EXHIBIT 11
FLAGSTAR COMPANIES, INC.
COMPUTATION OF EARNINGS (LOSS) PER SHARE
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
YEAR ENDED
DECEMBER 31,
1991 (A) 1992 (A) 1993 (A) 1994 1995 (A)
PRIMARY EARNINGS (LOSS) PER SHARE
Adjustment of common and equivalent shares:
Average number of common shares outstanding
before adjustments...................................... 22,212 24,883 42,370 42,369 42,431
Assumed exercise of stock warrants and options............. -- -- -- 9,854 --
Total average outstanding and equivalent common
shares................................................ 22,212 24,883 42,370 52,223 42,431
Adjustment of net income (loss) applicable to common
shareholders:
Loss from continuing operations............................ $(54,122) $ (39,225) $(1,238,564) $(16,820) $(132,906)
Interest on senior debt, net............................... -- -- -- 23,939 --
Dividends on preferred stock............................... -- (6,064) (14,175) (14,175) (14,175)
Adjusted loss from continuing operations................... (54,122) (45,289) (1,252,739) (7,056) (147,081)
Income (loss) from discontinued operations................. (13,453) (12,550) (409,671) 392,670 77,241
Adjusted income (loss) before extraordinary item and
cumulative effect of change in accounting principle..... (67,575) (57,839) (1,662,410) 385,614 (69,840)
Extraordinary items, net................................... -- (155,401) (26,405) (11,757) 466
Cumulative effect of change in accounting principle, net... -- (17,834) (12,010) -- --
Adjusted net income (loss) applicable to common
shareholders............................................ $(67,575) $(231,074) $(1,700,825) $373,857 $ (69,374)
Primary earnings (loss) per share applicable to common
shareholders:
On continuing operations................................... $ (2.44) $ (1.82) $ (29.56) $ (0.14) $ (3.47)
On discontinued operations, net............................ (0.60) (0.50) (9.67) 7.52 1.82
On income (loss) before extraordinary items and cumulative
effect of change in accounting principle................ (3.04) (2.32) (39.23) 7.38 (1.65)
On extraordinary items, net................................ -- (6.25) (0.62) (0.22) 0.01
On cumulative effect of change in accounting principle,
net..................................................... -- (0.72) (0.29) -- --
On net income (loss)....................................... $ (3.04) $ (9.29) $ (40.14) $ 7.16 $ (1.64)
(A) The assumed exercise of the Company's warrants and options is not presented
because such exercise would produce an anti-dilutive result.
EXHIBIT 11
FLAGSTAR COMPANIES, INC.
COMPUTATION OF EARNINGS (LOSS) PER SHARE
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
YEAR ENDED
DECEMBER 31,
1991 (A) 1992 (A) 1993 (A) 1994 1995 (A)
FULLY DILUTED EARNINGS (LOSS) PER SHARE
Adjustment of common and equivalent shares:
Average number of common shares outstanding
before adjustments...................................... 22,212 24,883 42,370 42,369 42,431
Assumed exercise of stock warrants and options............. -- -- -- 9,854 --
Assumed conversion of convertible debentures............... -- -- -- 4,136 --
Assumed conversion of preferred stock...................... -- -- -- 8,562 --
Total average outstanding and equivalent common
shares................................................ 22,212 24,883 42,370 64,921 42,431
Adjustment of net income (loss) applicable to common
shareholders:
Loss from continuing operations............................ $(54,122) $ (39,225) $(1,238,564) $(16,820) $(132,906)
Interest on senior debt, net............................... -- -- -- 23,939 --
Interest on convertible debentures, net.................... -- -- -- 9,628 --
Dividends on preferred stock............................... -- (6,064) (14,175) -- (14,175)
Adjusted income (loss) from continuing operations.......... (54,122) (45,289) (1,252,739) 16,747 (147,081)
Income (loss) from discontinued operations................. (13,453) (12,550) (409,671) 392,670 77,241
Adjusted income (loss) before extraordinary item and
cumulative effect of change in accounting principle..... (67,575) (57,839) (1,662,410) 409,417 (69,840)
Extraordinary items, net................................... -- (155,401) (26,405) (11,757) 466
Cumulative effect of change in accounting principle, net... -- (17,834) (12,010) -- --
Adjusted net income (loss) applicable to common
shareholders............................................ $(67,575) $(231,074) $(1,700,825) $397,660 $ (69,374)
Fully diluted earnings (loss) per share applicable to common
shareholders:
On continuing operations................................... $ (2.44) $ (1.82) $ (29.56) $ 0.26 $ (3.47)
On discontinued operations, net............................ (0.60) (0.50) (9.67) 6.05 1.82
On income (loss) before extraordinary items and cumulative
effect of change in accounting principle................ (3.04) (2.32) (39.23) 6.31 (1.65)
On extraordinary items, net................................ -- (6.25) (0.62) (0.18) 0.01
On cumulative effect of change in accounting principle,
net..................................................... -- (0.72) (0.29) -- --
On net income (loss)....................................... $ (3.04) $ (9.29) $ (40.14) $ 6.13 $ (1.64)
(A) The assumed exercise and conversion of the Company's warrants, options, 10%
Convertible Debentures, and $2.25 Preferred Stock is not presented because
such exercise and conversion would produce an anti-dilutive result.