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 September 28, 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. Yes [ X ] No [ ]
As of November 2, 1998 the issuer had 31,160,384 shares of common stock
outstanding.
<PAGE>
COMPUTER HORIZONS CORP.
Index
Part I Financial Information
Consolidated Balance Sheets
September 28, 1998 and December 31, 1997
Consolidated Statements of Income
Three Months and Nine Months Ended
September 28, 1998 and September 27, 1997
Condensed Consolidated Statements of
Cash Flows - Nine Months Ended
September 28, 1998 and September 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)
September 28, December 31,
1998 1997
------------- ------------
(dollars in thousands)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents .................................................... $ 52,863 $ 92,087
Short term investments ....................................................... 13,293 13,165
Accounts receivable, net of allowance for doubtful
accounts of $2,190,000 and $1,742,000 at September 28, 1998
and December 31, 1997, respectively ........................................ 122,310 81,547
Deferred income tax benefit .................................................. 2,668 1,818
Other ........................................................................ 3,720 1,207
-------- --------
TOTAL CURRENT ASSETS ................................................. 194,854 189,824
-------- --------
PROPERTY AND EQUIPMENT ......................................................... 21,279 12,801
Less accumulated depreciation ................................................ 9,090 7,101
-------- --------
12,189 5,700
-------- --------
OTHER ASSETS - NET:
Goodwill ..................................................................... 66,932 17,090
Deferred income tax benefit .................................................. 1,818 852
Other ........................................................................ 7,857 4,280
-------- --------
TOTAL OTHER ASSETS ................................................... 76,607 22,222
-------- --------
TOTAL ASSETS ................................................................... $283,650 $217,746
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt ............................................ $ 1,056 $ 1,473
Accrued payroll, payroll taxes and benefits .................................. 22,925 18,231
Accounts payable ............................................................. 2,650 2,211
Income taxes payable ......................................................... 4,010 4,309
Other accrued expenses ....................................................... 15,859 3,145
-------- --------
TOTAL CURRENT LIABILITIES ............................................ 46,500 29,369
-------- --------
LONG-TERM DEBT ................................................................. 1,022 --
-------- --------
OTHER LIABILITIES .............................................................. 5,218 2,283
-------- --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)
September 28, December 31,
1998 1997
------------- ------------
(dollars in thousands)
<S> <C> <C>
SHAREHOLDERS' EQUITY:
Preferred stock, $.10 par; authorized and unissued 200,000 shares, including
50,000 Series A
Common stock, $.10 par, authorized 100,000,000 shares; issued 32,201,282
shares and 31,247,069 shares at September 28, 1998
and December 31, 1997, respectively ........................................ 3,220 3,125
Additional paid-in capital ................................................... 124,559 117,979
Retained earnings ............................................................ 111,792 78,862
-------- --------
239,571 199,966
Less shares held in treasury, at cost; 1,056,885 shares and
1,692,253 shares at September 28, 1998 and December 31, 1997, respectively . 8,661 13,872
-------- --------
TOTAL SHAREHOLDERS' EQUITY ........................................... 230,910 186,094
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ..................................... $283,650 $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 NINE MONTHS ENDED
------------------------------------------------------------------------------------------------
SEPT. 28, 1998 SEPT. 27, 1997 SEPT. 28, 1998 SEPT. 27, 1997
------------------- --------------------- -------------------- --------------------
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Services $130,625 95.6% $89,861 100.0% $356,742 95.9% $250,711 100.0%
Products 6,008 4.4% - 15,138 4.1% -
-------- ---- ------- ----- -------- ---- -------- -----
136,633 100.0% 89,861 100.0% 371,880 100.0% 250,711 100.0%
COSTS AND EXPENSES:
Direct costs - Services 85,595 62.6% 59,698 66.4% 234,449 63.0% 168,285 67.1%
Direct costs - Products 992 0.7% - 2,503 0.7% -
Selling, general and
administrative 28,075 20.5% 18,510 20.6% 78,025 21.0% 53,586 21.4%
Amortization of intangibles 1,052 0.8% 174 0.2% 1,785 0.5% 518 0.2%
Merger-related expenses 735 0.5% - 4,272 1.1% -
-------- ---- ------- ----- -------- ---- -------- -----
116,449 85.2% 78,382 87.2% 321,034 86.3% 222,389 88.7%
-------- ---- ------- ----- -------- ---- -------- -----
INCOME FROM OPERATIONS 20,184 14.8% 11,479 12.8% 50,846 13.7% 28,322 11.3%
