SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------
F O R M 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
-------------------------------------------
For Quarter Ended June 29, 1998 Commission File Number 0-7282
COMPUTER HORIZONS CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 13-2638902
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
49 Old Bloomfield Avenue, Mountain Lakes, New Jersey 07046-1495
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (973) 299-4000
--------------
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 twelve 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.
X
--- --
Yes No
As of August 7, 1998 the issuer had 30,869,919 shares of common stock
outstanding.
<PAGE>
COMPUTER HORIZONS CORP.
Index
Part I Financial Information
Consolidated Balance Sheets
June 29, 1998 and December 31, 1997
Consolidated Statements of Income
Three Months and Six Months Ended
June 29, 1998 and June 27, 1997
Condensed Consolidated Statements of
Cash Flows - Six Months Ended
June 29, 1998 and June 27, 1997
Notes to Consolidated Financial Statements
Management's Discussion and Analysis
of Financial Condition and Results of
Operations
Part II Other Information
Signatures
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
June 29, December 31,
1998 1997
-------- --------
(dollars in thousands)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 73,667 $ 92,087
Short term investments 31,451 13,165
Accounts receivable, net of allowance for doubtful
accounts of $1,991,000 and $1,742,000 at June 29, 1998
and December 31, 1997, respectively 107,438 81,547
Deferred income tax benefit 2,180 1,818
Other 1,468 1,207
-------- --------
TOTAL CURRENT ASSETS 216,204 189,824
-------- --------
PROPERTY AND EQUIPMENT 18,175 12,801
Less accumulated depreciation 8,488 7,101
-------- --------
9,687 5,700
-------- --------
OTHER ASSETS - NET:
Goodwill 16,511 17,090
Deferred income tax benefit 2,057 852
Other 7,243 4,280
-------- --------
TOTAL OTHER ASSETS 25,811 22,222
-------- --------
TOTAL ASSETS $251,702 $217,746
======== ========
(Continued)
<PAGE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
June 29, December 31,
1998 1997
-------- --------
(dollars in thousands)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 1,010 $ 1,473
Accrued payroll, payroll taxes and benefits 18,194 18,231
Accounts payable 5,783 2,211
Income taxes payable 1,693 4,309
Other accrued expenses 9,084 3,145
-------- --------
TOTAL CURRENT LIABILITIES 35,764 29,369
-------- --------
LONG-TERM DEBT 1,000 --
-------- --------
OTHER LIABILITIES 5,466 2,283
-------- --------
SHAREHOLDERS' EQUITY:
Preferred stock, $.10 par; authorized and unissued 200,000
shares, including 50,000 Series A
Common stock, $.10 par, authorized 60,000,000 shares; issued
32,201,282 shares and 31,247,069 shares at June 29, 1998
and December 31, 1997, respectively 3,220 3,125
Additional paid-in capital 118,215 117,806
Foreign currency translation adjustment 231 173
Retained earnings 98,868 78,862
-------- --------
220,534 199,966
Less shares held in treasury, at cost; 1,349,671 shares and
1,692,253 shares at June 29 1998 and December 31, 1997, respectively 11,062 13,872
-------- --------
TOTAL SHAREHOLDERS' EQUITY 209,472 186,094
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $251,702 $217,746
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------------- -------------------------------------------
JUNE 29, 1998 JUNE 27, 1997 JUNE 29, 1998 JUNE 27, 1997
------------------- ------------------ ------------------- --------------------
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Services $118,144 95.5% $83,645 100.0% $226,117 96.1% $160,850 100.0%
Products 5,592 4.5% -- 9,130 3.9% --
------------------- ------------------ ------------------- --------------------
123,736 100.0% 83,645 100.0% 235,247 100.0% 160,850 100.0%
------------------- ------------------ ------------------- --------------------
COSTS AND EXPENSES:
Direct costs - Services 78,702 63.6% 56,102 67.1% 148,854 63.3% 108,587 67.5%
Direct costs - Products 918 0.7% -- 1,511 0.6% --
Selling, general and
administrative 26,244 21.2% 18,317 21.9% 50,683 21.5% 35,420 22.0%
Merger-related expenses 2,209 1.8% -- 3,537 1.5% --
------------------- ------------------ ------------------- --------------------
