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EXHIBIT 11.1
THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF NET EARNINGS PER SHARE(1)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1997 1996 1997 1996
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Net earnings (pro forma net earnings for nine months ended
September 30, 1996)..................................... $ 3,758 $ 2,742 $ 6,918 $ 4,581
Interest accrued on convertible debt, net of income
taxes(2)................................................ -- -- -- 97
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Adjusted net earnings (pro forma net
earnings)..................................... $ 3,758 $ 2,742 $ 6,918 $ 4,678
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Weighted average number of shares outstanding(3).......... 18,278 17,621 18,185 15,810
Weighted average number of common equivalent shares
(computed using the treasury stock method).............. 632 665 535 562
Common shares from convertible debt(2).................... -- -- -- 719
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)................................ -- -- -- 140
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Weighted average number of common and common
equivalent shares............................. 18,910 18,286 18,720 17,231
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Net earnings (pro forma net earnings for nine months ended
September 30, 1996) per common and common equivalent
share................................................... $ .20 $ .15 $ .37 $ .27
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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.