<PAGE>
UNITED STATES
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, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to _______________
Commission File Number: 0-13468
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
(Exact name of registrant as specified in its charter)
Washington 91-1069248
(State of other jurisdiction of
incorporation or organization) (IRS Employer Identification Number)
999 Third Avenue, Suite 2500, Seattle, Washington 98104
(Address of principal executive offices) (Zip Code)
(206) 674-3400
(Registrant's telephone number, including 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 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
----- -----
At April 30, 1997, the number of shares outstanding of the issuer's
Common Stock was 24,293,539.
Page 1 of 15 pages.
The Exhibit Index appears on page 15.
1
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
March 31, December 31,
ASSETS 1997 1996
---------- ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 43,677 36,966
Short term investments 348 357
Accounts receivable, less allowance
for doubtful accounts of $5,438
at March 31, 1997 and $5,047 at
December 31, 1996 165,713 168,763
Deferred Federal and state taxes 5,397 4,854
Other current assets 4,704 4,503
----------- -------
Total current assets $ 219,839 215,443
Property and equipment, less accumulated
depreciation and amortization of
$29,827 at March 31, 1997 and $28,368 at
December 31, 1996 49,205 46,246
Other assets, net 9,528 10,297
----------- -------
$ 278,572 271,986
----------- -------
----------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings 2,881 3,452
Accounts payable 107,155 101,670
Income taxes 7,049 5,659
Other current liabilities 15,435 21,194
----------- -------
Total current liabilities 132,520 131,975
Shareholders' equity:
Preferred stock, par value $.01
per share. Authorized 2,000,000
shares; none issued -- --
Common stock, par value $.01 per share.
Authorized 80,000,000 shares; issued
and outstanding 24,293,439 shares at
March 31, 1997, and 24,212,946 at
December 31, 1996 243 242
Additional paid-in capital 14,169 13,179
Retained earnings 128,856 123,258
Equity adjustments from foreign
currency translation 2,784 3,332
----------- -------
Total shareholders' equity 146,052 140,011
----------- -------
$ 278,572 271,986
----------- -------
----------- -------
2
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
Three months ended
March 31,
------------------------------
1997 1996
---------- ----------
Revenues:
Airfreight $ 134,928 93,266
Ocean freight 39,810 29,384
Customs brokerage and import services 21,231 15,020
---------- ----------
Total revenues 195,969 137,670
---------- ----------
Operating expenses:
Airfreight consolidation 109,304 74,454
Ocean freight consolidation 28,947 22,484
Salaries and related costs 32,330 23,075
Selling and promotion 2,880 2,214
Rent 2,411 1,783
Depreciation and amortization 2,382 1,887
Other 9,134 6,223
---------- ----------
Total operating expenses 187,388 132,120
---------- ----------
Operating income 8,581 5,550
Other income, net 461 603
---------- ----------
Earnings before income taxes 9,042 6,153
Income tax expense 3,444 2,364
---------- ----------
Net earnings $ 5,598 3,789
---------- ----------
---------- ----------
Net earnings per share $.22 $.15
---------- ----------
---------- ----------
Weighted average number of
common shares 25,996,372 25,431,132
---------- ----------
---------- ----------
3
<PAGE>
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-----------------------------
1997 1996
---------- ----------
Operating Activities:
Net earnings $ 5,598 3,789
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Provision for losses on accounts receivable 773 368
Deferred income tax (benefit) expense 111 (461)
Depreciation and amortization 2,382 1,887
Other 151 103
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable 2,665 (257)
Increase in other current assets (239) (778)
Increase in accounts payable and other
current liabilities 6,967 2,999
---------- ----------
Net cash provided by operating activities 18,408 7,650
---------- ----------
Investing Activities:
Decrease in short-term investments 5 260
Purchase of property and equipment (11,556) (1,622)
Other 545 130
---------- ----------
Net cash used in investing activities (11,006) (1,232)
---------- ----------
Financing Activities:
Short-term borrowings, net (549) (54)
Proceeds from issuance of common stock 507 443
Repurchases of common stock (6) (506)
---------- ----------
Net cash used in financing activities (48) (117)
Effect of exchange rate changes on cash (643) 85
---------- ----------
Increase in cash and cash equivalents 6,711 6,386
Cash and cash equivalents at beginning
of period 36,966 36,142
Cash and cash equivalents at end of period $ 43,677 42,528
---------- ----------
---------- ----------
4
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies
The attached condensed consolidated financial statements have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission. As a result, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted. The
Company believes that the disclosures made are adequate to make the
information presented not misleading. The condensed consolidated financial
statements reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim periods
presented. Certain 1996 amounts have been reclassified to conform to the
1997 presentation. These condensed consolidated financial statements should
be read in conjunction with the financial statements and related notes
included in the Company's 10-K as filed with the Securities and Exchange
Commission on or about March 31, 1997.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, Earnings Per Share
(Statement 128). The statement establishes standards for the computation,
presentation, and disclosure of earnings per share (EPS), replacing the
presentation of currently required Primary EPS with a presentation of Basic
EPS. It also requires dual presentation of Basic EPS and Diluted EPS on the
face of the income statement for entities with complex capital structures.
