1
EXHIBIT 11
INGLES MARKETS, INCORPORATED
----------------------------
AND SUBSIDIARIES
----------------
COMPUTATION OF EARNINGS PER COMMON SHARE *
------------------------------------------
THREE MONTHS ENDED
------------------
DECEMBER 28, DECEMBER 30,
1996 1995
------------ ------------
PRIMARY:
Income before extraordinary item $ 5,256,653 $ 4,722,116
Extraordinary item-early extinguishment
of debt (net of income tax benefit) (211,159) -
------------ ------------
Net income $ 5,045,494 $ 4,722,116
============ ============
Shares
Weighted average number of common shares
and common stock equivalent shares
outstanding 19,378,023 18,353,052
============ ============
Primary earnings per common share before
extraordinary item $ .27 $ .26
Extraordinary item-early extinguishment
of debt (.01) -
------------ ------------
Primary earnings per common share $ .26 $ .26
============ ============
FULLY DILUTED:
Income before extraordinary item $ 5,256,653 $ 4,722,116
Add after tax and bonus effect of interest
expense applicable to Convertible
Subordinated Debentures 354,815 514,739
------------ ------------
Fully diluted earnings before extraordinary
item 5,611,468 5,236,855
Extraordinary item-early extinguishment
of debt (net of income tax benefit) (211,159) -
------------ ------------
Fully diluted earnings $ 5,400,309 $ 5,236,855
============ ============
Shares
Weighted average number of common
shares and common stock equivalent
shares outstanding 19,378,023 18,409,234
Additional shares assuming conversion
of Convertible Subordinated Debentures 2,763,272 3,374,685
------------ ------------
Weighted average number of common
shares outstanding as adjusted 22,141,295 21,783,919
============ ============
Fully diluted earnings per common share
before extraordinary item $ .25 $ .24
Extraordinary item-early extinguishment
of debt (.01) -
------------ ------------
Fully diluted earnings per common share $ .24 $ .24
============ ============
* See note B of the notes to unaudited interim financial statements.
18