<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[MARK ONE]
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1998
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 No. 0-22195
AHL SERVICES, INC.
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
GEORGIA 58-2277249
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3353 Peachtree Road, NE, Atlanta, GA 30326
- ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (404) 267-2222
----------------
Not Applicable
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 14,072,672 shares on August 7,
1998.
<PAGE> 2
AHL SERVICES, INC.
FORM 10-Q
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
PART I FINANCIAL INFORMATION
<S> <C>
ITEM 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets 2
June 30, 1998 (Unaudited) and December 31, 1997
Condensed Consolidated Statements of Operations (Unaudited) 3
Three Months Ended June 30, 1998 and 1997
Condensed Consolidated Statements of Operations (Unaudited) 4
Six Months Ended June 30, 1998 and 1997
Condensed Consolidated Statements of Cash Flows (Unaudited) 5
Six Months Ended June 30, 1998 and 1997
Notes to Condensed Consolidated Financial Statements 6
ITEM 2. Management's Discussion and Analysis of Financial 7
Condition and Results of Operations
PART II OTHER INFORMATION AND SIGNATURE
ITEM 4. Submission of Matters to a vote of Security Holders 10
ITEM 6. Exhibits and Reports on Form 8-K 10
SIGNATURE 11
</TABLE>
1
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
AHL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
ASSETS 1998 1997
------------ ------------
(unaudited)
CURRENT ASSETS:
<S> <C> <C> <C>
Cash $ 5,222 $ 15,456
Accounts receivable, net 67,398 51,247
Uniforms in service, net 1,894 2,087
Prepaid expenses and other 4,552 2,761
----------- -----------
Total current assets 79,066 71,551
Property and equipment, net 12,037 10,885
Intangibles, net 45,059 25,665
Other assets 714 713
Deferred taxes 980 980
----------- -----------
$ 137,856 $ 109,794
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,534 $ 3,298
Accrued payroll and other liabilities 29,215 22,561
Current portion of self-insurance reserves 920 760
Income taxes payable 2,049 1,281
Deferred income taxes 467 332
Current portion of long-term debt 471 496
----------- -----------
Total current liabilities 37,656 28,728
----------- -----------
Long-term debt, less current portion 17,446 3,495
----------- -----------
Self-insurance reserves, less current portion 3,680 3,040
----------- -----------
SHAREHOLDERS' EQUITY:
Preferred stock, no par value; 5,000,000 shares authorized; no shares
issued or outstanding - -
Common stock, $.01 par value; 50,000,000 shares authorized, 13,611,500
and 13,605,000 shares issued and outstanding 136 136
Paid in capital 62,973 62,908
Cumulative translation adjustment 4 (83)
Retained earnings 15,961 11,570
----------- -----------
Total shareholders' equity 79,074 74,531
----------- -----------
$ 137,856 $ 109,794
=========== ===========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
2
<PAGE> 4
AHL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
------------------------------
1998 1997
--------- --------
<S> <C> <C>
Revenues $ 98,871 $ 63,770
-------- --------
Operating expenses:
Cost of services 72,755 47,341
Field operating 17,074 10,343
Corporate general and administrative 4,598 3,668
--------- --------
Total operating expenses 94,427 61,352
--------- --------
Operating income 4,444 2,418
Interest expense, net 177 170
Other (income), net (17) (154)
--------- --------
Income before income taxes and extraordinary items 4,284 2,402
Income tax provision 1,717 948
--------- --------
Income before extraordinary items 2,567 1,454
Extraordinary items, net of taxes of $257 - (385)
--------- --------
Net income $ 2,567 $ 1,069
========= ========
Income before extraordinary items per common and
common equivalent shares
Basic $ 0.19 $ 0.13
========= ========
Diluted $ 0.18 $ 0.13
========= ========
Extraordinary items per common and common equivalent
shares
Basic $ - $ (0.04)
========= ========
Diluted $ - $ (0.04)
========= ========
Net income per common and common equivalent shares
Basic $ 0.19 $ 0.09
========= ========
Diluted $ 0.18 $ 0.09
========= ========
Weighted average common and common equivalent shares
Basic 13,610 10,853
========= ========
Diluted 14,220 11,104
========= ========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
3
<PAGE> 5
AHL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
-------------------------
1998 1997
--------- ---------
<S> <C> <C>
Revenues $ 183,371 $ 124,194
--------- ---------
Operating expenses:
Cost of services 135,597 92,769
Field operating 31,494 20,266
Corporate general and administrative 9,047 7,103
--------- ---------
Total operating expenses 176,138 120,138
