<PAGE>
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 Number
000-23189
C.H. ROBINSON WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
Delaware 41-1883630
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8100 South Mitchell Road, Suite 200, Eden Prairie, Minnesota 55344-2248
(Address of principal executive offices) (Zip Code)
(612) 937-8500
(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 July 31, 1998, the number of outstanding shares of the registrant's common
stock was 41,208,887.
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1. Financial Statements
C.H. ROBINSON WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands, except per share amounts)
<TABLE>
<CAPTION>
June 30,
1998 December 31,
ASSETS (Unaudited) 1997
-------------- -------------
<S> <C> <C>
CURRENT ASSETS:
Cash and Cash Equivalents $ 81,396 $ 62,497
Available-for-sale securities 25,539 10,428
Receivables, net of allowance for doubtful
accounts of $11,107 and $8,936 248,537 206,743
Inventories 4,060 3,109
Deferred tax benefit 3,710 4,781
Prepaid expenses and other 5,080 5,797
Income taxes receivable -- 17,334
--------- ---------
Total current assets 368,322 310,689
PROPERTY AND EQUIPMENT, net 21,848 22,226
INTANGIBLE & OTHER ASSETS, net 8,083 7,713
--------- ---------
$ 398,253 $ 340,628
========= =========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Accounts Payable $ 208,444 $ 166,789
Accrued Expenses --
Compensation and profit-sharing contribution 14,818 22,107
Income taxes & other 22,424 12,751
--------- ---------
Total current liabilities 245,686 201,647
STOCKHOLDERS' INVESTMENT
Preferred stock, $0.10 par value, 20,000 shares
authorized; none outstanding -- --
Common stock, $0.10 par value; 130,000 shares
authorized, 41,265 issued, 41,211 and
41,265 outstanding 4,121 4,126
Additional paid-in capital 60,862 62,108
Retained Earnings 88,549 73,465
Foreign currency translation adjustment (965) (718)
--------- ---------
Total stockholders' investment 152,567 138,981
--------- ---------
$ 398,253 $ 340,628
========= =========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated balance sheets.
- 2 -
<PAGE>
C.H. ROBINSON WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income
(In Thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
------------------- ----------------------
1998 1997 1998 1997
-------- -------- ----------- --------
<S> <C> <C> <C> <C>
GROSS REVENUES $546,672 $451,447 $ 1,014,861 $855,152
COST OF TRANSPORTATION AND PRODUCTS 483,380 399,177 896,348 755,996
-------- -------- ----------- --------
NET REVENUES 63,292 52,270 118,513 99,156
SELLING GENERAL AND ADMINISTRATIVE EXPENSES 44,671 36,994 86,538 72,465
-------- -------- ----------- --------
INCOME FROM OPERATIONS 18,621 15,276 31,975 26,691
INVESTMENT AND OTHER INCOME 639 1,030 1,130 1,881
-------- -------- ----------- --------
INCOME FROM CONTINUING OPERATIONS BEFORE
PROVISION FOR INCOME TAXES 19,260 16,306 33,105 28,572
PROVISION FOR INCOME TAXES 7,648 6,499 13,119 11,339
-------- -------- ----------- --------
NET INCOME FROM CONTINUING OPERATIONS 11,612 9,807 19,986 17,233
NET INCOME FROM DISCONTINUED OPERATIONS,
net of income taxes -- 461 -- 900
-------- -------- ----------- --------
NET INCOME $ 11,612 $ 10,268 $ 19,986 $ 18,133
-------- -------- ----------- --------
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment (202) -- (247) --
-------- -------- ----------- --------
COMPREHENSIVE INCOME $ 11,410 $ 10,268 $ 19,739 $ 18,133
======== ======== =========== ========
BASIC NET INCOME PER SHARE:
From continuing operations $ 0.28 $ 0.24 $ 0.48 $ 0.42
From discontinued operations -- 0.01 -- 0.02
-------- -------- ----------- --------
Net income $ 0.28 $ 0.25 $ 0.48 $ 0.44
======== ======== =========== ========
DILUTED NET INCOME PER SHARE:
From continuing operations $ 0.28 $ 0.24 $ 0.48 $ 0.42
From discontinued operations -- 0.01 -- 0.02
-------- -------- ----------- --------
Net income $ 0.28 $ 0.25 $ 0.48 $ 0.44
======== ======== =========== ========
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 41,215 41,253 41,233 41,306
DILUTIVE EFFECT OF OUTSTANDING STOCK OPTIONS 100 -- 101 --
-------- -------- ----------- --------
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 41,315 41,253 41,334 41,306
======== ======== =========== ========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated statements.
