<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 MARCH 31, 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 1-10427
ROBERT HALF INTERNATIONAL INC.
(Exact name of registrant as specified in its charter)
DELAWARE 94-1648752
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2884 SAND HILL ROAD 94025
SUITE 200 (zip-code)
MENLO PARK, CALIFORNIA
(Address of principal executive offices)
Registrant's telephone number, including area code: (650) 234-6000
------------------------
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) had been subject to such
filing requirements for the past 90 days. Yes /X/ No / /
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of March 31, 1998:
91,983,511 shares of $.001 par value Common Stock
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
PART I--FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1998 1997
----------- ------------
<S> <C> <C>
(UNAUDITED)
ASSETS:
Cash and cash equivalents................................................................. $ 158,432 $ 131,349
Accounts receivable, less allowances of $7,859 and $7,164................................. 205,551 186,899
Other current assets...................................................................... 18,049 15,757
----------- ------------
Total current assets.................................................................. 382,032 334,005
Intangible assets, less accumulated amortization of $47,780 and $46,001................... 175,599 177,425
Property and equipment, less accumulated depreciation of $33,861 and $29,962.............. 60,686 49,937
----------- ------------
Total assets.......................................................................... $ 618,317 $ 561,367
----------- ------------
----------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable and accrued expenses..................................................... $ 26,193 $ 20,285
Accrued payroll costs..................................................................... 107,703 95,925
Income taxes payable...................................................................... (487) 2,258
Current portion of notes payable and other indebtedness................................... 1,294 3,627
----------- ------------
Total current liabilities............................................................. 134,703 122,095
Notes payable and other indebtedness, less current portion................................ 4,267 4,530
Deferred income taxes..................................................................... 18,244 15,942
----------- ------------
Total liabilities..................................................................... 157,214 142,567
Commitments and Contingencies
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value authorized 160,000,000 shares; issued and outstanding
91,948,627 and 91,208,029 shares......................................................... 92 91
Capital surplus........................................................................... 226,680 196,888
Deferred compensation..................................................................... (51,082) (44,276)
Accumulated other comprehensive income.................................................... (1,388) (1,347)
Retained earnings......................................................................... 286,801 267,444
----------- ------------
Total stockholders' equity............................................................ 461,103 418,800
----------- ------------
Total liabilities and stockholders' equity............................................ $ 618,317 $ 561,367
----------- ------------
----------- ------------
</TABLE>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
1
<PAGE>
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------
1998 1997
---------- ----------
(UNAUDITED)
<S> <C> <C>
Net service revenues...................................................................... $ 401,296 $ 283,023
Direct costs of services, consisting of payroll, payroll taxes and insurance costs for
temporary employees...................................................................... 240,325 171,129
---------- ----------
Gross margin.............................................................................. 160,971 111,894
Selling, general and administrative expenses.............................................. 111,970 77,641
Amortization of intangible assets......................................................... 1,233 1,225
Interest income........................................................................... (1,174) (749)
---------- ----------
Income before income taxes................................................................ 48,942 33,777
Provision for income taxes................................................................ 19,892 13,857
---------- ----------
Net income................................................................................ $ 29,050 $ 19,920
---------- ----------
---------- ----------
Basic net income per share................................................................ $ .32 $ .22
Diluted net income per share.............................................................. $ .31 $ .21
</TABLE>
All shares and amounts have been restated to retroactively reflect the
three-for-two stock split effected in the form of a stock dividend in September
1997.