Basic EPS, unlike Primary EPS, excludes all dilution while Diluted EPS, like
the current Fully Diluted EPS, reflects the potential dilution that could
occur from the exercise or conversion of securities into common stock or from
other contracts to issue common stock. Statement 128 is effective for
financial statements for periods ending after December 15, 1997 and earlier
application is not permitted. The Company does not expect the impact of the
adoption of this statement to be material to previously reported EPS amounts.<PAGE>
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
GENERAL
Expeditors International of Washington, Inc. is engaged in the
business of global logistics management, including international freight
forwarding and consolidation, for both air and ocean freight. The Company
also acts as a customs broker in all domestic offices, and in many of its
overseas offices. The Company also provides additional services for its
customers including value added distribution, purchase order management,
vendor consolidation and other logistics solutions. The Company offers
domestic forwarding services only in conjunction with international
shipments. The Company does not compete for overnight courier or small
parcel business. The Company does not own or operate aircraft or steamships.
International trade is influenced by many factors, including
economic and political conditions in the United States and abroad, currency
exchange rates, and United States and foreign laws and policies relating to
tariffs, trade restrictions, foreign investments and taxation. Periodically,
governments consider a variety of changes to current tariffs and trade
restrictions. The Company cannot predict which, if any, of these proposals
may be adopted. Nor can the Company predict the effects adoption of any such
proposal will have on the Company's business. Doing business in foreign
locations also subjects the Company to a variety of risks and considerations
not normally encountered by domestic enterprises. In addition to being
affected by governmental policies concerning international trade, the
Company's business may also be affected by political developments and changes
in government personnel or policies in the nations in which it does business.
The Company's ability to provide services to its customers is highly
dependant on good working relationships with a variety of entities including
airlines, ocean steamship lines, and governmental agencies. The Company
considers its current working relationships with these entities to be
satisfactory. However, changes in space allotments available from carriers,
governmental deregulation efforts, "modernization" of the regulations
governing customs brokerage, and/or changes in governmental quota
restrictions could affect the Company's business in unpredictable ways.
Historically, the Company's operating results have been subject to a
seasonal trend when measured on a quarterly basis. The first quarter has
traditionally been the weakest and the third quarter has traditionally been
the strongest. This pattern is the result of, or is influenced by, numerous
factors including climate, national holidays, consumer demand, economic
conditions and a myriad of other similar and subtle forces. In addition,
this historical quarterly trend has been influenced by the growth and
diversification of the Company's international network and service offerings.
The Company cannot accurately forecast many of these factors nor can the
Company estimate accurately the relative influence of any particular factor
and, as a result, there can be no assurance that historical patterns, if any,
will continue in future periods.
A significant portion of the Company's revenues are derived from
customers in industries whose shipping patterns are tied closely to consumer
demand, and from customers in industries whose shipping patterns are
dependent upon just-in-time production schedules. Therefore, the timing of
the Company's revenues are,
6
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to a large degree, impacted by factors out of the Company's control, such as
a sudden change in consumer demand for retail goods and/or manufacturing
production delays. Additionally, many customers ship a significant portion
of their goods at or near the end of a quarter, and therefore, the Company
may not learn of a shortfall in revenues until late in a quarter. To the
extent that a shortfall in revenues or earnings was not expected by
securities analysts, any such shortfall from levels predicted by securities
analysts could have an immediate and adverse effect on the trading price of
the Company's stock.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS UNDER SECURITIES LITIGATION
REFORM ACT OF 1995; CERTAIN CAUTIONARY STATEMENTS
Certain portions of this report of Form 10-Q contain forward-looking
statements which must be considered in connection with the discussion of the
important factors that could cause actual results to differ materially from
the forward-looking statements. In addition to risk factors identified
elsewhere in this report, attention should be given to the factors identified
and discussed in the report on Form 10-K filed on or about March 31, 1997. <PAGE>
7
<PAGE>
RESULTS OF OPERATIONS
The following table shows the consolidated net revenues (revenues
less consolidation expenses) attributable to the Company's principal services
and the Company's expenses for the three-month periods ended March 31, 1997
and 1996, expressed as percentages of net revenues. With respect to the
Company's services other than consolidation, net revenues are identical to
revenues. Management believes that net revenues are a better measure than
total revenues of the relative importance of the Company's principal services
since total revenues earned by the Company as a freight consolidator include
the carriers' charges to the Company for carrying the shipment whereas
revenues earned by the Company in its other capacities include only the
commissions and fees actually earned by the Company.
