SECURITIES AND EXCHANGE COMMISSION 1
Washington, D.C. 20549
FORM 10-K
Amendment No. 1
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 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 1-5519
------
CDI CORP.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Pennsylvania 23-2394430
- ------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
1717 Arch Street, 35th Floor, Philadelphia, PA 19103-2768
- ---------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 569-2200
--------------
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Common stock, $.10 par value New York Stock Exchange
- ---------------------------- --------------------------------------
(Title of each class) (Name of exchange on which registered)
Indicate 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 if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best
of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
The aggregate market value as of February 20, 1998 of voting stock of the
Registrant held by shareholders other than officers, directors or known
beneficial owners of 10% or more of such stock of the Registrant was:
Common stock, $.10 par value $536,200,000
Class B common stock, $.10 par value Not applicable
The outstanding shares of each of the Registrant's classes of
common stock as of February 20, 1998 were:
Common stock, $.10 par value 19,924,035 shares
Class B common stock, $.10 par value None
DOCUMENTS INCORPORATED BY REFERENCE
Part of Form 10-K into
Documents which incorporated
--------- ----------------------
Proxy Statement for Annual Meeting
of Shareholders to be Held May 5, 1998 Part III
<PAGE>
2
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CDI Corp.
- -------------------------------------
By: /s/ Mitchell Wienick
- -------------------------------------
Mitchell Wienick, President
and Chief Executive Officer
Date: October 6, 1998
- -------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
By: /s/ Mitchell Wienick
- -------------------------------------
Mitchell Wienick
President, Chief Executive
Officer and Director
(Principal Executive Officer)
Date: October 6, 1998
- -------------------------------------
By: /s/ John D. Sanford
- -------------------------------------
John D. Sanford
Executive Vice President
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
Date: October 6, 1998
- -------------------------------------
By: /s/ Walter E. Blankley
- -------------------------------------
Walter E. Blankley
Director
Date: October 6, 1998
- -------------------------------------
<PAGE>
3
By: /s/ John M. Coleman
- -------------------------------------
John M. Coleman
Director
Date: October 6, 1998
- -------------------------------------
By: /s/ Walter R. Garrison
- -------------------------------------
Walter R. Garrison
Director
Date: October 6, 1998
- -------------------------------------
By: /s/ Kay Hahn Harrell
- -------------------------------------
Kay Hahn Harrell
Director
Date: October 6, 1998
- -------------------------------------
By: /s/ Lawrence C. Karlson
- -------------------------------------
Lawrence C. Karlson
Director
Date: October 6, 1998
- -------------------------------------
By: /s/ Allen M. Levantin
- -------------------------------------
Allen M. Levantin
Director
Date: October 6, 1998
- -------------------------------------
By: /s/ Alan B. Miller
- -------------------------------------
Alan B. Miller
Director
Date: October 6, 1998
- -------------------------------------
<PAGE>
4
By: /s/ Barton J. Winokur
- -------------------------------------
Barton J. Winokur
Director
Date: October 6, 1998
- -------------------------------------
<PAGE>
5
INDEX TO EXHIBITS
Number Exhibit Page
- ------- ------------------------------------------------------------ ----
3.(i) Articles of incorporation of the Registrant, incorporated
herein by reference to the Registrant's report on Form 10-Q
for the quarter ended June 30, 1990 (File No. 1-5519).
(ii) Bylaws of the Registrant, incorporated herein by reference
to the Registrant's report on Form 10-Q for the quarter
ended June 30, 1990 (File No. 1-5519).
10.a. CDI Corp. Non-Qualified Stock Option and Stock Appreciation
Rights Plan, incorporated herein by reference to the
Registrant s report on Form 10-Q for the quarter ended June
30, 1997 (File No. 1-5519). (Constitutes a management
contract or compensatory plan or arrangement)
b. Employment Agreement dated April 30, 1973 by and between
Comprehensive Designers, Inc. and Edgar D. Landis,
incorporated herein by reference to Exhibit 10.g. to
Registrant's registration statement on Form 8-B (File No.
1-5519). (Constitutes a management contract or
compensatory plan or arrangement)
c. Supplemental Pension Agreement dated April 11, 1978 between
CDI Corporation and Walter R. Garrison, incorporated herein
by reference to the Registrant's report on Form 10-K for
the year ended December 31, 1989 (File No. 1-5519).
