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,
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1998 1997 1998 1997
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Numerator:
Net income $ 5,670 $ 85,919 $ 232,266 $ 231,818
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Numerator for basic earnings per share -- income available to
common stockholders 5,670 85,919 232,266 231,818
Effect of dilutive securities:
Elimination of interest and amortization on 5% Convertible
Subordinated Debentures due 2001, less the related
effect of the provision of income taxes - - - 960
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) -
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Numerator for diluted earnings per share -- income available to
common stockholders after assumed conversion $ 5,670 $ 85,919 $ 232,266 $ 232,778
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Denominator:
Denominator for basic earnings per share -- weighted-average
shares 422,649 340,919 407,414 336,374
Effect of dilutive securities:
Net effect of dilutive stock options 10,384 15,883 11,957 15,366
Assumed conversion of 5% Convertible Subordinated
Debentures due 2001 - - - 4,076
Assumed conversion of 3.25% Convertible Subordinated
Debentures due 2003 - (1) - - (1) -
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Dilutive potential common shares 10,384 15,883 11,957 19,442
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Denominator of diluted earnings per share -- adjusted
weighted-average shares and assumed conversions 433,033 356,802 419,371 355,816
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Basic earnings per share $ 0.01 $ 0.25 $ 0.57 $ 0.69
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Diluted earnings per share $ 0.01 $ 0.24 $ 0.55 $ 0.65
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(1) The effect of these securities was antidilutive for the three months and
nine months ended September 30, 1998.