The table and the accompanying discussion and analysis should be
read in conjunction with the condensed consolidated financial statements and
related notes thereto which appear elsewhere in this Quarterly Report.
<TABLE>
<CAPTION>
Three months ended March 31, Year ended
1997 1996 December 31, 1996
--------------------- ---------------- -----------------
Percent Percent Percent
of net of net of net
Amount revenues Amount revenues Amount revenues
------ -------- ------ -------- ------ --------
(Amounts in thousands)
<S> <C> <C> <C> <C> <C> <C>
Net Revenues:
Airfreight $25,624 44% $18,812 46% $ 94,954 47%
Ocean freight 10,863 19 6,900 17 38,304 19
Customs brokerage and
import services 21,231 37 15,020 37 69,077 34
------- --- ------- --- -------- ---
Net revenues 57,718 100 40,732 100 202,335 100
------- --- ------- --- -------- ---
Operating expenses:
Salaries and related costs 32,330 56 23,075 56 108,797 54
Other 16,807 29 12,107 30 56,113 27
------- --- ------- --- -------- ---
Total operating
expenses 49,137 85 35,182 86 164,910 81
------- --- ------- --- -------- ---
Operating income 8,581 15 5,550 14 37,425 19
Other income, net 461 1 603 1 2,159 1
------- --- ------- --- -------- ---
Earnings before
income taxes 9,042 16 6,153 15 39,584 20
Income tax expense 3,444 6 2,364 6 15,321 8
------- --- ------- --- -------- ---
Net earnings $ 5,598 10% $ 3,789 9% $ 24,263 12%
------- --- ------- --- -------- ---
------- --- ------- --- -------- ---
</TABLE>
Air freight net revenues increased 36% for the three-month period
ended March 31, 1997 as compared with the same period for 1996. This
increase was primarily due to increased airfreight tonnage handled by the
Company's expanding global network.
Ocean freight net revenues increased 57% for the three-month period
ended March 31, 1997 as compared with the same period for 1996. The Company
continued to aggressively market competitive ocean freight rates primarily on
freight moving eastbound from the Far East. During the first quarter of
1997, there continued to be pricing pressures on this lane. Despite the
falling prices, the Company was able to maintain margins and expand market
share, a development management believes to be significant in assessing its
strength in the
8
<PAGE>
transpacific market. The ocean forwarding business and ECMS (Expeditors
Cargo Management Systems), the Company's ocean freight consolidation
management and purchase order tracking service, were instrumental in helping
the Company to expand its market share.
Customs brokerage and import services increased 41% for the three-month
period ended March 31, 1997 as compared with the same period for 1996. This
increase is the result of 1) the Company's entry into the truck and rail
border brokerage business in the United States, 2) the Company's growing
reputation for providing high quality service, 3)consolidation within the
customs brokerage market as customers seek out brokers with sophisticated
computerized capabilities critical to an overall logistics management
program, and 4) the growing importance of distribution services as a
separate and distinct service which is included in this category.
Salaries and related costs increased during the three-month period ended
March 31, 1997 compared with the same period in 1996 as a result of 1) the
Company's increased hiring of sales, operations, and administrative personnel
in existing and new offices to accommodate increases in business activity and
2) increased compensation levels. Salaries and related costs have, however,
remained constant as a percentage of net revenue--a measure that management
believes is significant in assessing the effectiveness of corporate cost
containment objectives. The relatively consistent relationship between
salaries and net revenues is the result of a compensation philosophy that has
been maintained since the inception of the Company: offer a modest base
salary and the opportunity to share in a fixed and determinable percentage of
the operating profit of the business unit controlled by each key employee.