--------- ---------
Operating income 7,233 4,056
Interest expense, net 214 818
Other (income), net (299) (242)
--------- ---------
Income before income taxes and extraordinary items 7,318 3,480
Income tax provision 2,927 1,375
--------- ---------
Income before extraordinary items 4,391 2,105
Extraordinary items, net of taxes of $257 - (385)
--------- ---------
Net income $ 4,391 $ 1,720
========= =========
Income before extraordinary items per common and
common equivalent shares
Basic $ 0.32 $ 0.22
========= =========
Diluted $ 0.31 $ 0.21
========= =========
Extraordinary items per common and common equivalent
shares
Basic $ - $ (0.04)
========= =========
Diluted $ - $ (0.04)
========= =========
Net income per common and common equivalent shares
Basic $ 0.32 $ 0.18
========= =========
Diluted $ 0.31 $ 0.17
========= =========
Weighted average common and common equivalent shares
Basic 13,607 9,679
========= =========
Diluted 14,163 9,895
========= =========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
4
<PAGE> 6
AHL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 4,391 $ 1,720
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Extraordinary items - 385
Depreciation and amortization 3,673 2,575
Loss (gain) on sales of property and equipment (297) 2
Changes in working capital, net (10,279) (3,022)
-------- --------
Net cash provided by (used in) operating activities (2,512) 1,660
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions (18,907) (5,655)
Purchases of property and equipment (4,047) (992)
Proceeds from sales of property and equipment 1,654 -
Other activities, net (295) (136)
-------- --------
Net cash used in investing activities (21,595) (6,783)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of credit facility (37,954) (69,318)
Borrowings under credit facility 51,774 59,119
Repayment of long-term debt, net - (5,848)
Repayment of note from shareholder - 964
Proceeds from exercise of stock options 65 -
Proceeds from IPO - 23,250
Expenses of IPO - (818)
Repurchase of outstanding warrants - (750)
-------- --------
Net cash provided by financing activities 13,885 6,599
-------- --------
Effect of exchange rates on cash (12) (20)
-------- --------
Net change in cash (10,234) 1,456
Cash at beginning of period 15,456 1,842
-------- --------
Cash at end of period $ 5,222 $ 3,298
======== ========
CASH PAID DURING THE PERIOD FOR:
Interest $ 75 $ 818
======== ========
Income taxes $ 2,159 $ 130
======== ========
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Equipment purchases under capital lease obligations $ - $ 472
======== ========
Contribution of real estate $ - $ 1,637
======== ========
Forgiveness of note payable to shareholder $ - $ 528
======== ========
Assumption of real estate debt $ - ($ 2,532)
======== ========
Accrual of IPO expenses $ - $ 625
======== ========
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
5
<PAGE> 7
AHL SERVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998
(UNAUDITED)
1. SUMMARY OF PRESENTATION - The condensed consolidated financial
statements included herein have been prepared by the Company, without
audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes
that the disclosures are adequate to make the information not
misleading. In the opinion of management, the condensed consolidated
financial statements contain all adjustments necessary to present
fairly the financial position of the Company as of June 30, 1998, the
results of its operations for the three and six months ended June 30,
1998 and 1997 and the results of its cash flows for the six months
ended June 30, 1998 and 1997. All such adjustments are of a normal
recurring nature. The results of operations for the three and six
months ended June 30, 1998 are not necessarily indicative of the
results to be expected for the year ended December 31, 1998. For
further information, refer to the consolidated financial statements and
footnotes thereto for the year ended December 31, 1997 included in the
Company's 10-K.
2. ACQUISITIONS - On February 6, 1998, AHL acquired SES Staffing
Solutions, Inc. ("SES"), a light industrial staffing company located in
Maryland. SES's 1997 revenues were approximately $16 million. On April
1, 1998, the Company acquired TUJA Zeitarbeit GmbH ("TUJA"), a Germany
based industrial staffing company. TUJA had revenues of approximately
$16 million in 1997. The results of operations of SES and TUJA have
been included in the attached condensed consolidated financial
statements included herein since the dates of acquisition. These
acquisitions were accounted for using the purchase method of
accounting. As a result, the purchase prices have been allocated to the
assets acquired, including intangibles, based on their respective fair
values.
