1 Exhibit 11 ---------- CML GROUP, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS (LOSS) PER SHARE Year Ended July 31, ----------------------------------------------------------- 1995 1994 1993 ---- ---- ---- Primary earnings (loss) per share: Weighted average number of shares outstanding: Common 49,659,991 50,468,396 50,076,241 Shares deemed outstanding from the assumed exercise of stock options and a warrant and from deferred compensation awards 721,727 1,122,362 1,919,253 ------------ ----------- ----------- Total 50,381,718 51,590,758 51,995,494 Net income (loss) $(18,920,000) $51,719,000 $57,933,000 ============ =========== =========== Primary earnings (loss) per share $(0.38) $1.00 $1.11 ====== ===== ===== Fully diluted earnings (loss) per share: Weighted average number of shares outstanding, as above 50,381,718 51,590,758 51,995,494 Shares deemed outstanding from the assumed conversion of convertible subordinated debentures 1,919,411 2,218,649 1,109,325 Additional shares deemed outstanding from the assumed exercise of stock options 10,651 26,855 122,628 ------------ ----------- ----------- Total 52,311,780 53,836,262 53,227,447 ============ =========== =========== Additional income from the elimination of the interest cost of the convertible subordinated debentures, net of income tax effect $ 1,821,709 $ 2,134,000 $ 1,065,000 Fully diluted earnings (loss) per share $(0.38) $1.00 $1.11 ====== ===== ===== 45