EXHIBIT 11
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CHATTEM, INC. AND SUBSIDIARIES
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STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
FOR THE YEARS ENDED NOVEMBER 30, 2002, 2001 AND 2000
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
2002 2001 2000
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NET INCOME (LOSS):
Income (loss) before extraordinary gain
(loss) and change in accounting principle ....... $ 18,900 $ 8,395 $ (197)
Extraordinary gain (loss) ......................... -- 6,948 (920)
Change in accounting principle .................... (8,877) -- (542)
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Net income (loss) .............................. $ 10,023 $ 15,343 $ (1,659)
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NUMBER OF COMMON SHARES:
Weighted average outstanding ...................... 18,607 17,854 18,822
Issued upon assumed exercise of outstanding stock
options and stock warrants ..................... 644 190 --
Effect of issuance of restricted common shares .... 93 32 --
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Weighted average and potential dilutive outstanding 19,344 18,076 18,822
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NET INCOME (LOSS) PER COMMON SHARE:
Basic:
Income (loss) before extraordinary gain (loss)
and change in accounting principle ........... $ 1.02 $ .47 $ (.01)
Extraordinary gain (loss) ...................... -- .39 (.05)
Change in accounting principle ................. (.48) -- (.03)
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Total basic ................................. $ .54 $ .86 $ (.09)
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Diluted:
Income (loss) before extraordinary gain (loss)
and change in accounting principle ........... $ .98 $ .47 $ (.01)
Extraordinary gain (loss) ...................... -- .38 (.05)
Change in accounting principle ................. (.46) -- (.03)
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Total diluted ............................... $ .52 $ .85 $ (.09)
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Note: The share and per share amounts have been adjusted for the effect of the
2 for 1 split of the Company's common stock on November 29, 2002.