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EXHIBIT 11
INTERNATIONAL AIRCRAFT INVESTORS
COMPUTATION OF EARNINGS PER SHARE
Years Ended December 31,
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1993 1994 1995
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Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,047,904 $ 1,069,354 $ 870,711
Addback interest expense from use of modified treasury stock method(1) . 302,859 -- --
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Net income as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,350,763 $ 1,069,354 $ 870,711
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Weighted average common shares outstanding . . . . . . . . . . . . . . . 215,000 215,000 215,000
Weighted average common stock equivalents:
Stock options determined using the treasury stock method . . . . . . -- 2,129,560 2,129,560
Stock options determined using the modified treasury stock method(1) 4,001,133 -- --
Convertible preferred stock . . . . . . . . . . . . . . . . . . . . . 4,941,000 4,941,000 4,941,000
Convertible debt . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 700,000 700,000
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Weighted average common and common equivalent shares outstanding . . . . 9,857,133 7,985,560 7,985,560
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Net income per share . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.24 $ 0.13 $ 0.11
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Detailed calculation of shares issuable from the assumed exercise of stock
options:
Calculation of proceeds upon exercise of options
Number of stock options considered to be common stock equivalents . 4,044,133 4,483,285 4,483,285
Weighted average exercise price . . . . . . . . . . . . . . . . . . 1.06 1.05 1.05
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$ 4,286,781 $ 4,707,449 $ 4,707,449
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Proceeds upon conversion . . . . . . . . . . . . . . . . . . . .
Calculation of shares that could be repurchased upon exercise of stock
options:
Proceeds upon exercise of options . . . . . . . . . . . . . . . . . $ 4,286,781 $4,707,449 $4,707,449
Assumed fair market value . . . . . . . . . . . . . . . . . . . . . 2.00 2.00 2.00
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Shares that could be repurchased . . . . . . . . . . . . . . . . 2,143,390 2,353,725 2,353,725
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Calculation of 20% of ending shares outstanding that could be
repurchased under the modified treasury stock method(1):
Common shares outstanding at the end of the year . . . . . . . . . 215,000
20% limitation . . . . . . . . . . . . . . . . . . . . . . . . . . 20%
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Maximum share repurchase . . . . . . . . . . . . . . . . . . . 43,000
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Common stock equivalents for stock options using the treasury stock ------------ -----------
method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,129,560 2,129,560
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Common stock equivalents for stock opinions using the modified 4,001,133
treasury stock method(1) . . . . . . . . . . . . . . . . . . . . . . =============
Detailed calculation of shares issuable for the assumed conversion of
convertible preferred stock
Convertible preferred stock considered to be common stock equivalents 4,941,000 4,941,000 4,941,000
Conversion ratio . . . . . . . . . . . . . . . . . . . . . . . . . . one for one one for one one for one
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Common stock equivalents for convertible preferred stock . . . . . . 4,941,000 4,941,000 4,941,000
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Detailed calculation of shares issuable from the assumed conversion of
convertible debt:
Convertible debt considered to be common stock equivalents . . . . . $ 700,000 $ 700,000 $ 700,000
Conversion ratio . . . . . . . . . . . . . . . . . . . . . . . . . . one for one one for one one for one
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Common stock equivalents for convertible debt . . . . . . . . . . . . 700,000 700,000 700,000
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Nine Months Ended
September 30,
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1995 1996
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Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 264,318 $ 455,008
Addback interest expense from use of modified treasury stock method(1) . -- --
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Net income as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . $ 264,318 $ 455,008
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Weighted average common shares outstanding . . . . . . . . . . . . . . . 215,000 315,000
Weighted average common stock equivalents:
Stock options determined using the treasury stock method . . . . . . 2,129,560 2,082,060
Stock options determined using the modified treasury stock method(1) -- --
Convertible preferred stock . . . . . . . . . . . . . . . . . . . . . 4,941,000 4,941,000
Convertible debt . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 700,000
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Weighted average common and common equivalent shares outstanding . . . . 7,985,560 8,038,060
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Net income per share . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.03 $ 0.06
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Detailed calculation of shares issuable from the assumed exercise of stock
options:
Calculation of proceeds upon exercise of options
Number of stock options considered to be common stock equivalents . 4,483,285 4,383,285
Weighted average exercise price . . . . . . . . . . . . . . . . . . 1.05 1.05
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$ 4,707,449 $ 4,602,449
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Proceeds upon conversion . . . . . . . . . . . . . . . . . . . .
Calculation of shares that could be repurchased upon exercise of stock
options:
Proceeds upon exercise of options . . . . . . . . . . . . . . . . . $4,707,449 $4,602,449
Assumed fair market value . . . . . . . . . . . . . . . . . . . . . 2.00 2.00
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Shares that could be repurchased . . . . . . . . . . . . . . . . 2,353,725 2,301,225
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Calculation of 20% of ending shares outstanding that could be
repurchased under the modified treasury stock method(1):
Common shares outstanding at the end of the year . . . . . . . . .
20% limitation . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum share repurchase . . . . . . . . . . . . . . . . . . .
Common stock equivalents for stock options using the treasury stock ------------- ------------
method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,129,560 2,082,060
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Common stock equivalents for stock opinions using the modified
treasury stock method(1) . . . . . . . . . . . . . . . . . . . . . .
Detailed calculation of shares issuable for the assumed conversion of
convertible preferred stock
Convertible preferred stock considered to be common stock equivalents 4,941,000 4,941,000
Conversion ratio . . . . . . . . . . . . . . . . . . . . . . . . . . one for one one for one
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Common stock equivalents for convertible preferred stock . . . . . . 4,941,000 4,941,000
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Detailed calculation of shares issuable from the assumed conversion of
convertible debt:
Convertible debt considered to be common stock equivalents . . . . . $ 700,000 $ 700,000
Conversion ratio . . . . . . . . . . . . . . . . . . . . . . . . . . one for one one for one
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Common stock equivalents for convertible debt . . . . . . . . . . . . 700,000 700,000
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(1) See note 1 to Consolidated Financial Statements.
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