1 EXHIBIT NO. 11.1 STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE 12 2 EXHIBIT (11)----STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE Diluted 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 and only include those warrants and options whose average share price during the period exceeds its related exercise price. The net additional shares issuable are calculated based on the treasury stock method and are added to the weighted average number of shares outstanding during the period. DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED MARCH 31, 1998 Actual net income (A) $ 1,943,673 ============ Assumed exercise of stock options and warrants 323,850 Application of assumed proceeds ($1,682,557) toward repurchase of outstanding common stock at an average market price of $10.063 (167,202) ------------ Net additional shares issuable 156,648 ============ Adjustment of shares outstanding: Weighted average common shares outstanding 8,286,035 Net additional shares issuable 156,648 ------------ Adjusted shares outstanding (B) 8,442,683 ============ Net income per common share (A) divided by (B) $ 0.23 ============ DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED MARCH 31, 1997 Actual net income (A) $ 1,284,245 ============ Assumed exercise of stock options and warrants 451,358 Application of assumed proceeds ($1,915,100) toward repurchase of outstanding common stock at an average market price of $5.833 (328,322) ------------ Net additional shares issuable 123,036 ============ Adjustment of shares outstanding: Weighted average common shares outstanding 8,126,466 Net additional shares issuable 123,036 ------------ Adjusted shares outstanding (B) 8,249,502 ============ Net income per common share (A) divided by (B) $ 0.16 ============ 13