EXHIBIT 11.2
CALIFORNIA ENERGY COMPANY, INC.
CALCULATION OF EARNINGS PER SHARE IN ACCORDANCE
WITH INTERPRETIVE RELEASE NO. 34-9083
(Dollars in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
1994 1993 1994 1993
Actual weighted average shares outstanding for the period 32,452,314 35,460,056 33,606,006 35,411,548
Dilutive stock options and warrants using average market
prices 2,378,937 2,720,167 2,568,173 3,024,387
Total number of shares based on shares outstanding
and the assumption that dilutive stock options and
warrants will be exercised at average stock market prices 38,831,251 38,180,223 36,174,179 38,435,935
Additional dilutive stock options and warrants using
ending market price and assuming conversion of
convertible debt* 4,630,631 162,727 4,444,444 -
Total shares based on shares outstanding and the
assumption that dilutive stock options and warrants
will be exercised at ending market price if more dilutive 39,461,882 38,342,950 40,618,623 38,435,935
Income before extraordinary item and change in
accounting principle $ 14,413 $ 16,677 $ 31,399 $ 34,811
Extraordinary item - - (2,027) -
Cumulative effect of change in accounting
principle - - - 4,100
Net income 14,413 16,677 29,392 38,911
Less: Series C preferred stock dividends 1,275 1,179 3,711 3,429
Net income available for common shares $ 13,138 $ 15,498 $ 25,681 $ 35,482
Primary earnings per share before extraordinary item and
change in accounting principle $ 0.38 $ 0.41 $ 0.77 $ 0.81
Extraordinary item per share - - (0.06) -
Cumulative effect of change in accounting
principle per share - - - 0.11
Primary earnings per share $ 0.38 $ 0.41 $ 0.71 $ 0.92
Fully diluted earnings per share based on SEC
interpretive release No. 34-9083** $ 0.36 $ 0.41 $ 0.70 $ 0.92
* The ending market price on September 30, 1994 and 1993 was lower than
the average market price for the nine-month period ended September 30, 1994 and
1993. Accordingly, inclusion of an adjustment for stock options would be
antidilutive and, therefore, contrary to paragraph 40 of APB Option 15. The
repurchase of Company common stock has reduced the number of shares outstanding
and has necessitated the inclusion of the Debentures in the fully diluted
earnings per share calculation for the quarter ended September 30, 1994 and for
the nine month period ended September 30, 1994.
** The net income available for common shares for the quarter ended
September 30, 1994 and nine months ended September 30, 1994 was increased by
the interest expense associated with the convertible debt of $887 and $2,620,
respectively.