1 EXHIBIT 11 NCS HEALTHCARE, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE (IN THOUSANDS, EXCEPT SHARE AND PER SHARE INFORMATION) Three Months Ended September 30, ----------------------------- 1996 1995 ----------------------------- Net income (loss) used in calculation of primary earnings per share $ 1,910 $(1,049) Add impact of assumed conversion of subordinated debentures 71 47 ----------------------------- Net income (loss) used in calculation of fully diluted earnings per share $ 1,981 $(1,002) ============================= Weighted average common shares outstanding 12,407 5,985 Net effect of dilutive stock options -- Note A 187 947 ----------------------------- Shares used in calculation of primary earnings per share 12,594 6,932 Add impact of assumed conversion of subordinated debentures 654 421 ----------------------------- Shares used in calculation of fully diluted earnings per share 13,248 7,353 ============================= Primary net income (loss) per share $ 0.15 $ (0.15) ============================= Fully diluted net income (loss) per share-- Note B $ 0.15 $ (0.14) ============================= <FN> NOTE A -- Stock options granted within a twelve-month period preceding the Company's initial public offering in February 1996 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 dilutive net income (loss) per share has not been presented in the Condensed Consolidated Statements of Income because the effect is either immaterial or anti-dilutive. 11