Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
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 1-8325
MYR GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 36-3158643
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1701 W. Golf Road, Suite 1012, Tower Three, Rolling Meadows, IL 60008
(Address of principal executive offices) (Zip Code)
(847) 290-1891
Registrant's telephone number, include area code
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
and 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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or 15(d)
of the Securities Exchange Act of 1934 subsequent to the distribution
of securities under a plan confirmed by a court.
Yes No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of July 16, 1999: 5,974,165
<PAGE>
MYR GROUP INC.
I N D E X
PART I. Financial Information Page No.
--------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
June 30, 1999 and December 31, 1998 2
Condensed Consolidated Statements of Income -
Three and Six Months Ended June 30, 1999 and 1998 3
Condensed Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1999 and 1998 4
Notes to Condensed Consolidated Financial Statements 5-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II. Other Information
Item 1. Legal Proceedings 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURE 11
<PAGE>
Part I, Item 1
Financial
Information
<TABLE>
MYR Group Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<CAPTION>
----------------------------------------------------------------------
June 30 Dec. 31
1999 1998
-----------------------
(Unaudited) *
----------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 545 $ 1,372
Contract receivables including retainage 72,152 68,112
Costs and estimated earnings in excess of
billings on uncompleted contracts 19,076 17,092
Deferred income taxes 6,153 6,153
Other current assets 492 239
-----------------------
Total current assets 98,418 92,968
-----------------------
Property and equipment: 57,722 56,706
Less accumulated depreciation 41,851 40,604
-----------------------
15,871 16,102
-----------------------
Other assets 1,494 1,129
-----------------------
Total assets $ 115,783 $ 110,199
=======================
<PAGE>
LIABILITIES
Current liabilities:
Current maturities of long-term debt $ 5,712 $ 7,813
Accounts payable 20,669 14,135
Billings in excess of costs and estimated
earnings on uncompleted contracts 10,123 9,448
Accrued insurance 14,745 13,868
Other current liabilities 14,946 17,528
-----------------------
Total current liabilities 66,195 62,792
-----------------------
Deferred income taxes 1,051 1,052
Other liabilities 392 393
Long-term debt:
Promissory notes and other debt 250 917
Industrial revenue bond 250 250
Subordinated convertible debentures 3,632 5,447
-----------------------
Total long-term debt 4,132 6,614
-----------------------
SHAREHOLDERS' EQUITY
Common stock and additional paid-in capital 8,190 7,009
Retained earnings 39,102 34,335
Restricted stock awards and shareholders'
notes receivable (3,279) (1,996)
-----------------------
Total shareholders' equity 44,013 39,348
-----------------------
Total liabilities and shareholders' equity $ 115,783 $ 110,199
=======================
*Condensed from audited financial statements
----------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements"
are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
MYR Group Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
(Unaudited)
------------------------------------------------------------------------
Periods Ended June 30 Three Months Six Months
------------------------------------------------------------------------
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Contract revenue $ 118,524 $ 109,666 $ 225,851 $ 220,337
Contract cost 103,841 98,613 199,410 200,355
-------- -------- -------- --------
Gross profit 14,683 11,053 26,441 19,982
Selling, general and
administrative expenses 8,768 7,244 17,365 13,983
-------- -------- -------- --------
Income from operations 5,915 3,809 9,076 5,999
Other income (expense)
Interest income 37 2 39 6
Interest expense (280) (551) (555) (996)
Gain on sale of property
and equipment 90 227 181 274
Miscellaneous (30) (35) (72) (28)
-------- -------- -------- --------
Income before taxes 5,732 3,452 8,669 5,255
Income tax expense 2,293 1,381 3,468 2,102
-------- -------- -------- --------
Net income $ 3,439 $ 2,071 $ 5,201 $ 3,153
======== ======== ======= ========
Earnings per share:
Basic $ .58 $ .37 $ .89 $ .57
======== ======== ======= ========
Diluted $ .51 $ .31 $ .78 $ .48
======== ======== ======= ========
Dividends per common share $ .0375 $ .035 $ .075 $ .070
======== ======== ======= ========
Average number of shares
outstanding:
Basic 5,971 5,607 5,856 5,578
Diluted 6,760 6,691 6,720 6,660
------------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements"
are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
MYR Group Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
-------------------------------------------------------------------
Six Months Ended June 30 1999 1998
-------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATIONS
Income from continuing operations $ 5,201 $ 3,153
Adjustments to reconcile net income to
cash flows from operations
Depreciation and amortization 1,939 2,408
Amortization of unearned stock awards 171 112
Gain from disposition of assets (181) (274)
Changes in assets and liabilities 788 (9,878)
-------- --------
Cash flows from operations 7,918 (4,479)
-------- --------
CASH FLOWS FROM INVESTMENTS
Expenditures for property and equipment (1,783) (1,885)
Proceeds from disposition of assets 256 446
-------- --------
Cash flows from investments (1,527) (1,439)
-------- --------
CASH FLOWS FROM FINANCING
Proceeds (repayments) from long term debt (4,583) 3,051
Proceeds from exercise of stock options 937 98
Issuance of shareholder notes (1,645) -
Purchase of treasury stock (1,491) -
Increase in deferred compensation (1) 7
Dividends paid (435) (395)
-------- --------
Cash flows from financing (7,218) 2,761
-------- --------
Decrease in cash and cash equivalents (827) (3,157)
Cash and cash equivalents at beginning of year 1,372 3,757
-------- --------
Cash and cash equivalents at end of period $ 545 $ 600
======== ========
-------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements" are
an integral part of this statement.
