Labor Ready, Inc. December 31, 1995 Computation of Earnings Per Share 1995 1994 1993 ---- ---- ---- Primary earnings per share Common stock equivalents Options and warrants granted and unexercised (note 3) 335,928 232,998 Total weighted average (Note 1) shares issued 5,525,572 4,221,885 3,668,585 --------- --------- --------- Weighted average shares outstanding 5,861,500 4,454,883 3,668,585 --------- --------- --------- Net Income Reported 2,061,807 851,805 269,008 Less Preferred Dividends (42,704) (42,705) (50,154) --------- -------- --------- Net income after preferred dividends 2,019,103 809,100 218,854 --------- -------- --------- Primary earnings per share $ 0.34 $ 0.18 $ 0.06 ========= ======== ========== Fully diluted earnings per share Common stock equivalents Options and warrants granted and unexercised (note 3) 335,928 232,998 Total weighted average (Note 2) shares issued 5,525,572 4,221,885 3,668,585 --------- --------- --------- Weighted average shares outstanding 5,861,500 4,454,883 3,668,585 --------- --------- --------- Net Income Reported 2,061,807 851,805 269,008 Less Preferred Dividends (42,704) (42,705) (50,154) --------- -------- --------- Net income after preferred dividends 2,019,103 809,100 218,854 --------- -------- --------- Fully diluted earnings per share $ 0.34 $ 0.18 $ 0.06 ========= ======== ========== Note 1: Total weighted average shares issued Shares outstanding at beginning of year 4,972,094 3,904,311 2,524,902 Total weighted average shares issued (retired) during the year 553,479 317,574 1,143,683 --------- --------- --------- Total weighted average shares issued - primary EPS 5,525,572 4,221,885 3,668,585 ========= ========= ========= Note 2: The amount of weighted average shares outstanding is calculated in the same manner as the primary earnings per share. No other potentially dilutive securities exist (3% test is not met which would require both presentations in the financial statements). Note 3: Total weighted average options and warrants granted and unexercised Options outstanding at beginning of the year 226,500 -- -- Total weighted average shares issued (retired) during the year 109,428 232,998 -- --------- --------- --------- Total weighted average options/warrants granted 335,928 232,998 -- ========= ========= =========