EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF EARNINGS PER SHARE
(Dollars in thousands, except for per share data)
For the Thirteen Weeks Ended For the Thirty-Nine Weeks Ended
----------------------------------- ----------------------------------
November 1, 1997 November 2, 1996 November 1, 1997 November 2, 1996
---------------- ---------------- ---------------- ----------------
Income before extraordinary item ......... $ 3,497 $ 5,312 $ 2,765 $ 3,850
Extraordinary item ....................... 1,743 -- 1,743 --
------------ ----------- ------------ -----------
Net income ............................... $ 1,754 $ 5,312 $ 1,022 $ 3,850
============ =========== ============ ===========
Pro forma weighted average shares
outstanding (1) ....................... 24,439,310 23,804,185 24,015,894 23,804,185
------------ ----------- ------------ -----------
Pro forma income per common share:
Pro forma income before extraordinary item $ 0.14 $ 0.22 $ 0.11 $ 0.16
Extraordinary item ....................... (0.07) -- (0.07) --
------------ ----------- ------------ -----------
Pro forma net income per common share .... $ 0.07 $ 0.22 $ 0.04 $ 0.16
============ =========== ============ ===========
(1) For the thirteen and thirty-nine weeks ended November 2, 1996 and November
1, 1997, pro forma net income per common share is calculated by dividing
net income by the pro forma weighted average common shares and common
share equivalents outstanding as if (i) the Stock Split, Series B
Conversion, and Reclassification (as discussed in Note 2-Initial Public
Offering), (ii) the 1996 Private Placement of Common Stock (as discussed
in Note 3-Private Placement in the financial statements in the
Prospectus), (iii) the cancellation of outstanding preferred shares which
were surrendered for no consideration on June 28, 1996, and (iv) the
granting of management options in conjunction with the 1996 Private
Placement occurred on the first day of the periods presented. Common share
equivalents include the Noteholder Warrant and the Legg Mason Warrant, (as
discussed in Note 3-1996 Private Placement in the Prospectus), and
management options to purchase common stock, calculated using the treasury
stock method in accordance with APB Opinion No. 15, "Earnings per Share,"
("APB No. 15"). Prior to the Offering, the Offering price was utilized for
the treasury stock calculations due to the lack of a public market.
Subsequent to the Offering, the average market price was utilized in
accordance with APB No. 15. Pro forma fully diluted net income per common
share is equal to the amount presented.
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF EARNINGS PER SHARE
CALCULATION OF WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
# of Shares Weighted
Thirteen Weeks ended November 2, 1996 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 3 12,760,800
Series B conversion to common stock....... 7,659,889 3 7,659,889
Legg Mason Warrant (a).................... 604,240 3 604,240
Noteholder Warrant (b).................... 1,611,305 3 1,611,305
1996 Management Options (c)............... 1,167,951 3 1,167,951
---------- ----------
23,804,185
# of Shares Weighted
Thirty-nine Weeks ended November 1, 1996 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 9 12,760,800
Series B conversion to common stock....... 7,659,889 9 7,659,889
Legg Mason Warrant (a).................... 604,240 9 604,240
Noteholder Warrant (b).................... 1,611,305 9 1,611,305
1996 Management Options (c)............... 1,167,951 9 1,167,951
---------- ----------
23,804,185
==========
Options or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
the initial public offering Option or Warrant Price Offering Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(a) Legg Mason Warrant ................... 747,096 $2.677 $14.00 604,240
(b) Noteholder Warrant.................... 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Option................ 1,444,080 2.677 14.00 1,167,951
2
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF EARNINGS PER SHARE
CALCULATION OF WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
# of Shares Weighted
Thirteen Weeks ended November 1, 1997 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock............. 12,760,800 2 8,507,200
Series B conversion to common stock.. 7,659,889 2 5,106,593
Legg Mason Warrant (a)............... 604,240 2 402,827
Noteholder Warrant (b)............... 1,611,305 2 1,074,203
1996 Management Option (c).......... 1,167,951 2 778,634
---------- ----------
15,869,457
Outstanding common stock (g)......... 24,622,103 1 8,207,368
1996 Management Option (d).......... 1,087,456 1 362,485
1997 Management Option (e).......... -- 1 --
Options issued to a 10% owner (f).... -- 1 --
---------- ----------
8,569,853
----------
24,439,310
==========
# of Shares Weighted
Thirty-nine Weeks ended November 2, 1997 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ---------
Outstanding common stock................ 12,760,800 8 11,342,933
Series B conversion to common stock..... 7,659,889 8 6,808,790
Legg Mason Warrant (a).................. 604,240 8 537,103
Noteholder Warrant (b).................. 1,611,305 8 1,432,271
1996 Management Options (c)............. 1,167,951 8 1,038,179
---------- ----------
21,159,276
----------
Outstanding common stock (g)............ 24,622,103 1 2,735,789
1996 Management Option (d)............. 1,087,456 1 120,829
1997 Management Option (e)............. -- 1 --
Options issued to a 10% owner (f)....... -- 1 --
---------- ----------
2,856,618
----------
24,015,894
==========
Options or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
the initial public offering Option or Warrant Price Offering Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(a) Legg Mason Warrant ................. 747,096 $2.677 $14.00 604,240
(b) Noteholder Warrant.................. 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Option.............. 1,444,080 2.677 14.00 1,167,951
Options or Warrants outstanding
subsequent to the initial public # of Shares under Exercise Average Market Common Share
offering Option or Warrant Price Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(d) 1996 Management Option ............. 1,444,080 $2.677 $10.84 1,087,456
(e) 1997 Management Option.............. 451,600 14.00 10.84 --
(f) 1997 Options issued to a 10% owner.. 99,660 15.40 10.84 --
(g) Outstanding stock includes the 12,760,800 outstanding shares prior to the
initial public offering, the conversion of 7,659,889 shares of Series B
Common Stock into Common Stock, the initial public offering of 4,000,000
shares of Common Stock, and 201, 414 shares of Common Stock issued upon
the exercise of one-third of the Legg Mason Warrant.
