EXHIBIT 11
HEALTHSOUTH CORPORATION AND SUBSIDIARIES
COMPUTATION OF INCOME PER SHARE (UNAUDITED)
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
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2000 1999
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Numerator:
Net income $ 65,326 $ 109,905
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Numerator for basic earnings per share -- income available to
common stockholders 65,326 109,905
Effect of dilutive securities:
Elimination of interest and amortization on 3.25% Convertible
Subordinated Debentures due 2003, less the related
effect of the provision of income taxes - (1) 3,112
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Numerator for diluted earnings per share -- income available to
common stockholders after assumed conversion $ 65,326 $ 113,017
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Denominator:
Denominator for basic earnings per share -- weighted-average
shares 385,644 419,036
Effect of dilutive securities:
Net effect of dilutive stock options 2,625 7,535
Restricted shares issued 750 -
Assumed conversion of 3.25% Convertible Subordinated
Debentures due 2003 - (1) 15,502
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Dilutive potential common shares 3,375 23,037
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Denominator of diluted earnings per share -- adjusted
weighted-average shares and assumed conversions 389,019 442,073
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Basic earnings per share $ 0.17 $ 0.26
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Diluted earnings per share $ 0.17 $ 0.26
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(1) The effect of these securities was antidilutive for the three months
ended March 31, 2000.