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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
MARCH 31,
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1997 1996
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Pro forma net earnings...................................... $ 792 $ 284
Interest accrued on convertible debt, net of income
taxes(2).................................................. -- 97
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Adjusted pro forma net earnings................... $ 792 $ 381
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Weighted average number of shares outstanding(3)............ 18,089 12,187
Weighted average number of common equivalent shares
(computed using the treasury stock method)................ 521 374
Common shares from convertible debt(2)...................... -- 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)................................................. -- 420
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Weighted average number of common and common
equivalent shares................................ 18,610 15,138
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Pro forma earnings per common and common equivalent share... $ .04 $ .03
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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.