SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1994
Commission File Number 1-9750
Sotheby's Holdings, Inc.
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Michigan 38-2478409
- - ---------------------------------- ----------------------------------
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
500 North Woodward Avenue, Suite 100
Bloomfield Hills, Michigan 48304
- - ---------------------------------------- ----------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, include area code: (313) 646-2400
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 .
As of October 31, 1994, there were outstanding 36,723,158 shares of
Class A Limited Voting Common Stock, par value $0.10 per share, and
19,093,971 shares of Class B Common Stock, par value $0.10 per
share, of the Registrant. Each share of Class B Common Stock is
freely convertible into one share of Class A Limited Voting Common
Stock.
<PAGE>
PART 1: FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
CONSOLIDATED BALANCE SHEETS
Sotheby's Holdings, Inc. and Subsidiaries
(Thousands of dollars)
<CAPTION> September 30, December 31,
1994 1993
<S> -------------- -------------
Assets <C> <C>
Current Assets:
Cash and cash equivalents $27,282 $91,840
Accounts and notes receivable, net of allowance
for doubtful accounts of $12,486 and $10,596
Auction operations 79,495 166,962
Finance operations 130,887 98,419
Other 13,242 12,670
- - ----------------------------------------------------------------------------------------------------
Total Accounts And Notes Receivable, Net 223,624 278,051
Inventory, net 79,959 81,369
Deferred income taxes 9,248 8,675
Prepaid expenses 12,716 11,880
- - ----------------------------------------------------------------------------------------------------
Total Current Assets 352,829 471,815
Properties, less allowance for depreciation
and amortization of $54,026 and $51,100 66,417 65,078
Intangible assets, less allowance for
amortization of $27,892 and $25,866 29,474 29,633
Other assets 12,927 11,345
- - ----------------------------------------------------------------------------------------------------
Total Assets $461,647 $577,871
====================================================================================================
Liabilities And Shareholders' Equity
Current Liabilites:
Due to consignors $73,018 $205,873
Short-term borrowings 9,505 4,583
Accounts payable and accrued liabilities 82,772 95,043
Deferred revenues 6,276 6,165
Accrued income taxes 19,960 36,187
- - ----------------------------------------------------------------------------------------------------
Total Current Liabilities 191,531 347,851
Long-Term Liabilities:
Commercial paper 71,000 34,000
Other long-term obligations 1,535 1,388
- - ----------------------------------------------------------------------------------------------------
Total Liabilities 264,066 383,239
Shareholders' Equity
Common Stock, $0.10 par value:
Authorized shares - 125,000,000 of Class A and 75,000,000 of Class B
Issued and outstanding shares - 36,722,258 and 35,399,497 of Class A, and
19,093,971 and 20,096,469 of Class B, at September 30, 1994 and
December 31, 1993, respectively 5,582 5,550
Additional paid-in capital 83,525 80,509
Retained earnings 122,085 129,637
Foreign currency translation adjustments (13,611) (21,064)
- - ----------------------------------------------------------------------------------------------------
Total Shareholders' Equity 197,581 194,632
- - ----------------------------------------------------------------------------------------------------
Total Liabilities And Shareholders' Equity $461,647 $577,871
====================================================================================================
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Sotheby's Holdings, Inc. and Subsidiaries
(Thousands of dollars, except per share data)
<CAPTION> For The Third Quarter For The Nine Months
Ended September 30, Ended September 30,
--------------------- ---------------------
1994 1993 1994 1993
<S> --------- --------- --------- ---------
Auction: <C> <C>
Revenues $24,976 $20,768 $147,226 $135,287
Direct costs of services (6,682) (5,578) (30,350) (27,357)
Salaries and related costs (20,235) (18,619) (62,070) (55,150)
General and administrative expenses (16,347) (15,959) (48,283) (50,484)
Depreciation and amortization (2,154) (1,772) (6,024) (5,455)
- - -----------------------------------------------------------------------------------------------------------------
Operating income (loss) from primary
auction activities (20,442) (21,160) 499 (3,159)
Income (loss) from inventory and other
auction-related activities 383 (24) 1,087 (590)
- - -----------------------------------------------------------------------------------------------------------------
Operating income (loss) - Auction (20,059) (21,184) 1,586 (3,749)
Interest income 1,217 1,240 3,319 4,316
Interest expense (1,314) (907) (3,019) (3,438)
Net interest charged to Financial Services 963 442 1,824 1,478
- - -----------------------------------------------------------------------------------------------------------------
Income (loss) before taxes - Auction (19,193) (20,409) 3,710 (1,393)
- - -----------------------------------------------------------------------------------------------------------------
Financial Services:
Revenues 2,550 1,760 6,584 5,797
General and administrative expenses (591) (592) (1,814) (2,148)
Net interest expense from Auction (963) (442) (1,824) (1,478)
- - -----------------------------------------------------------------------------------------------------------------
Income before taxes - Financial Services 996 726 2,946 2,171
- - -----------------------------------------------------------------------------------------------------------------
Real Estate:
Revenues 2,903 2,152 8,979 7,546
Operating expenses (2,208) (1,719) (6,544) (5,747)
- - -----------------------------------------------------------------------------------------------------------------
Income before taxes - Real Estate 695 433 2,435 1,799
- - -----------------------------------------------------------------------------------------------------------------
