Exhibit 11
WASTE INDUSTRIES, INC.
COMPUTATION RE: EARNINGS PER SHARE
(In thousands except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1999 1998 1999
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Pro forma net income (B) $2,815 $2,955 $7,663 $8,871
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Weighted average number of common shares
issued and outstanding (A) 12,817 13,854 12,707 13,707
Incremental shares under stock option plans 401 349 389 356
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Weighted average common shares outstanding - Diluted 13,218 14,203 13,096 14,063
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Basic earnings per share $0.22 $0.21 $0.60 $0.65
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Diluted earnings per share $0.21 $0.21 $0.59 $0.63
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(A) 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 three and nine months
ended September 30, 1998, and for the merger with entities under the
pooling-of-interests method during 1998.
(B) 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.