Statement Re Computation of Per Share Earnings
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EX-1.11 2 c14976a1exv1w11.htm STATEMENT RE COMPUTATION OF PER SHARE EARNINGS exv1w11
Exhibit 11.1
Statement re: Computation of per Share Earnings
The computation of per share earnings for the six months ended June 30, 2007 and 2006 and for the year ended December 31, 2006 is as follows and includes the effect of warrants issued by Gulfstream International Airlines, Inc. (“GIA”), a subsidiary of the Company:
| Six Months Ended | Year Ended | |||||||||||
| June 30, | December 31, | |||||||||||
| 2006 | 2007 | 2006 | ||||||||||
Net income | $ | 2,791,089 | $ | 3,378,334 | $ | 184,463 | ||||||
Effect of GIA warrants | (282,110 | ) | (347,390 | ) | (52,472 | ) | ||||||
Net income — diluted | $ | 2,508,979 | $ | 3,030,944 | $ | 131,991 | ||||||
Weighted average of shares outstanding | 1,342,719 | 2,032,057 | 1,680,840 | |||||||||
Dilutive effect of warrants issued with subordinated debentures | 16,328 | 27,113 | 35,846 | |||||||||
Dilutive effect of stock options | 7,490 | 87,874 | 9,772 | |||||||||
Weighted average of shares outstanding — diluted | 1,366,537 | 2,147,044 | 1,726,458 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 2.08 | $ | 1.66 | $ | 0.11 | ||||||
Diluted | $ | 1.84 | $ | 1.41 | $ | 0.08 | ||||||
Exhibit 11.1
The effect on net income of the GIA warrants is calculated in accordance with SFAS No. 128 “Earnings per Share”, paragraph 62(a) as follows:
| Six Months Ended | Year Ended | |||||||||||
| June 30, | December 31, | |||||||||||
| 2006 | 2007 | 2006 | ||||||||||
Earnings Per Share of GIA: | ||||||||||||
Net income | $ | 3,103,212 | $ | 3,641,292 | $ | 257,523 | ||||||
Add: management fees charged by the Company | — | 180,000 | 320,000 | |||||||||
Adjusted net income | $ | 3,103,212 | $ | 3,821,292 | $ | 577,187 | ||||||
Basic weighted average shares | 19,575,327 | 19,575,327 | 19,575,327 | |||||||||
Dilutive effect of warrants | 1,957,533 | 1,957,533 | 1,957,533 | |||||||||
Diluted weighted average shares | 21,532,860 | 21,532,860 | 21,532,860 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.1585 | $ | 0.1952 | $ | 0.0295 | ||||||
Diluted | $ | 0.1441 | $ | 0.1775 | $ | 0.0268 | ||||||
Effect on Net Income of GIA Warrants: | ||||||||||||
Proportionate share of GIA income included in basic earnings per share (1) | $ | 3,103,212 | $ | 3,821,292 | $ | 577,187 | ||||||
Proportionate share of GIA income included in diluted earnings per share (2) | 2,821,102 | 3,473,902 | 524,715 | |||||||||
Difference | $ | 282,110 | $ | 347,390 | $ | 52,472 | ||||||
(1) — Calculated as the number of GIA outstanding shares times GIA basic earnings per share
(2) — Calculated as the number of GIA outstanding shares times GIA diluted earnings per share
