<PAGE>
                                                                   EXHIBIT 11.1

                U.S. LONG DISTANCE CORP. AND SUBSIDIARIES           

                    COMPUTATION OF EARNINGS PER SHARE
                 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                               (UNAUDITED)

<TABLE>
                                                                  THREE MONTHS ENDED            NINE MONTHS ENDED   
                                                                       JUNE 30,                       JUNE 30,      
                                                               -----------------------        --------------------- 
                                                                 1997           1996           1997           1996  
                                                               --------        -------        -------       ------- 
<S>                                                            <C>             <C>            <C>           <C>     
Primary
  Earnings:
     Net income (loss) from continuing operations............  $  1,097        $(4,015)       $ 3,695       $(5,939)
     Net income from discontinued operations.................         0          4,317              0        13,287 
                                                               --------        -------        -------       ------- 
     Net income applicable to common stock...................  $  1,097        $   302        $ 3,695       $ 7,348 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 

  Shares:
     Weighted average number of shares of common
       stock outstanding.....................................    15,642         14,854         15,330        14,466 
     Weighted average common share equivalents
       applicable to stock options and warrants..............     1,205            861          1,143           786 
                                                               --------        -------        -------       ------- 
     Weighted average shares used for computation............    16,847         15,715         16,473        15,252 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 

  Primary earnings per common share:
     Net income (loss) from continuing operations............   $  0.07        $ (0.25)       $  0.22       $ (0.39)
     Net income from discontinued operations.................      0.00           0.27           0.00          0.87 
                                                               --------        -------        -------       ------- 
     Net income applicable to common stock...................   $  0.07        $  0.02        $  0.22       $  0.48 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 

Fully Diluted (a)
  Earnings:
     Net income (loss) from continuing operations............   $ 1,097        $(4,015)       $ 3,695       $(5,939)
     Net income from discontinued operations.................         0          4,317              0        13,287 
                                                               --------        -------        -------       ------- 
     Net income applicable to common stock...................   $ 1,097        $   302        $ 3,695       $ 7,348 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 

  Shares:
     Weighted average number of shares of common
       stock outstanding.....................................    15,642         14,854         15,330        14,466 
     Weighted average common share equivalents
       applicable to stock options and warrants..............     1,309            920          1,217         1,196 
                                                               --------        -------        -------       ------- 
     Weighted average shares used for computation............    16,951         15,774         16,547        15,662 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 

  Fully diluted earnings per common share:
     Net income (loss) from continuing operations............   $  0.06        $ (0.25)       $  0.22       $ (0.38)
     Net income from discontinued operations.................      0.00           0.27           0.00          0.85 
                                                               --------        -------        -------       ------- 
     Net income applicable to common stock...................   $  0.06        $  0.02        $  0.22       $  0.47 
                                                               --------        -------        -------       ------- 
                                                               --------        -------        -------       ------- 
</TABLE>


(a)   This calculation is submitted in accordance with Regulation S-K item 
      601(b)(11) although not required by APB Opinion No. 15 because it results
      in dilution of less than 3%.