</TABLE>
<PAGE>
MYR Group Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1 - Basis of Presentation
The condensed consolidated balance sheets, statements of income and
statements of cash flows include the accounts of the Company and its
subsidiaries. All material intercompany balances and transactions
have been eliminated.
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair presentation of results for the interim period.
The results of operations for the six month period ended June 30, 1999
are not necessarily indicative of the results to be expected for the
full year.
<PAGE>
2 - Earnings Per Share
(Dollars in thousands except per share amount)
Basic and diluted weighted average shares outstanding and earnings per
share on net income are as follows:
<TABLE>
Period Ended June 30
----------------------------------------
Three Months Six Months
----------------- -----------------
1999 1998 1999 1998
----- ----- ----- -----
<S> <C> <C> <C> <C>
Share Data:
Basic Shares 5,971 5,607 5,856 5,578
Common equivalent shares 430 725 505 723
Shares assumed converted 359 359 359 359
----- ----- ----- -----
Diluted shares 6,760 6,691 6,720 6,660
===== ===== ===== =====
Three Months Ended June 30
----------------------------------------
1999 1998
----------------- -----------------
Total Per Share Total Per Share
----- ----- ----- -----
Net Income:
Basic $3,439 $ 0.58 $2,071 $ 0.37
Interest on convertible
subordinated shares 22 21
----- -----
Diluted $3,461 $ 0.51 $2,092 $ 0.31
===== =====
Six Months Ended June 30
----------------------------------------
1999 1998
----------------- -----------------
Total Per Share Total Per Share
----- ----- ----- -----
Net Income:
Basic $5,201 $ 0.89 $3,153 $ 0.57
Interest on convertible
subordinated shares 44 44
----- -----
Diluted $5,245 $ 0.78 $3,197 $ 0.48
===== =====
</TABLE>
<PAGE>
<TABLE>
3 - Supplemental Quarterly Financial Information
(Unaudited)
(Dollars in thousands except per share amounts)
-------------------------------------------------------------------------
1999
-------------------------------------------------------------------------
Mar. 31 June 30 Sept 30 Dec 31 Year
<S> <C> <C> <C> <C> <C>
Contract revenue $107,327 $ 118,524 $225,851
Gross profit 11,758 14,683 26,441
Net income 1,762 3,439 5,201
Earnings per share-Basic: 0.31 0.58 0.89
Earnings per share-Diluted: 0.27 0.51 0.78
Dividends paid per share 0.0375 0.0375 0.075
Market price:
High 12.00 18.00 18.00
Low 10.06 11.75 10.06
1998
-------------------------------------------------------------------------
Mar. 31 June 30 Sept 30 Dec 31 Year
-------------------------------------------------------------------------
Contract revenue $ 110,671 $ 109,666 $122,282 $116,724 $459,343
Gross profit 8,929 11,053 12,224 13,014 45,220
Net income 1,082 2,071 2,285 2,450 7,888
Earnings per share-Basic: 0.20 0.37 0.40 0.43 1.40
Earnings per share-Diluted: 0.17 0.31 0.34 0.38 1.20
Dividends paid per share 0.035 0.035 0.035 0.035 0.14
Market price:
High 12.81 14.25 16.88 12.88 16.88
Low 11.31 11.31 10.69 10.13 10.13
</TABLE>
<PAGE>
4. Pending Accounting Pronouncements
In 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities". SFAS
No. 133 establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in
other contracts, (collectively referred to as derivatives) and for
hedging activities. This standard is effective for years beginning
after June 15, 2000. The Company believes the implementation of this
pronouncement will not have a material impact on the Company's
reported financial position, results of operations and cash flows.
