1 EXHIBIT 11 GIANT GROUP, LTD. COMPUTATION OF EARNINGS PER SHARE (Dollars In thousands, except per share amounts) Three-months ended Nine-months ended September 30 September 30 -------------------------- --------------------------- 1996 1997 1996 1997 ----------- ----------- ----------- ----------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK: Net income (loss) for the period $ 1,539 $ 561 $ 14,141 ($ 1,786) Income earned, net of tax, on investment of remaining proceeds from exercise of stock options, after Company's acquisition of common stock (1) (2) 51 - 40 - ----------- ----------- ----------- ----------- $ 1,590 $ 561 $ 14,181 ($ 1,786) =========== =========== =========== =========== WEIGHTED AVERAGE COMMON SHARES AND COMMON EQUIVALENT SHARES: Weighted average number of common shares outstanding 3,779,000 3,181,000 4,243,000 3,375,000 Additional shares assuming conversion of the Company's stock options(1)(2)(3) 1,108,000 - 1,001,000 - ----------- ----------- ----------- ----------- 4,887,000 3,181,000 5,244,000 3,375,000 =========== =========== =========== =========== PRIMARY EARNINGS (LOSS) PER COMMON SHARE AND COMMON EQUIVALENT SHARE(4) $ 0.33 $ 0.18 $ 2.71 ($ 0.53) =========== =========== =========== =========== (1) The 1997 calculation of earnings per share excludes the Company's stock options as their effect would be anti-dilutive. (2) Assuming funds were invested in US government short-term obligations earning interest at 5%. (3) Reflects the 20% limit required by APB No. 15 for reacquisition of shares in 1996. Excess proceeds from exercise of stock options have been assumed to be invested in US government short-term obligations (see (2)). (4) Fully diluted earnings per share is equal to primary earnings per share and is not disclosed.