Using this compensation model, changes in individual compensation will occur
in proportion to changes in Company profits. Management believes that the
strong growth in revenues, net revenue and net income for the three month
periods ended March 31, 1997 and 1996 are a direct result of the incentives
inherent in the Company's incentive compensation program.
Other operating expenses increased for the three-month period ended March
31, 1997 as compared with the same period in 1996 as rent expense,
communications expense, quality and training expenses, and other costs
expanded to accommodate the Company's growing operations. Other operating
expenses as a percentage of net revenues decreased approximately 1% in the
three-month period ended March 31, 1997, as compared with the same period in
1996. This decrease is primarily due to economies of scale realized as the
Company's semi-variable other operating expenses were spread over increased
net revenues.
Other income, net, decreased for the three-month period ended March
31, 1997 as compared with the same period in 1996, principally due to lower
interest income on a smaller average cash balance during the period. Two
factors which reduced cash available for investment were 1) the Company's
real estate commitments and 2) additional cash advances for duty payments in
the newly established border brokerage business. By the end of the period,
and as the company gained experience with border operations, cash flow
returned to historical levels.
The Company pays income taxes in the United States and other
jurisdictions. In addition the Company pays various other taxes, which are
typically included in costs of operations. Effective income tax rates per
financial statements during the three-month period ended March 31, 1997
remained virtually constant as compared with the same period in 1996.
9
<PAGE>
CURRENCY AND OTHER RISK FACTORS
International air/ocean freight forwarding and customs brokerage are
intensively competitive and are expected to remain so for the foreseeable
future. There are a large number of entities competing in the international
logistics industry, however, the Company's primary competition is confined to
a relatively small number of companies within this group. While there is
currently a marked trend within the industry toward consolidation into large
firms with multinational office and agency networks, regional and local
broker/forwarders remain a competitive force.
Historically, the primary competitive factors in the international
logistics industry have been price and quality of service, including
reliability, responsiveness, expertise, convenience, and scope of operations.
The Company emphasizes quality service and believes that its prices are
competitive with those of others in the industry. Recently customers have
exhibited a trend toward the more sophisticated and efficient procedures for
the management of the logistics supply chain by embracing strategies such as
just-in-time inventory management. Accordingly, sophisticated computerized
customer service capabilities and a stable worldwide network have become
significant factors in attracting and retaining customers.
Developing these systems and a worldwide network has added a
considerable indirect cost to the services provided to customers. Smaller
and middle-tier competitors, in general, do not have the resources available
to develop customized systems and worldwide network. As a result, there is a
significant amount of consolidation currently taking place in the industry.
Management expects that this trend toward consolidation will continue for the
short to medium term.
The nature of the Company's worldwide operations necessitates the
Company dealing with a multitude of currencies other than the U.S. dollar.
This results in the Company being exposed to the inherent risks of the
international currency markets and governmental interference. Many of the
countries where the Company maintains offices and/or agency relationships
have strict currency control regulations which influence the Company's
ability to hedge foreign currency exposure. The Company tries to compensate
for these exposures by accelerating international currency settlements among
these offices or agents. Foreign currency gains and losses recognized during
the first quarter of 1997 and 1996 were immaterial.
The Company has traditionally generated revenues from air freight, ocean
freight and customs brokerage and import services. In light of the
customer-driven trend to provide customer rates on a door-to-door basis,
management foresees the potential, in the medium to long-term, for fees
normally associated with customs house brokerage to be de-emphasized and
included as a component of other services offered by the Company.
SOURCES OF GROWTH
Acquisitions - Historically, growth through aggressive acquisition
has proven to be a challenge for may of the Company's competitors and
typically involves the purchase of significant "goodwill", the value of which
can be realized in large measure only by retaining the customers and profit
margins of the acquired business. As a result, the Company has pursued a
strategy emphasizing organic growth supplemented by certain strategic
acquisitions, where future economic benefit significantly exceeds the
"goodwill" recorded in the transaction.
On April 7, 1997, the Company completed the acquisition of SeaSky
Express, Ltd. This entity had served as the Company's exclusive agent in
Ireland. The Company paid approximately $8.5 million dollars for all of the
outstanding shares
10
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of Seasky Express, Ltd. and its wholly-owned subsidiaries. In connection with
this transaction, the Company recorded approximately $5 million in "Goodwill"
which the Company intends to amortize over 40 years. The strategic
motivations for this acquisition included 1) obtaining expertise in European
road freight, 2) establishing a clear identity and presence in this key
market and 3) a reluctance to risk the loss of customers inherent in starting
a new venture which would compete with an established and motivated "former
agent."
