1 EXHIBIT 11.1 Credentials Services International, Inc. Computation of Earnings Per Share Year Ended Year Ended Year Ended September 30, 1995 September 27, 1996 September 26, 1997 ------------------ ------------------ ------------------ Net (loss) income (5,783,000) (22,447,000) 1,248,000 Common shares issued(2) 21,445 21,445 21,445 Effect of exercise of common stock warrants 2,123,072 2,123,072 2,123,072 Effect of exercise of common stock warrants - Canterbury 1,038,600 1,038,600 1,038,600 Exchange of preferred shares for common stock 6,433,550 6,433,550 6,433,550 Total common shares outstanding 9,616,667 9,616,667 9,616,667 ========= ========= ========= Net (loss) income per common share(1) (0.60) (2.33) 0.13 ===== ===== ==== (1) Net income (loss) per share has been computed in accordance with Securities and Exchange Commission Staff Accounting Bulletin (SAB) No. 83. The SAB requires that common shares issued by the Company in the twelve months immediately preceding a proposed public offering plus the number of common equivalent shares which became issuable during the same period pursuant to the grant of warrants and stock options (using the treasury stock method) at prices substantially less than the initial public offering price will be included in the calculation of common stock and common stock equivalent shares as if they were outstanding for all periods presented. (2) All share amounts have been retroactively restated to reflect the 214.4517-for-1 stock split effective November 21, 1997.