EX-11 4 ex-11_053106.htm EX-11, EARNINGS PER SHARE
 

                Exhibit 11

Healthways, Inc.
Earnings Per Share Reconciliation
May 31, 2006
(Unaudited)
(In thousands, except earnings per share data)

                The following is a reconciliation of the numerator and denominator of basic and diluted earnings per share:
 
   
 
 
    Three Months Ended
May 31,
  Nine Months Ended
May 31,
 
    2006
   2005
  2006   2005
 
   
 
 
           
Numerator:                  
    Net income - numerator for basic earnings per share   $ 9,335   $ 8,536   $ 23,124   $ 24,740  
    Effect of dilutive securities     —     —     —     —  
   
 
 
    Numerator for diluted earnings per share   $ 9,335   $ 8,536   $ 23,124   $ 24,740  
   
 
 
                           
Denominator:                          
    Shares used for basic earnings per share     34,517     33,221     34,267     33,072  
    Effect of dilutive stock options outstanding     1,998     2,481     2,000     2,431  
   
 
 
 
 
    Shares used for diluted earnings per share     36,515     35,702     36,267     35,503  
   
 
 
 
 
                           
Earnings per share:                          
    Basic   $ 0.27   $ 0.26   $ 0.67   $ 0.75  
   
 
 
 
 
    Diluted   $ 0.26   $ 0.24   $ 0.64   $ 0.70