1 EXHIBIT 11 PACE MEDICAL, INC. AND WHOLLY-OWNED SUBSIDIARY STATEMENT RE COMPUTATION OF PER SHARE EARNINGS - -------------------------------------------------------------------------------- FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED SEPTEMBER 30 ENDED SEPTEMBER 30 ------------------ ------------------ 1997 1996 1997 1996 ---------- ---------- ---------- ---------- CALCULATION OF PRIMARY EARNINGS PER SHARE Net Income $ 115,788 $ 63,197 $ 365,570 $ 265,403 ---------- ---------- ---------- ---------- Number of shares: Weighted average shares outstanding 3,400,850 3,385,805 3,400,850 3,385,805 Incremental shares for outstanding stock options and warrants 127,770 246,599 155,291 180,171 ---------- ---------- ---------- ---------- Total shares outstanding for purpose of earnings per share computation 3,528,620 3,632,404 3,556,141 3,565,976 ---------- ---------- ---------- ---------- Income per share as calculated $ .03 $ .02 $ .10 $ .07 ---------- ---------- ---------- ---------- CALCULATION OF FULLY DILUTED EARNINGS PER SHARE Net Income $ 115,788 $ 63,197 $ 365,570 $ 265,403 ---------- ---------- ---------- ---------- Number of shares: Weighted average shares outstanding 3,400,850 3,385,805 3,400,850 3,385,805 Incremental shares for outstanding stock options and warrants 127,770 246,599 155,291 246,599 ---------- ---------- ---------- ---------- Total shares outstanding for purpose of earnings per share computation 3,528,620 3,632,404 3,556,141 3,632,404 ---------- ---------- ---------- ---------- Income per share as calculated $ .03 $ .02 $ .10 $ .07 ---------- ---------- ---------- ---------- - 12 -