108,073 87.3% 74,419 89.0% 204,585 87.0% 144,007 89.5%
------------------- ------------------ ------------------- --------------------
INCOME FROM OPERATIONS 15,663 12.7% 9,226 11.0% 30,662 13.0% 16,843 10.5%
------------------- ------------------ ------------------- --------------------
OTHER INCOME (expense):
Interest income 1,542 1.2% 143 0.2% 2,875 1.2% 313 0.2%
Interest expense (16) 0.0% (112) -0.1% (16) 0.0% (225) -0.1%
Equity in Joint Venture
net earnings (loss) 0 0.0% 63 0.1% (90) 0.0% 213 0.1%
------------------- ------------------ ------------------- --------------------
1,526 1.2% 94 0.1% 2,769 1.2% 301 0.2%
------------------- ------------------ ------------------- --------------------
INCOME BEFORE INCOME TAXES 17,189 13.9% 9,320 11.1% 33,431 14.2% 17,144 10.7%
------------------- ------------------ ------------------- --------------------
INCOME TAXES:
Current 8,346 6.7% 4,772 5.7% 16,276 6.9% 8,042 5.0%
Deferred (693) -0.6% (795) -1.0% (1,017) -0.4% (744) -0.5%
------------------- ------------------ ------------------- --------------------
7,653 6.2% 3,977 4.8% 15,259 6.5% 7,298 4.5%
------------------- ------------------ ------------------- --------------------
NET INCOME $ 9,536 7.7% $ 5,343 6.4% $ 18,172 7.7% $ 9,846 6.1%
================== ================= ================== ===================
(Continued)
<PAGE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------------- -------------------------------------------
JUNE 29, 1998 JUNE 27, 1997 JUNE 29, 1998 JUNE 27, 1997
------------------- ------------------ ------------------- --------------------
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EARNINGS PER SHARE:
Basic $ 0.31 $ 0.20 $ 0.59 $ 0.37
======== ======= ======== =======
Diluted $ 0.30 $ 0.19 $ 0.56 $ 0.35
======== ======= ======== =======
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
Basic 30,827,000 26,830,000 30,771,500 26,782,500
Diluted 32,214,000 28,248,000 32,246,000 28,166,500
========== ========== ========== ==========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
-----------------------
June 29, June 27,
1998 1997
-------- --------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES $ 4,082 ($ 5,472)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments (17,636) 0
Purchases of property and equipment (4,940) (975)
(Increase) decrease in other assets (586) (523)
-------- --------
(23,162) (1,498)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (1,432) (1,867)
Dividends paid (773) (511)
Stock options exercised 2,865 2,187
-------- --------
660 (191)
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS (18,420) (7,161)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 92,087 14,127
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 73,667 $ 6,966
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
COMPUTER HORIZONS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Quarters Ended June 29, 1998 and June 27, 1997
The information furnished reflects all adjustments which, in the
opinion of the Company, are necessary to present fairly its consolidated
financial position and the results of its operations and changes in financial
position for the periods indicated.
Reference is made to the Company's annual financial statements for the
year ended December 31, 1997, for a description of the accounting policies,
which have been continued without change. Also refer to the footnotes with those
annual statements for additional details of the Company's financial condition,
results of operations and changes in cash flows. The details in those notes have
not changed except as a result of normal transactions in the interim.
On June 24, 1998, the Company announced that it had completed the
acquisition of Spargo Consulting PLC (Spargo), an information technology
consultancy service provider, organized under the laws of the United Kingdom for
1,887,000 shares of Computer Horizon stock. This transaction has been accounted
for as a pooling of interests and, accordingly the consolidated financial
statements for the periods presented have been restated to include the accounts
of Spargo.
The reconciliation below details the effects of the pooling noted above
on the previously reported revenues, net income and earnings per share of the
separate companies for the periods preceding the acquisition.