3. ACQUISITIONS SUBSEQUENT TO JUNE 30, 1998 - On July 24, 1998, the
Company acquired Gage Marketing Support Services Group ("Gage"), the
marketing execution and fulfillment businesses of the Minneapolis-based
Gage Marketing Group, LLC for a purchase price of $81.1 million,
comprised of $54.1 million in cash, $17 million in AHL common stock and
$10 million of convertible subordinated debentures. Gage had revenues
of approximately $80 million in 1997.
On August 10, 1998, the Company acquired EMD Gesellschaft fur
Elektroinstallation-und Maschinenbau-Dienstleistungen GmbH ("EMD") for
a cash purchase price of approximately $42 million. EMD is an
industrial staffing company headquartered near Frankfurt, Germany with
1997 revenues of approximately $50 million. The transaction was
effective July 31, 1998.
The Gage and EMD acquisitions occurred subsequent to June 30, 1998
and have therefore been excluded from the attached condensed
consolidated financial statements.
6
<PAGE> 8
Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations
Operating Results - Three Months Ended June 30, 1998 and 1997
Revenues increased $35.1 million, or 55%, to $98.9 million in the second quarter
of 1998 from $63.8 million in the second quarter of 1997. Of this increase,
approximately $11.4 million was attributable to the acquisitions made in 1997,
which primarily occurred after the second quarter of 1997, and $10.4 million was
attributable to the acquisitions of SES and TUJA in February and April 1998,
respectively. The remaining increase was a result of providing additional
services to existing clients, entering into contracts to provide services to new
clients, and rate increases on existing contacts.
Cost of services represents the direct costs attributable to a specific
contract, predominantly wages and related benefits, as well as certain related
expenses such as workers' compensation and other direct labor related expenses.
Cost of services increased $25.4 million, or 54%, to $72.8 million in the second
quarter of 1998 from $47.3 million in the second quarter of 1997. As a
percentage of revenues, cost of services decreased to 73.6% in the second
quarter of 1998 from 74.2% in the second quarter of 1997. This decrease was
primarily due to rate increases on existing contracts and the effect of the
growth in revenues of the Company's higher margin marketing execution and
fulfillment services business.
Field operating expenses represent expenses which directly support field
operations, such as each district's management, facilities expenses (such as
rent, communication costs and taxes), employee uniforms, equipment leasing,
depreciation and maintenance, local sales and marketing activities and
acquisition related goodwill. These expenses increased $6.7 million, or 65%, to
$17.1 million in the second quarter of 1998 from $10.3 million in the second
quarter of 1997. As a percentage of revenues, field operating expenses increased
to 17.3% in the second quarter of 1998 from 16.2% in the second quarter of 1997.
This percentage increase was primarily attributable to the amortization of
acquisition related goodwill in 1998.
Corporate general and administrative expenses, which includes the cost of
services the Company provides to support and manage its field activities,
increased $930,000, or 25%, to $4.6 million in the second quarter of 1998 from
$3.7 million in the second quarter of 1997. As a percentage of revenues, these
expenses decreased to 4.7% in the second quarter of 1998 from 5.8% in the second
quarter of 1997. This percentage decrease was primarily due to better leveraging
of corporate personnel.
Operating income increased $2.0 million, or 84%, to $4.4 million in the second
quarter of 1998 from $2.4 million in the second quarter of 1997. As a percentage
of revenues, operating income improved to 4.5% in the second quarter of 1998
from 3.8% in the second quarter of 1997.
Income tax provision increased $769,000 or 81%, to $1.7 million in the second
quarter of 1998 from $948,000 in the second quarter of 1997. The Company
provided income taxes at an estimated rate of 40.0% in 1998 and 39.5% in 1997.
The Company expensed extraordinary items during the second quarter of 1997 of
$385,000, net of taxes of $257,000. The extraordinary items consisted of the
write-off of unamortized loan origination costs and debt discount.
7
<PAGE> 9
Net income increased $1.5 million, or 140%, to $2.6 million, or 2.6% of
revenues, in the second quarter of 1998 from net income of $1.1 million, or 1.7%
of revenues, in the second quarter of 1997.
Operating Results - Six Months Ended June 30, 1998 and 1997
Revenues increased $59.2 million, or 48%, to $183.4 million for the six months
ended June 30, 1998 from $124.2 million in 1997. Of this increase, approximately
$22.4 million was attributable to the acquisitions made in 1997, which primarily
occurred after the second quarter of 1997, and $12.4 million was attributable to
the 1998 acquisitions of SES and TUJA. The remaining increase was a result of
providing additional services to existing clients, entering into contracts to
provide services to new clients, and rate increases on existing contracts.