3
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE
(Dollars in thousands, except for per share data)
For the Thirteen Weeks Ended For the Thirty-Nine Weeks Ended
----------------------------------- -----------------------------------
November 1, November 2, November 1, November 2,
1997 1996 1997 1996
-------------- -------------- -------------- --------------
Income before extraordinary item ......... $ 3,497 $ 5,312 $ 2,765 $ 3,850
Extraordinary item ....................... 1,743 -- 1,743 --
-------------- -------------- -------------- --------------
Net income ............................... $ 1,754 $ 5,312 $ 1,022 $ 3,850
============== ============== ============== ==============
Pro forma basic weighted average shares
outstanding (1) ....................... 21,821,160 20,420,689 20,887,513 20,420,689
-------------- -------------- -------------- --------------
Pro forma basic income per common share:
Income before extraordinary item ......... $ 0.16 $ 0.26 $ 0.13 $ 0.19
Extraordinary item ....................... (0.08) -- (0.08) --
-------------- -------------- -------------- --------------
Net income per common share .............. $ 0.08 $ 0.26 $ 0.05 $ 0.19
Diluted average shares outstanding: (2) .. 24,439,310 23,804,185 24,015,894 23,804,185
-------------- -------------- -------------- --------------
Pro forma diluted income per common share:
Income before extraordinary item ......... $ 0.14 $ 0.22 $ 0.11 $ 0.16
Extraordinary item ....................... (0.07) -- (0.07) --
-------------- -------------- -------------- --------------
Net income per common share .............. $ 0.07 $ 0.22 $ 0.04 $ 0.16
============== ============== ============== ==============
(1) Pro forma basic net income per common share was calculated by dividing net
income by the pro forma weighted average common shares outstanding as if
(i) the Stock Split, Series B Conversion and Reclassification (as
discussed in Note 2-Initial Public Offering), (ii) the 1996 Private
Placement of Common Stock (as discussed in Note 3-Private Placement in the
financial statements in the Prospectus), and (iii) the cancellation of
outstanding preferred shares which were surrendered for no consideration
on June 28, 1996 occurred on the first day of the periods presented.
(2) Pro forma diluted net income per common share was calculated by dividing
net income by the pro forma weighted average common shares outstanding as
if (i) the Stock Split, Series B Conversion and Reclassification (as
discussed in Note 2-Initial Public Offering), (ii) the 1996 Private
Placement of Common Stock (as discussed in Note 3-Private Placement in the
Prospectus), and (iii) the cancellation of the outstanding preferred
shares which were surrendered for no consideration of June 28, 1996
occurred on the first day of the periods presented. Common share
equivalents for the thirteen and thirty-nine weeks ended November 2, 1996
include the Noteholder Warrant and the Legg Mason Warrant, (as discussed
in Note 3-Private Placement in the Prospectus), and management options to
purchase to purchase common stock, calculated using the treasury stock
method. Prior to the Offering, the Offering price was utilized for the
treasury stock calculations due to the lack of a public market. Subsequent
to the Offering, the average market price was utilized in accordance with
FAS No. 128.
4
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF BASIC EARNINGS PER SHARE
CALCULATION OF BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
# of Shares Weighted
Thirteen Weeks ended November 2, 1996 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 3 12,760,800
Series B conversion to common stock....... 7,659,889 3 7,659,889
----------
20,420,689
==========
# of Shares Weighted
Thirty-Nine weeks ended November 2, 1996 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 9 12,760,800
Series B conversion to common stock....... 7,659,889 9 7,659,889
----------
20,420,689
==========
# of Shares Weighted
Thirteen Weeks ended November 1, 1997 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 2 8,507,200
Series B conversion to common stock....... 7,659,889 2 5,106,593
Outstanding common stock (a).............. 24,622,103 1 8,207,368
----------
21,821,160
==========
# of Shares Weighted
Thirty-Nine Weeks ended November 1, 1997 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ---------
Outstanding common stock.................. 12,760,800 8 11,342,933
Series B conversion to common stock....... 7,659,889 8 6,808,790
----------
18,151,724
Outstanding common stock (a).............. 24,622,103 1 2,735,789
----------
20,887,513
==========
(a) Outstanding stock includes the 12,760,800 outstanding shares prior to the
initial public offering, conversion of 7,659,889 shares of Series B Common
Stock into Common Stock , the initial public offering of 4,000,000 shares
of Common Stock, and 201,414 shares of Common Stock issued upon the
exercise of one-third of the Legg Mason Warrant.
