EX-11 3 ex11.txt EXHIBIT 11 Exhibit 11 COMPUTATION OF EARNINGS PER COMMON SHARE ("EPS") OMNICARE, INC. AND SUBSIDIARY COMPANIES UNAUDITED (in thousands, except per share data)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------ --------------------- 2002 2001 2002 2001 ------- ------- ------- ------- Basic Earnings: Net income $29,066 $13,560 $87,200 $51,000 ======= ======= ======= ======= Shares Weighted average number of common shares outstanding 94,245 93,345 94,129 92,992 ======= ======= ======= ======= Basic EPS (c) $ 0.31 $ 0.15 $ 0.93 $ 0.55 ======= ======= ======= ======= Diluted Earnings (a): Net income $29,066 $13,560 $87,200 $51,000 ======= ======= ======= ======= Shares Weighted average number of common shares outstanding 94,245 93,345 94,129 92,992 Additional shares assuming conversion of stock options and stock warrants (b) 465 772 791 630 ------- ------- ------- ------- Weighted average common shares outstanding, as adjusted 94,710 94,117 94,920 93,622 ======= ======= ======= ======= Diluted EPS (c) $ 0.31 $ 0.14 $ 0.92 $ 0.54 ======= ======= ======= =======
(a) The $345.0 million of Convertible Debentures which are convertible into 8.7 million shares at $39.60 per share were outstanding during the three and nine months ended September 30, 2002 and 2001, but were not included in the computation of diluted EPS because the impact was anti-dilutive. (b) During the three and nine months ended September 30, 2002 and 2001, the anti-dilutive effect associated with selected options and warrants was excluded from the computation of diluted earnings per share, since the exercise price of these options and warrants was greater than the average market price of the Company's common stock during these periods. The aggregate anti-dilutive stock options and warrants excluded for the quarter ended September 30, 2002 and 2001 totaled 5.5 million and 3.8 million, respectively. Further, 4.5 million and 3.8 million anti-dilutive options and warrants were excluded from the year-to-date September 30, 2002 and 2001, respectively. (c) In accordance with the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets," Omnicare discontinued amortization of goodwill as of January 1, 2002. Accordingly, no goodwill amortization was recorded during the three and nine months ended September 30, 2002. Goodwill amortization during the three and nine months ended September 30, 2001 totaled $8.4 million before taxes ($5.2 million after taxes, or $0.06 per basic and diluted share) and $24.9 million before taxes ($15.4 million after taxes, or $0.17 per basic share and $0.16 per diluted share), respectively.