EXHIBIT 11
CHANCELLOR CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
The following table reflects the calculation of the earnings per share:
Income Weighted Average
Common Shares Outstanding
(numerator) (denominator)
in thousands, except share and per share data
Quarter ended June 30, 1999:
Earnings from operations $ 201 48,300,550
============ ==========================
Basic earnings per common share $0.00
Effect of dilutive securities-
Convertible preferred shares - - - 5,000,000
Warrant - VCC - - - 2,222,222
Vested Employee Options - - - 1,418,355
------------ --------------------------
$ 201 56,941,127
============ ==========================
Diluted earnings per common share $0.00
Quarter ended June 30,1998:
Earnings from operations $ 34 35,032,242
============ ==========================
Basic earnings per common share $0.00
Effect of dilutive securities-
Convertible preferred shares - - - 5,000,000
Warrant - VCC - - - 2,592,593
Vested Employee Options - - - 1,000,000
------------ --------------------------
$ 34 43,624,835
============ ==========================
Diluted earnings per common share $0.00
Year to date ended June 30, 1999:
Earnings from operations $ 293 46,039,725
============ ==========================
Basic earnings per common share $0.01
Effect of dilutive securities-
Convertible preferred shares - - - 5,000,000
Warrant - VCC - - - 3,484,848
Vested Employee Options - - - 1,521,624
------------ --------------------------
$ 293 56,046,197
============ ==========================
Diluted earnings per common share $0.01
Year to date ended June 30, 1998:
Earnings from operations $ 60 33,168,387
============ ==========================
Basic and diluted earnings per common share $0.00
Convertible preferred shares - - - 5,000,000
Warrant - VCC - - - 2,857,143
Vested Employee Options - - - 1,000,000
------------ --------------------------
$ 60 42,025,530
============ ==========================
Diluted earnings per common share $0.00