- 3 -
<PAGE>
C.H. ROBINSON WORLDWIDE INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
------------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 19,986 $ 18,133
Adjustments to reconcile net income to net cash provided
by operating activities -
Depreciation and amortization 4,137 4,073
Loss on sale of assets 11 75
Deferred income taxes 532 (1,662)
Changes in operating elements -
Receivables (41,794) (33,376)
Inventories (951) 258
Prepaid expenses and other current assets 717 424
Accounts payable 41,655 25,393
Accrued compensation and profit sharing (7,289) (5,411)
Accrued income taxes and other 27,007 4,403
------------- -------------
Net cash provided by operating activities 44,011 12,310
INVESTING ACTIVITIES:
Additions of property and equipment (2,791) (2,807)
Disposals of property and equipment 22 26
Sales/maturities of available-for-sale securities 12,053 34,362
Purchases of available-for-sale securities (27,162) (41,876)
Cash used by discontinued operations -- (2,332)
Other, net (1,036) 176
------------- -------------
Net cash used for investing activities (18,914) (12,451)
FINANCING ACTIVITIES:
Sales of common stock 826 103
Repurchase of common stock (2,077) (1,416)
Cash dividends (4,947) (825)
------------- -------------
Net cash used for financing activities (6,198) (2,138)
------------- -------------
Net increase in cash and cash equivalents 18,899 (2,279)
CASH AND CASH EQUIVALENTS, beginning of period 62,497 42,567
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 81,396 $ 40,288
============= =============
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated statements.
- 4 -
<PAGE>
C.H. ROBINSON WORLDWIDE INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
GENERAL:
C.H. Robinson Worldwide, Inc. and Subsidiaries (the "Company") is a
global provider of multimodal transportation services and logistic solutions
through a network of branch offices throughout the United States, along with
offices in Canada, Mexico, Belgium, the United Kingdom, France, Italy, Poland,
Brazil and South Africa. The condensed consolidated financial statements include
the accounts of C.H. Robinson Worldwide, Inc. and its majority owned and
controlled subsidiaries. The Company's financial services segment, which was
sold in the fourth quarter of 1997, is presented in the accompanying
consolidated financial statements as discontinued operations. Minority interests
in subsidiaries are not significant. All significant intercompany transactions
and balances have been eliminated in the condensed consolidated financial
statements.
The condensed consolidated financial statements which are unaudited
have been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC"). In management's opinion, these financial statements
include all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of the results of operations for the interim
periods presented. The results of operations for the three and six months ended
June 30, 1998 and 1997 are not necessarily indicative of results to be expected
for the entire year. Pursuant to SEC rules and regulations, certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted from these statements. The condensed consolidated financial statements
and notes thereto should be read in conjunction with the financial statements
and notes included in the Company's Annual Report on Form 10-K.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT:
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 131 "Disclosures about Segments of an Enterprise and
Related Information" (SFAS No. 131) in June 1997. SFAS No. 131 establishes
accounting standards for segment reporting and is effective for fiscal years
beginning after December 15, 1997. The adoption of SFAS No. 131 is not expected
to affect the Company's financial statements or the disclosures contained
therein.
- 5 -
<PAGE>
ITEM 2. Managements' Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion of the financial condition and results of
operations of the Company should be read in conjunction with the Company's
Condensed Consolidated Financial Statements and Notes thereto.
GENERAL
Gross revenues represent the total amount of services and goods sold by
the Company to its customers. Costs of transportation and products include
direct costs of transportation contracted by the Company, including motor
carrier, intermodal, ocean, air, and other costs, and the purchase price of
products sourced by the Company. The Company acts principally as a service
provider to add value and expertise in the execution and procurement of these
services for its customers. The net revenues of the Company (gross revenues less
costs of transportation and products) are the primary indicator of the Company's
ability to source, add value and resell services and products that are provided
by third parties, and are considered by management to be the primary measurement
of growth for the Company. Accordingly, the discussion of results of operations
below focuses on the changes in the Company's net revenues.