5. Segment Reporting
(Dollars in thousands)
The Company adopted SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information", during the fourth quarter of
1998. SFAS No. 131 established standards for reporting information
about operating segments in annual financial statements and requires
selected information about operating segments in interim financial
reports issued to stockholders. Operating segments are defined as
components of an enterprise about which separate financial information
is available that is evaluated regularly by the chief operating
decision maker, or decision making group, in deciding how to allocate
resources and in assessing performance. The adoption of SFAS No. 131
did not affect results of operations or financial position, but did
affect the disclosure of segment information.
<PAGE>
The Company is engaged primarily in two segments: infrastructure
services and commercial/industrial construction. The accounting
policies of the operating segments are the same as those described in
the summary of significant accounting policies except that the
financial results have been prepared using a management approach. This
approach is consistent with the basis and manner in which management
internally disaggregates financial information for the purpose of
assisting in making internal operating decisions and is exclusive of
corporate selling, general and administrative expenses, net interest
expense and other income. Identifiable assets include all assets
directly identified with the reportable segments including retentions,
accounts receivable, property, equipment and costs and estimated
earnings in excess of billings on uncompleted contracts. Corporate
assets include cash, deferred tax assets, and other assets that are
corporate in nature.
<TABLE>
Infrastructure Commercial/ Corporate
Services Industrial and Other Consolidated
-------- -------- ------ ---------
<S> <C> <C> <C> <C>
Three months ended
June 30, 1999
Contract revenue $ 79,018 $ 39,506 $ - $ 118,524
Depreciation and amortization 919 115 87 1,121
Income before taxes 7,007 1,595 (2,870) 5,732
Segment assets 70,721 36,920 8,142 115,783
Capital expenditures 1,541 40 - 1,581
Three months ended
June 30, 1998
Contract revenue 57,838 51,828 - 109,666
Depreciation and amortization 1,096 75 49 1,220
Income before taxes 4,371 1,499 (2,418) 3,452
Segment assets 61,874 53,295 4,180 119,349
Capital expenditures 824 109 - 933
Six months ended
June 30, 1999
Contract revenue $ 152,119 $ 73,732 $ - $ 225,851
Depreciation and amortization 1,794 145 171 2,110
Income before taxes 12,939 2,137 (6,407) 8,669
Capital expenditures 1,722 61 - 1,783
Six months ended
June 30, 1998
Contract revenue 108,793 111,544 - 220,337
Depreciation and amortization 2,264 155 101 2,520
Income before taxes 6,840 3,414 (4,999) 5,255
Capital expenditures 1,726 159 - 1,885
</TABLE>
<PAGE>
Part I Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
for the Three and Six Months Ending June 30, 1999
Results of Operations
Revenue for the three and six month periods was $118.5 million and
$225.9 million compared to $109.7 million and $220.3 million in 1998.
Revenues for the infrastructure segment increased 36.6% over the prior
year. Commercial/industrial revenues increased 9.7% over the prior
year after excluding the 1998 revenues from the major hotel and casino
project in Las Vegas, NV that was completed in late 1998.
Gross profit for the three and six month periods was $14.7 million and
$26.4 million, compared to $11.1 million and $20.0 million in 1998.
Gross profit as a percentage of revenue was 12.4% and 11.7% for the
three and six month periods, compared to 10.1% and 9.1% in 1998. The
1999 gross profit percentage increased primarily due to improved
productivity in the infrastructure services business and the
completion of a relatively low margin, cost-plus fixed-fee hotel and
casino project in Las Vegas, Nevada in late 1998.
Revenue and gross profit comparisons from quarter to quarter and
comparable quarters of different periods may be impacted by variables
beyond the control of the Company. Such variables include unusual or
unseasonable weather and delays in receipt of construction materials
on projects where the materials are provided to the Company by its
clients. The different mix of the Company's work from period to period
can impact the gross margin percentage. As the percentage of revenue
derived from projects in which the Company supplies materials
increases, the gross profit percentage will generally decrease. As
the percentage of revenue derived from cost-plus work increases,
margins may also decrease since this work involves lower financial
risk. Finally, since the Company's revenues are derived principally
from providing construction labor services, insurance costs,
particularly for workers' compensation, are a significant factor in
the Company's contract cost structure. Fluctuations in insurance
reserves for claims under retrospective rated insurance programs can
have a significant impact on gross margins, either upward or downward,
in the period in which such insurance reserve adjustments are made.
