1 EXHIBIT 11 GRANITE CONSTRUCTION INCORPORATED COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE (UNAUDITED -- IN THOUSANDS, EXCEPT PER SHARE DATA) - --------------------------------------------------------------------------------------------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1996 1995 1996 1995 - --------------------------------------------------------------------------------------------------- Weighted average common shares outstanding 18,008 17,811 17,962 17,738 Computation of incremental outstanding shares: Net effect of dilutive stock options based on treasury stock method 61 68 71 47 - --------------------------------------------------------------------------------------------------- Weighted average common shares outstanding, as adjusted 18,069 17,879 18,033 17,785 =================================================================================================== Net income $15,053 $13,194 $24,550 $22,754 =================================================================================================== Net income per common and common equivalent share $ 0.83 $ 0.74 $ 1.36 $ 1.28 ===================================================================================================