnings Per Common and Common Equivalent Share ............... $ 0.29 $ 1.06 $ 0.01
========== ========== ==========
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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
YEAR ENDED DECEMBER 31,
------------------------------------------------
1996 1995 1994
------------ ------------ ------------
PRIMARY EPS
Weighted Average Options Outstanding ....................... 1,255,309 1,240,951 1,415,634
Anti-Dilution Adjustment ................................... -- (520,368) --
------------ ------------ ------------
Adjusted Shares Outstanding ................................ 1,255,309 720,583 1,415,634
------------ ------------ ------------
Average Exercise Price ..................................... $ 9.437 $ 5.872 $ 8.437
------------ ------------ ------------
Exercise Proceeds .......................................... $ 11,846,466 $ 4,230,989 $ 11,943,643
============ ============ ============
Average FMV Per Share During Period ........................ $ 14.253 $ 11.024 $ 12.577
Shares Repurchased ......................................... (831,132) (383,795) (949,619)
Share Repurchased Assuming Utilization of Tax Benefit on
Exercise of Non-Qualified Options (1) .................. (88,722) (76,757) (155,437)
------------ ------------ ------------
Total Shares Repurchased ................................... (919,854) (460,552) (1,105,056)
------------ ------------ ------------
Incremental Shares from Options ............................ 335,455 260,031 310,578
============ ============ ============
FULLY-DILUTED EPS
Weighted Average Options Outstanding ....................... 1,255,309 1,240,951 1,415,634
Anti-Dilution Adjustment ................................... -- (6,734) --
------------ ------------ ------------
Adjusted Shares Outstanding ................................ 1,255,309 1,234,217 1,415,634
------------ ------------ ------------
Average Exercise Price ..................................... $ 9.437 $ 8.683 $ 8.437
------------ ------------ ------------
Exercise Proceeds .......................................... $ 11,846,466 $ 10,716,511 $ 11,943,643
============ ============ ============
FMV Per Share End of Period (2) ............................ $ 14.253 $ 13.500 $ 12.577
Shares Repurchased ......................................... (865,428) (787,256) (950,621)
Share Repurchased Assuming Utilization of Tax Benefit on
Exercise of Non-Qualified Options (1) .................. (77,384) (98,193) (155,092)
------------ ------------ ------------
Total Shares Repurchased ................................... (942,812) (885,449) (1,105,713)
------------ ------------ ------------
Incremental Shares from Options ............................ 312,497 348,768 309,921
============ ============ ============
(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 1996 and 1994 was less than the average FMV during 1996 and
1994. The average FMV during 1996 and 1994 was, therefore, used in the
fully-diluted calculation.
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EXHIBIT 11
PAGE 3 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
TABLE II - WEIGHTED AVERAGE WARRANTS OUTSTANDING
YEAR ENDED DECEMBER 31,
--------------------------------------------
1996 1995 1994
---------- ---------- --------------
PRIMARY EPS
Weighted Average Warrants Outstanding ... 175,000 175,000 175,000
Exercise Price (1) ...................... $ 15.15 $ 15.15 $ 15.15
---------- ---------- --------------
Exercise Proceeds ....................... $2,651,250 $2,651,250 $ 2,651,250
========== ========== ==============
Average FMV Per Share During Period ..... $ 14.25 $ 11.024 $ 12.577
Shares Repurchased ...................... -- -- --
---------- ---------- --------------
Incremental Shares from Warrants ........ -- -- --
========== ========== ==============
FULLY-DILUTED EPS
Weighted Average Warrants Outstanding ... 175,000 175,000 175,000
Exercise Price (1) ...................... $ 15.15 $ 15.15 $ 15.15
---------- ---------- --------------
Exercise Proceeds ....................... $2,651,250 $2,651,250 $ 2,651,250
========== ========== ==============
FMV Per Share End of Period(2) .......... $ 14.25 $ 13.500 $ 12.577
Shares Repurchased ...................... -- -- --
---------- ---------- --------------
Incremental Shares from Warrants ........ -- -- --
========== ========== ==============
- ---------------
(1) The exercise price is in excess of the average FMV per share during 1996,
1995 and 1994. The Warrants are therefore anti-dilutive and excluded from the
earnings per share calculation.
(2) FMV at end of 1996 and 1994 was less than the average FMV during 1996
and 1994. The average FMV during 1996 and 1994 was, therefore, used in the
fully-diluted calculation.