(Constitutes a management contract or compensatory plan or
arrangement)
d. Non-competition and Consulting Agreement by and between
Registrant and Christian M. Hoechst dated October 17, 1995,
incorporated herein by reference to Registrant's report on
Form 10-K for the year ended December 31, 1995 (File No.
1-5519). (Constitutes a management contract or compensatory
plan or arrangement)
e. Employment Agreement dated March 11, 1997 including
Restricted Stock Agreement and Non-Qualified Stock Option
Agreement, by and between Registrant and Mitchell Wienick,
incorporated herein by reference to the EDGAR filing made by
the Registrant on April 1, 1997 in connection with the
Registrant's definitive Proxy Statement for its annual
meeting of shareholders held on April 28, 1997 (File No.
1-5519). (Constitutes a management contract or compensatory
plan or arrangement)
f. Consulting Agreement dated as of April 7, 1997 by and
between Registrant and Walter R. Garrison, incorporated
herein by reference to Registrant's report on Form 10-Q for
the quarter ended June 30, 1997 (File No. 1-5519).
(Constitutes a management contract or compensatory plan or
arrangement)
<PAGE>
6
INDEX TO EXHIBITS
Number Exhibit Page
- ------- ------------------------------------------------------------ ----
g. Employment Agreement, Restricted Stock Agreement and Non-
Qualified Stock Option Agreement all dated August 4, 1997,
by and between Registrant and Robert J. Mannarino,
incorporated herein by reference to Registrant's report on
Form 10-Q for the quarter ended September 30, 1997. (File
No. 1-5519). (Constitutes a management contract or
compensatory plan or arrangement)
h. Supplemental Retirement Agreement dated as of April 7, 1997
by and between Registrant and Mitchell Wienick.
(Constitutes a management contract or compensatory plan or
arrangement)*
i. Employment Agreement dated October 29, 1997, Restricted
Stock Agreement dated November 10, 1997 and Non-Qualified
Stock Option Agreement dated November 10, 1997 each by and
between Registrant and John D. Sanford. (Constitutes a
management contract or compensatory plan or arrangement)*
j. Supplemental Retirement Agreement dated as of November 18,
1997 by and between Registrant and Robert J. Mannarino.
(Constitutes a management contract or compensatory plan or
arrangement)*
k. Supplemental Retirement Agreement dated as of November 20,
1997 by and between Registrant and John D. Sanford.
(Constitutes a management contract or compensatory plan or
arrangement)*
l. Consulting Agreement dated as of December 3, 1997 by and
between Registrant and Edgar D. Landis. (Constitutes a
management contract or compensatory plan or arrangement)*
21. Subsidiaries of the Registrant.*
23. Consents of experts and counsel.*
27.(i) Financial Data Schedule. (December 31, 1997)*
(ii) Restated Financial Data Schedules. (September 30, 1997, 7
June 30, 1997, March 31, 1997, December 31, 1996, September
30, 1996, June 30, 1996, March 31, 1996 and December 31,
1995)**
* Previously filed
** Filed herewith
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements of CDI Corp. and Subsidiaries and is qualified
in its entirety by reference to such financial statements. The schedule is
restated to present earnings per share data in accordance with
the provisions of Financial Accounting Standards Board Statement No. 128,
Earnings per Share, which became effective for years ending after December
15, 1997 and requires restatement of all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 10,587
<SECURITIES> 0
<RECEIVABLES> 276,521
<ALLOWANCES> 4,670
<INVENTORY> 0
<CURRENT-ASSETS> 318,964
<PP&E> 75,313
<DEPRECIATION> 49,144
<TOTAL-ASSETS> 377,001
<CURRENT-LIABILITIES> 129,909
<BONDS> 22,800
0
0
<COMMON> 1,994
<OTHER-SE> 212,419
<TOTAL-LIABILITY-AND-EQUITY> 377,001
<SALES> 0
<TOTAL-REVENUES> 1,121,678
<CGS> 0
<TOTAL-COSTS> 861,223
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,186
<INCOME-PRETAX> 59,694
<INCOME-TAX> 22,195
<INCOME-CONTINUING> 36,431
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,431
<EPS-PRIMARY> 1.84
<EPS-DILUTED> 1.83
