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 Six Months Ended ------------------------------------------------------------- June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996 ------------- ------------- ------------- ------------- Primary: Weighted average shares outstanding 895,461 391,160 891,853 389,363 Common stock equivalents 24,568 - 26,299 - Common stock equivalents issuable upon conversion of: Series A preferred stock 32,703 - 32,703 --------- ---------- -------- ---------- 952,732 391,160 950,855 389,363 ========= ========== ======== ========== Net income (loss) applicable to common shareholders before extraordinary items $ 71,996 $ (243,523) $115,050 $ (157,721) Extraordinary items - (24,434) - (24,434) Add back: Series A preferred dividend 6,364 - 12,728 - --------- ---------- -------- ---------- Net income (loss) applicable to common shareholders $ 78,360 $ (267,957) $127,778 (182,155) ========= ========== ======== ========== Primary earnings (loss) per share: Applicable to common shareholders before extraordinary items $ 0.08 $ (0.62) $ 0.13 (0.41) ========= ========== ======== ========== Extraordinary items $ - $ (0.06) $ - (0.06) ========= ========== ======== ========== Applicable to common shareholders $ 0.08 $ (0.69) $ 0.13 (0.47) ========= ========== ======== ========== Fully diluted: Weighted average shares outstanding 895,461 391,160 891,853 389,363 Common stock equivalents 29,256 - 28,644 - Common stock issuable upon conversion of: Series A preferred stock 32,703 - 32,703 - Series B preferred stock 1,246 - 1,251 - --------- ---------- -------- ---------- 958,666 391,160 954,451 389,363 ========= ========== ======== ========== Net income (loss) applicable to common shareholders before extraordinary items $ 71,996 $ (243,523) $115,050 (157,721) Extraordinary items - (24,434) - (24,434) Add back: Series A preferred dividend 6,364 - 12,728 - Series B preferred dividend 247 - 493 - --------- ---------- -------- ---------- Net income (loss) applicable to common shareholders $ 78,607 $ (267,957) $128,271 (182,155) ========= ========== ======== ========== Fully diluted earnings (loss) per share: Applicable to common shareholders before extraordinary items $ 0.08 $ (0.62) $ 0.13 (0.41) ========= ========== ======== ========== Extraordinary items $ - $ (0.06) $ - (0.06) ========= ========== ======== ========== Applicable to common shareholders $ 0.08 $ (0.69) $ 0.13 (0.47) ========= ========== ======== ==========