1 INGLES MARKETS, INCORPORATED AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE Exhibit 11 FISCAL YEAR ENDED SEPTEMBER ------------------------------------- 1996 1995 1994 ----------- ----------- ----------- PRIMARY Income before cumulative effect of change in accounting principle $20,731,466 $17,022,530 $16,572,123 Cumulative effect of change in accounting for income taxes - - 3,334,860 ----------- ----------- ----------- Net Income $20,731,466 $17,022,530 $19,906,983 =========== =========== =========== Shares Weighted average number of common shares and common stock equivalent shares outstanding 18,520,459 18,316,672 18,386,557 =========== =========== =========== Primary earnings per common share before cumulative effect of change in accounting principle $ 1.12 $ .93 $ .90 Cumulative effect of change in accounting for income taxes - - .18 ----------- ----------- ----------- Primary earnings per common share $ 1.12 $ .93 $ 1.08 =========== =========== =========== FULLY DILUTED Income before cumulative effect of change in accounting principle $20,731,466 $17,022,530 $16,572,123 Add after tax and bonus effect of interest expense applicable to Convertible Subordinated Debentures 2,014,359 2,138,566 2,081,397 ----------- ----------- ----------- Fully diluted earnings before cumulative effect of change in accounting principle 22,745,825 19,161,096 18,653,520 Cumulative effect of change in accounting for income taxes - - 3,334,860 ----------- ----------- ----------- Fully diluted earnings $22,745,825 $19,161,096 $21,988,380 =========== =========== =========== Shares Weighted average number of common shares and common stock equivalent shares outstanding 18,724,105 18,316,672 18,418,085 Additional shares assuming conversion of Convertible Subordinated Debentures * 3,374,685 3,374,685 3,374,685 ----------- ----------- ----------- Weighted average number of common shares outstanding as adjusted 22,098,790 21,691,357 21,792,770 =========== =========== =========== Fully diluted earnings per common share before cumulative effect of change in accounting principle $ 1.03 $ .88 $ .86 Cumulative effect of change in accounting for income taxes - - .15 ----------- ----------- ----------- Fully diluted earnings per common share $ 1.03 $ .88 $ 1.01 =========== =========== =========== * Additional shares assuming conversion of the Convertible Subordinated Debentures are computed using the weighted average of Debentures outstanding during the period. 49