EXHIBIT 11 AMERICAN HEALTHWAYS, INC. EARNINGS PER SHARE RECONCILIATION MAY 31, 2003 (UNAUDITED) The following is a reconciliation of the numerator and denominator of basic and diluted earnings per share: Three Months Ended Nine Months Ended May 31, May 31, ----------------------------- ---------------------------- 2003 2002 2003 2002 ----------- ------------ ----------- ----------- Numerator: Net income - numerator for basic earnings per share $ 4,550,126 $ 2,586,547 $13,393,123 $ 6,528,634 Effect of dilutive securities -- -- -- -- ----------- ----------- ----------- ----------- Numerator for diluted earnings per share $ 4,550,126 $ 2,586,547 $13,393,123 $ 6,528,634 =========== =========== =========== =========== Denominator: Shares used for basic earnings per share 15,541,277 15,246,226 15,460,235 14,856,633 Effect of dilutive stock options outstanding 945,676 1,068,149 944,918 1,182,095 ----------- ----------- ----------- ----------- Shares used for diluted earnings per share 16,486,953 16,314,375 16,405,153 16,038,728 =========== =========== =========== =========== Earnings per share: Basic $ 0.29 $ 0.17 $ 0.87 $ 0.44 =========== =========== =========== =========== Diluted $ 0.28 $ 0.16 $ 0.82 $ 0.41 =========== =========== =========== ===========