<PAGE>
 
                                                                      Exhibit 11
                                                                                
                              BUFFTON CORPORATION

                 Statement of Computation of Earnings Per Share
             For the Years Ended September 30, 1996, 1995 and 1994
                    (In thousands, except per share amounts)
<TABLE>
<CAPTION>
                                                        1996       1995        1994
                                                       ------    -------      ------ 
<S>                                                    <C>       <C>          <C>   
Primary Earnings per Share                         
--------------------------                                   
                                                   
  Income from continuing operation....................   $ 1,394    $ 1,304     $ 1,908
  Loss from discontinued operation....................         -     (2,513)          -
                                                         -------    -------     ------- 
  Net income (loss)...................................   $ 1,394    $(1,209)    $ 1,908
                                                         =======    =======     =======
                                                   
  Weighted average shares outstanding (a).............     6,441      5,465       5,120
                                                         =======    =======     =======
                                                   
  Income from continuing operation per average     
   common share.......................................   $   .22    $   .24     $   .37
  Loss from discontinued operation per average     
   common share.......................................         -       (.46)          -
                                                         -------    -------     -------
  Net income (loss) per average common share..........   $   .22    $  (.22)    $   .37
                                                         =======    =======     =======
<CAPTION>  


Fully Diluted Earnings per Share
--------------------------------
<S>                                                       <C>       <C>          <C>   
  Income from continuing operation....................    $1,394    $ 1,304      $1,908
  Loss from discontinued operation....................         -     (2,513)          -
                                                          ------    -------      ------
  Net income (loss)...................................    $1,394    $(1,209)     $1,908
                                                          ======    =======      ======
 
  Weighted average shares outstanding.................     6,441      5,465       5,120
  Adjustment to reflect assumed exercise of
    stock options at beginning of the period..........       208          -           -
                                                          ------    -------      ------
 
  Weighted average shares outstanding, as adjusted....     6,649      5,465       5,120
                                                          ======    =======      ======
 
  Fully diluted income from continuing operation......    $  .21    $   .24      $  .37
  Fully diluted loss from discontinued operation......         -       (.46)          -
                                                          ------    -------      ------
  Fully diluted net income (loss).....................    $  .21    $  (.22)     $  .37
                                                          ======    =======      ======
</TABLE>
(a)  Calculation of assumed exercise stock options as common stock equivalent 
     shares had an immaterial effect and are excluded from weighted average 
     shares outstanding.