EXHIBIT 11.1
<PAGE>
<TABLE>
PRE-PAID LEGAL SERVICES, INC.
Statement re Computation of Per Share Earnings
(In 000's except per share amounts)
Six Months Ended
June 30,
----------------------
2000 1999
--------- ---------
<CAPTION>
<S> <C> <C>
BASIC EARNINGS PER SHARE:
Computation for Statement of Income
Earnings:
Net income applicable to common stockholders (a)....................................... $ 24,047 $ 18,649
======== ========
Shares:
Weighted average shares outstanding (net of 1,984 and 1,024 shares of treasury stock,
respectively), disregarding exercise of options or conversion of preferred stock..... 22,533 23,407
======== ========
Basic earnings per common share (a).................................................... $ 1.07 $ .80
======== ========
DILUTED EARNINGS PER SHARE:
Computation for Statement of Income
Earnings:
Net income applicable to common stockholders (a)....................................... $ 24,047 $ 18,649
Add: Dividends on preferred stock ..................................................... 4 5
Net income applicable to common stockholders, as adjusted ............................. -------- --------
$ 24,051 $ 18,654
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Shares:
Weighted average shares outstanding (net of 1,984 and 1,024 shares of treasury stock,
respectively), disregarding exercise of options or conversion of preferred stock..... 22,533 23,407
Assumed dilutive conversion of preferred stock ........................................ 69 70
Assumed exercise of options and warrants based on the treasury
stock method using average market price.............................................. 133 274
-------- --------
Weighted average number of shares, as adjusted......................................... 22,735 23,751
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Diluted earnings per common share (a).................................................. $ 1.06 $ .79
======== ========
</TABLE>
(a) These amounts agree with the related amounts in the consolidated statements
of income.
<PAGE>
<TABLE>
PRE-PAID LEGAL SERVICES, INC.
Statement re Computation of Per Share Earnings
(In 000's except per share amounts)
Three Months Ended
June 30,
----------------------
2000 1999
--------- ---------
<CAPTION>
<S> <C> <C>
BASIC EARNINGS PER SHARE:
Computation for Statement of Income
Earnings:
Net income applicable to common stockholders (a)....................................... $ 12,657 $ 9,869
======== ========
Shares:
Weighted average shares outstanding (net of 2,008 and 1,249 shares of treasury stock,
respectively), disregarding exercise of options or conversion of preferred stock..... 22,516 23,207
======== ========
Basic earnings per common share (a).................................................... $ .56 $ .43
======== ========
DILUTED EARNINGS PER SHARE:
Computation for Statement of Income
Earnings:
Net income applicable to common stockholders (a)....................................... $ 12,657 $ 9,869
Add: Dividends on preferred stock ..................................................... 2 3
Net income applicable to common stockholders, as adjusted ............................. -------- --------
$ 12,659 $ 9,872
======== ========
Shares:
Weighted average shares outstanding (net of 2,008 and 1,249 shares of treasury stock,
respectively), disregarding exercise of options or conversion of preferred stock..... 22,516 23,207
Assumed dilutive conversion of preferred stock ........................................ 69 70
Assumed exercise of options and warrants based on the treasury
stock method using average market price.............................................. 149 224
-------- --------
Weighted average number of shares, as adjusted......................................... 22,734 23,501
======== ========
Diluted earnings per common share (a).................................................. $ .56 $ .42
======== ========
</TABLE>
(a) These amounts agree with the related amounts in the consolidated statements
of income.