Selling, general and administrative expenses for the three and six
month periods were $8.8 million and $17.4 million, compared to $7.2
million and $14.0 million in 1998. The increase reflects increased
training related costs associated with new management development
programs, higher professional fees, costs related to additional
personnel, and higher incentive compensation accruals on improved
profit levels in comparison to the prior year.
Net interest expense for the three and six month periods was $243,000
and $516,000 compared to $549,000 and $990,000 in 1998. This decrease
was primarily due to lower average outstanding bank debt levels in
1999 due to the reduced retention receivable balances on the major
hotel and casino project in Las Vegas, NV.
<PAGE>
Gain on sale of property and equipment for the three and six month
periods was $90,000 and $181,000, compared to $227,000 and $274,000 in
1998. The gains reflect sales and disposals in our continuing efforts
to modernize the equipment fleet.
Other expense for the three and six month periods was $30,000 and
$72,000, compared to other expenses of $35,000 and $28,000 in 1998.
Other expense consisted primarily of bank fees, offset by cash
discounts.
Income tax expense for the three and six month periods was $2.3
million and $3.5 million, compared to $1.4 million and $2.1 million in
1998. As a percentage of income, the effective rate was 40% in 1999
and 1998.
The Company's backlog at June 30, 1999 was $160.8 million, compared to
$140.1 million at December 31, 1998, and $143.4 million at June 30,
1998. Substantially all the current backlog will be completed within
twelve months and approximately 80% will be completed by December 31,
1999.
Liquidity and Capital Resources
The Company has a $20 million revolving credit facility. As of June
30, 1999, there was $3.0 million outstanding under the revolving
credit facility. The Company has outstanding letters of credit with
Banks totaling $4.7 million. The Company anticipates that its credit
facility, cash balances and internally generated cash flows will
continue to be sufficient to fund operations, capital expenditures and
debt service requirements. The Company is also confident that its
financial condition will allow it to meet long-term capital
requirements.
In March 1999, the Company's Board of Directors authorized the
purchase of up to 750,000 shares of its common stock. In 1999 and
1998, purchases under the prior stock repurchase program totaled
144,808 and 19,494 shares at a cost of $1,492,000 and $248,000,
respectively.
In March 1999, the Company loaned two officers $1,645,000 in total for
the exercise cost and tax liability associated with exercising options
on 347,225 shares that were expiring in 1999. The portion related to
the exercise price, $886,000, is classified in stockholders' equity
and the balance that relates to the withholding taxes paid is included
in other assets.
Capital expenditures for the three and six month periods were $1.6
million and $1.8 million, compared to $934,000 and $1.9 million in
1998. Capital expenditures during these periods were used for normal
property and equipment additions, replacements and upgrades. Proceeds
from the disposal of property and equipment for the six months
amounted to $256,000 and $446,000 in 1998. The Company plans to spend
approximately $5.5 million on capital improvements during 1999.
<PAGE>
Cash flows provided from operations amounted to $7.9 million, which
was used for repayments on long term debt of $4.6 million, net capital
expenditures of $1.5 million, the purchase of treasury stock of $1.5
million, dividends paid of $435,000, and the financing of shareholder
stock option exercises of $1.6 million, offset by proceeds from the
exercise of stock options of $937,000. The Company's financial
condition continues to be strong at June 30, 1999, with working
capital of $32.2 million compared to $30.2 million at December 31,
1998.
Year 2000 Compliance
The "Year 2000 problem" arose because many existing computer programs
use only the last two digits to refer to a year. Therefore, these
computer programs do not properly recognize a year that begins with
"20" instead of the familiar "19." If not corrected, many computer
applications could fail or create erroneous results. The extent of
the potential impact of the Year 2000 problem is not yet known, and if
not timely corrected, it could affect the global economy.
State of Readiness
In 1997, the Company established an organization wide project to
identify non-compliant items, formulate corrective actions and to
implement these changes to mitigate the year 2000 issue. The Company
has identified three categories of components that require attention:
1. Information technology ("IT") systems, such as mainframes,
midranges, personal computers, software and networks
2. Non-IT systems such as equipment, machinery, climate control,
security and telephone systems, which may contain micro-controllers
with embedded technology
3. Third party IT and Non-IT systems
The table below summarizes the estimated completion percentages of the
three categories and stages that are being undertaken to mitigate the
Year 2000 issue.
