EXHIBIT 11
CATALINA LIGHTING, INC. AND SUBSIDIARIES
EXHIBIT 11
SCHEDULE OF COMPUTATION OF DILUTED EARNINGS PER SHARE
Years ended September 30,
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2000 1999 1998
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Net income $2,845,000 $ 6,489,000 $1,102,000
Interest on convertible subordinated notes, net of
income taxes 250,000 424,000 -
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Net income for diluted earnings
per share $3,095,000 $ 6,913,000 $1,102,000
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Weighted average number of common shares
outstanding during the year 7,607,000 7,252,000 7,128,000
Weighted average number of shares repurchased
during the year (533,000) (197,000) -
Shares issuable upon conversion of convertible
subordinated notes 748,000 1,138,000 -
Common equivalent shares determined using the
"Treasury Stock" method representing shares
issuable upon exercise of stock options and warrants and
shares issuable under contractual agreements 597,000 495,000 349,000
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Weighted average number of shares
used in calculation of diluted earnings
per share 8,419,000 8,688,000 7,477,000
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Diluted earnings per share $ 0.37 $ 0.80 $ 0.15
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Note
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Subordinated notes convertible into 1,040,000 common shares were not included
for the year ended September 30, 1998 because their effect was anti-dilutive.