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
2
<PAGE>
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------
1998 1997
---------- ----------
(UNAUDITED)
<S> <C> <C>
COMMON STOCK--SHARES:
Balance at beginning of period.......................................................... 91,208 89,622
Issuances of restricted stock........................................................... 281 491
Repurchases of common stock............................................................. (237) (234)
Exercises of stock options.............................................................. 697 416
Issuance of common stock for acquisition................................................ -- 14
---------- ----------
Balance at end of period.............................................................. 91,949 90,309
---------- ----------
---------- ----------
COMMON STOCK--PAR VALUE:
Balance at beginning of period.......................................................... $ 91 $ 90
Issuances of restricted stock........................................................... -- --
Exercises of stock options.............................................................. 1 --
---------- ----------
Balance at end of period.............................................................. $ 92 $ 90
---------- ----------
---------- ----------
CAPITAL SURPLUS:
Balance at beginning of period.......................................................... $ 196,888 $ 140,443
Issuances of restricted stock--excess over par value.................................... 11,249 9,893
Exercises of stock options--excess over par value....................................... 4,321 1,658
Issuance of common stock for acquisition................................................ -- 400
Tax benefits from exercises of stock options and restricted stock vesting............... 14,222 6,402
---------- ----------
Balance at end of period.............................................................. $ 226,680 $ 158,796
---------- ----------
---------- ----------
DEFERRED COMPENSATION:
Balance at beginning of period.......................................................... $ (44,276) $ (26,802)
Issuances of restricted stock........................................................... (11,249) (9,893)
Amortization of deferred compensation................................................... 4,443 2,773
---------- ----------
Balance at end of period.............................................................. $ (51,082) $ (33,922)
---------- ----------
---------- ----------
ACCUMULATED OTHER COMPREHENSIVE INCOME:
Balance at beginning of period.......................................................... $ (1,347) $ 23
Translation adjustments................................................................. (41) (674)
---------- ----------
Balance at end of period.............................................................. $ (1,388) $ (651)
---------- ----------
---------- ----------
RETAINED EARNINGS:
Balance at beginning of period.......................................................... $ 267,444 $ 194,691
Repurchases of common stock--excess over par value...................................... (9,693) (5,962)
Net income.............................................................................. 29,050 19,920
---------- ----------
Balance at end of period.............................................................. $ 286,801 $ 208,649
---------- ----------
---------- ----------
COMPREHENSIVE INCOME:
Net income.............................................................................. $ 29,050 $ 19,920
Translation adjustments................................................................. (41) (674)
---------- ----------
Total comprehensive income............................................................ $ 29,009 $ 19,246
---------- ----------
---------- ----------
</TABLE>
All shares and amounts have been restated to retroactively reflect the
three-for-two stock split effected in the form of a stock dividend in September
1997.
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
3
<PAGE>
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------------------
1998 1997
---------- ---------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................................................... $ 29,050 $ 19,920
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets.................................................... 1,233 1,225
Depreciation expense................................................................. 3,980 2,560
Provision for deferred income taxes.................................................. 3,044 (604)
Changes in assets and liabilities, net of effects of acquisitions:
Increase in accounts receivable...................................................... (18,652) (16,087)
Increase in accounts payable, accrued expenses and accrued payroll costs............. 18,591 8,197
Increase (decrease) in income taxes payable.......................................... (2,745) 2,481
Change in other assets, net of change in other liabilities........................... 2,153 1,933
---------- ---------
Total adjustments...................................................................... 7,604 (295)
---------- ---------
Net cash and cash equivalents provided by operating activities........................... 36,654 19,625
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired....................................................... -- (3,267)
Capital expenditures..................................................................... (16,141) (9,869)
---------- ---------
Net cash and cash equivalents used in investing activities............................... (16,141) (13,136)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock.............................................................. (9,693) (5,962)
Principal payments on notes payable and other indebtedness............................... (2,281) (1,150)
Proceeds and tax benefits from exercises of stock options and restricted stock vesting... 18,544 8,060
---------- ---------
Net cash and cash equivalents provided by financing activities........................... 6,570 948
---------- ---------
Net increase in cash and cash equivalents................................................ 27,083 7,437
Cash and cash equivalents at beginning of period......................................... 131,349 80,181
---------- ---------
Cash and cash equivalents at end of period............................................... $ 158,432 $ 87,618
---------- ---------
---------- ---------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest............................................................................... $ 96 $ 124
Income taxes........................................................................... $ 5,028 $ 5,132
Acquisitions:
Assets acquired--
Intangible assets.................................................................... $ -- $ 4,010
Other................................................................................ -- 475
Liabilities incurred--
Notes payable and contracts.......................................................... -- (536)
Other................................................................................ -- (282)
Common stock issued.................................................................... -- (400)
---------- ---------
Cash paid, net of cash acquired........................................................ $ -- $ 3,267
---------- ---------
---------- ---------
</TABLE>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
4
<PAGE>
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS. Robert Half International Inc. (the "Company")
provides specialized staffing services through such divisions as
ACCOUNTEMPS-REGISTERED TRADEMARK-, ROBERT HALF-REGISTERED TRADEMARK-,
OFFICETEAM-REGISTERED TRADEMARK-, RHI CONSULTING-REGISTERED TRADEMARK- and RHI
MANAGEMENT RESOURCES-REGISTERED TRADEMARK-. The Company, through its
ACCOUNTEMPS, ROBERT HALF and RHI MANAGEMENT RESOURCES divisions, is the world's
largest specialized provider of temporary, full-time, and project professionals
in the fields of accounting and finance. OFFICETEAM specializes in skilled
temporary administrative personnel. RHI CONSULTING provides contract information
technology professionals. RHI MANAGEMENT RESOURCES places senior-level
accounting and financial professionals on longer term, more complex projects
lasting for several months to a year or longer. Revenues are predominantly from
temporary services. The Company operates in the United States, Canada and
Europe. The Company is a Delaware corporation.
