EXHIBIT 11
STONE CONTAINER CORPORATION
COMPUTATION OF BASIC AND DILUTED
NET INCOME (LOSS) PER SHARE
(in millions, except per share)
YEAR ENDED DECEMBER 31,
-------------------------------
1997 1996 1995
--------- --------- ---------
BASIC EARNINGS PER SHARE
Shares of Common Stock:
Weighted average number of common shares outstanding.......................................... 99.3 99.2 93.9
--------- --------- ---------
Basic Weighted Average Shares Outstanding....................................................... 99.3 99.2 93.9
--------- --------- ---------
--------- --------- ---------
Net Income (Loss)............................................................................... $ (417.7) $ (126.2) $ 255.5
Less: Series E Cumulative Convertible Exchangeable Preferred Stock dividend..................... (8.1) (8.1) (8.1)
--------- --------- ---------
Net income (loss) used in computing basic net income (loss) per common share.................... $ (425.8) $ (134.3) $ 247.4
--------- --------- ---------
--------- --------- ---------
Basic Earnings Per Share........................................................................ $ (4.29) $ (1.35) $ 2.63
--------- --------- ---------
--------- --------- ---------
DILUTED EARNINGS PER SHARE
Shares of Common Stock:
Weighted average number of common shares outstanding.......................................... 99.3 99.2 93.9
Dilutive effect of options and warrants....................................................... -- .2 .2
Addition from assumed conversion of 8.875% convertible senior subordinated notes.............. 5.1 5.2 15.2
Addition from assumed conversion of 6.75% convertible subordinated debentures................. 1.3 1.3 2.0
Addition from assumed conversion of Series E Cumulative Convertible Exchangeable Preferred
Stock........................................................................................ 3.4 3.4 3.4
--------- --------- ---------
Diluted Weighted Average Shares Outstanding................................................... 109.1 109.3 114.7
--------- --------- ---------
--------- --------- ---------
Net Income (Loss)............................................................................. $ (417.7) $ (126.2) $ 255.5
Less: Series E Cumulative Convertible Exchangeable Preferred Stock dividend................... (8.1) (8.1) (8.1)
Income adjustment associated with assumed conversion of Stone-Consolidated Corporation 8%
convertible subordinated debentures -- -- (10.6)
Add back: Interest on 8.875% convertible senior subordinated notes.............................. 3.2 3.2 9.5
Interest on 6.75% convertible subordinated debentures................................. 1.9 1.9 2.8
Series E Cumulative Convertible Exchangeable Preferred Stock dividend................. 8.1 8.1 8.1
--------- --------- ---------
Net income (loss) used in computing diluted net income (loss) per common share.................. $ (412.6) $ (121.1) $ 257.2
--------- --------- ---------
--------- --------- ---------
Diluted Earnings Per Share (A)................................................................ $ (3.78) $ (1.11) $ 2.24
--------- --------- ---------
--------- --------- ---------
- ---------
(A) Diluted Earnings per share for 1997 and 1996 are different from the
consolidated financial statements because amounts are anti-dilutive.
56