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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
ENDED SEPTEMBER NINE MONTHS ENDED
30, SEPTEMBER 30,
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1996 1995 1996 1995
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Pro forma net earnings.................................. $ 2,742 $ 1,463 $ 4,581 $ 2,163
Interest accrued on convertible debt, net of income
taxes(2).............................................. -- 122 97 137
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Adjusted pro forma net earnings............... $ 2,742 $ 1,585 $ 4,678 $ 2,300
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Weighted average number of shares outstanding(3)........ 17,621 12,000 15,810 12,000
Weighted average number of common equivalent shares
(computed using the treasury stock method)............ 665 348 562 348
Common shares from convertible debt(2).................. -- 2,157 719 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).............................. -- 443 140 443
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Weighted average number of common and common
equivalent
shares...................................... 18,286 14,948 17,231 14,948
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Pro forma earnings per common and common equivalent
share................................................. $ .15 $ .11 $ .27 $ .15
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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.