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EXHIBIT 11.1
NCS HEALTHCARE, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
YEAR ENDED JUNE 30,
1995 1996 1997
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Net income used in calculation of primary
earnings per share $1,868 $2,356 $11,272
Add impact of assumed conversion of subordinated
debentures 31 364 280
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Net income used in calculation of fully diluted
earnings per share $1,899 $2,720 $11,552
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Weighted average common shares outstanding 5,818 8,462 15,996
Net effect of dilutive stock options - Note A 946 509 195
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Shares used in calculation of primary earnings
per share 6,764 8,971 16,191
Add impact of assumed conversion of subordinated
debentures 68 775 645
Additional effect of dilutive stock options
using end of period stock price - 24 7
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Shares used in calculation of fully diluted
earnings per share 6,832 9,770 16,843
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Primary net income per share $ .28 $ .26 $ .70
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Fully diluted net income per share - Note B $ .28 $ .28 $ .69
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NOTE A - Stock options granted within a twelve-month period preceding
the filing date of the Company's initial public offering on
February 14, 1996 are included as if they were outstanding
for all periods presented prior to the Company's initial
public offering. The dilutive effect of all options
outstanding was calculated using the treasury stock method.
NOTE B - Fully dilutive net income per share has not been presented in
the Consolidated Statements of Income because the effect is
either immaterial or anti-dilutive.
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