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EXHIBIT 11.1
THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PRO FORMA EARNINGS PER SHARE
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
YEARS ENDED
DECEMBER 31,(1)
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1996 1995
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Pro forma net earnings...................................... $ 6,668 $ 2,935
Interest accrued on convertible debt, net of income
taxes(2).................................................. 97 258
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Adjusted pro forma net earnings................... $ 6,765 $ 3,193
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Weighted average number of common shares outstanding(3)..... 16,268 12,000
Weighted average number of common equivalent shares
(computed using the treasury stock method)................ 545 348
Common shares from convertible debt(2)...................... 539 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)................................................. 105 443
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Weighted average common and common equivalent
shares outstanding............................... 17,457 14,948
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Pro forma earnings per common and common equivalent share... $ .39 $ .21
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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.