EX-11 4 ex11_053107.htm EX-11, EARNINGS PER SHARE RECONCILIATION

Exhibit 11

 

Healthways, Inc.

Earnings Per Share Reconciliation

May 31, 2007

(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

 

 

 

Nine Months Ended

 

 

 

May 31,

 

 

 

May 31,

 

 

 

2007

 

 

 

2006

 

 

 

2007

 

 

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - numerator for basic earnings per share

 

$

10,792

 

 

 

$

9,335

 

 

 

$

33,650

 

 

 

$

23,124

 

Effect of dilutive securities

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Numerator for diluted earnings per share

 

$

10,792

 

 

 

$

9,335

 

 

 

$

33,650

 

 

 

$

23,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic earnings per share

 

 

35,133

 

 

 

 

34,517

 

 

 

 

34,907

 

 

 

 

34,267

 

Effect of dilutive stock options outstanding

 

 

1,937

 

 

 

 

1,998

 

 

 

 

1,948

 

 

 

 

2,000

 

Shares used for diluted earnings per share

 

 

37,070

 

 

 

 

36,515

 

 

 

 

36,855

 

 

 

 

36,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

 

$

0.27

 

 

 

$

0.96

 

 

 

$

0.67

 

Diluted

 

$

0.29

 

 

 

$

0.26

 

 

 

$

0.91

 

 

 

$

0.64