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements of CDI Corp. and Subsidiaries and is qualified
in its entirety by reference to such financial statements. The schedule is
restated to present earnings per share data in accordance with
the provisions of Financial Accounting Standards Board Statement No. 128,
Earnings per Share, which became effective for years ending after December
15, 1997 and requires restatement of all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 13,076
<SECURITIES> 0
<RECEIVABLES> 267,943
<ALLOWANCES> 4,227
<INVENTORY> 0
<CURRENT-ASSETS> 325,601
<PP&E> 73,244
<DEPRECIATION> 46,826
<TOTAL-ASSETS> 381,230
<CURRENT-LIABILITIES> 120,925
<BONDS> 51,032
0
0
<COMMON> 1,992
<OTHER-SE> 198,489
<TOTAL-LIABILITY-AND-EQUITY> 381,230
<SALES> 0
<TOTAL-REVENUES> 738,605
<CGS> 0
<TOTAL-COSTS> 567,641
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,492
<INCOME-PRETAX> 38,309
<INCOME-TAX> 15,362
<INCOME-CONTINUING> 22,656
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,656
<EPS-PRIMARY> 1.14
<EPS-DILUTED> 1.14
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements of CDI Corp. and Subsidiaries and is qualified
in its entirety by reference to such financial statements. The schedule is
restated to present earnings per share data in accordance with
the provisions of Financial Accounting Standards Board Statement No. 128,
Earnings per Share, which became effective for years ending after December
15, 1997 and requires restatement of all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 15,561
<SECURITIES> 0
<RECEIVABLES> 261,707
<ALLOWANCES> 4,439
<INVENTORY> 0
<CURRENT-ASSETS> 322,614
<PP&E> 71,383
<DEPRECIATION> 45,324
<TOTAL-ASSETS> 375,304
<CURRENT-LIABILITIES> 120,492
<BONDS> 59,166
0
0
<COMMON> 1,988
<OTHER-SE> 185,690
<TOTAL-LIABILITY-AND-EQUITY> 375,304
<SALES> 0
<TOTAL-REVENUES> 360,461
<CGS> 0
<TOTAL-COSTS> 278,519
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 704
<INCOME-PRETAX> 18,088
<INCOME-TAX> 7,236
<INCOME-CONTINUING> 10,741
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,741
<EPS-PRIMARY> .54
<EPS-DILUTED> .54
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains financial information extracted from the consolidated
financial statements of CDI Corp. and Subsidiaries and is qualified in its
entirety by reference to such financial statements. The schedule is restated to
present earnings per share data in accordance with the provisions of Financial
Accounting Standards Board Statement No. 128, Earnings per Share, which became
effective for years ending after December 15, 1997 and requires restatement of
all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 6,066
<SECURITIES> 0
<RECEIVABLES> 237,549
<ALLOWANCES> 4,094
<INVENTORY> 0
<CURRENT-ASSETS> 287,974
<PP&E> 68,796
<DEPRECIATION> 43,292
<TOTAL-ASSETS> 340,174
<CURRENT-LIABILITIES> 106,850
<BONDS> 48,866
0
0
<COMMON> 1,985
<OTHER-SE> 174,947
<TOTAL-LIABILITY-AND-EQUITY> 340,174
<SALES> 0
<TOTAL-REVENUES> 1,374,881
<CGS> 0
<TOTAL-COSTS> 1,062,409
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,451
<INCOME-PRETAX> 70,244
<INCOME-TAX> 27,607
<INCOME-CONTINUING> 42,470
<DISCONTINUED> (11,072)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 31,398
<EPS-PRIMARY> 1.58
<EPS-DILUTED> 1.58
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains financial information extracted from the consolidated
financial statements of CDI Corp. and Subsidiaries and is qualified in its
entirety by reference to such financial statements. The schedule is restated to
present earnings per share data in accordance with the provisions of Financial
Accounting Standards Board Statement No. 128, Earnings per Share, which became
effective for years ending after December 15, 1997 and requires restatement of
all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996<F1>
<CASH> 10,257
<SECURITIES> 0
<RECEIVABLES> 282,417
<ALLOWANCES> 5,698
<INVENTORY> 0
<CURRENT-ASSETS> 306,954
<PP&E> 114,706
<DEPRECIATION> 80,191
<TOTAL-ASSETS> 371,626
<CURRENT-LIABILITIES> 123,198
<BONDS> 68,067
0
0
<COMMON> 1,985
<OTHER-SE> 171,696
<TOTAL-LIABILITY-AND-EQUITY> 371,626
