1 EXHIBIT 11.1 2 EXHIBIT 11.1 D.I.Y. HOME WAREHOUSE, INC. FORM 10-K COMPUTATION OF EARNINGS PER COMMON SHARE Three Months Ended Fiscal Year Ended December 28, December 30, December 28, December 30, 1996 1995(1) 1996 1995(1) ---------- ---------- ---------- ---------- (Unaudited) ----------- Income applicable to common shares $ 676,831 $ 22,930 $3,785,186 $3,109,843 ========== ========== ========== ========== Weighted average common shares outstanding for the period 7,630,685 7,625,000 7,626,702 7,625,000 Dilutive effect of exercise of stock options - - - - ---------- ---------- ---------- ---------- Weighted average common shares, assuming issuance of the above securities 7,630,685 7,625,000 7,626,702 7,625,000 ========== ========== ========== ========== Earnings per common share: Primary $ 0.09 $ 0.00 $ 0.50 $ 0.41 Fully diluted $ .09 $ .00 $ .50 $ .41 <FN> (1) Effective December 31, 1995, the Company changed its method of accounting for merchandise inventories from the last in, first out (LIFO) method to the first in, first out (FIFO) method. As required by generally accepted accounting principles, the Company has retroactively adjusted prior years' financial statements for this change.