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EXHIBIT 11
INTERNATIONAL AIRCRAFT INVESTORS
COMPUTATION OF EARNINGS PER SHARE
Years Ended December 31,
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1994 1995 1996
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Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,069,354 $ 870,711 $ 1,035,260
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Weighted average common shares outstanding . . . . . . . . . . . . . . . 215,000 215,000 315,000
Weighted average common stock equivalents:
Stock options determined using the treasury stock method . . . . . . 1,910,452 1,910,452 1,865,096
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 . . . . 7,766,452 7,766,452 7,821,096
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Net income per share . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.14 $ 0.11 $ 0.13
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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 4,483,285 4,383,285
Weighted average exercise price . . . . . . . . . . . . . . . . . . 1.05 1.05 1.05
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$ 4,707,449 $ 4,707,449 4,601,399
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Calculation of shares that could be repurchased upon exercise of stock
options:
Proceeds upon exercise of options . . . . . . . . . . . . . . . . . $ 4,707,449 $ 4,707,449 4,601,399
Assumed fair market value . . . . . . . . . . . . . . . . . . . . . 1.83 1.83 1.83
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Shares that could be repurchased . . . . . . . . . . . . . . . . 2,572,833 2,572,833 2,518,189
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Common stock equivalents for stock options using the treasury stock
method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,910,452 1,910,452 1,865,096
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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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EXHIBIT 11
INTERNATIONAL AIRCRAFT INVESTORS
COMPUTATION OF SUPPLEMENTAL EARNINGS PER SHARE(1)
YEAR ENDED DECEMBER 31, 1996
Net income $ 1,035,260
Addback interest expense from reduction of debt from
conversion of stock options, net of income taxes 174,674
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Net income as adjusted $ 1,209,934
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Weighted average common shares outstanding 52,500
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Weighted average common stock equivalents:
Exercise Stock options 358,047
Conversion of convertible preferred stock 801,277
Stock options determined using the treasury stock method 169,318
Convertible preferred stock 22,222
Convertible debt 116,667
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Weighted average common and common equivalent
shares outstanding 1,520,030
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Net income per share $ 0.80
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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 372,498
Weighted average exercise price 6.00
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Proceeds upon conversion $ 2,235,000
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Calculation of shares that could be repurchased upon
exercise of stock options:
Proceeds upon exercised of options $ 2,235,000
Assumed fair market value 11.00
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Shares that could be repurchased 203,182
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Common stock equivalents for stock options using the
treasury stock method 169,318
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Detailed calculation of shares issuable for the assumed
conversion of convertible preferred stock:
Convertible preferred stock considered to be common
stock equivalents 22,222
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Conversion ratio one for one
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Common stock equivalents for convertible preferred stock 22,222
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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
Conversion ratio six for one
Common stock equivalents for convertible debt 116,667
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116,667
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(1) See note 10 to consolidated financial statements.