<TABLE>
<CAPTION>
Three Months
Ended Year Ended Year Ended Year Ended
March 31, 1998 1997 1996 1995
-------------- ----------- ------------ ----------
<S> <C> <C> <C> <C>
Computer Horizons Corp. 107,101 334,729 249,152 213,165
Spargo 4,410 15,581 12,259 11,327
========== ========== ========== ==========
Combined 111,511 350,310 261,411 224,492
========== ========== ========== ==========
Net Income
Computer Horizons Corp. 8,176 22,644 11,864 10,425
Spargo 461 1,902 1,212 873
========== ========== ========== ==========
Combined 8,637 24,546 13,076 11,298
========== ========== ========== ==========
Earnings Per Share
Basic
Computer Horizons Corp. 0.28 0.88 0.48 0.46
Spargo 0.00 0.01 0.02 0.00
========== ========== ========== ==========
Combined 0.28 0.89 0.50 0.46
========== ========== ========== ==========
Diluted
Computer Horizons Corp. 0.27 0.84 0.46 0.44
Spargo 0.00 0.01 0.01 0.00
========== ========== ========== ==========
Combined 0.27 0.85 0.47 0.44
========== ========== ========== ==========
Shares Outstanding
Basic 30,714,000 27,567,000 26,380,000 24,312,000
Diluted 32,278,000 29,013,000 27,939,000 25,842,000
</TABLE>
<PAGE>
On February 27, 1998 the Company acquired all the shares of Princeton
Softech, Inc. ("Princeton") in exchange for 954,213 shares of Computer Horizons
stock. The results of Princeton, which is being accounted for as an immaterial
pooling are included from January 1, 1998.
Earnings per Share: Basic Earnings Per Share ("EPS") is based on the
weighted average number of common shares outstanding without consideration of
common stock equivalents. Diluted earnings per share is based on the weighted
average number of common and common equivalent shares outstanding. The
calculation takes into account the shares that may be issued upon exercise of
stock options, reduced by the shares that may be repurchased with the funds
received from the exercise, based on the average price during the year.
In accordance with SFAS No.128, the table below presents both basic and
diluted earnings per share:
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended
June 29, June 27,
1998 1997
---------- ----------
<S> <C> <C>
Numerator:
Net income $18,172 $9,846
Denominator:
Denominator for basic earnings per share
Weighted average shares outstanding 30,771,500 26,782,500
Effect of stock options 1,474,500 1,384,000
Dilutive potential earnings per share:
Denominator for diluted earnings per share
Adjusted weighted average shares
outstanding and assumed conversions 32,246,000 28,166,500
Basic earnings per share $0.59 $0.37
Diluted earnings per share $0.56 $0.35
</TABLE>
The computation of diluted earnings per share excludes options with
exercise prices greater than the average market price. During 1998, there were
145,125 excluded options outstanding at June 29, 1998 with exercise prices of
$39.50 to $45.50 per share. All options to purchase shares of common stock were
included in the computation of diluted earnings per share in 1997.
Subsequent Events
On July 2, 1998, the company acquired the assets of Infomatics Search
Group ("ISG") for approximately $21.6 million in cash. ISG is a Toronto,
Canada-based information technology services firm, offering both professional
staffing and career placement services. The acquisition will be accounted for
under the purchase method of accounting.
On August 5, 1998, the company acquired the assets of RPM Consulting
("RPM") for a combination of cash and stock totaling approximately $27.7
million. RPM, based in Maryland, is a leading provider of electronic commerce
solutions and enterprise management development. The acquisition will be
accounted for under the purchase method of accounting.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For the Quarters Ended June 29, 1998 and June 27, 1997
Revenues. Revenues increased to $123.7 million in the second quarter of
1998 from $83.6 million in the second quarter of 1997, an increase of $40.1
million or 48.0%. Staffing revenues increased to $62.6 million in the second
quarter of 1998 from $54.3 million in the second quarter of 1997 , an increase
of $8.3 million or 15.3%. Total solutions revenues, including Year 2000
revenues, increased to $55.6 million in the second quarter of 1998 from $29.4
million in the second quarter of 1997 , an increase of $26.2 million or 89.1%.