In the transportation industry generally, results of operations show a
seasonal pattern as customers reduce shipments during and after the winter
holiday season. In recent years, the Company's operating income and income from
continuing operations have been higher in the second and third quarters than in
the first and fourth quarters. Although seasonality in the transportation
industry has not had a significant impact on the Company's cash flow or results
of operations in recent years, the Company cannot fully predict the impact it
may have in the future. Inflation has not materially affected the Company's
operations due to the short-term, transactional basis of its business.
RESULTS OF OPERATIONS
The following table summarizes net revenue by service line:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------- -----------------------------------------
1998 1997 % change 1998 1997 % change
------------ ------------ -------------- ------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Revenue (in thousands)
Transportation $ 48,485 $ 39,707 22.1% $ 90,225 $ 75,682 19.2%
Sourcing 12,186 10,564 15.4% 23,283 19,662 18.4%
Information services 2,621 1,999 31.1% 5,005 3,812 31.3%
------------ ------------ -------------- ------------- ----------- --------------
Total $ 63,292 $ 52,270 21.1% $ 118,513 $ 99,156 19.5%
============ ============ ============== ============= =========== ==============
</TABLE>
- 6 -
<PAGE>
The following table represents certain income statement data shown as
percentages of the Company's net revenues:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- ----------------------------
1998 1997 1998 1997
-------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
Net revenues 100.0% 100.0% 100.0% 100.0%
Selling, general and administrative expenses 70.6% 70.8% 73.0% 73.1%
-------------- ---------- ----------- ------------
Income from operations 29.4% 29.2% 27.0% 26.9%
Investment and other income 1.0% 2.0% 1.0% 1.9%
-------------- ---------- ----------- ------------
Income from continuing operations before 30.4% 31.2% 28.0% 28.8%
provision for income taxes
Provision for income taxes 12.1% 12.4% 11.1% 11.4%
-------------- ---------- ----------- ------------
Net income from continuing operations 18.3% 18.8% 16.9% 17.4%
============== ========== =========== ============
</TABLE>
THREE MONTHS ENDED JUNE 30, 1998 COMPARED TO THREE MONTHS ENDED JUNE 30, 1997
Revenues. Gross revenues for the three months ended June 30, 1998 were
$546.7 million, an increase of 21.1% over gross revenues of $451.4 million for
the three months ended June 30, 1997. Net revenues for the three months ended
June 30, 1998 were $63.3 million, an increase of 21.1% over net revenues of
$52.3 million for the three months ended June 30, 1997, resulting from an
increase in transportation services net revenues of 22.1% to $48.5 million, an
increase in sourcing net revenues of 15.4% to $12.2 million, and an increase in
information services net revenues of 31.1% to $2.6 million.
The increase in transportation net revenue resulted primarily from an
increase in transaction volume. The increase in transaction volume was driven by
significant expansion of business with current customers and from new domestic
and international customers.
Sourcing net revenues increased by 15.4% due principally to net revenue
growth from sourcing produce for the Company's large retail chain customers and
a new program with an international produce exporter.
The increase in information services net revenue was the result of
significant growth in transaction volume. Net revenue per transaction decreased
slightly due to the increase in less expensive electronic transactions which
have been growing faster than manual transactions.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the three months ended June 30, 1998 were $44.7
million, an increase of 20.8% over $37.0 million for the three months ended June
30, 1997. Selling, general and administrative expenses as a percent of net
revenue remained relatively constant at 70.6% for the three months ended June
30, 1998 compared to 70.8% for the three months ended June 30,1997.
Income from Operations. Income from operations was $18.6 million for
the three months ended June 30, 1998, an increase of 21.9% over $15.3 million
for the three months ended June 30, 1997. Income
- 7 -
<PAGE>
from operations as a percent of net revenue were 29.4% and 29.2% for the three
months ended June 30, 1998 and for the three months ended June 30, 1997,
respectively.
