EXHIBIT 11 AMERICAN HEALTHWAYS, INC. EARNINGS PER SHARE RECONCILIATION FEBRUARY 28, 2003 (UNAUDITED) The following is a reconciliation of the numerator and denominator of basic and diluted income per share: Three Months Ended Six Months Ended February 28, February 28, ---------------------------- --------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- Numerator: Net income $ 5,144,344 $ 2,447,895 $ 8,842,997 $ 3,942,087 Effect of dilutive securities -- -- -- -- ----------- ----------- ----------- ----------- Numerator for diluted income per share $ 5,144,344 $ 2,447,895 $ 8,842,997 $ 3,942,087 =========== =========== =========== =========== Denominator: Shares used for basic income per share 15,441,733 15,074,051 15,419,066 14,661,837 Effect of dilutive stock options outstanding 898,058 1,252,290 923,388 1,239,068 ----------- ----------- ----------- ----------- Shares used for diluted income per share 16,339,791 16,326,341 16,342,454 15,900,905 =========== =========== =========== =========== Basic income per share: $ 0.33 $ 0.16 $ 0.57 $ 0.27 =========== =========== =========== =========== Diluted income per share $ 0.31 $ 0.15 $ 0.54 $ 0.25 =========== =========== =========== =========== 31