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 Nine Months Ended September 30, September 30, 1997 1996 1997 1996 ---- ---- ---- ---- Weighted average common shares outstanding 18,292 18,008 18,238 17,962 Computation of incremental outstanding shares: Net effect of dilutive stock options based on treasury stock method 55 61 53 71 ------- ------- ------- ------- Weighted average common shares outstanding, as adjusted 18,347 18,069 18,291 18,033 ======= ======= ======= ======= Net income $13,651 $15,053 $22,201 $24,550 ======= ======= ======= ======= Net income per common and common equivalent share $ 0.74 $ 0.83 $ 1.21 $ 1.36 ======= ======= ======= ======= 20