Investment and Other Income. Investment and other income was $639,000
for the three months ended June 30, 1998, a decrease of 38.0% from $1.0 million
for the three months ended June 30, 1997. This decrease was the result of a
special dividend paid on October 10, 1997 in conjunction with the initial public
offering, which lowered the amount of cash available for investments.
Provision for Income Taxes. The effective income tax rates for
continuing operations were 39.7% and 39.9% for the three months ended June 30,
1998 and for the three months ended June 30, 1997. The effective income tax rate
for both periods is greater than the statutory federal income tax rate primarily
due to state income taxes, net of federal benefit.
Net Income from Continuing Operations. Net income from continuing
operations was $11.6 million for the three months ended June 30, 1998, an
increase of 18.4% over $9.8 million for the three months ended June 30, 1997.
Net income from continuing operations per share increased by 16.7% to $0.28
(basic and diluted) for the three months ended June 30, 1998 compared to $0.24
(basic and diluted) for the three months ended June 30, 1997.
SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997
Revenues. Gross revenues for the six months ended June 30, 1998 were
$1.0 billion, an increase of 18.7% over gross revenues of $855.2 million for the
six months ended June 30, 1997. Net revenues for the six months ended June 30,
1998 were $118.5 million, an increase of 19.5% over net revenues of $99.2
million for the six months ended June 30, 1997, resulting from an increase in
transportation services net revenues of 19.2% to $90.2 million, an increase in
sourcing net revenues of 18.4% to $23.3 million, and an increase in information
services net revenues of 31.3% to $5.0 million.
The increase in transportation net revenue resulted primarily from an
increase in transaction volume. The increase in transaction volume was driven by
significant expansion of business with current customers and from new domestic
and international customers.
Sourcing net revenues increased by 18.4% due principally to net revenue
growth from sourcing produce for the Company's large retail chain customers, a
new program with an international produce exporter and temporary opportunities
created by adverse weather conditions in major produce growing areas. The
Company's branch network and relationships with produce growers worldwide
provided the Company with sources of produce in this challenging market and
provided growth to both the number of transactions and the profit per
transaction.
The increase in information services net revenue was the result of
significant growth in transaction volume. Net revenue per transaction decreased
slightly due to the increase in less expensive electronic transactions which
have been growing faster than manual transactions.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the six months ended June 30, 1998 were $86.5
million, an increase of 19.4% over $72.5 million for the six months ended June
30, 1997. Selling, general and administrative expenses as a percent of net
revenue remained relatively constant at 73.0% for the six months ended June 30,
1998 compared to 73.1% for the six months ended June 30, 1997.
Income from Operations. Income from operations was $32.0 million for
the six months ended June 30, 1998, an increase of 19.8% over $26.7 million for
the six months ended June 30, 1997. Income from operations as a percent of net
revenue were 27.0% and 26.9% for the six months ended June 30, 1998 and for the
six months ended June 30, 1997, respectively.
- 8 -
<PAGE>
Investment and Other Income. Investment and other income was $1.1
million for the six months ended June 30, 1998, a decrease of 39.9% from $1.9
million for the six months ended June 30, 1997. This decrease was the result of
a special dividend paid on October 10, 1997 in conjunction with the initial
public offering, which lowered the amount of cash available for investments.
Provision for Income Taxes. The effective income tax rates for
continuing operations were 39.6% and 39.7% for the six months ended June 30,
1998 and for the six months ended June 30, 1997. The effective income tax rate
for both periods is greater than the statutory federal income tax rate primarily
due to state income taxes, net of their federal benefit.
Net Income from Continuing Operations. Net income from continuing
operations was $20.0 million for the six months ended June 30, 1998, an increase
of 16.0% over $17.2 million for the six months ended June 30, 1997. Net income
from continuing operations per share increased by 14.3% to $0.48 (basic and
diluted) for the six months ended June 30, 1998 compared to $0.42 (basic and
diluted) for the six months ended June 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company has historically generated substantial cash from operations
which has enabled it to fund its growth while paying cash dividends and
repurchasing stock. Cash and cash equivalents totaled $81.4 million and $62.5
million and available-for-sale securities totaled $25.5 million and $10.4
million as of June 30, 1998 and December 31, 1997, respectively. Working capital
at June 30, 1998 and December 31, 1997 totaled $122.6 million and $109.0
million, respectively. The Company has had no long-term debt for the last five
years.