<SALES> 0
<TOTAL-REVENUES> 1,023,330
<CGS> 0
<TOTAL-COSTS> 790,956
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,761
<INCOME-PRETAX> 53,790
<INCOME-TAX> 21,573
<INCOME-CONTINUING> 32,115
<DISCONTINUED> (3,955)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,160
<EPS-PRIMARY> 1.42
<EPS-DILUTED> 1.42
<FN>
<F1> Balance sheet items have not been restated for discontinued operations
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains financial information extracted from the consolidated
financial statements of CDI Corp. and Subsidiaries and is qualified in its
entirety by reference to such financial statements. The schedule is restated to
present earnings per share data in accordance with the provisions of Financial
Accounting Standards Board Statement No. 128, Earnings per Share, which became
effective for years ending after December 15, 1997 and requires restatement of
all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996<F1>
<CASH> 6,367
<SECURITIES> 0
<RECEIVABLES> 267,248
<ALLOWANCES> 4,271
<INVENTORY> 0
<CURRENT-ASSETS> 301,357
<PP&E> 111,322
<DEPRECIATION> 76,643
<TOTAL-ASSETS> 365,166
<CURRENT-LIABILITIES> 115,342
<BONDS> 80,319
0
0
<COMMON> 1,985
<OTHER-SE> 161,419
<TOTAL-LIABILITY-AND-EQUITY> 365,166
<SALES> 0
<TOTAL-REVENUES> 669,654
<CGS> 0
<TOTAL-COSTS> 519,450
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,861
<INCOME-PRETAX> 32,325
<INCOME-TAX> 12,984
<INCOME-CONTINUING> 19,297
<DISCONTINUED> (1,376)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,921
<EPS-PRIMARY> .90
<EPS-DILUTED> .90
<FN>
<F1> Balance sheet items have not been restated for discontinued operations
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains financial information extracted from the consolidated
financial statements of CDI Corp. and Subsidiaries and is qualified in its
entirety by reference to such financial statements. The schedule is restated to
present earnings per share data in accordance with the provisions of Financial
Accounting Standards Board Statement No. 128, Earnings per Share, which became
effective for years ending after December 15, 1997 and requires restatement of
all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996<F1>
<CASH> 3,602
<SECURITIES> 0
<RECEIVABLES> 252,162
<ALLOWANCES> 4,076
<INVENTORY> 0
<CURRENT-ASSETS> 284,238
<PP&E> 106,137
<DEPRECIATION> 73,498
<TOTAL-ASSETS> 345,931
<CURRENT-LIABILITIES> 112,872
<BONDS> 73,311
0
0
<COMMON> 1,985
<OTHER-SE> 151,978
<TOTAL-LIABILITY-AND-EQUITY> 345,931
<SALES> 0
<TOTAL-REVENUES> 330,808
<CGS> 0
<TOTAL-COSTS> 256,929
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 864
<INCOME-PRETAX> 14,661
<INCOME-TAX> 5,919
<INCOME-CONTINUING> 8,733
<DISCONTINUED> (237)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,496
<EPS-PRIMARY> .43
<EPS-DILUTED> .43
<FN>
<F1> Balance sheet items have not been restated for discontinued operations
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains financial information extracted from the consolidated
financial statements of CDI Corp. and Subsidiaries and is qualified in its
entirety by reference to such financial statements. The schedule is restated to
present earnings per share data in accordance with the provisions of Financial
Accounting Standards Board Statement No. 128, Earnings per Share, which became
effective for years ending after December 15, 1997 and requires restatement of
all prior periods presented.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 4,495
<SECURITIES> 0
<RECEIVABLES> 215,915
<ALLOWANCES> 3,520
<INVENTORY> 0
<CURRENT-ASSETS> 266,600
<PP&E> 58,386
<DEPRECIATION> 36,810
<TOTAL-ASSETS> 323,563
<CURRENT-LIABILITIES> 104,865
<BONDS> 67,865
0
0
<COMMON> 1,985
<OTHER-SE> 143,384
<TOTAL-LIABILITY-AND-EQUITY> 323,563
<SALES> 0
<TOTAL-REVENUES> 1,202,936
<CGS> 0
<TOTAL-COSTS> 938,680
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,603
<INCOME-PRETAX> 51,867
<INCOME-TAX> 20,562
<INCOME-CONTINUING> 31,185
<DISCONTINUED> (26,046)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,139
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
</TABLE>
