Exhibit 11.1
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
COMPUTATIONS OF EARNINGS PER SHARE
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
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1997 1996 1997 1996
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Weighted average common shares
outstanding:
Average shares outstanding during period 17,781 11,714 17,780 10,420
Cheap stock (1) - 66 - 728
Cheap options (1) - 1,662 - 1,659
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Total primary weighted average
common shares 17,781 13,442 17,780 12,807
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Non Cheap options - 86 - 86
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Total fully diluted weighted average
common shares 17,781 13,528 17,780 12,893
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Net loss applicable to common shares:
Net loss $ (10,591) $ (2,421) $ (24,373) $ (5,653)
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Loss per common share and
common share equivalent - Primary $ (0.60) $ (0.18) $ (1.37) $ (0.44)
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Loss per common share and
common share equivalent - Fully Diluted $ (0.60) $ (0.18) $ (1.37) $ (0.44)
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(1) Pursuant to Staff Accounting Bulletin Number 83, for proper calculation
of the three and nine months ended September 30, 1996 weighted average
common shares outstanding, stock options granted and stock issued within
one year prior to Primus's November 7, 1996 initial public offering have
been treated as outstanding for all of 1996 using the treasury stock
method. In the three and nine months ended September 30, 1997, the
weighted average common shares outstanding has been calculated under
Accounting Principles Board (APB) Statement No. 15.