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EXHIBIT 11
PAGE 1 OF 3
THOMAS GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
PRIMARY EPS
Weighted Average Shares Outstanding ................... 6,080,673 5,931,101 6,080,748 5,983,124
Weighted Average Options Outstanding (Table I) ........ 222,440 448,682 195,769 397,256
Weighted Average Warrants Outstanding (Table II) ...... -- 16,575 -- 896
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding ....................................... 6,303,113 6,396,358 6,276,517 6,381,276
========== ========== ========== ==========
Net Income ............................................ $1,597,000 $2,172,000 $2,209,000 $3,787,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent Share ....... $ 0.25 $ 0.34 $ 0.35 $ 0.59
========== ========== ========== ==========
FULLY-DILUTED EPS
Weighted Average Shares Outstanding ................... 6,080,673 5,931,101 6,080,748 5,983,124
Weighted Average Options Outstanding (Table I) ........ 225,750 499,014 213,792 499,689
Weighted Average Warrants Outstanding (Table II) ...... -- 30,226 -- 30,226
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding ....................................... 6,308,551 6,460,341 6,296,668 6,513,039
========== ========== ========== ==========
Net Income ............................................ $1,597,000 $2,172,000 $2,209,000 $3,787,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent Share ....... $ 0.25 $ 0.34 $ 0.35 $ 0.58
========== ========== ========== ==========
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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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
PRIMARY EPS
Weighted Average Options Outstanding ............................ 1,438,575 1,296,405 1,411,918 1,283,951
Anti-Dilution Adjustment ........................................ -- -- -- (56,078)
------------ ------------ ------------ ------------
Adjusted Shares Outstanding ..................................... 1,438,575 1,296,405 1,411,918 1,227,873
Average Exercise Price .......................................... $ 9.580 $ 9.370 $ 9.642 $ 8.981
------------ ------------ ------------ ------------
Exercise Proceeds ............................................... $ 13,783,144 $ 12,151,936 $ 13,613,502 $ 11,027,004
============ ============ ============ ============
Average FMV Per Share During Period ............................. $ 9.512 $ 16.735 $ 9.332 $ 15.228
Shares Repurchased (limited to 20% of shares
outstanding) ................................................ (1,216,135) (726,122) (1,216,149) (742,132)
Shares Repurchased Assuming Utilization of Tax Benefit
on Exercise of Non-Qualified Options (1) .................... -- (121,601) -- (106,486)
------------ ------------ ------------ ------------
Total Shares Repurchased ........................................ (1,216,135) (847,723) (1,216,149) (830,618)
------------ ------------ ------------ ------------
Incremental Shares from Options ................................. 222,440 448,682 195,769 397,256
============ ============ ============ ============
FULLY-DILUTED EPS
Weighted Average Options Outstanding ............................ 1,438,575 1,296,405 1,411,918 1,283,951
Anti-Dilution Adjustment ........................................ -- -- -- (348)
------------ ------------ ------------ ------------
Adjusted Shares Outstanding ..................................... 1,438,575 1,296,405 1,411,918 1,283,604
Average Exercise Price .......................................... $ 9.580 $ 9.370 $ 9.642 $ 9.268
------------ ------------ ------------ ------------
Exercise Proceeds ............................................... $ 13,783,144 $ 12,151,936 $ 13,613,502 $ 11,892,209
============ ============ ============ ============
FMV Per Share End of Period ..................................... $ 11.750 $ 18.313 $ 11.750 $ 18.313
Shares Repurchased (limited to 20% of shares
outstanding) ............................................... (1,173,021) (660,956) (1,159,490) (646,798)
Shares Repurchased Assuming Utilization of Tax Benefit
on Exercise of Non-Qualified Options (1) .................... (39,804) (136,435) (38,636) (137,117)
------------ ------------ ------------ ------------
Total Shares Repurchased ........................................ (1,212,825) (797,391) (1,198,126) (783,915)
------------ ------------ ------------ ------------
Incremental Shares from Options ................................. 225,750 499,014 213,792 499,689
============ ============ ============ ============
(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.
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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
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------------- --------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
PRIMARY EPS
Weighted Average Warrants Outstanding ....... 225,000 175,000 200,000 175,000
Exercise Price .............................. $ 14.28 $ 15.15 $ 14.66 $ 15.15
-------------- -------------- -------------- --------------
Exercise Proceeds ........................... $ 3,213,750 $ 2,651,250 $ 2,932,500 $ 2,651,250
============== ============== ============== ==============
Average FMV Per Share During Period ......... $ 9.512 $ 16.735 $ 9.332 $ 15.228
Shares Repurchased .......................... -- 158,425 -- 174,104
-------------- -------------- -------------- --------------
Incremental Shares from Warrants ............ -- 16,575 -- 896
============== ============== ============== ==============
FULLY-DILUTED EPS
Weighted Average Warrants Outstanding ....... 225,000 175,000 200,000 175,000
Exercise Price .............................. $ 14.28 $ 15.15 $ 14.66 $ 15.15
-------------- -------------- -------------- --------------
Exercise Proceeds ........................... $ 3,213,750 $ 2,651,250 $ 2,932,500 $ 2,651,250
============== ============== ============== ==============
FMV Per Share End of Period ................. $ 11.750 $ 18.313 $ 11.750 $ 18.313
Shares Repurchased .......................... -- 144,774 -- 144,774
-------------- -------------- -------------- --------------
Incremental Shares from Warrants ............ -- 30,226 -- 30,226
============== ============== ============== ==============