Cost of services increased $42.8 million, or 46%, to $135.6 million for the six
months ended June 30, 1998 from $92.8 million in 1997. As a percentage of
revenues, cost of services decreased to 73.9% for the six months ended June 30,
1998 from 74.7% in 1997. This decrease was primarily due to rate increases on
existing contracts and the effect of the growth in revenues of the Company's
higher margin marketing execution and fulfillment services business.
Field operating expenses increased $11.2 million, or 55%, to $31.5 million for
the six months ended June 30, 1998 from $20.3 million in 1997. As a percentage
of revenues, field operating expenses increased to 17.2% for the six months
ended June 30, 1998 from 16.3% in 1997. This percentage increase was primarily
attributable to the amortization of acquisition related goodwill in 1998.
Corporate general and administrative expenses increased $1.9 million, or 27%, to
$9.0 million for the six months ended June 30, 1998 from $7.1 million in 1997.
As a percentage of revenues, these expenses decreased to 4.9% for the six months
ended June 30, 1998 from 5.7% in 1997. This percentage decrease was primarily
due to better leveraging of corporate personnel.
Operating income increased $3.2 million, or 78%, to $7.2 million for the six
months ended June 30, 1998 from $4.1 million in 1997. As a percentage of
revenues, operating income improved to 3.9% for the six months ended June 30,
1998 from 3.3% in 1997.
Interest expense, net, decreased $604,000, or 74%, to $214,000 for the six
months ended June 30, 1998 from $818,000 in 1997. Interest expense decreased in
1998 due to the repayment of the Company's outstanding working capital debt with
the proceeds from the Company's equity offering which closed in the fourth
quarter of 1997.
Income tax provision increased $1.6 million, or 113%, to $2.9 million for the
six months ended June 30, 1998 from $1.4 million in 1997. The Company provided
income taxes at an estimated rate of 40.0% in 1998 and 39.5% in 1997.
The Company expensed extraordinary items during the second quarter of 1997 of
$385,000, net of taxes of $257,000. The extraordinary items consisted of the
write-off of unamortized loan origination costs and debt discount.
Net income increased $2.7 million, or 155%, to $4.4 million, or 2.4% of
revenues, for the six months ended June 30, 1998 from net income of $1.7
million, or 1.4% of revenues, in 1997.
8
<PAGE> 10
Liquidity and Capital Resources Cash used in operating activities was $2.5
million for the six months ended June 30, 1998 compared to cash provided by
operating activities of $1.7 million for the six months ended June 30, 1997.
This decrease in cash from operating activities was the result of an increase of
$3.8 million in net income before depreciation and amortization offset by $7.3
million of changes in working capital due to increases in accounts receivable as
a result of the growth in revenues and the timing of payments of accounts
payable and accrued expenses. Cash used in investing activities for the six
months ended June 30, 1998 was $21.6 million compared to $6.8 million for the
six months ended June 30, 1997. The increased use of cash was principally as a
result of the acquisitions of SES and TUJA in 1998, which were larger than the
acquisitions of EAS and USA Security in 1997, and additional purchases of
transportation and computer equipment. Cash provided by financing activities for
the six months ended June 30, 1998 was $13.9 million compared to $6.6 million
for the six months ended June 30, 1997. The increase in cash provided by
financing activities for 1998 was principally the result of additional
borrowings under the Company's credit facility in 1998 to fund the acquisitions.
Capital expenditures were approximately $4.0 million for the six months ended
June 30, 1998 compared to $1.0 for the six months ended June 30, 1997.
Historically, capital expenditures have been, and future expenditures are
anticipated to be, primarily to support expansion of the Company's operations
and management information systems.
Effective July 9, 1998, AHL expanded its credit facility to $150 million with a
syndicate of national banking organizations led by First Union National Bank.
The Company plans to utilize the facility to grow its business through strategic
acquisitions. At June 30, 1998, after taking into account the increase in the
credit facility, there was approximately $134 million of availability remaining
under the credit facility. Approximately $91 million of this amount was utilized
to fund the Gage and EMD acquisitions.
The Company believes that funds generated from operations, together with
existing cash and borrowings under the credit facility, will be sufficient to
finance its current operations, planned capital expenditures and internal growth
for at least the next several years. If the Company were to make a significant
acquisition for cash it may be necessary for the Company to obtain additional
debt or equity financing.
