1
EXHIBIT 11
KAUFMAN AND BROAD HOME CORPORATION
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
(In Thousands Except Per Share Amounts - Unaudited)
Three Months Ended
-----------------------------------------------
February 28, February 29,
1997 1996
------------------- --------------------
PRIMARY:
Net income $ 4,444 $ 4,086
=================== ====================
Weighted average common shares outstanding 38,829 32,350
Weighted average Series B convertible preferred shares(1) 6,500
Common share equivalents:
Stock options 863 971
------------------- --------------------
39,692 39,821
=================== ====================
PRIMARY EARNINGS PER SHARE(2) $ .11 $ .10
=================== ====================
FULLY DILUTED:
Net income $ 4,444 $ 4,086
=================== ====================
Weighted average common shares outstanding 38,829 32,350
Weighted average Series B convertible preferred shares(1) 6,500
Common share equivalents:
Stock options 912 1,019
------------------- --------------------
39,741 39,869
=================== ====================
FULLY DILUTED EARNINGS PER SHARE(2,3) $ .11 $ .10
=================== ====================
- --------
(1) Each of the 1,300 Series B convertible preferred shares was convertible into
five shares of common stock. On the mandatory conversion date of April 1,
1996, each of the Company's 6,500 depositary shares, each representing 1/5
of a Series B convertible preferred share was converted into one share of
the Company's common stock.
(2) If, for purposes of calculating primary and fully diluted earnings per
share, the Series B convertible preferred shares were excluded from the
weighted average shares outstanding and the related dividends deducted from
net income, the computations would have resulted in both primary and fully
diluted earnings per share of $.05 for the three months ended February 29,
1996. This computation is not applicable for the three months ended February
28, 1997 due to the conversion of the Series B convertible preferred shares
into common stock in April 1996.
(3) Fully diluted earnings per share is not disclosed in the Company's
consolidated financial statements since the maximum dilutive effect is not
material.