PRINCIPLES OF CONSOLIDATION. The Consolidated Financial Statements include
the accounts of the Company and its subsidiaries, all of which are wholly-owned.
All significant intercompany balances have been eliminated. Certain
reclassifications have been made to the 1997 financial statements to conform to
the 1998 presentation.
INTERIM FINANCIAL INFORMATION. The Consolidated Financial Statements have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC") and, in management's opinion, include all
adjustments necessary for a fair statement of results for such interim periods.
Certain information and note disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to SEC rules or regulations; however,
the Company believes that the disclosures made are adequate to make the
information presented not misleading.
The interim results for the three months ended March 31, 1998, and 1997 are
not necessarily indicative of results for the full year. It is suggested that
these financial statements be read in conjunction with the financial statements
and the notes thereto included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1997.
REVENUE RECOGNITION. Temporary services revenues are recognized when the
services are rendered by the Company's temporary employees. Permanent placement
revenues are recognized when employment candidates accept offers of permanent
employment. Allowances are established to estimate losses due to placed
candidates not remaining employed for the Company's guarantee period, typically
90 days.
CASH AND CASH EQUIVALENTS. The Company considers all highly liquid
investments with a maturity of three months or less as cash equivalents.
INTANGIBLE ASSETS. Intangible assets primarily consist of the cost of
acquired companies in excess of the fair market value of their net tangible
assets at acquisition date, which are being amortized on a straight-line basis
over a period of 40 years. The carrying value of intangible assets is
periodically reviewed by the Company and impairments are recognized when the
expected future operating cash flows derived from such intangible assets are
less than their carrying value. Based upon its most recent analysis, the Company
believes that no material impairment of intangible assets existed at March 31,
1998.
INCOME TAXES. Deferred taxes are computed based on the difference between
the financial statement and income tax bases of assets and liabilities using the
enacted marginal tax rates.
5
<PAGE>
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
(UNAUDITED)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FOREIGN CURRENCY TRANSLATION. The results of operations of the Company's
foreign subsidiaries are translated at the monthly average exchange rates
prevailing during the period. The financial position of the Company's foreign
subsidiaries is translated at the current exchange rates at the end of the
period, and the related translation adjustments are recorded as part of
Stockholders' Equity. Gains and losses resulting from foreign currency
transactions are included in the Consolidated Statements of Income.
USE OF ESTIMATES. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period.
PROPERTY AND EQUIPMENT. Property and equipment are recorded at cost.
Depreciation expense is computed using the straight-line method over the
estmated useful lives of the assets. Leasehold improvements are amortized over
the shorter of the life of the related asset or the life of the lease.
NOTE B--NEW ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued SFAS No. 130,
"Reporting Comprehensive Income", which defines the concept of "comprehensive
income" and establishes reporting requirements effective for financial
statements beginning in the first quarter of 1998. The adoption of SFAS No. 130
does not affect the Company's earnings, liquidity, or capital resources.
Currently, foreign currency translation adjustments is the only "comprehensive
income" item relevant to the Company. The Company has adopted SFAS No. 130 and
"comprehensive income" is presented in the Consolidated Statements of
Stockholders' Equity.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS FOR EACH OF THE THREE MONTHS MARCH 31, 1998 AND 1997.
