1 EXHIBIT 11.1 GRANITE CONSTRUCTION INCORPORATED COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) YEARS ENDED DECEMBER 31, 1996 1995 1994 ------------ ------------ ------------ Weighted average common shares outstanding 18,060 17,770 17,598 Computation of incremental outstanding shares: Net effect of dilutive stock options based on treasury stock method 66 50 62 ------------ ------------ ------------ Weighted average common shares outstanding, as adjusted 18,126 17,820 17,660 =========== =========== =========== Net income $ 27,348 $ 28,542 $ 19,488 =========== =========== =========== Net income per common and common equivalent share $ 1.51 $ 1.60 $ 1.10 =========== =========== =========== 179