**Exhibit 11.1**

 

**Cornell Corrections, Inc.**

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

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

 
|                                                                                           |   | **Three  Months Ended June 30,** |   | **Six Months  Ended June 30,** |   |
|------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------------------------------|--------|
|                                                                                           |   | **2004**                         |   | **2003**                       |   | **2004** |   | **2003** |   |
|                                                                                           |   | **Basic**                        |   | **Diluted**                    |   | **Basic** |   | **Diluted** |   | **Basic** |   | **Diluted** |   | **Basic** |   | **Diluted** |   |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                                                            |   | $                                | (1,099 | )                              | $      | (1,099 | ) | $ | 2,177 |   | $ | 2,177 |   | $ | (393 | ) | $ | (393 | ) | $ | 4,133 |   | $ | 4,133 |   |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in computing net earnings  (loss) per share:                                       |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares and common  share equivalents                                   |   | 14,691                           |   | 14,691                         |   | 14,340 |   | 14,340 |   | 14,659 |   | 14,659 |   | 14,290 |   | 14,291 |   |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less treasury shares                                                                           |   | (1,545                           | )      | (1,545                         | )      | (1,486 | ) | (1,486 | ) | (1,545 | ) | (1,545 | ) | (1,473 | ) | (1,473 | ) |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of shares issuable under stock  options and warrants based on the treasury stock method |   | —                           |   | —                         |   | — |   | 319 |   | — |   | — |   | — |   | 237 |   |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   | 13,146                           |   | 13,146                         |   | 12,854 |   | 13,173 |   | 13,114 |   | 13,114 |   | 12,817 |   | 13,055 |   |
|                                                                                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per share                                                                  |   | $                                | (0.08  | )                              | $      | (0.08 | ) | $ | 0.17 |   | $ | 0.17 |   | $ | (0.03 | ) | $ | (0.03 | ) | $ | 0.32 |   | $ | 0.32 |   |
|                                                                                                |        |                                  |        |                                |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

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