-------- ---- ------- ----- -------- ---- -------- -----
OTHER INCOME (expense):
Interest income 1,011 0.7% 160 0.2% 3,886 1.0% 473 0.2%
Interest expense (60) 0.0% (46) (0.1%) (76) 0.0% (271) (0.1%)
Equity in Joint Venture
net earnings (loss) 0 0.0% (75) (0.1%) (90) 0.0% 138 0.1%
-------- ---- ------- ----- -------- ---- -------- -----
951 0.7% 39 0.0% 3,720 1.0% 340 0.1%
-------- ---- ------- ----- -------- ---- -------- -----
INCOME BEFORE INCOME TAXES 21,135 15.5% 11,518 12.8% 54,566 14.7% 28,662 11.4%
-------- ---- ------- ----- -------- ---- -------- -----
INCOME TAXES:
Current 10,149 7.4% 4,731 5.3% 26,426 7.1% 12,773 5.1%
Deferred (833) (0.6%) 167 0.2% (1,852) (0.5%) (577) (0.2%)
-------- ---- ------- ----- -------- ---- -------- -----
9,316 6.8% 4,898 5.5% 24,574 6.6% 12,196 4.9%
-------- ---- ------- ----- -------- ---- -------- -----
NET INCOME $11,819 8.7% $6,620 7.4% $29,992 8.1% $ 16,466 6.6%
======== ==== ======= ===== ======== ==== ======== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (continued)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------------------------------------------------------------------------
SEPT. 28, 1998 SEPT. 27, 1997 SEPT. 28, 1998 SEPT. 27, 1997
---------------- ---------------- ---------------- -----------------
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C>
EARNINGS PER SHARE:
Basic $0.38 $0.25 $0.97 $0.61
===== ===== ===== =====
Diluted $0.37 $0.23 $0.93 $0.58
===== ===== ===== =====
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
Basic 30,960,000 26,830,000 30,834,000 26,978,000
Diluted 32,209,000 28,248,000 32,234,000 28,194,000
========== ========== ========== ==========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
--------------------------
Sept. 28, Sept. 27,
1998 1997
-------- ---------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES .................................. $ 12,220 ($ 1,559)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of short-term investments .................................... 1,197 0
Purchases of property and equipment ................................ (6,299) (1,500)
(Increase)/decrease in other assets ................................ 169 (800)
Acquisitions, net of cash .......................................... (47,344) (115)
-------- --------
(52,277) (2,415)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt ........................................ (1,432) (1,867)
Dividends paid ..................................................... (773) (973)
Proceeds from issuance of stock .................................... 0 83,713
Stock options exercised ............................................ 3,038 2,553
-------- --------
833 83,426
-------- --------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS .................. (39,224) 79,452
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ........................ 92,087 14,127
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ............................ $ 52,863 $ 93,579
======== ========
Supplemental disclosure of non-cash investing and financing activities:
Details of Acquisitions:
Fair value of assets acquired, net of cash ....................... $ 61,588
Less liabilities assumed ......................................... 5,037
Less stock issued in connection with acquisitions ................ 9,207
--------
Net cash paid for acquisitions ................................... $ 47,344
========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
COMPUTER HORIZONS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Quarters Ended September 28, 1998 and September 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 September 23, 1998, the Company completed the acquisition of
Enterprise Solutions Group, LLC, a Cincinnati, Ohio-based provider of training,
educational and consulting services, for cash and stock totaling approximately
$7.3 million. On August 4, 1998, the Company completed the acquisition of RPM
Consulting, Inc. ("RPM"), for cash and stock totaling approximately $27.7
million. RPM, based in Maryland, is a leading provider of enterprise network
design and implementation services. On July 3, 1998, the Company completed the
acquisition of ISG Careers Inc. and ISG Contracts Inc.(collectively "ISG"), for
approximately $21.6 million ($US) in cash. Based in Toronto, Canada, ISG is a
Toronto, Canada-based information technology services firm, offering both
professional staffing and career placement services. All three acquisitions are
being accounted for under the purchase method of accounting. Had the
acquisitions occurred on January 1, 1998, the effect on revenue and net income
would have been immaterial.
On June 24, 1998, the Company completed the acquisition of Spargo
Consulting PLC ("Spargo"), an information technology consultancy service
provider, organized under the laws of the United Kingdom for 1,877,000 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.
<PAGE>
<TABLE>
<CAPTION>
Three Months
Ended Year Ended Year Ended Year Ended
March 31, 1998 1997 1996 1995
-------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues
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 ............... 32,287,966 29,013,000 27,939,000 25,842,000
</TABLE>
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.
