EXHIBIT 11
AQUA ALLIANCE INC.
COMPUTATION OF PER SHARE EARNINGS
FOR THE YEARS ENDED OCTOBER 31, 1998, 1997 AND 1996
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
YEARS ENDED OCTOBER 31,
-----------------------
1998 1997 1996
---- ---- ---
BASIC EARNINGS (LOSS) PER SHARE:
1. Loss from continuing operations ......... $ (32,869) $ (51,827) $ (11,056)
2. Less preferred dividends ................ -- (3,300) (3,300)
--------- --------- ---------
3. Loss from continuing operations
applicable to common stockholders .... (32,869) (55,127) (14,357)
4. Income (loss) from discontinued
operations ............................ (6,000) (108,754) 5,788
5. Cumulative effect on prior years
(to October 31, 1997) of change
in the method of accounting for
start-up costs ........................ (11,082) -- --
--------- --------- ---------
6. Net loss applicable to common
stockholders .......................... $ (49,951) $(163,881) $ (8,566)
7. Weighted average shares outstanding ..... 136,121 32,019 32,018
8. Loss per share from continuing
operations (3/7) ...................... $ (.24) $ (1.72) $ (.45)
9. Income (loss) per share from
discontinued operations (4/7) ......... (.05) (3.40) .18
10. Loss per share from cumulative effect
on prior years (to October 31,
1997) of change in the method of
accounting for start-up costs ......... (.08) -- --
--------- --------- ---------
11. Net loss per share ...................... $ (.37) $ (5.12) $ (.27)
========= ========= =========
DILUTED EARNINGS (LOSS) PER SHARE (1):
12. Line 3 above ............................ $ (32,869) $ (55,127) $ (14,356)
13. Add back preferred dividends ............ -- 3,300 3,300
14. Add back interest, on assumed
conversion of the Company's
8% Convertible Debentures ............. 9,200 9,200 9,200
--------- --------- ---------
15. Loss from continuing operations ......... (23,669) (42,627) (1,856)
16. Income (loss) from discontinued
operations ............................ (6,000) (108,754) 5,788
17. Cumulative effect on prior years
(to October 31, 1997) of change
in the method of accounting for
start-up costs ........................ (11,082) -- --
--------- --------- ---------
18. Net income (loss) ....................... $ (40,751) $(151,381) $ 3,932
========= ========= =========
19. Weighted average shares outstanding
(Line 7) .............................. 136,121 32,019 32,018
20. Add additional shares issuable upon
assumed conversion of preferred
shares from date of issuance .......... -- 4,800 4,800
21. Add additional shares issuable upon
assumed conversion of the
Company's 8% Convertible Debentures ... 3,833 3,833 3,833
--------- --------- ---------
22. Adjusted weighted average shares
outstanding ........................... 139,954 40,652 40,651
========= ========= =========
23. Loss per share from continuing
operations (15/19) .................... $ (.17) $ (1.05) $ (.05)
24. Income (loss) per share from
discontinued operations (16/19) ....... (.04) (2.67) .15
25. Loss per share from cumulative effect
on prior years (to October 31,
1997) of change in the method of
accounting for start-up costs ......... (.08) -- --
--------- --------- ---------
26. Net income (loss) per share .............. $ (.29) $ (3.72) $ (.10)
========= ========= =========
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(1) Diluted earnings (loss) per share are not presented as the Company's
common stock equivalents and the assumed conversion of the Company's 8%
Convertible Debentures are anti-dilutive.