Exhibit 11.1
EMERITUS CORPORATION
Statement Re: Computation of Pro Forma Per Share Loss (1)
Three months ended March 31,
1995 1996
------------ ------------
FOR PRIMARY LOSS PER SHARE (2)
Shares outstanding at beginning of period 100 100
Adjustment for 9200-for-1 stock split in April 1995 919,900 919,900
Adjustment for 3.85-for-1 stock split is September 1995 2,622,000 2,622,000
Shares issued upon conversion of Preferred Stock (3) 4,158,000 4,158,000
Shares issued in the initial public offering 3,300,000 3,300,000
------------- -------------
Weighted average number of common and common equivalent
shares outstanding 11,000,000 11,000,000
============= =============
Pro forma net loss $(417,000) $(1,079,000)
============= =============
Pro forma primary loss per common share $ (0.04) $ (0.10)
============= =============
(1) Pursuant to the rules of the Securities and Exchange Commission, only pro
forma net loss per common share has been included above as historical net
loss per common share is not considered relevant due to significant changes
in the Company's operations. Pro forma net loss per common share combines
the results of operations of the Company with communities acquired or
leased as if they had been consummated as of January 1, 1995. Additionally,
common and common equivalent shares issued, represented by the convertible
preferred stock, during the 12 months immediately preceding the Company's
initial public offering have been included in the calculation of common and
common equivalent shares as if they were outstanding for all periods
presented, including loss years where the impact of the incremental shares
is antidilutive, using the treasury stock method and the initial public
offering price of $15 per share.
(2) No calculation of fully diluted loss per share has been provided as fully
diluted loss per share is equal to primary loss per share.
(3) Preferred shares have been adjusted for the effect of a 3.85-for-1 stock
split effective September 28, 1995.