<PAGE>
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
exercised, 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:
<TABLE>
<CAPTION>
Nine Months Ended
Sept. 28, Sept. 27,
----------- -----------
1998 1997
----------- -----------
<S> <C> <C>
Numerator:
Net income (in thousands) ................ $ 29,992 $ 16,466
Denominator:
Denominator for basic earnings per share
Weighted average shares outstanding ... 30,834,000 26,798,000
Effect of stock options ................................. 1,400,000 1,396,000
Dilutive potential earnings per share:
Denominator for diluted earnings per share
Adjusted weighted average shares
outstanding and assumed conversions ... 32,234,000 28,194,000
Basic earnings per share ................................ $ 0.97 $ 0.61
Diluted earnings per share .............................. $ 0.93 $ 0.58
</TABLE>
The computation of diluted earnings per share excludes options
with exercise prices greater than the average market price. During 1998, there
were 581,975 excluded options outstanding at September 28, 1998 with exercise
prices of $33.41 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.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For the Quarters Ended September 28, 1998 and September 27, 1997
Revenues. Revenues increased to $136.6 million in the third quarter of 1998
from $89.9 million in the third quarter of 1997, an increase of $46.7 million or
51.9%. Staffing revenues increased to $69.0 million in the third quarter of 1998
from $56.8 million in the third quarter of 1997, an increase of $12.2 million or
21.5%. Total solutions revenues, including Year 2000 revenues, increased to
$61.6 million in the third quarter of 1998 from $33.1 million in the third
quarter of 1997 , an increase of $28.5 million or 86.1%. Year 2000 services
revenues increased to $36.9 million in the third quarter of 1998 from $19.6
million in the third quarter of 1997, an increase of $17.3 million or 88.3%. The
Company's Year 2000 business accounted for 27.0% of total revenues in the third
quarter of 1998 versus 21.8% of total revenues in the third quarter of 1997.
Solutions revenues, excluding Year 2000 services, increased to $24.7 million in
the third quarter of 1998 from $13.5 million in the third quarter of 1997, an
increase of $11.2 million or 83.0%. The Company's product revenues totaled $6.0
million for the third quarter of 1998.
Revenues increased to $371.9 million in the first nine months of 1998 from
$250.7 million in the first nine months of 1997, an increase of $74.3 million or
48.3%. Staffing revenues increased to $190.1 million in the first nine months of
1998 from $164.0 million in the first nine months of 1997, an increase of $26.1
million or 15.9%. Total solutions revenues, including Year 2000 revenues,
increased to $166.6 million in the first nine months of 1998 from $86.7 million
in the first nine months of 1997 , an increase of $79.9 million or 92.2%. Year
2000 services revenues increased to $106.7 million in the first nine months of
1998 from $47.5 million in the first nine months of 1997, an increase of $59.2
million or 124.6%. The Company's Year 2000 business accounted for 28.7% of total
revenues in the first nine months of 1998 versus 18.9% of total revenues in the
first nine months of 1997. Solutions revenues, excluding Year 2000 services,
increased to $59.9 million in the first nine months of 1998 from $39.2 million
in the first nine months of 1997, an increase of $20.7 million or 52.8%. The
Company's product revenues totaled $15.1 million for the first nine months of
1998.
Direct Costs. Direct costs increased to $86.6 million and $237.0 million in
the third quarter and first nine months of 1998, respectively, from $59.7
million and $168.3 million in the comparable 1997 periods. Gross margin
increased to 36.6% and 36.3% in the third quarter and first nine months of 1998,
respectively, from 33.6% and 32.9% in the third quarter and first nine 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 solutions 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 and amortization expenses of
intangible asses), increased to $28.1 million and $78.0 million in the third
quarter and first nine months of 1998, respectively, from $18.5 million and
$53.6 million in the comparable 1997 periods. The increase 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
$0.7 million and $4.3 million in the third quarter and first nine months of
1998, respectively. Amortization expenses of intangible assets (primarily
goodwill from acquisitions) increased to $1.1 million and $1.8 million in the
third quarter and first nine months of 1998, respectively, from $0.2 million and
$0.5 million in the comparable 1997 periods.
Income from Operations. Operating margins increased to 14.8% and 13.7% in
the third quarter and first nine months of 1998, respectively, from 12.8% and
11.3% in the comparable 1997 periods. These increases were primarily due to
increases in the Company's higher margin solutions 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 $1.0 million and $3.7 million in
the third quarter and first nine months of 1998, respectively, from nil 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.
