<PAGE>
EXHIBIT 11
CHATTEM, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
(Unaudited and in thousands, except per share amounts)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED MAY 31, ENDED MAY 31,
----------------------- ------------------------
2000 1999 2000 1999
-------- --------- -------- --------
<S> <C> <C> <C> <C>
NET INCOME:
Income before extraordinary loss and change
in accounting principle................... $ 6,219 $ 6,921 $ 9,827 $ 10,498
Extraordinary loss......................... (110) (1,157) (110) (1,584)
Change in accounting principle............. -- -- (542) --
-------- --------- --------- ---------
Net income............................... $ 6,109 $ 5,764 $ 9,175 $ 8,914
======== ========= ========= =========
COMMON SHARES:
Weighted average number outstanding........ 9,525 9,741 9,609 9,726
Number issued upon assumed exercise
of outstanding stock options and stock
warrants................................. 69 371 123 379
-------- --------- --------- ---------
Weighted average number and dilutive
potential number outstanding.............. 9,594 10,112 9,732 10,105
======== ========= ========= ==========
NET INCOME ( LOSS) PER COMMON SHARE:
Basic:
Income before extraordinary loss and
change in accounting principle......... $ .65 $ .71 $ 1.02 $ 1.08
Extraordinary loss...................... (.01) (.12) (.01) (.16)
Change in accounting principle.......... -- -- (.06) --
-------- --------- --------- ---------
Total basic......................... $ .64 $ .59 $ .95 $ .92
======== ========= ========= =========
Diluted:
Income before extraordinary loss and
change in accounting principle......... $ .65 $ .69 $ 1.01 $ 1.04
Extraordinary loss...................... (.01) (.12) (.01) (.16)
Change in accounting principle.......... -- -- (.06) --
-------- --------- --------- ---------
Total diluted....................... $ .64 $ .57 $ .94 $ .88
======== ========= ========= =========
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