1
EXHIBIT 11
NCS HEALTHCARE, INC.
AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------------------------------------
1996 1995 1996 1995
----------------------------------------------------
Net income used in calculation of primary
earnings per share $ 1,121 $ 524 $ 797 $1,290
Add impact of assumed conversion of
subordinated debentures 123 13 293 13
----------------------------------------------------
Net income used in calculation of fully
diluted earnings per share $ 1,244 $ 537 1,090 $1,303
====================================================
Weighted average common shares outstanding 9,544 5,982 7,235 5,762
Net effect of dilutive stock options -- Note A 141 947 619 947
----------------------------------------------------
Shares used in calculation of primary earnings
per share 9,685 6,929 7,854 6,709
Add impact of assumed conversion of
subordinated debentures 1,005 116 835 32
----------------------------------------------------
Shares used in calculation of fully diluted
earnings per share $10,690 $7,045 $8,689 $6,741
====================================================
Primary net income per share $ 0.12 $ 0.08 $ 0.10 $ 0.19
===================================================
Fully diluted net income per share--Note B $ 0.12 $ 0.08 $ 0.13 $ 0.19
===================================================
[FN]
NOTE A -- Stock options granted within a twelve-month period
preceding the proposed filing date of the Company's initial
public offering are included as if they were outstanding for
all periods presented. The dilutive effect of all options
outstanding was calculated using the treasury stock method.
NOTE B -- Fully diluted net income per share has not been presented
in the Consolidated Statements of Income because the effect
is either immaterial or anti-dilutive.
10