EXHIBIT 11
ELECTRONIC TELE-COMMUNICATIONS, INC.
COMPUTATION OF EARNINGS PER SHARE
THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2004 AND 2003
Earnings (loss) net of dividends paid (undistributed earnings) are allocated
equally per share to weighted average Class A shares, as adjusted for the
dilutive effect of stock options using the treasury stock method, and weighted
average Class B shares outstanding during the year. Earnings (loss) per Class A
and Class B common share were computed, as shown in the table below, by adding
dividends paid per Class A and Class B common share (distributed earnings) to
undistributed earnings. The following table sets forth the computation of basic
and diluted earnings per share:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2004 2003 2004 2003
----------- ----------- ----------- -----------
Numerator for basic and diluted earnings per share:
Net earnings (loss) $ 22,153 $ (238,829) $ (72,897) $ (598,419)
Less dividends paid:
Class A common -- -- -- --
Class B common -- -- -- --
----------- ----------- ----------- -----------
Undistributed earnings (loss) $ 22,153 $ (238,829) $ (72,897) $ (598,419)
Denominator for basic and diluted earnings per share:
Weighted average shares:
Class A common 2,009,149 2,009,149 2,009,149 2,009,149
Class B common 499,998 499,998 499,998 499,998
----------- ----------- ----------- -----------
Total 2,509,147 2,509,147 2,509,147 2,509,147
Calculation of basic and diluted earnings (loss) per share:
Class A common:
Distributed earnings $ -- $ -- $ -- $ --
Undistributed earnings (loss) 0.01 (0.10) (0.03) (0.24)
----------- ----------- ----------- -----------
Basic and diluted earnings
(loss) per share $ 0.01 $ (0.10) $ (0.03) $ (0.24)
Class B common:
Distributed earnings $ -- $ -- $ -- $ --
Undistributed earnings (loss) 0.01 (0.10) (0.03) (0.24)
----------- ----------- ----------- -----------
Basic and diluted earnings
(loss) per share $ 0.01 $ (0.10) $ (0.03) $ (0.24)
----------- ----------- ----------- -----------
Options to purchase shares of Class A common stock under the Company's
Nonqualified Stock Option Plan were outstanding during the three-month and
six-month periods ended June 30, 2004 and 2003. However, these shares were not
included in the computation of diluted earnings per share because the options'
exercise price was greater than the average market price of the common shares
and, therefore, the effect would be antidilutive. The number of shares excluded
from the computation were 198,800 for the 2004 periods and 210,300 for the 2003
periods.
-15-