Year 2000 services revenues increased to $36.6 million in the second quarter of
1998 from $16.4 million in the second quarter of 1997, an increase of $20.2
million. The Company's Year 2000 business accounted for 29.5% of total revenues
in the second quarter of 1998 versus 19.6% of total revenues in the second
quarter of 1997. Solutions revenues, excluding Year 2000 services, increased to
$19.0 million in the second quarter of 1998 from $13.0 million in the second
quarter of 1997, an increase of $6.0 million or 46.2%. The Company's product
revenues totaled $5.6 million for the second quarter of 1998.
Revenues increased to $235.2 million in the first six months of 1998 from
$160.9 million in the first six months of 1997, an increase of $74.3 million or
46.2%. Staffing revenues increased to $121.1 million in the first six months of
1998 from $107.3 million in the first six months of 1997, an increase of $13.8
million or 12.9%. Total solutions revenues, including Year 2000 revenues,
increased to $105.0 million in the first six months of 1998 from $53.6 million
in the first six months of 1997 , an increase of $51.4 million or 95.9%. Year
2000 services revenues increased to $69.8 million in the first six months of
1998 from $27.8 million in the first six months of 1997, an increase of $42.0
million. The Company's Year 2000 business accounted for 29.7% of total revenues
in the first six months of 1998 versus 17.3% of total revenues in the first six
months of 1997. Solutions revenues, excluding Year 2000 services, increased to
$35.2 million in the first six months of 1998 from $25.7 million in the first
six months of 1997, an increase of $9.5 million or 37.0%. The Company's product
revenues totaled $9.1 million for the first six months of 1998.
Direct Costs. Direct costs increased to $79.6 million and $150.4 million in
the second quarter and first six months of 1998, respectively, from $56.1
million and $108.6 million in the comparable 1997 periods. Gross margin
increased to 35.7% and 36.1% in the second quarter and first six months of 1998,
respectively, from 32.9% and 32.5% in the second quarter and first six months of
1997, respectively. The increase in gross margin was primarily due to stable
margins in the Company's staffing business and an increase in the Company's
higher margin Year 2000 business. The Company's margins are subject to
fluctuations due to a number of factors, including the level of salary and other
compensation necessary to attract and retain qualified technical personnel, and
the mix of staffing versus solutions business during a particular quarter.
<PAGE>
Selling, General and Administrative. Selling, general and administrative
expenses (excluding merger-related expenses) increased to $26.2 million and
$50.7 million in the second quarter and first six months of 1998, respectively,
from $18.3 million and $35.4 million in the comparable 1997 periods. As a
percentage of revenues, selling, general and administrative expenses decreased
to 21.2% of revenues and 21.5% of revenues in the second quarter and first six
months of 1998, respectively, from 21.9% of revenues and 22.0% of revenues in
the comparable 1997 periods. The increase in dollars in selling, general and
administrative expenses was primarily a result of salaries and commissions for
additional sales and recruiting personnel and, to a lesser extent, growth in the
Company's general and administrative infrastructure. The Company incurred
merger-related expenses of approximately $2.2 million and $3.5 million in the
second quarter and first six months of 1998, respectively.
Income from Operations. Operating margins increased to 12.7% and 13.0% in
the second quarter and first six months of 1998, respectively, from 11.0% and
10.5% in the comparable 1997 periods. These increases were primarily due to
increases in the Company's higher margin Year 2000 business, partially offset by
merger-related expenses in 1998. The Company's business is labor-intensive and,
as such, is sensitive to inflationary trends. This sensitivity applies to client
billing rates, as well as to payroll costs.
Other Income. Other income increased to $1.5 million and $2.8 million in
the second quarter and first six months of 1998, respectively, from $0.1 million
and $0.3 million in the comparable 1997 periods. This increase was primarily the
result of increased interest income resulting from the follow-on offering of
approximately $84 million completed in the third quarter of 1997. This increase
was partially offset by a decrease in earnings from the Company's Birla Horizons
Joint Venture. The Joint Venture's decreased earnings in 1998 were primarily due
to costs associated with increased headcount, particularly in marketing and
project management personnel as it expanded its solutions business.
