EXHIBIT 11.1
HENRY SCHEIN, INC. AND SUBSIDIARIES
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
(unaudited)
Three months ended Nine months ended
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September 28, September 30, September 28, September 30,
1996 1995 1996 1995
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Pro forma net income per consolidated statements of
operations (in thousands) ............................ $ 5,290 $ 2,093 $ 11,968 $ 5,095
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Pro forma weighted average common shares outstanding:
Shares outstanding at December 25, 1993 .............. 11,390,544 11,390,544 11,390,544 11,390,544
1994 issuances:
Shares issued, in part, to extinguish
liability under long-term executive
incentive compensation plan ...................... 489,456 489,456 489,456 489,456
Shares issued to ESOP trust in 12/94 ............... 128,257 128,257 128,257 128,257
Stock options granted and to be granted in 1995
at an exercise price of $4.21 per share (1) ...... 221,397 237,897 221,397 237,897
IPO Options (Class B) .............................. 408,400 -- 408,400 --
1995 issuances:
IPO Shares ......................................... 5,090,000 -- 5,090,000 --
Shares issued as of September 1, 1995 in ........... 135,323
connection with one of the Acquisitions ......... 1,260,416 401,507 1,260,416 135,323
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18,988,470 12,647,661 18,988,470 12,381,477
Less treasury stock ................................ (56,479) -- (54,109) --
------------ ------------ ------------ ------------
18,931,991 12,647,661 18,934,361 12,381,477
1996 issuances:
Secondary Offering Shares .......................... 3,734,375 -- 1,367,903 --
Shares issued to ESOP trust on August 9, 1996 ...... 13,568 -- 4,523 --
Shares issued on July 10, 1996 in
connection with one of the Acquisitions ......... 33,109 -- 11,036 --
------------ ------------ ------------ ------------
22,713,043 12,647,661 20,317,823 12,381,477
Less assumed repurchase of shares under treasury
stock method based on an average price
of $35.785 per share (2):
Stock options -- 221,397 shares
x $4.21
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$932,081 / $35.785 .............. (26,047)(4) (62,597)(3) (28,253)(5) (62,597)(3)
IPO options -- 408,400 shares
x $16.00
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$6,534,400 / $35.785 .............. (182,602)(4) -- (198,072)(5) --
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Pro forma weighted average common shares outstanding ... 22,504,394 12,585,064 20,091,498 12,318,880
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Pro forma net income per common share .................. $ .24 $ .17 $ .60 $ .41
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(1) Considered "cheap stock" and treated as outstanding since January 1, 1995.
(2) The treasury stock method was not used for the shares issued to settle the
long-term incentive plan liability and the compensatory portion of the
stock options granted because the related special compensation charges have
been/will be excluded from pro forma net income and, therefore, were not
assumed to be proceeds.
(3) Computed using IPO value per share of $16.00 on 237,897 stock options.
(4) Computed using the average closing value per share for the three months
ended September 28, 1996.
(5) Computed using the average closing value per share for the nine months
ended September 28, 1996.