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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,
-------------------------- --------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Primary EPS
Weighted Average Shares Outstanding .............. 6,102,645 5,938,132 6,085,812 5,965,086
Weighted Average Options Outstanding (Table I) ... 289,286 391,573 222,284 398,041
Weighted Average Warrants Outstanding (Table II).. 4,725 9,911 -- 4,918
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding .................................. 6,392,031 6,339,616 6,308,096 6,368,045
========== ========== ========== ==========
Net Income ....................................... $1,301,000 $ 345,000 $3,510,000 $4,132,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent Share... $ 0.20 $ 0.05 $ 0.56 $ 0.65
========== ========== ========== ==========
FULLY-DILUTED EPS
Weighted Average Shares Outstanding .............. 6,102,645 5,938,132 6,085,812 5,965,086
Weighted Average Options Outstanding (Table I) ... 326,048 391,248 314,021 406,172
Weighted Average Warrants Outstanding (Table II).. 6,311 9,911 3,154 4,918
---------- ---------- ---------- ----------
Weighted Average Shares and Share Equivalents
Outstanding .................................. 6,435,003 6,339,291 6,402,987 6,376,176
========== ========== ========== ==========
Net Income ....................................... $1,301,000 $ 345,000 $3,510,000 $4,132,000
========== ========== ========== ==========
Earnings Per Common and Common Equivalent Share... $ 0.20 $ 0.05 $ 0.55 $ 0.65
========== ========== ========== ==========
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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,
------------------------------- -------------------------------
1997 1996 1997 1996
------------ ------------ ------------ --------------
PRIMARY EPS
Weighted Average Options Outstanding ............... 1,490,456 1,215,565 1,439,447 1,261,101
Average Exercise Price ............................. $ 9.649 $ 9.537 $ 9.645 $ 9.3545
------------ ------------ ------------ ------------
Exercise Proceeds .................................. $ 14,382,040 $ 11,592,984 $ 13,884,106 $ 11,797,008
============ ============ ============ ============
Average FMV Per Share During Period ................ $ 12.4241 $ 16.0595 $ 10.3837 $ 15.5881
Shares Repurchased (limited to 20% of shares
outstanding) ................................... (1,157,592) (722,240) (1,217,163) (744,668)
Shares Repurchased Assuming Utilization of Tax
Benefit on Exercise of Non-Qualified Options(1). (43,478) (102,077) (110,261)
------------ ------------ ------------ ------------
Total Shares Repurchased ........................... (1,201,070) (824,317) (1,217,163) (854,929)
------------ ------------ ------------ ------------
Incremental Shares from Options .................... 289,386 391,248 222,284 406,172
============ ============ ============ ============
FULLY-DILUTED EPS
Weighted Average Options Outstanding ............... 1,490,456 1,215,565 1,439,447 1,261,101
Average Exercise Price ............................. $ 9.649 $ 9.537 $ 9.645 $ 9.3545
------------ ------------ ------------ ------------
Exercise Proceeds .................................. $ 14,382,040 $ 11,592,984 $ 13,884,106 $ 11,797,008
============ ============ ============ ============
FMV Per Share End of Period ........................ $ 12.875 $ 16.0595 (2) $ 12.875 $ 16.0595 (2)
Shares Repurchased (limited to 20% of shares
outstanding) .................................. (1,116,591) (721,877) (1,078,759) (756,796)
Shares Repurchased Assuming Utilization of Tax
Benefit on Exercise of Non-Qualified
Options(1)..................................... (37,817) (102,114) (46,667) (106,265)
------------ ------------ ------------ ------------
Total Shares Repurchased ........................... (1,164,408) (823,991) (1,125,426) (863,061)
------------ ------------ ------------ ------------
Incremental Shares from Options .................... 326,048 391,573 314,021 398,041
============ ============ ============ ============
(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,
-------------------------- --------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
PRIMARY EPS
Weighted Average Warrants Outstanding.. 225,000 175,000 200,000 175,000
Exercise Price ........................ $ 14.283 $ 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 ... $ 12.4241 $ 16.0595 $ 10.3837 $ 15.5881
Shares Repurchased .................... 45,275 165,089 -- 170,082
---------- ---------- ---------- ----------
Incremental Shares from Warrants ...... 4,725 9,911 -- 4,918
========== ========== ========== ==========
FULLY-DILUTED EPS
Weighted Average Warrants Outstanding.. 225,000 175,000 200,000 175,000
Exercise Price ........................ $ 14.283 $ 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 ........... $ 12.875 $ 15.5881 (1) $ 12.875 $ 15.5881 (1)
Shares Repurchased .................... 43,689 165,089 21,846 170,082
---------- ---------- ---------- ----------
Incremental Shares from Warrants ...... 6,311 9,911 3,154 4,918
========== ========== ========== ==========
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