Provision for Income Taxes. The effective tax rates for Federal, state and
local income taxes were 44.5% and 45.6% for the second quarter and first six
months of 1998, respectively. For the comparable 1997 periods, the rates were
42.7% and 42.6%, respectively. The increase in the 1998 rates were primarily due
to certain non-deductible merger-related expenses incurred during the year.
Net Income. Net income increased to $9.5 million, or $0.30 per share
(diluted) for the second quarter of 1998, from $5.3 million, or $0.19 per share
(diluted) for the second quarter of 1997, an increase of $4.2 million or 79.2%.
For the first six months of 1998, net income increased to $18.2 million, or
$0.56 per share (diluted), from $9.8 million, or $0.35 per share (diluted) for
the first six months of 1997.
<PAGE>
Liquidity and Capital Resources. At June 29, 1998, the Company had $180.4
million in working capital, of which $105.1 million was cash, cash equivalents
and short-term investments. There were no borrowings under its bank lines of
credit.
Net cash provided by operating activities in the first six months of
1998 was $4.1 million, consisting primarily of net income, offset in part by an
increase in accounts receivable. During the first six months of 1997, net cash
used in operating activities was $5.5 million, primarily as a result of an
increase in accounts receivable, largely due to growth in the Company's
solutions business.
Net cash used in investing activities in the first six months of 1998
was $23.2 million, consisting primarily of the purchase of short-term
investments, as well as purchases of equipment. During the first six months of
1997, cash used in investing activities was $1.5 million, primarily as a result
of equipment purchases and an increase in other assets.
Net cash provided by financing activities was $0.7 million for the
first six months of 1998, with proceeds received from stock option exercises
exceeding the amount of repayment of long-term debt and dividend payments made
by Spargo. For the first six months of 1997, net cash used by financing
activities was $0.2 million, as the amount of repayment of long-term debt and
dividend payments made by Spargo exceeded proceeds received from stock option
exercises.
At June 29, 1998, the Company had a current ratio position of 6.0 to 1,
approximately $1.0 million of long-term debt and no outstanding borrowings under
its two unsecured lines of credit. The Company believes that its cash and cash
equivalents and short-term investments, lines of credit and internally generated
funds will be sufficient to meet its working capital needs through 1998.
The Company is currently implementing a firmwide accounting/
information system. In addition to being Year 2000 compliant, the system will
support the Company's future growth. The implementation is expected to be
completed in late 1998, and the related cost, estimated at $4.5 million, is not
expected to have a material impact on the Company's financial condition or
results of operations. The Company is still assessing the impact of the Year
2000 for its recent acquisitions.
Certain Disclosures. This report contains certain forward-looking
statements for purposes of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 that involve risks and uncertainties
that could cause actual results to differ materially. Such statements are based
upon, among other things, assumptions made by, and information currently
available to management, including management's own knowledge and assesment of
the Company's industry and competition.
<PAGE>
PART II Other Information
Item 6.
b) No reports on Form 8-K have been filed during the quarter for which
this report is filed.
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMPUTER HORIZONS CORP.