5
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF DILUTED EARNINGS PER SHARE
CALCULATION OF DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
# of Shares Weighted
Thirteen Weeks ended November 2, 1996 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock............. 12,760,800 3 12,760,800
Series B conversion to common stock.. 7,659,889 3 7,659,889
Legg Mason Warrant (a)............... 604,240 3 604,240
Nomura (Noteholder) Warrant (b)...... 1,611,305 3 1,611,305
1996 Management Option (c).......... 1,167,951 3 1,167,951
---------- ----------
23,804,185
==========
----------- ----------- ----------
# of Shares Weighted
Thirty-nine Weeks ended November 2, 1996 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ----------
Outstanding common stock............. 12,760,800 9 12,760,800
Series B conversion to common stock.. 7,659,889 9 7,659,889
Legg Mason Warrant (a)............... 604,240 9 604,240
Nomura (Noteholder) Warrant (b)...... 1,611,305 9 1,611,305
1996 Management Options (c).......... 1,167,951 9 1,167,951
---------- ----------
23,804,185
==========
Options or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
the initial public offering Option or Warrant Price Offering Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(a) Legg Mason Warrant ................. 747,096 $2.677 $14.00 604,240
(b)Noteholder Warrant................... 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Option.............. 1,444,080 2.677 14.00 1,167,951
6
EXHIBIT 11.1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CALCULATION OF EARNINGS PER SHARE
CALCULATION OF DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
# of Shares Weighted
Thirteen Weeks ended November 1, 1997 Outstanding # of Months Average
- ------------------------------------- ----------- ----------- ---------
Outstanding common stock............. 12,760,800 2 8,507,200
Series B conversion to common stock.. 7,659,889 2 5,106,593
Legg Mason Warrant (a)............... 604,240 2 402,827
Noteholder Warrant (b)............... 1,611,305 2 1,074,203
1996 Management Option (c).......... 1,167,951 2 778,634
---------- ----------
15,869,457
Outstanding common stock (g)......... 24,622,103 1 8,207,368
1996 Management Option (d).......... 1,087,456 1 362,485
1997 Management Option (e).......... -- 1 --
Options issued to a 10% owner (f).... -- 1 --
---------- ----------
8,569,853
----------
24,439,310
==========
# of Shares Weighted
Thirty-nine Weeks ended November 1, 1997 Outstanding # of Months Average
- ---------------------------------------- ----------- ----------- ---------
Outstanding common stock................ 12,760,800 8 11,342,933
Series B conversion to common stock..... 7,659,889 8 6,808,790
Legg Mason Warrant (a).................. 604,240 8 537,103
Noteholder Warrant (b).................. 1,611,305 8 1,432,271
1996 Management Options (c)............. 1,167,951 8 1,038,179
---------- ----------
21,159,276
----------
Outstanding common stock (g)............ 24,622,103 1 2,735,789
1996 Management Option (d)............. 1,087,456 1 120,829
1997 Management Option (e)............. -- 1 --
Options issued to a 10% owner (f)....... -- 1 --
---------- ----------
2,856,618
----------
24,015,894
==========
Options or Warrants outstanding prior to # of Shares under Exercise Initial Public Common Share
the initial public offering Option or Warrant Price Offering Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(a) Legg Mason Warrant ................. 747,096 $2.677 $14.00 604,240
(b) Noteholder Warrant.................. 1,992,252 2.677 14.00 1,611,305
(c) 1996 Management Option.............. 1,444,080 2.677 14.00 1,167,951
Options or Warrants outstanding
subsequent to the initial public # of Shares under Exercise Initial Public Common Share
offering Option or Warrant Price Offering Price Equivalents
- ---------------------------------------- ----------------- -------- -------------- ------------
(d) 1996 Management Option ............. 1,444,080 $2.677 $10.84 1,087,456
(e) 1997 Management Option.............. 451,600 14.00 10.84 --
(f) 1997 Options issued to a 10% owner.. 99,660 15.40 10.84 --
(g) Outstanding stock includes the 12,760,800 outstanding shares prior to the
initial public offering, the conversion of 7,659,889 shares of Series B
Common Stock into Common Stock, the initial public offering of 4,000,000
shares of Common Stock, and 201, 414 shares of Common Stock issued upon
the exercise of one-third of the Legg Mason Warrant.
7