9
<PAGE> 11
AHL SERVICES, INC.
PART II - OTHER INFORMATION AND SIGNATURE
Item 4 - Submission of Matters to a Vote of Security Holders
The Company's annual meeting of shareholders was held on May 14, 1998.
The matters voted upon and the results of voting were as follows:
To elect two directors to serve until the annual meeting of
shareholders in 2001 or until their successors are duly elected and
qualified. The nominees, Messrs. Mellett and Melville were elected to the
Company's board of directors to serve until the annual meeting of
shareholders in 2001. There were 11,603,314 votes for and 100 votes
withheld for Mr. Mellett and 11,603,314 votes for and 100 votes withheld
for Mr. Melville.
To approve and adopt an amendment to the 1997 Stock Incentive Plan.
There were 10,913,697 votes for, 34,500 votes against and 1,995 votes
abstained.
To ratify the appointment of Arthur Andersen LLP as independent
auditors for the Company for the year ending December 31, 1998. There were
11,602,614 votes for, 600 votes against and 200 votes abstained.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
<TABLE>
<CAPTION>
Exhibit Number Description
-------------- -----------
<S> <C>
11 Computation of Earnings Per Share
27 Financial Data Schedule (For SEC Filing Purposes Only)
</TABLE>
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter ended June 30,
1998.
10
<PAGE> 12
SIGNATURE
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.
AHL SERVICES, INC.
(REGISTRANT)
Date: August 13, 1998 By: /s/ David L. Gamsey
--------------------------------------------
David L. Gamsey
Vice President and Chief Financial Officer
(On behalf of the Registrant and as Chief
Accounting Officer)
11
<PAGE> 1
EXHIBIT 11
AHL SERVICES, INC.
COMPUTATION OF EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER-SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------ -------------------
1998 1997 1998 1997
---------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Income Applicable to Common Stock
- ---------------------------------
Income before extraordinary items $ 2,657 $ 1,454 $ 4,391 $ 2,105
Extraordinary items, net of taxes - (385) - (385)
---------- ---------- ---------- ----------
Net income $ 2,567 $ 1,069 $ 4,391 $ 1,720
========== ========== ========== ==========
Weighted Average Shares
- -----------------------
Common shares 13,610 10,853 13,607 9,679
Common share equivalents applicable to
stock options and warrants
outstanding 610 251 556 216
---------- ---------- ---------- ----------
Weighted average common and common
equivalent shares outstanding during
the period 14,220 11,104 14,163 9,895
========= ========= ========== ==========
Per Share Amount
- ----------------
Income before extraordinary items
Basic $ 0.19 $ 0.13 $ 0.32 $ 0.22
========= ========= ========== ==========
Diluted $ 0.18 $ 0.13 $ 0.31 $ 0.21
========= ========= ========== ==========
Extraordinary items, net of taxes
Basic $ - $ (0.04) $ - $ (0.04)
========= ========= ========== ==========
Diluted $ - $ (0.04) $ - $ (0.04)
========= ========= ========== ==========
Net income
Basic $ 0.19 $ 0.09 $ 0.32 $ 0.18
========= ========= ========== ==========
Diluted $ 0.18 $ 0.09 $ 0.31 $ 0.17
========= ========= ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AHL
SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEET AT JUNE 30, 1998 AND THE
CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30,
1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 5,222
<SECURITIES> 0
<RECEIVABLES> 68,139
<ALLOWANCES> 741
<INVENTORY> 1,894
<CURRENT-ASSETS> 79,066
<PP&E> 22,988
<DEPRECIATION> 10,951
<TOTAL-ASSETS> 137,856
<CURRENT-LIABILITIES> 37,656
<BONDS> 17,446
0
0
<COMMON> 136
<OTHER-SE> 78,938
<TOTAL-LIABILITY-AND-EQUITY> 137,856
<SALES> 183,371
<TOTAL-REVENUES> 183,371
<CGS> 135,597
<TOTAL-COSTS> 135,597
<OTHER-EXPENSES> 40,541
<LOSS-PROVISION> 179
<INTEREST-EXPENSE> 214
<INCOME-PRETAX> 7,318
<INCOME-TAX> 2,927
<INCOME-CONTINUING> 4,391
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,391
<EPS-PRIMARY> 0.32
<EPS-DILUTED> 0.31
</TABLE>