Temporary services revenues were $371 million and $261 million for the three
months ended March 31, 1998 and 1997, respectively, increasing by 42% during the
three months ended March 31, 1998 compared to the same period in 1997. The
increase in revenues during these periods reflected in part revenues generated
from the Company's OFFICETEAM, RHI CONSULTING, and RHI MANAGEMENT RESOURCES
divisions, which were started in 1991, 1994 and 1997, respectively. Permanent
placement revenues were $30 million and $22 million for the three months ended
March 31, 1998 and 1997, respectively, increasing by 36% during the three months
ended March 31, 1998 compared to the same period in 1997. Overall revenue
increases reflect continued improvement in demand for the Company's services,
which the Company believes is a result of increased acceptance in the use of
professional staffing services.
The Company currently has more than 200 offices in 39 states and five
foreign countries. Domestic operations represented 90% and 91% of revenues for
the three months ended March 31, 1998 and 1997, respectively. Foreign operations
represented 10% and 9% of revenues for the three months ended March 31, 1998 and
1997, respectively.
Gross margin dollars from the Company's temporary services represent
revenues less direct costs of services, which consist of payroll, payroll taxes
and insurance costs for temporary employees. Gross margin dollars from permanent
placement services are equal to revenues, as there are no direct costs
associated with such revenues. Gross margin dollars for the Company's temporary
services were $131 million and $90 million for the three months ended March 31,
1998 and 1997, respectively, increasing by 46% in 1998. Gross margin amounts
equaled 35% and 34% of revenues for temporary services for the three months
ended March 31, 1998 and 1997, respectively, which the Company believes reflects
its ability to adjust billing rates and wage rates to underlying market
conditions. Gross margin dollars for the Company's permanent placement division
were $30 million and $22 million for the three months ended March 31, 1998 and
1997, respectively, increasing by 36% for the three months ended March 31, 1998.
Selling, general and administrative expenses were $112 million for the three
months ended March 31, 1998 compared to $78 million for the three months ended
March 31, 1997. Selling, general and administrative expenses as a percentage of
revenues were 28% and 27% for the three months ended March 31, 1998 and 1997,
respectively. Selling, general and administrative expenses consist primarily of
staff compensation, advertising and occupancy costs, most of which generally
follow changes in revenues.
The Company allocates the excess of cost over the fair market value of the
net tangible assets first to identifiable intangible assets, if any, and then to
goodwill. Although management believes that goodwill has an unlimited life, the
Company amortizes these costs over 40 years. Management believes that its
strategy of making acquisitions of established companies in established markets
and maintaining its presence in these markets preserves the goodwill for an
indeterminate period. The carrying value of intangible assets is periodically
reviewed by the Company and impairments are recognized when the expected future
operating cash flows derived from such intangible assets is less than their
carrying value. Based upon its most recent analysis, the Company believes that
no material impairment of intangible assets existed at March 31, 1998.
Intangible assets represented 28% of total assets and 38% of total stockholders'
equity at March 31, 1998.
Interest income for the three months ended March 31, 1998 and 1997 was
$1,450,000 and $949,000, respectively. Interest expense for the three months
ended March 31, 1998 and 1997 was $276,000 and $200,000, respectively. The
change in interest income reflects an increase in cash and cash equivalents.
The provision for income taxes was 41% for both the three months ended March
31, 1998 and 1997.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The change in the Company's liquidity during the three months ended March
31, 1998 is the net effect of funds generated by operations and the funds used
for capital expenditures and principal payments on outstanding notes payable.
For the three months ended March 31, 1998, the Company generated $36.7 million
from operations, used $16.1 million in investing activities and provided $6.6
million by financing activities.
The Company's working capital at March 31, 1998, included $158.4 million in
cash and cash equivalents. In addition at March 31, 1998, the Company had
available $73.8 million of its $80 million bank revolving line of credit. The
Company's working capital requirements consist primarily of the financing of
accounts receivable. While there can be no assurances in this regard, the
Company expects that internally generated cash plus the bank revolving line of
credit will be sufficient to support the working capital needs of the Company,
the Company's fixed payments, and other obligations on both a short and long
term basis. As of March 31, 1998, the Company had no material capital
commitments.
In 1997, the Company initiated a number of major system projects to replace
core systems. Management expects these new systems to be in place before Year
2000 and to resolve any major existing Year 2000 issues. The Company expects to
spend in excess of $40 million on these projects.