Provision for Income Taxes. The effective tax rates for Federal, state and
local income taxes were 44.1% and 45.0% for the third quarter and first nine
months of 1998, respectively. For the comparable 1997 periods, the rates were
42.5% 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 $11.8 million, or $0.37 per share
(diluted) for the third quarter of 1998, from $6.6 million, or $0.23 per share
(diluted) for the third quarter of 1997, an increase of $5.2 million or 78.8%.
For the first nine months of 1998, net income increased to $30.0 million, or
$0.93 per share (diluted), from $16.5 million, or $0.58 per share (diluted) for
the first nine months of 1997.
Liquidity and Capital Resources. At September 28, 1998, the Company had
$148.4 million in working capital, of which $66.2 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 nine months of 1998
was $12.2 million, consisting primarily of net income, offset in part by an
increase in accounts receivable. During the first nine months of 1997, net cash
used in operating activities was $1.6 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 nine months of 1998 was
$52.3 million, consisting primarily of the three acquisitions that the Company
completed during the third quarter, as well as purchases of equipment. During
the first nine months of 1997, cash used in investing activities was $2.4
million, primarily as a result of equipment purchases and an increase in other
assets.
<PAGE>
Net cash provided by financing activities was $0.8 million for the first
nine 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 nine months of 1997, net cash provided by financing
activities was $83.4 million, consisting primarily of the net proceeds from the
Company's public offering of common stock.
At September 28, 1998, the Company had a current ratio position of 4.2 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
1999.
Year 2000 Issue. The Year 2000 ("Y2K") issue is the result of computer
programs using a two-digit format, as opposed to four digits, to indicate the
year. Such computer systems will be unable to interpret dates beyond the year
1999, which could cause a system failure or other computer errors, leading to
disruptions in operations.
In an effort to address the Y2K situation, the Company is currently
implementing a new 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.
In the area of third-party relationships, the Company has contacted most of
its major third parties. Most of these parties state that they intend to be Y2K
compliant by 2000. The Company is developing a plan to perform certain functions
internally that are currently provided by outside parties, should those parties
not become Y2K capable. There can be no assurance that third parties will
succesfully update their Year 2000-dependant systems or that the Company will be
able to implement the necessary procedures to replace the services provided by
third parties. Such failures on the part of either third parties or the Company
could cause a disruption in the Company's business, and such a disruption could
have a material adverse effect on the Company's operating results and financial
condition.
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 assessment of
the Company's industry and competition.
<PAGE>
PART II Other Information
Item 6.
b) Three reports on Form 8-K have been filed during the quarter
for which this report is filed. One form was filed on August 25, 1998,
consistent with the Company's acquisition of RPM Associates, Inc. Another form,
consistent with the Company's acquisition of ISG Careers Inc. and ISG Contracts
Inc., was filed on July 20, 1998. The remaining form was filed on July 15, 1998,
consistent with the Company's acquisition of Spargo Consulting, PLC.
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: November 3, 1998 /s/John J. Cassese
---------------- ------------------
John J. Cassese,
Chairman of the Board
and President
DATE: November 3, 1998 /s/William J. Murphy
---------------- --------------------
William J. Murphy,
Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)
DATE: November 3, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-28-1998
<CASH> 52,863
<SECURITIES> 13,293
<RECEIVABLES> 122,310
<ALLOWANCES> 2,190
<INVENTORY> 0
<CURRENT-ASSETS> 194,854
<PP&E> 21,279
<DEPRECIATION> 9,090
<TOTAL-ASSETS> 283,650
<CURRENT-LIABILITIES> 46,500
<BONDS> 1,000
0
0
<COMMON> 3,220
<OTHER-SE> 227,690
<TOTAL-LIABILITY-AND-EQUITY> 283,650
<SALES> 0
<TOTAL-REVENUES> 371,880
<CGS> 0
<TOTAL-COSTS> 236,952
<OTHER-EXPENSES> 84,082
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (3,810)
<INCOME-PRETAX> 54,566
<INCOME-TAX> 24,574
<INCOME-CONTINUING> 29,992
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,992
<EPS-PRIMARY> 0.97
<EPS-DILUTED> 0.93
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-27-1997
<CASH> 93,592
<SECURITIES> 0
<RECEIVABLES> 84,716
<ALLOWANCES> 2,158
<INVENTORY> 0
<CURRENT-ASSETS> 174,342
<PP&E> 11,456
<DEPRECIATION> 6,723
<TOTAL-ASSETS> 196,467
<CURRENT-LIABILITIES> 23,379
<BONDS> 0
0
0
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<INCOME-TAX> 12,196
<INCOME-CONTINUING> 16,466
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<EPS-PRIMARY> 0.61
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</TABLE>
