EX-11 5 ex11_022807.htm EX-11, EARNINGS PER SHARE RECONCILIATION

Exhibit 11

 

Healthways, Inc.

Earnings Per Share Reconciliation

February 28, 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

 

 

 

Six Months Ended

 

 

 

February 28,

 

 

 

February 28,

 

 

 

2007

 

 

 

2006

 

 

 

2007

 

 

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - numerator for basic earnings per share

 

$

11,024

 

 

 

$

7,333

 

 

 

$

22,858

 

 

 

$

13,789

 

Effect of dilutive securities

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Numerator for diluted earnings per share

 

$

11,024

 

 

 

$

7,333

 

 

 

$

22,858

 

 

 

$

13,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic earnings per share

 

 

34,958

 

 

 

 

34,321

 

 

 

 

34,792

 

 

 

 

34,140

 

Effect of dilutive stock options outstanding

 

 

1,977

 

 

 

 

1,979

 

 

 

 

1,971

 

 

 

 

1,996

 

Shares used for diluted earnings per share

 

 

36,935

 

 

 

 

36,300

 

 

 

 

36,763

 

 

 

 

36,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

 

 

$

0.21

 

 

 

$

0.66

 

 

 

$

0.40

 

Diluted

 

$

0.30

 

 

 

$

0.20

 

 

 

$

0.62

 

 

 

$

0.38