-----------------------
(Registrant)
DATE: August 11, 1998 /s/ John J. Cassese
--------------- --------------------------------------
John J. Cassese, Chairman of the Board
and President
DATE: August 11, 1998 /s/ William J. Murphy
--------------- --------------------------------------
William J. Murphy, Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)
DATE: August 11, 1998 /s/ Michael J. Shea
--------------- --------------------------------------
Michael J. Shea
Vice President and Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-29-1998
<CASH> 73,667
<SECURITIES> 31,451
<RECEIVABLES> 107,438
<ALLOWANCES> 1,991
<INVENTORY> 0
<CURRENT-ASSETS> 218,261
<PP&E> 18,175
<DEPRECIATION> 8,488
<TOTAL-ASSETS> 251,702
<CURRENT-LIABILITIES> 35,764
<BONDS> 1,000
0
0
<COMMON> 3,220
<OTHER-SE> 206,252
<TOTAL-LIABILITY-AND-EQUITY> 209,472
<SALES> 0
<TOTAL-REVENUES> 235,247
<CGS> 0
<TOTAL-COSTS> 150,365
<OTHER-EXPENSES> 54,220
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,859
<INCOME-PRETAX> 33,431
<INCOME-TAX> 15,259
<INCOME-CONTINUING> 18,172
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,172
<EPS-PRIMARY> .59
<EPS-DILUTED> .56
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-27-1997
<CASH> 6,966
<SECURITIES> 0
<RECEIVABLES> 73,743
<ALLOWANCES> 1,576
<INVENTORY> 0
<CURRENT-ASSETS> 83,149
<PP&E> 4,732
<DEPRECIATION> 6,050
<TOTAL-ASSETS> 105,350
<CURRENT-LIABILITIES> 18,329
<BONDS> 0
0
0
<COMMON> 2,886
<OTHER-SE> 82,369
<TOTAL-LIABILITY-AND-EQUITY> 105,350
<SALES> 0
<TOTAL-REVENUES> 160,850
<CGS> 0
<TOTAL-COSTS> 108,587
<OTHER-EXPENSES> 35,420
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 88
<INCOME-PRETAX> 17,144
<INCOME-TAX> 7,298
<INCOME-CONTINUING> 9,846
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,846
<EPS-PRIMARY> .37
<EPS-DILUTED> .35
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-END> MAR-31-1998 MAR-31-1997
<CASH> 82,675 9,007
<SECURITIES> 22,199 0
<RECEIVABLES> 97,367 70,035
<ALLOWANCES> 1,859 1,465
<INVENTORY> 0 0
<CURRENT-ASSETS> 205,379 80,381
<PP&E> 16,678 10,394
<DEPRECIATION> 8,031 5,807
<TOTAL-ASSETS> 239,561 101,595
<CURRENT-LIABILITIES> 35,362 19,418
<BONDS> 1,045 0
0 0
0 0
<COMMON> 3,220 2,680
<OTHER-SE> 196,539 76,367
<TOTAL-LIABILITY-AND-EQUITY> 239,561 101,595
<SALES> 0 0
<TOTAL-REVENUES> 111,511 77,205
<CGS> 0 0
<TOTAL-COSTS> 70,745 52,485
<OTHER-EXPENSES> 25,767 17,103
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 1,333 57
<INCOME-PRETAX> 16,242 7,824
<INCOME-TAX> 7,605 3,288
<INCOME-CONTINUING> 8,637 4,536
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 8,637 4,536
<EPS-PRIMARY> 0.28 0.17
<EPS-DILUTED> 0.27 0.16
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1997 DEC-31-1996 DEC-31-1995
<CASH> 92,087 14,127 11,128
<SECURITIES> 13,165 0 0
<RECEIVABLES> 81,547 59,666 63,051
<ALLOWANCES> 1,742 1,203 840
<INVENTORY> 0 0 0
<CURRENT-ASSETS> 189,860 74,847 63,051
<PP&E> 12,801 10,423 8,133
<DEPRECIATION> 7,101 5,788 4,343
<TOTAL-ASSETS> 217,746 96,611 82,931
<CURRENT-LIABILITIES> 29,369 19,794 20,539
<BONDS> 0 1,432 3,299
0 0 0
0 0 0
<COMMON> 3,125 2,837 2,767
<OTHER-SE> 182,969 70,911 55,139
<TOTAL-LIABILITY-AND-EQUITY> 217,746 96,611 82,931
<SALES> 0 0 0
<TOTAL-REVENUES> 350,310 261,411 224,492
<CGS> 0 0 0
<TOTAL-COSTS> 233,574 180,409 155,918
<OTHER-EXPENSES> 75,129 59,677 48,764
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 1,424 (103) (323)
<INCOME-PRETAX> 43,044 22,106 19,849
<INCOME-TAX> 18,498 9,031 8,550
<INCOME-CONTINUING> 24,546 13,076 11,298
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 24,546 13,076 11,298
<EPS-PRIMARY> 0.89 0.50 0.46
<EPS-DILUTED> 0.85 0.47 0.44
</TABLE>