Management believes that the Company's available cash, together with
expected future cash generated from operations, is expected to be sufficient to
satisfy its anticipated needs for working capital, capital expenditures, cash
dividends and stock repurchases. In addition, the Company has $17.5 million
available under its two existing lines of credit at interest rates of 6.7% and
6.6%, respectively, as of June 30, 1998. The lines of credit do not restrict the
payment of dividends. There were no borrowings under the lines of credit during
1997 or the six months ended June 30, 1998.
The Company continues to assess what impact the year 2000 will have on
its current information systems. A plan is underway to complete necessary
programming using primarily internal resources. The cost of this programming is
not expected to be material to the Company's overall financial position and is
being expensed as incurred. The Company believes that failure by its customers
or suppliers to address this issue in a timely manner will not have a
significant impact on the Company or its operations.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
The foregoing Management's Discussion and Analysis of Financial
Condition and Results of Operations contains certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements represent the Company's expectations or
beliefs, including, but not limited to, statements concerning the Company's
operations and financial performance and condition. When used in this Form 10-Q
and in future filings by the Company with the Securities and Exchange
Commission, in the Company's press releases, presentations to securities
analysts or investors, in oral statements made by or with the approval of an
executive officer of the Company, the words or phrases "believes," "may,"
"will," "expects," "should," "continue," "anticipates," "intends," "will likely
result," "estimates," "projects" or similar expressions and variations thereof
are intended to identify such forward-looking statements. However, any
statements contained in this Form 10-Q that are not statements of historical
fact may be deemed to be forward-looking statements. The Company cautions that
these statements by their nature involve risks and uncertainties, certain of
which are beyond the Company's control, and actual results may differ materially
depending on a variety of important factors, including those described in
Exhibit 99 to the Company's Form 10-K filed with the Securities and Exchange
Commission with respect to the Company's fiscal year ended December 31, 1997.
- 9 -
<PAGE>
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
PART II -- OTHER INFORMATION
ITEM 1. Legal Proceedings
In accordance with reporting requirements promulgated by the Securities
and Exchange Commission, the Company has no new information to report regarding
legal proceedings for this Quarterly Report on Form 10-Q.
ITEM 2. Changes in Securities and Use of Proceeds
None.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of the Company's stockholders was held on May 5,
1998. At the meeting, stockholders voted on the reelection of two directors for
terms expiring at the Annual Meeting of the Company in 2001. Each of the
directors was reelected by a vote as follows: D.R. Verdoorn received 25,634,013
votes "For" and 84,671 votes were "Withheld;" and Barry W. Butzow received
25,616,591 votes "For" and 102,093 votes were "Withheld."
ITEM 5. Other Information
None.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended June 30,
1998.
- 10 -
<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.
Date: August 13, 1998
C.H.ROBINSON WORLDWIDE, INC.
By /s/ D. R. Verdoorn
-------------------------------
D.R. Verdoorn
Chief Executive Officer
By /s/ Chad Lindbloom
------------------------------
Chad Lindbloom
Controller
(principal accounting officer)
- 11 -
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- - ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF C.H. ROBINSON WORLDWIDE, INC. AND
SUBSIDIARIES FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH 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> 81,396
<SECURITIES> 25,539
<RECEIVABLES> 259,644
<ALLOWANCES> 11,107
<INVENTORY> 4,060
<CURRENT-ASSETS> 368,322
<PP&E> 43,139
<DEPRECIATION> 21,291
<TOTAL-ASSETS> 398,253
<CURRENT-LIABILITIES> 245,686
<BONDS> 0
0
0
<COMMON> 4,121
<OTHER-SE> 148,446
<TOTAL-LIABILITY-AND-EQUITY> 398,253
<SALES> 0
<TOTAL-REVENUES> 1,014,861
<CGS> 0
<TOTAL-COSTS> 982,886
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 2,635
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 33,105
<INCOME-TAX> 13,119
<INCOME-CONTINUING> 19,986
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,986
<EPS-PRIMARY> .48
<EPS-DILUTED> .48
</TABLE>
