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EXHIBIT 11----STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
Earnings per share computations assumes the exercise of stock purchase warrants
and options to purchase shares of common stock. The shares assumed exercised are
based on the weighted average number of warrants and options outstanding during
the period. Under the treasury stock method of computing earnings per share, the
number of shares of treasury stock assumed repurchased is limited to 20% of
common stock outstanding, with the remaining shares assumed to be newly issued
and with the excess proceeds assumed to have reduced long-term borrowings
outstanding for the periods.
EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1997 Three Months Six Months
- ----------------------------------------------------- ------------ ----------
Application of assumed proceeds ($2,193,626 and $2,224,938):
Toward repurchase of outstanding common stock at
June 30, 1997 market price of $6.896 and $6.365 per share $2,193,626 $2,224,938
Reduction of borrowings under line of credit 0 0
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$2,193,626 $2,224,938
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Adjustments of net income:
Actual net income $2,092,690 $3,376,933
Interest expense reduction 0 0
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Adjusted net income (A) $2,092,690 $3,376,933
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Adjustment of shares outstanding:
Actual outstanding 8,147,492 8,137,037
Net additional shares issuable 147,387 122,029
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Adjusted shares outstanding (B) 8,294,879 8,259,066
========== ==========
Net income per common share (A) divided by (B) $ 0.25 $ 0.41
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EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1996 Three Months Six Months
- ----------------------------------------------------- ------------ ----------
Application of assumed proceeds ($6,844,604 and $6,853,656):
Toward repurchase of outstanding common stock at
June 30, 1996 market price of $6.979 and $7.250 per share $6,844,604 $6,853,656
Reduction of borrowings under line of credit 0 0
---------- ----------
$6,844,604 $6,853,656
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Adjustments of net income:
Actual net income $1,198,330 $1,957,619
Interest expense reduction 0 0
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Adjusted net income (A) $1,198,330 $1,957,619
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Adjustment of shares outstanding:
Actual outstanding 5,017,750 5,008,646
Net additional shares issuable 2,625,564 2,667,128
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Adjusted shares outstanding (B) 7,643,314 7,675,774
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Net income per common share (A) divided by (B) $ 0.16 $ 0.26
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RECENT PRONOUNCEMENT
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, Earnings Per Share (SFAS No. 128), which establishes new standards for
computing and presenting earnings per share. The provisions of SFAS No. 128 are
effective for earnings per share calculations for periods ending after December
15, 1997. At that time, the Company will be required to change the method
currently used to compute earnings per share and to restate all prior periods.
If the Company had adopted the provisions of SFAS No. 128, the results would
have been as follows:
Three Months Ended June 30 Six Months Ended June 30
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1997 1996 1997 1996
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Earnings per common share - basic $.25 $.24 $.41 $.39
Earnings per common share - diluted $.25 $.16 $.41 $.26