1
Exhibit 11.1
Statement Regarding Computation of Per Share Earnings
Year ended December 31
1995 1996
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PRIMARY
Pro forma net income $ 5,883 $ 2,617
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Weighted average shares outstanding
including the effects of the IPO 6,424 6,509
Primary EPS $ 0.92 $ 0.40
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FULLY DILUTED
Pro forma net income $ 5,883 $ 2,617
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Weighted average shares outstanding
including the effects of the IPO 6,474 6,488
Fully diluted EPS $ 0.91 $ 0.40
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SUPPLEMENTAL PRO FORMA EPS
Pro forma net income as reported $ 5,883 $ 2,617
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Add back: interest expense 253
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Supplemental pro forma net income (1) $ 2,870
Weighted average shares outstanding
including the effects of the IPO 6,509
Supplemental pro forma net income $ 0.44
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The treasury stock method was used in the calculation of the average shares
outstanding for EPS. The denominator includes the shares outstanding during
the year plus the number of shares from assumed exercise of all outstanding
stock options less the number of treasury shares that would be repurchased from
the proceeds of such exercise. For primary EPS, the average stock price for
the year is used in the calculation of treasury shares assumed to be purchased
from the proceeds of exercised options; in the calculation for fully diluted
EPS, the year-end stock price is used. The initial public offering price of
$9.50 on January 9, 1997, was assumed to be the year-end stock price. The
number of shares issued in connection with the initial public offering are also
included in the denominator as though the shares had been outstanding since the
beginning of the year, in accordance with Regulation S-X, Article 11.
(1) Supplemental pro forma net income reflects reduced interest expense
(tax-effected) as if debt repaid from the initial public offering
proceeds had been repaid as of the beginning of the year, in
accordance with Regulation S-X, Article 11.