**Exhibit11.1**

 

**Cornell Companies, Inc.**

**Statement Re: Computation of Per Share Earnings**

**(in thousands except per share amounts)**

 
| ** **                                                                                      | ** ** | **2004**   | ** ** | **2003**    | ** ** | **2002**   | ** ** |
|-------------------------------------------------------------------------------------------------|------------|------------|------------|-------------|------------|------------|------------|
| ** **                                                                                      | ** ** | **Basic**  | ** ** | **Diluted** | ** ** | **Basic**  | ** ** | **Diluted** | ** ** | **Basic** | ** ** | **Diluted** | ** ** |
| ** **                                                                                      | ** ** | ** ** | ** ** | ** **  | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| Net Earnings  (loss)                                                                            |       | $          | (7,433     | )           | $          | (7,433     | )          | $ | 3,970 |   | $ | 3,970 |   | $ | 6,362 |   | $ | 6,362 |   |
|                                                                                            |       |       |       |        |       |       |       |   |   |   |   |   |   |
| Shares used  in computing net earnings per share:                                               |       |       |       |        |       |       |       |   |   |   |   |   |   |
| Weighted  average common shares and common share equivalents                                    |       | 14,716     |       | 14,716      |       | 14,426     |       | 14,426 |   | 14,132 |   | 14,132 |   |
|                                                                                            |       |       |       |        |       |       |       |   |   |   |   |   |   |
| Less effect  of treasury shares                                                                 |       | (1,513     | )          | (1,513      | )          | (1,485     | )          | (1,485 | ) | (1,221 | ) | (1,221 | ) |
|                                                                                            |       |       |       |        |       |       |       |   |   |   |   |   |   |
| Effect of  shares issuable under stock options and warrants based on the treasury stock  method |       | —     |       | —      |       | —     |       | 401 |   | — |   | 218 |   |
|                                                                                            |       |       |       |        |       |       |       |   |   |   |   |   |   |
|                                                                                            |       | 13,203     |       | 13,203      |       | 12,941     |       | 13,342 |   | 12,911 |   | 13,129 |   |
|                                                                                            |       |       |       |        |       |       |       |   |   |   |   |   |   |
| Net earnings  per share                                                                         |       | $          | (0.56      | )           | $          | (0.56      | )          | $ | 0.31 |   | $ | 0.30 |   | $ | 0.49 |   | $ | 0.48 |   |

 

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