The Company will adopt SOP 98-1, "Accounting for the Costs of Computer
Software Developed for Internal Use", which requires the capitalization of
certain costs related to the development of software for internal use in fiscal
year 1999. The Company believes that the adoption of this standard will not have
a material impact on its financial results.
ITEM 2A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's market risk sensitive instruments do not subject the the
Company to material market risk exposures.
8
<PAGE>
PART II--OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
<TABLE>
<CAPTION>
EXHIBIT NO. EXHIBIT
- ------------- ----------------------------------------
<C> <S>
11 Computation of Per Share Earnings.
27.1 Financial Data Schedule.
27.2 Restated Financial Data Schedule.
27.3 Restated Financial Data Schedule.
</TABLE>
(b) The registrant filed no current report on Form 8-K during the quarter
covered by this report.
9
<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.
ROBERT HALF INTERNATIONAL INC.
(Registrant)
/s/ M. KEITH WADDELL
--------------------------------------
M. Keith Waddell
VICE PRESIDENT, CHIEF FINANCIAL
OFFICER AND TREASURER
(PRINCIPAL FINANCIAL OFFICER AND
DULY AUTHORIZED SIGNATORY)
Date: May 12, 1998
10
<PAGE>
Exhibit 11
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
--------------------
1998 1997
--------- ---------
(UNAUDITED)
<S> <C> <C>
Net Income.................................................................................. $ 29,050 $ 19,920
--------- ---------
--------- ---------
Weighted Average Number Of Shares Outstanding:
Basic:
Weighted average shares................................................................. 91,623 90,142
--------- ---------
--------- ---------
Diluted:
Weighted average shares................................................................. 91,623 90,142
Common stock equivalents--Stock options (A)............................................. 3,300 3,279
--------- ---------
Diluted shares outstanding.............................................................. 94,923 93,421
--------- ---------
--------- ---------
Net Income Per Share:
Basic..................................................................................... $ .32 $ .22
Diluted................................................................................... $ .31 $ .21
</TABLE>
- ------------------------
(A) The treasury stock method was used to determine the weighted average number
of shares of common stock equivalents outstanding during the periods.
All shares and amounts have been restated to retroactively reflect the
three-for-two stock split effected in the form of a stock dividend in
September 1997.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1998
AND THE YEAR ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> MAR-31-1998 DEC-31-1997
<CASH> 158,432 131,349
<SECURITIES> 0 0
<RECEIVABLES> 213,410 194,063
<ALLOWANCES> 7,859 7,164
<INVENTORY> 0 0
<CURRENT-ASSETS> 382,032 334,005
<PP&E> 94,547 79,899
<DEPRECIATION> 33,861 29,962
<TOTAL-ASSETS> 618,317 561,367
<CURRENT-LIABILITIES> 134,703 122,095
<BONDS> 4,267 4,530
0 0
0 0
<COMMON> 92 91
<OTHER-SE> 461,011 418,709
<TOTAL-LIABILITY-AND-EQUITY> 618,317 561,367
<SALES> 0 0
<TOTAL-REVENUES> 401,296 1,302,876
<CGS> 0 0
<TOTAL-COSTS> 111,970 785,546
<OTHER-EXPENSES> 1,233 4,926
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> (1,174) (4,190)
<INCOME-PRETAX> 48,942 158,828
