EXHIBIT 11
HEALTHSOUTH CORPORATION AND SUBSIDIARIES
COMPUTATION OF INCOME PER SHARE (UNAUDITED)
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Numerator:
Net income (loss) $ 57,506 $ (19,947) $ 82,090 $ 55,364
--------- ---------- --------- ---------
Numerator for basic earnings per share -- income (loss) available
to common stockholders 57,506 (19,947) 82,090 55,364
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) -- (1) -- (1) -- (1)
--------- --------- --------- ---------
Numerator for diluted earnings per share -- income (loss) available
to common stockholders after assumed conversion $ 57,506 $ (19,947) $ 82,090 $ 55,364
========= ========= ========= =========
Denominator:
Denominator for basic earnings per share -- weighted-average
shares 395,302 388,665 393,559 388,463
Effect of dilutive securities:
Net effect of dilutive stock options 6,695 -- 6,862 8,780
Restricted shares issued 475 -- 475 750
Assumed conversion of 3.25% Convertible Subordinated
Debentures due 2003 -- (1) -- (1) -- (1) -- (1)
--------- --------- --------- ---------
Dilutive potential common shares 7,170 -- 7,337 9,530
--------- --------- --------- ---------
Denominator of diluted earnings per share -- adjusted
weighted-average shares and assumed conversions 402,472 388,665 400,896 397,993
========= ========= ========= =========
Basic earnings (loss) per share $ 0.15 $ (0.05) $ 0.21 $ 0.14
========= ========= ========= =========
Diluted earnings (loss) per share $ 0.14 $ (0.05) $ 0.20 $ 0.14
========= ========= ========== =========
(1) The effect of these securities was antidilutive for the three months and six
months ended June 30, 2001 and June 30, 2002.
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