California Energy Company, Inc. Exhibit 11.0
Calculation of Earnings per share in Accordance
with Interpretive Release No. 34-9083
for the three years ended December 31, 1994
(dollars in thousands, except per share amounts)
1994 1993 1992
---------- ---------- -------
Actual weighted average shares outstanding
for the period 33,187,971 35,454,539 33,414,139
Dilutive stock options and warrants using
average market prices 2,533,301 3,030,431 3,330,618
Preferred stock --- --- 786,712
----------- ----------- ----------
Total number of shares based on shares outstanding
and the assumption that
dilutive stock options and warrants will
be exercised at average market price 35,721,272 38,484,970 37,531,469
Additional dilutive stock options and
warrants using ending market price
and assuming conversion of convertible
debt* 4,444,444 --- 1,282,223
----------- ----------- ----------
Total shares based on shares outstanding
and the assumption that dilutive
stock options and warrants will be
exercised at the most dilutive of
ending or average market price 40,165,716 38,484,970 38,813,692
=========== =========== ==========
Income before change in accounting
principle and extraordinary item $ 38,834 $ 43,074 $ 38,810
Cumulative effect of change in
accounting principle --- 4,100 ---
Extraordinary item (2,007) --- (4,991)
----------- ----------- -----------
Net income 36,827 47,174 33,819
Less: Series C preferred stock dividends (5,010) (4,630) (4,275)
----------- ----------- -----------
Net income available for common shares $ 31,817 $ 42,544 $ 29,544
=========== =========== ==========
Primary earnings per share before
change in accounting principle
and extraordinary item $ .95 $ 1.00 $ .92
Change in accounting principle per share --- .11 ---
Extraordinary items per share (.06) --- (.13)
Primary earnings per share $ .89 $ 1.11 $ .79
=========== =========== ==========
Fully diluted earnings per share before change in accounting principle and
extraordinary item based on SEC
Interpretive Release No. 34-9083** $ .93 $ 1.00 $ .89
Change in accounting principle per share --- .11 ---
Extraordinary items per share (.05) --- (.13)
Fully diluted earnings per share based
on SEC interpretive release
No. 34-9083** $ .88 $ 1.11 $ .76
=========== =========== ==========
*The ending market price on December 31, 1994 and 1993 was lower than the
average market price for the twelve month period ended December 31, 1994 and
1993. Accordingly, inclusion of an adjustment for stock options would be
antidilutive and, therefore, contrary to paragraph 40 of APB Opinion 15. The
repurchase of Company common stock had reduced the number of shares outstanding
and has necessitated the inclusion of the Debentures in the fully diluted
earnings per share calculation for the year ended December 31, 1994.
**The net income available for common shares for the year ended December 31,
1994 was increased by the interest expense, net of tax effect, associated with
the convertible debt of $3,475.