EXHIBIT 11
HEALTHSOUTH CORPORATION AND SUBSIDIARIES
COMPUTATION OF INCOME PER SHARE (UNAUDITED)
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
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PRIMARY:
Weighted average common shares outstanding 340,919 322,393 336,374 321,268
Net effect of dilutive stock options 15,883 19,652 15,366 20,754
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Total Common and Common Equivalent Shares 356,802 342,045 351,740 342,022
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Net income $ 85,919 $ 63,481 $ 231,818 $ 165,147
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Net income per common and common
equivalent share $ 0.24 $ 0.19 $ 0.66 $ 0.48
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FULLY DILUTED:
Weighted average common shares outstanding 340,919 322,393 336,374 321,268
Net effect of dilutive stock options 15,883 19,652 15,366 20,754
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356,802 342,045 351,740 342,022
Assumed conversion of 5% Convertible Subordinated
Debentures due 2001 (1) 12,226 4,076 12,226
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Total Common and Common Equivalent Shares,
Fully Diluted 356,802 354,271 355,816 354,248
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Net income $ 85,919 $ 63,481 $ 231,818 $ 165,147
Elimination of interest and amortization on 5%
Convertible Subordinated Debentures due 2001, less
the related effect on the provision for income taxes (1) 961 960 2,863
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Net income, fully diluted $ 85,919 $ 64,442 $ 232,778 $ 168,010
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Net income per common and common equivalent share $ 0.24 $ 0.18 $ 0.65 $ 0.48
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(1) There were no other potentially dilutive securities outstanding during this
period.