EXHIBIT 11. EARNINGS PER SHARE CALCULATIONS
Basic net income per share is based on the weighted average number of common
shares outstanding during each year. Diluted net income per common share
includes the dilutive effect of potential common shares outstanding. The company
calculates the dilutive effect of outstanding stock options and warrants using
the treasury stock method. A reconciliation of earnings per share for the three
and six months ended November 30, 2000 and 1999 is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
NOVEMBER 30, 2000 NOVEMBER 30, 1999
BASIC DILUTED BASIC DILUTED
------------------------ ------------------------
<S> <C> <C> <C> <C>
Net earnings 31,349 31,349 49,214 49,214
------------------------ ------------------------
Average shares outstanding 1,901,697 1,901,697 1,902,634 1,902,634
Effect of dilutive securities:
Options and Warrants 0 240,767 0 5,388
------------------------ ------------------------
Equivalent shares 1,901,697 2,142,464 1,902,634 1,908,022
------------------------ ------------------------
Earnings per share $ 0.02 $ 0.01 $ 0.03 $ 0.03
======================== ========================
<CAPTION>
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 2000 NOVEMBER 30, 1999
BASIC DILUTED BASIC DILUTED
------------------------ ------------------------
Net earnings 64,642 64,642 100,673 100,673
------------------------ ------------------------
Average shares outstanding 1,902,207 1,902,207 1,902,542 1,902,542
Effect of dilutive securities:
Options and Warrants 0 219,145 0 17,379
------------------------ ------------------------
Equivalent shares 1,902,207 2,121,352 1,902,542 1,919,921
------------------------ ------------------------
Earnings per share $ 0.03 $ 0.03 $ 0.05 $ 0.05
======================== ========================
</TABLE>
15
