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<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q/A
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number: 0-28166
WHITTMAN-HART, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-3797833
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
311 South Wacker Drive, Suite 3500, Chicago, Illinois 60606-6618
----------------------------------------------------------------
(Address of principal executive offices, including Zip Code)
(312) 922-9200
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [x] No [ ]
As of November 7, 1997, there were 20,814,001 shares of common stock of the
registrant outstanding.
<PAGE>
EXPLANATION FOR AMENDMENT
This amendment is for the sole purpose of correcting the headings on the
Statements of Earnings. When filed electronically with the Securities and
Exchange Commission the headings were transposed. All financial numbers are
and were stated correctly.
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
WHITTMAN-HART, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 28, DECEMBER 31,
1997 1996
----------------- ----------------
ASSETS (UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 6,147,003 $ 35,898,095
Short-term investments 57,765,977 30,901,003
Trade accounts receivable, net of allowance for doubtful accounts
of $361,300 and $160,000 in 1997 and 1996, respectively 27,757,510 15,564,791
Income tax receivable - 140,154
Prepaid expenses and other current assets 2,594,831 1,290,798
Notes and interest receivable 73,444 28,885
Deferred income taxes 712,594 342,732
------------- --------------
Total current assets 95,051,359 84,166,458
Property and equipment, net 13,022,641 5,843,921
Notes receivable 102,858 148,263
Other assets 718,676 454,379
------------- --------------
Total assets $108,895,534 $ 90,613,021
------------- --------------
------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,042,558 $ 1,333,854
Accrued compensation and related costs 9,792,176 8,600,608
Income taxes payable 1,248,294 -
Accrued expenses and other liabilities 2,688,452 981,718
------------- --------------
Total current liabilities 16,771,480 10,916,180
Deferred income taxes 76,122 89,472
Deferred revenue 90,200 -
Deferred rent 1,010,315 888,165
------------- --------------
Total liabilities 17,948,117 11,893,817
Stockholders' equity:
Preferred stock, $.001 par value; 3,000,000 shares authorized,
none issued and outstanding - -
Common stock, $.001 par value; 37,000,000 authorized, 20,743,774
and 20,134,680 shares issued in 1997 and 1996, respectively 20,744 20,135
Additional paid-in capital 78,846,449 73,256,942
Retained earnings 12,946,746 5,552,755
Deferred compensation (866,522) (97,831)
------------- --------------
90,947,417 78,732,001
Common stock held in treasury, at cost; 6,605 shares in 1996 - (12,797)
------------- --------------
Total stockholders' equity 90,947,417 78,719,204
------------- --------------
Total liabilities and stockholders' equity $108,895,534 $ 90,613,021
------------- --------------
------------- --------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
WHITTMAN-HART, INC.
STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 28, SEPT. 30, SEPT. 28, SEPT. 30,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues $ 39,251,560 $ 23,301,500 $103,029,350 $ 62,164,250
Cost of services 22,670,110 13,842,490 60,606,650 37,204,470
------------ ------------ ------------ ------------
Gross profit 16,581,450 9,459,010 42,422,700 24,959,780
Costs and expenses:
Selling 1,597,190 926,250 4,308,690 2,635,790
Recruiting 1,693,820 926,730 4,041,520 2,533,760
General and administrative 9,502,558 5,244,244 24,272,251 14,889,466
------------ ------------ ------------ ------------
Total costs and expenses 12,793,568 7,097,224 32,622,461 20,059,016
------------ ------------ ------------ ------------
Operating income 3,787,882 2,361,786 9,800,239 4,900,764
Other income (expense):
Interest expense - - - (47,400)
Interest income 894,918 498,000 2,645,615 766,720
Other, net 7,546 (192,680) (227,679) (109,600)
------------ ------------ ------------ ------------
Total other income 902,464 305,320 2,417,936 609,720
------------ ------------ ------------ ------------
Income before income taxes 4,690,346 2,667,106 12,218,175 5,510,484
Income taxes 1,829,237 983,240 4,824,184 2,081,930
------------ ------------ ------------ ------------
Net income $ 2,861,109 $ 1,683,866 $ 7,393,991 $ 3,428,554
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net income per share $ 0.13 $ 0.08 $ 0.34 $ .20
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Shares used in computing net income per share 22,369,961 20,274,448 22,088,944 17,165,800
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
WHITTMAN-HART, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPT. 28, SEPT. 30,
1997 1996
------------ -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 7,393,991 $ 3,428,554
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 1,182,258 841,169
Deferred income taxes (383,212) (133,604)
Gain on disposition of property and equipment - (12,607)
Loss on sales of short-term investments (4,529) -
Executive stock expense - 29,213
Changes in assets and liabilities, net of acquisitions:
Trade accounts receivable, net (11,890,559) (4,369,068)
Prepaid expenses and other current assets (1,304,033) (870,770)
Notes receivable 846 305,569
Other assets 340,967 (162,674)
Accounts payable 1,708,704 (379,564)
Accrued compensation and related costs 1,191,568 (630,355)
Income taxes payable 3,100,332 402,199
Accrued expenses and other liabilities 1,748,369 167,818
Deferred revenue 90,200 -
Deferred rent 122,150 288,483
------------ -------------
Net cash provided by (used in) operating activities 3,297,052 (1,095,637)
------------ -------------
Cash flows from investing activities:
Purchases of investments (75,659,324) (12,571,399)
Sales and maturities of investments 49,188,986 999,784
Payment for acquisitions (605,264)
Purchases of property and equipment (8,383,894) (3,096,154)
Proceeds from disposition of property and equipment 19,960 43,122
------------ -------------
Net cash used in investing activities (35,439,536) (14,624,647)
------------ -------------
Cash flows from financing activities:
Proceeds from issuance of bank debt - 48,775
Payments on bank debt - (1,733,867)
Payments on related party debt - (317,413)
Proceeds from issuance of common stock, net of issuance costs - 65,933,251
Proceeds from exercise of stock options 1,750,937 72,733
Proceeds from employee stock purchase plan 640,455 529,919
Partnership capital distributions - (860,646)
------------ -------------
Net cash provided by financing activities 2,391,392 63,672,752
------------ -------------
Net increase (decrease) in cash and cash equivalents (29,751,092) 47,952,468
------------ -------------
Cash and cash equivalents at beginning of period 35,898,095 4,083,178
------------ -------------
Cash and cash equivalents at end of period $ 6,147,003 $ 52,035,646
------------ -------------
------------ -------------
Supplemental disclosures of cash flow information:
Interest paid $ - $ 58,181
Income taxes paid 2,107,064 1,813,335
Supplemental disclosures of noncash financing activities:
Tax benefit related to stock plans 1,711,884 -
Issuance of restricted stock awards 900,000 -
Issuance of common stock to executives - 102,130
Issuance of common stock for purchase of software 247,874
Issuance of 214,986 common shares for payment of acquisition
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Whittman-Hart, Inc.
Date: November 14, 1997 By: /s/ Kevin M. Gaskey
------------------------ --------------------------------
Kevin M. Gaskey
Chief Financial Officer and Treasurer
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