<INCOME-TAX> 19,892 65,131
<INCOME-CONTINUING> 29,050 93,697
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 29,050 93,697
<EPS-PRIMARY> .32 1.03
<EPS-DILUTED> .31 1.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 AND
THE YEAR-TO-DATE PERIODS ENDED SEPTEMBER 30, JUNE 30, AND MARCH 31, 1996 AND
THE YEAR ENDED DECEMBER 31, 1995. THIS SCHEDULE IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<C>
<PERIOD-TYPE> YEAR 9-MOS 6-MOS 3-MOS
YEAR
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996 DEC-31-1996 DEC-31-1996
DEC-31-1995
<PERIOD-START> JAN-01-1996 JAN-01-1996 JAN-01-1996 JAN-01-1996
JAN-01-1995
<PERIOD-END> DEC-31-1996 SEP-30-1996 JUN-30-1996 MAR-31-1996
DEC-31-1995
<CASH> 80,181 71,011 56,527 50,165
41,346
<SECURITIES> 0 0 0 0
0
<RECEIVABLES> 129,399 115,867 105,936 99,430
88,022
<ALLOWANCES> 4,016 3,809 3,599 3,392
3,067
<INVENTORY> 0 0 0 0
0
<CURRENT-ASSETS> 214,630 191,105 167,752 154,237
133,650
<PP&E> 44,971 40,565 34,310 26,504
24,478
<DEPRECIATION> 18,252 16,501 14,803 13,417
12,429
<TOTAL-ASSETS> 416,012 374,780 348,178 325,427
301,140
<CURRENT-LIABILITIES> 86,561 69,101 67,784 63,955
55,880
<BONDS> 5,069 4,718 4,718 1,093
1,486
0 0 0 0
0
0 0 0 0
0
<COMMON> 90 89 88 87
87
<OTHER-SE> 308,355 286,725 261,956 244,415
227,843
<TOTAL-LIABILITY-AND-EQUITY> 416,012 374,780 348,178 325,427
301,140
<SALES> 0 0 0 0
0
<TOTAL-REVENUES> 898,635 639,838 406,888 196,239
628,526
<CGS> 0 0 0 0
0
<TOTAL-COSTS> 545,343 387,487 246,325 119,597
384,449
<OTHER-EXPENSES> 5,405 4,025 2,669 1,308
4,767
<LOSS-PROVISION> 0 0 0 0
0
<INTEREST-EXPENSE> (2,243) (1,577) (968) (388)
(463)
<INCOME-PRETAX> 103,645 73,770 46,712 22,478
69,089
<INCOME-TAX> 42,543 30,361 19,249 9,239
28,791
<INCOME-CONTINUING> 61,102 43,409 27,463 13,239
40,298
<DISCONTINUED> 0 0 0 0
0
<EXTRAORDINARY> 0 0 0 0
0
<CHANGES> 0 0 0 0
0
<NET-INCOME> 61,102 43,409 27,463 13,239
40,298
<EPS-PRIMARY> 0.69 0.49 0.31 0.15
0.47
<EPS-DILUTED> 0.67 0.48 0.31 0.15
0.46
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 AND
THE YEAR-TO-DATE PERIODS ENDED SEPTEMBER 30, JUNE 30, AND MARCH 31, 1997 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> YEAR 9-MOS 6-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-START> JAN-01-1997 JAN-01-1997 JAN-01-1997 JAN-01-1997
<PERIOD-END> DEC-31-1997 SEP-30-1997 JUN-30-1997 MAR-31-1997
<CASH> 131,349 130,795 106,431 87,618
<SECURITIES> 0 0 0 0
<RECEIVABLES> 194,063 179,455 106,208 146,416
<ALLOWANCES> 7,164 6,425 5,629 4,473
<INVENTORY> 0 0 0 0
<CURRENT-ASSETS> 334,005 318,468 273,729 240,469
<PP&E> 79,899 71,750 64,023 54,267
<DEPRECIATION> 29,962 26,489 23,295 20,627
<TOTAL-ASSETS> 561,367 537,149 489,571 450,903
<CURRENT-LIABILITIES> 122,095 123,363 106,461 98,257
<BONDS> 4,530 4,829 5,377 3,719
0 0 0 0
0 0 0 0
<COMMON> 91 91 91 90
<OTHER-SE> 418,709 392,872 361,650 332,872
<TOTAL-LIABILITY-AND-EQUITY> 561,367 537,149 489,571 450,903
<SALES> 0 0 0 0
<TOTAL-REVENUES> 1,302,876 934,399 594,645 283,023
<CGS> 0 0 0 0
<TOTAL-COSTS> 785,546 563,165 358,611 171,129
<OTHER-EXPENSES> 4,926 3,693 2,460 1,225
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> (4,190) (2,840) (1,686) (749)
<INCOME-PRETAX> 158,828 113,100 71,390 33,777
<INCOME-TAX> 65,131 46,339 29,260 13,857
<INCOME-CONTINUING> 93,697 66,761 42,130 19,920
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 93,697 66,761 42,130 19,920
<EPS-PRIMARY> 1.03 0.73 0.46 0.22
<EPS-DILUTED> 1.00 0.71 0.45 0.21
</TABLE>
