1 EXHIBIT NO. 11.1 STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE 13 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 SEPTEMBER 30, 1998 Three Months Nine Months - ------------------------------------------------------------------ ------------ ----------- Actual net income (A) $ 1,853,141 $ 6,212,687 =========== =========== Assumed exercise of stock options and warrants 310,333 323,439 Application of assumed proceeds ($1,581,041 and $1,624,777) toward repurchase of outstanding common stock at an average market price of $7.833 and $9.521, respectively. (201,844) (170,652) ----------- ----------- Net additional shares issuable 108,489 152,787 =========== =========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,312,674 8,299,568 Net additional shares issuable 108,489 152,787 ----------- ----------- Adjusted shares outstanding (B) 8,421,163 8,452,355 =========== =========== Net income per common share (A) divided by (B) $ 0.22 $ 0.74 =========== =========== DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED SEPTEMBER 30, 1997 Three Months Nine Months - ------------------------------------------------------------------ ------------ ----------- Actual net income (A) $ 1,483,918 $ 4,860,852 =========== =========== Assumed exercise of stock options and warrants 355,550 355,550 Application of assumed proceeds ($1,966,637 and $2,134,478) toward repurchase of outstanding common stock at an average market price of $9.094 and $7.274, respectively. (216,257) (293,439) ----------- ----------- Net additional shares issuable 139,293 62,111 =========== =========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,223,490 8,166,171 Net additional shares issuable 139,293 62,111 ----------- ----------- Adjusted shares outstanding (B) 8,362,783 8,228,282 =========== =========== Net income per common share (A) divided by (B) $ 0.18 $ 0.59 =========== =========== 14