EXHIBIT 11.01
CONSOLIDATED PRODUCTS, INC.
COMPUTATION OF EARNINGS PER SHARE
NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
Primary earnings per common and common equivalent share are computed by
dividing net earnings by the weighted average number of common shares
outstanding and common equivalent shares. Common equivalent shares include
shares subject to purchase under stock options and stock warrants. Primary
weighted average shares and equivalents increased due to an increase in the
number of shares outstanding arising from the conversion of the Company's 10%
subordinated convertible debentures into the Company's common stock effective
April 3, 1995.
Fully diluted earnings per common and common equivalent share assumes, in
addition to the above, that the Debentures were converted at the date of
issuance, and that net earnings are increased by the actual amount of
interest expense, net of income taxes, related to the Debentures.
The following table presents information necessary to calculate earnings per
common and common equivalent share (adjusted for the five for four stock
split declared in December 1997):
1997 1996 1995
-------------------------------------------
Primary:
Weighted average shares outstanding 19,539,949 18,982,904 15,525,515
Share equivalents 341,371 417,464 493,920
-------------------------------------------
Weighted average shares and equivalents 19,881,320 19,400,368 16,019,435
-------------------------------------------
Fully Diluted:
Weighted average shares outstanding 19,539,949 18,982,904 15,525,515
Share equivalents 414,167 471,316 608,979
Conversion of Debentures -- -- 3,033,135
-------------------------------------------
Weighted average shares and equivalents 19,954,116 19,454,220 19,167,629
-------------------------------------------
Net earnings:
Net earnings for primary earnings per share computation $ 16,148,831 $13,009,127 $10,026,144
Add-interest expense, net of income taxes, applicable to
Debentures -- -- 333,003
-------------------------------------------
Net earnings, as adjusted for fully diluted earnings
per share computation $ 16,148,831 $13,009,127 $10,359,147
-------------------------------------------
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standard No.128, "Earnings Per Share". For its
fiscal year beginning September 25, 1997, the Company will be required to
change the method currently used to compute earnings per share and to restate
all prior periods. Under the new requirements for calculating basic earnings
per share, the dilutive effect of stock options will be excluded. The change
is expected to result in an increase of $.02 per share to primary (basic)
earnings per share for both fiscal years 1997 and 1996. The change is
expected to have no effect on diluted earnings per share for fiscal 1997 or
1996.
48