<TABLE>
Identification Formulation Implementation
of material of corrective of corrective Planned
items actions actions Completion
----- ------- ------- ---------------
<S> <C> <C> <C> <C>
IT systems 100% 100% 95% September, 1999
Non-IT systems 100% 90% 90% September, 1999
Third party systems 100% 90% 90% September, 1999
</TABLE>
Although the Company has contacted its major suppliers to determine
their readiness regarding the Year 2000 issue and has been assured
that they are working to mitigate its effects, the Company has no way
of determining what level of compliance they will attain by the year
2000. The Company is currently in the process of contacting its major
customers to evaluate their planned level of compliance. Upon
receiving the responses, the Company will formulate corrective
actions. There is no guarantee that systems of other companies on
which the Company's systems rely will be timely converted and would
not have an adverse effect on the Company's systems.
<PAGE>
If all material components are not identified or all appropriate
corrective actions are not taken or are not completed in a timely
manner, the Year 2000 issue could have a material impact on the
operations of the Company.
Year 2000 Costs
Costs related to the Year 2000 issue are funded through operating cash
flows and are being expensed as incurred. As of June 1999, the
Company has expended funds in remediation efforts, which consisted of
costs associated with modifying the source code of existing software.
This amount has been immaterial to the Company. Based upon the
Company's investigations to date, it estimates the total costs related
to the Year 2000 issue would be immaterial. A number of other upgrades
have been made to systems in the normal course of business that
mitigate Year 2000 issues. This amount may vary substantially as the
Company continues to evaluate items associated with the Year 2000
issue.
Year 2000 Risks
The most reasonably likely worst case scenario for the Company is the
failure of a supplier to be Year 2000 compliant such that its supply
of needed products or services is interrupted temporarily. This could
result in the Company not being able to fulfill its obligation on a
construction contract, which could cause lost sales and profits and
possibly additional exposure for non-performance and damage claims.
Year 2000 Contingency Plans
The Company is currently evaluating business disruption scenarios,
coordinating the establishment of Year 2000 contingency plans and
identifying and implementing preemptive strategies. Detailed
contingency plans for critical business processes will be developed by
September 1999.
The costs of the project and the date on which the Company believes it
will complete the Year 2000 project are based on management's best
estimates, which were derived utilizing numerous assumptions and
future events, including the continued availability of certain
resources and other factors. However, there can be no guarantee that
these estimates will be achieved and actual results could differ
materially from those anticipated. Specific factors that might cause
such material differences include, but are not limited to, the
availability and cost of personnel trained in this area, the ability
to locate and correct all relevant codes, the level of compliance by
key suppliers and customers, and similar uncertainties.
<PAGE>
PART II
Item 1. Legal Proceedings
There were no material developments during the quarter relating to
legal proceedings previously reported by the Company.
Item 4.Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders in the second
quarter of 1999 that were not previously disclosed.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits filed herewith are listed in the Exhibit Index filed as
a part hereof and incorporated herein by reference.
b. No reports on Form 8-K were filed by the Company for the 2nd
Quarter of 1999.
CAUTIONARY STATEMENT-- This Report may contain statements which
constitute "forward-looking" information as defined in the Private
Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission. Investors are cautioned that any such forward-
looking statements are not guarantees of future performance and actual
results may differ.
<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.
MYR Group Inc.
Date: July 23, 1999 By: /s/
----------------------------------------
William A. Koertner, Sr. Vice President,
Treasurer, and Chief Financial Officer
(duly authorized representative of
registrant and principal financial officer)
<PAGE>
MYR Group Inc.
Quarterly Report on Form 10Q
for the Quarter Ended June 30, 1998
Exhibit Index
Number Description Page (or Reference)
------------------------------------------ ------------------
27 Financial Data Schedules 13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 545
<SECURITIES> 0
<RECEIVABLES> 72,955
<ALLOWANCES> 803
<INVENTORY> 0
<CURRENT-ASSETS> 98,418
<PP&E> 57,722
<DEPRECIATION> 41,851
<TOTAL-ASSETS> 115,783
<CURRENT-LIABILITIES> 66,195
<BONDS> 4,132
0
0
<COMMON> 60
<OTHER-SE> 43,953
<TOTAL-LIABILITY-AND-EQUITY> 115,783
<SALES> 118,524
<TOTAL-REVENUES> 118,524
<CGS> 103,841
<TOTAL-COSTS> 112,609
<OTHER-EXPENSES> (60)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 280
<INCOME-PRETAX> 5,732
<INCOME-TAX> 2,293
<INCOME-CONTINUING> 3,439
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,439
<EPS-BASIC> .58
<EPS-DILUTED> .51
</TABLE>
