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 SIX MONTHS ENDED JUNE 30, JUNE 30, 1997 1996 1997 1996 - ----------------------------------------------------------------------------------------------- Weighted average common shares outstanding 18,134 17,985 18,210 17,941 Computation of incremental outstanding shares: Net effect of dilutive stock options based on treasury stock method 52 67 54 76 - ----------------------------------------------------------------------------------------------- Weighted average common shares outstanding, as adjusted 18,186 18,052 18,264 18,017 ============================================================================================== Net income $ 8,307 $ 9,131 $ 8,550 $ 9,497 ============================================================================================== Net income per common and common equivalent share $ 0.46 $ 0.51 $ 0.47 $ 0.53 ============================================================================================== 21