EX-11 11 ex11_111306.htm EX-11, EARNINGS PER SHARE RECONCILIATION

Exhibit 11

 

Healthways, Inc.

Earnings Per Share Reconciliation

August 31, 2006

(In thousands, except earnings per share data)

 

 

The following is a reconciliation of the numerator and denominator of basic and diluted earnings per

share:

 

 

Year Ended August 31,

 

2006

 

 

 

2005

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - numerator for basic earnings per share

 

$

37,151

 

 

 

$

33,084

 

 

 

$

26,058

 

Effect of dilutive securities

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Numerator for diluted earnings per share

 

$

37,151

 

 

 

$

33,084

 

 

 

$

26,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic earnings per share

 

 

34,348

 

 

 

 

33,241

 

 

 

 

32,264

 

Effect of dilutive stock options outstanding

 

 

2,031

 

 

 

 

2,450

 

 

 

 

2,368

 

Shares used for diluted earnings per share

 

 

36,379

 

 

 

 

35,691

 

 

 

 

34,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.08

 

 

 

$

1.00

 

 

 

$

0.81

 

Diluted

 

$

1.02

 

 

 

$

0.93

 

 

 

$

0.75