Office Openings - The Company opened twelve start-up offices during
the first quarter of 1997.
North Indian
America Europe Africa Sub-continent
- ------- ------ ------ -------------
Buffalo, NY Paris, France Capetown, RSA Bombay (Mumbai),India
Dearborn, MI Epinal, France
Nogales, AZ Lyon, France
Laredo, TX Lille, France
El Paso, TX Swindon, U.K.
Internal Growth - Management believes that a comparison of "same
store" growth is critical in the evaluation of the quality and extent of the
Company's internally generated growth. This "same store" analysis isolates
the financial contributions from offices that have been included in the
Company's operating results for at least one full year. The table below
presents same store comparisons for the first quarter of 1997 (which is the
measure of any increase from the same quarter of 1996) and for the first
quarter of 1996 (which measures growth over 1995).
For the three months
ended March 31,
1997 1996
---- ----
Net revenue 30% 18%
Operating income 50% 20%
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal source of liquidity is cash generated from
operations. At March 31, 1997, working capital was $87.3 million, including
cash and short-term investments of $44 million. The Company had no long-term
debt at March 31, 1997. While the nature of its business does not require an
extensive investment in property and equipment, the Company is actively
looking for suitable facilities and/or property to acquire at or near
airports in certain cities in North America and overseas. The Company
expects to spend approximately $30 million on property and equipment in 1997,
which is expected to be financed with cash, short-term floating rate and/or
long-term fixed-rate borrowings.
The Company maintains foreign and domestic borrowings under
unsecured bank lines of credit totaling $30 million. At March 31, 1997, the
Company was directly liable for $2.9 million drawn on these lines of credit
and was contingently liable for an additional $14.2 million from standby
letters of credit. In addition, the Company maintains a bank facility with
its U.K. bank for $8.2 million. Management believes that the Company's
current cash position, bank financing arrangements, and operating cash flows
will be sufficient to meet its capital and liquidity requirements for the
foreseeable future.
In some cases, the Company's ability to repatriate funds from
foreign operations may be subject to foreign exchange controls. In addition,
certain undistributed earnings of the Company's subsidiaries accumulated
through December
11
<PAGE>
31, 1992 would, under most circumstances, be subject to some additional
United States income tax if distributed to the Company. The Company has not
provided for this additional tax because the Company intends to reinvest
such earnings to fund the expansion of its foreign activities, or to
distribute them in a manner in which no significant additional taxes would be
incurred.
12
<PAGE>
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is ordinarily involved in claims and lawsuits which
arise in the normal course of business, none of which currently, in
management's opinion, will have a significant effect on the Company's
financial condition.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits required by Item 601 of Regulation S-K.
Exhibit
Number Description
------- -----------
Exhibit 27 Financial Data Schedule, EDGAR filing only.
(b) Reports on Form 8-K
No reports on Form 8-K were filed in the quarter ended March 31, 1997.
13
<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.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
May 9, 1997 /S/ PETER J. ROSE
--------------------------------------------
Peter J. Rose, Chairman
and Chief Executive Officer
(Principal Executive Officer)
May 9, 1997 /S/ R. JORDAN GATES
--------------------------------------------
R. Jordan Gates, Chief Financial Officer
and Treasurer
(Principal Financial and Accounting Officer)<PAGE>
14
<PAGE>
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Form 10-Q Index and Exhibits
March 31, 1997
Exhibit
Number Description Page Number
- ------- ----------- -----------
27. Financial Data Schedule (Fiiled Electronically Only).
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SET FORTH AS ITEM 1 OF FORM 10-Q FOR
THE QUARTERLY PERIOD ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 43,677
<SECURITIES> 348
<RECEIVABLES> 165,713
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 219,839
<PP&E> 49,205
<DEPRECIATION> 0
<TOTAL-ASSETS> 278,572
<CURRENT-LIABILITIES> 132,520
<BONDS> 0
0
0
<COMMON> 243
<OTHER-SE> 145,809
<TOTAL-LIABILITY-AND-EQUITY> 278,572
<SALES> 0
<TOTAL-REVENUES> 195,969
<CGS> 0
<TOTAL-COSTS> 138,251
<OTHER-EXPENSES> 49,137
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,042
<INCOME-TAX> 3,444
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,598
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
</TABLE>
