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EXHIBIT 11.1
THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PRO FORMA EARNINGS PER SHARE(1)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS SIX MONTHS ENDED
ENDED JUNE 30, JUNE 30,
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1996 1995 1996 1995
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Pro forma net earnings.................................. $ 1,555 $ 801 $ 1,839 $ 700
Interest accrued on convertible debt, net of income
taxes(2).............................................. -- 20 97 15
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Adjusted pro forma net earnings............... $ 1,555 $ 821 $ 1,936 $ 715
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Weighted average number of shares outstanding(3)........ 17,621 12,000 14,903 12,000
Weighted average number of common equivalent shares
(computed using the treasury stock method)............ 647 348 511 348
Common shares from convertible debt(2).................. -- 2,157 1,079 2,157
Common equivalent shares from the distribution payable
$(4,875,576) divided by the initial public offering
price of $11.00 per share (and weighted since the
initial public offering).............................. -- 443 210 443
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Weighted average number of common and common
equivalent shares........................... 18,268 14,948 16,703 14,948
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Pro forma earnings per common and common equivalent
share................................................. $ 0.09 $ 0.05 $ 0.12 $ 0.05
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(1) All share and per share data has been adjusted to reflect the effect of the
2-for-1 stock split (effected in the form of a stock dividend) at the time
of the March 1996 initial public offering.
(2) Assumes convertible debentures were converted, as a component of the initial
public offering-related reorganization, as of the beginning of the period
and the related interest expense, net of income taxes, is added back to pro
forma net earnings.
(3) Assumes number of shares outstanding, after giving effect to the initial
public offering-related reorganization, as of the beginning of the period.