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,
1997 1996 1997 1996
------------ ------------ ------------ -----------
PRIMARY:
Weighted average common shares outstanding 340,045 318,191 334,233 317,129
Net effect of dilutive stock options 14,937 20,760 14,994 21,198
-------- --------- -------- --------
Total Common and Common Equivalent
Shares 354,982 338,951 349,227 338,327
======== ========= ======== ========
Net income/(loss) $ 81,319 $ 61,985 $145,899 $101,666
======== ========= ======== ========
Net income/(loss) per common and common
equivalent share $ 0.23 $ 0.18 $ 0.42 $ 0.30
======== ========= ======== ========
FULLY DILUTED:
Weighted average common shares outstanding 340,045 318,191 334,233 317,129
Net effect of dilutive stock options 14,937 20,760 14,994 21,198
-------- --------- -------- --------
354,982 338,951 349,227 338,327
Assumed conversion of 5% Convertible
Subordinated Debentures due 2001 (1) 12,226 6,113 12,226
-------- --------- --------- --------
Total Common and Common Equivalent
Shares, Fully Diluted 354,982 351,177 355,340 350,553
======== ========= ======== ========
Net income $ 81,319 $ 61,985 $145,899 $101,666
Elimination of interest and amortization on 5%
Convertible Subordinated Debentures due
2001, less the related effect on the
provision for income taxes (1) 951 960 1,884
-------- --------- -------- --------
Net income, fully diluted $ 81,319 $ 62,936 $146,859 $103,550
======== ========= ======== ========
Net income per common and common equivalent
share $ 0.23 $ 0.18 $ 0.41 $ 0.29
======== ========= ======== ========
(1) There were no other potentially dilutive securities outstanding during this
period.
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