EXHIBIT 11
HEALTHSOUTH CORPORATION AND SUBSIDIARIES
COMPUTATION OF INCOME PER SHARE (UNAUDITED)
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED
JUNE 30,
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1999 1998
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Numerator:
Net income $ 114,005 $ 121,600
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Numerator for basic earnings per share -- income available to
common stockholders 114,005 121,600
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 3,112 3,112
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Numerator for diluted earnings per share -- income available to
common stockholders after assumed conversion $ 117,117 $ 124,712
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Denominator:
Denominator for basic earnings per share -- weighted-average
shares 414,193 421,055
Effect of dilutive securities:
Net effect of dilutive stock options 7,938 12,085
Restricted shares issued 300 -
Assumed conversion of 3.25% Convertible Subordinated
Debentures due 2003 15,502 15,502
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Dilutive potential common shares 23,740 27,587
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Denominator of diluted earnings per share -- adjusted
weighted-average shares and assumed conversions 437,933 448,642
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Basic earnings per share $ 0.28 $ 0.29
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Diluted earnings per share $ 0.27 $ 0.28
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SIX MONTHS ENDED
JUNE 30,
-----------------------------------
1999 1998
---------------- ----------------
Numerator:
Net income $ 223,912 $ 234,734
---------------- ----------------
Numerator for basic earnings per share -- income available to
common stockholders 223,912 234,734
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 6,224 3,492
---------------- ----------------
Numerator for diluted earnings per share -- income available to
common stockholders after assumed conversion $ 230,136 $ 238,226
================ ================
Denominator:
Denominator for basic earnings per share -- weighted-average
shares 416,600 419,966
Effect of dilutive securities:
Net effect of dilutive stock options 7,727 12,123
Restricted shares issued 300 -
Assumed conversion of 3.25% Convertible Subordinated
Debentures due 2003 15,502 8,585
---------------- ----------------
Dilutive potential common shares 23,529 20,708
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Denominator of diluted earnings per share -- adjusted
weighted-average shares and assumed conversions 440,129 440,674
================ ================
Basic earnings per share $ 0.54 $ 0.56
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Diluted earnings per share $ 0.52 $ 0.54
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