1 EXHIBIT 11 GRANITE CONSTRUCTION INCORPORATED COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) - ---------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED MARCH 31, 1997 1996 - ---------------------------------------------------------------------------------------------------------- Weighted average common shares outstanding 18,129 17,897 Computation of incremental outstanding shares: Net effect of dilutive stock options based on treasury stock method 55 69 - --------------------------------------------------------------------------------------------------------- Weighted average common shares outstanding, as adjusted 18,184 17,966 ========================================================================================================= Net income $ 243 $ 366 ========================================================================================================= Net income per common and common equivalent share $ 0.01 $ 0.02 ========================================================================================================= 20