1
EXHIBIT 11
PHARMACEUTICAL MARKETING SERVICES INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER SHARE
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------ ------------
1996 1995 1996 1995
---- ---- ---- ----
PRIMARY INCOME PER SHARE
Common shares outstanding 13,183,840 13,098,040 13,176,535 13,091,623
Assumed exercise of certain stock options 144,501 306,438 71,649 245,496
------------ ------------ ------------ --------------
13,328,341 13,404,478 13,248,184 13,337,119
============ ============ ============ ==============
Income from continuing operations (in thousands) $ 1,457 $ 2,380 $ 1,683 $ 2,498
Loss from discontinued operations, net (in
thousands) (9,914) (1,081) (9,914) (1,754)
------------ ------------ ------------ --------------
Net income (loss) (in thousands) $ (8,457) $ 1,299 $ (8,231) $ 744
============ ============ ============ ==============
Primary income per share continuing 0.11 0.18 0.13 0.19
Primary loss per share discontinued (0.74) (0.08) (0.74) (0.13)
------------ ------------ ------------ --------------
Net income (loss) per share $ (0.63) $ 0.10 $ (0.61) $ 0.06
============ ============ ============ ==============
FULLY DILUTED INCOME PER SHARE
Common shares outstanding 13,183,840 13,098,040 13,176,535 13,091,623
Assumed exercise of certain stock options 181,329 424,073 129,727 424,073
------------ ------------ ------------ --------------
13,365,169 13,522,113 13,306,262 13,515,696
============ ============ ============ ==============
Net income from continuing operations (in
thousands) $ 1,457 $ 2,380 $ 1,683 $ 2,498
Net loss from discontinued operations, net (in
thousands) (9,914) (1,081) (9,914) (1,754)
------------ ------------ ------------ --------------
Net income (loss) (in thousands) $ (8,457) $ 1,299 $ (8,231) $ 744
============ ============ ============ ==============
Fully diluted income per share continuing 0.11 0.18 0.13 0.19
Fully diluted income (loss) per share
discontinued (0.74) (0.08) (0.74) (0.13)
------------ ------------ ------------ --------------
Fully diluted income (loss) per share $ (0.63) $ 0.10 $ (0.61) $ 0.06
============ ============ ============ ==============
1 Convertible debentures have not been assumed converted for the fully
diluted earnings per share as the effect would be anti-dilutive. Had the
convertible debentures been included, the number of shares would have been
increased by 3,450,000 to 16,815,169 and 16,972,113 for the three months
ended December 31, 1996 and 1995, respectively, and by 3,450,000 to
16,756,262 and 16,965,696 for the six months ended December 31, 1996 and
1995 respectively.
As a result of reduced interest expense following conversion, the increase
to net income (or decrease to net loss) would have been $647,000 for the
three months ended December 31, 1996 and 1995, respectively. These
adjustments would have resulted in fully diluted earnings/(loss) per share
of $(0.46) and $0.11 for the three months ended December 31, 1996 and 1995
respectively and $(0.41) and $0.12 for the six months ended December 31,
1996 and 1995 respectively.
14