Exhibit 11
WASTE INDUSTRIES, INC.
COMPUTATION RE: EARNINGS PER SHARE
Three Months Ended Six Months Ended
June 30, June 30,
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1998 1999 1998 1999
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Pro forma net income (2) $ 2,559,253 $ 3,065,066 $ 4,913,004 $ 5,916,355
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Weighted average number of common shares
issued and outstanding (1) 12,651,701 13,760,605 12,651,701 13,632,272
Incremental shares under stock option plans 396,071 363,722 390,086 362,626
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Weighted average common shares outstanding - Diluted 13,047,772 14,124,327 13,041,787 13,994,898
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Basic earnings per share $ 0.20 $ 0.22 $ 0.39 $ 0.43
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Diluted earnings per share $ 0.20 $ 0.22 $ 0.38 $ 0.42
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(1) Pro forma basic and diluted earnings per share computations are based on the
weighted-average common stock outstanding and include the dilutive effect of
stock options using the treasury stock method. Common stock outstanding used to
compute the weighted-average shares was retroactively adjusted for the
acquisition of entities under common control during the six months ended June
30, 1998, and for the merger with entities under the pooling-of-interests method
during 1998.
(2) Certain companies acquired in fiscal 1998 poolings-of-interests transactions
and common control mergers were previously taxed as S-Corporations. The 1998 pro
forma information has been computed as if the companies were subject to federal
and all applicable state corporate income taxes for each of the periods
presented assuming the tax rate would have applied had the companies been taxed
as C Corporations.