EXHIBIT 11
CHATTEM, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
(UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MAY 31, MAY 31,
-------------------------- ------------------------
1998 1997 1998 1997
---------- ----------- ---------- ---------
NET INCOME:
Income before extraordinary loss............ $10,069 $3,057 $10,678 $3,193
Extraordinary loss.......................... (1,901) - (1,901) -
---------- ----------- ---------- ---------
Net income................................ $ 8,168 $3,057 $ 8,777 $3,193
---------- ----------- ---------- ---------
COMMON SHARES:
Weighted average number outstanding......... 9,370 8,613 9,149 8,608
Number issued upon assumed exercise
of outstanding stock options and stock
warrants.................................. 459 239 399 222
---------- ----------- ---------- ---------
Weighted average number of common
and common equivalent shares
outstanding............................... 9,829 8,852 9,548 8,830
---------- ----------- ---------- ---------
NET INCOME PER COMMON SHARE:
Basic:
Income before extraordinary loss.......... $ 1.07 $ 0.35 $ 1.17 $ 0.37
Extraordinary loss........................ (.20) - (.21) -
---------- ----------- ---------- ---------
Total basic............................. $ 0.87 $ 0.35 $ 0.96 $ 0.37
---------- ----------- ---------- ---------
---------- ----------- ---------- ---------
Diluted:
Income before extraordinary loss.......... $ 1.02 $ 0.35 $ 1.12 $ 0.36
Extraordinary loss........................ (.19) - (.20) -
---------- ----------- ---------- ---------
Total diluted........................... $ 0.83 $ 0.35 $ 0.92 $ 0.36
---------- ----------- ---------- ---------
---------- ----------- ---------- ---------