Corporate operating expenses (1,686) (2,049) (4,918) (5,106)
Other non-operating income (expense) 24 108 (41) 417
- - -----------------------------------------------------------------------------------------------------------------
Consolidated:
Revenues 30,429 24,680 162,789 148,630
Operating income (loss) (20,054) (22,074) 2,049 (4,885)
Net interest income 866 775 2,124 2,356
Other non-operating income (expense) 24 108 (41) 417
- - -----------------------------------------------------------------------------------------------------------------
Income (loss) before taxes (19,164) (21,191) 4,132 (2,112)
Income taxes 7,665 8,477 (1,653) 845
Net income (loss) ($11,499) ($12,714) $2,479 ($1,267)
- - -----------------------------------------------------------------------------------------------------------------
Net Income (Loss) Per Share ($0.21) ($0.23) $0.04 ($0.02)
- - -----------------------------------------------------------------------------------------------------------------
Weighted Average Shares Outstanding 55,793,905 55,421,497 56,028,397 55,421,497
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Sotheby's Holdings, Inc. and Subsidiaries
(Thousands of Dollars)
<CAPTION>
For The Nine Months Ended September 30, 1994 1993
- - ----------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities:
Net Income (loss) $2,479 ($1,267)
Adjustments to reconcile net income(loss) to net
cash provided by operating activities before
working capital items:
Depreciation and amortization 6,365 5,785
Tax benefit of stock option exercises 803 811
Asset provisions 3,969 7,102
Other (1,818) (222)
- - ----------------------------------------------------------------------------------
Net cash provided by operating activities
before working capital items 11,798 12,209
Working capital items:
Increase in prepaid expenses (836) (2,699)
Decrease in accounts receivable 85,476 110,389
Decrease in inventory 614 442
Decrease in due to consignors (132,855) (132,256)
Decrease in income taxes payable (16,227) (10,396)
Decrease in other current liabilities (12,160) (5,092)
- - ----------------------------------------------------------------------------------
Net cash used by operating activities (64,190) (27,403)
- - ----------------------------------------------------------------------------------
Investing Activities:
Finance operation loans (32,458) 2,194
Capital expenditures (4,030) (5,323)
- - ----------------------------------------------------------------------------------
Net cash used by investing activities (36,488) (3,129)
- - ----------------------------------------------------------------------------------
Financing Activities:
Increase in commercial paper 37,000 6,600
Increase (decrease) in short-term borrowings 4,922 (225)
Proceeds from exercise of stock options 2,245 1,314
Dividends to shareholders (10,030) (19,873)
- - ----------------------------------------------------------------------------------
Net cash provided (used) by financing activities 34,137 (12,184)
Effect of exchange rate changes on cash 1,983 316
- - ----------------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents (64,558) (42,400)
Cash and Cash Equivalents at Beginning of Period 91,840 85,703
- - ----------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period $27,282 $43,303
- - ----------------------------------------------------------------------------------
</TABLE>
<PAGE>
SOTHEBY'S HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The consolidated financial statements included herein have
been prepared by Sotheby's Holdings, Inc. (together with its
subsidiaries, the "Company") pursuant to the rules and
regulations of the Securities and Exchange Commission.
These consolidated financial statements should be read in
conjunction with the consolidated financial statements and
the notes thereto incorporated by reference in the Company's
Annual Report on Form 10-K for the year ended December 31,
1993 (the "Annual Report"). Reference should be made to the
Annual Report for industry segment information required to
be included under Financial Accounting Standards Board
Statement No. 14.
In the opinion of the management of the Company, all
adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of the results of
operations for the third quarter and nine month periods
ended September 30, 1994 and 1993 have been included.
Certain amounts for the nine month period ended September
30, 1993 have been reclassified to conform to the 1994
presentation.
2. Credit Arrangements
At September 30, 1994, there were $71.0 million of
outstanding commercial paper notes sold to dealers at
weighted average discount rates of 5.02% with average
maturities of 16.5 days. These notes have been classified on
the consolidated balance sheets as long-term liabilities
based on the Company's ability to maintain or refinance
these obligations on a long-term basis. Short-term
borrowings totalled $9.5 million at September 30, 1994 and
consisted primarily of outstanding amounts under a bank line
of credit which bears interest at LIBOR plus 5/8% as well as
a demand note payable which bears interest at prime plus 1%.
On August 3, 1994, the Company entered into a $300 million
Bank Credit Agreement (the "Agreement"). Borrowings under
the Agreement are permitted to January 31, 1998 in either
U.S. dollars or U.K. pounds sterling. The interest rate is
based on LIBOR. The facility fee for the $300 million
committed amount is 0.15% per annum. The Agreement contains
certain financial covenants. The Company is permitted to
pay dividends provided that consolidated tangible net worth,
as defined, is at least $150 million. On August 3, 1994,
all pre-existing revolving credit facilities were
discontinued.
<PAGE>
3. Commitments and Contingencies
In conjunction with the client loan program, the Company
enters into legally binding arrangements to lend, on a
collateralized basis, to potential consignors and other
individuals who have collections of fine art and other
objects. Unfunded commitments to extend additional credit
were approximately $24.3 million at September 30, 1994.
In addition, the Company, in the normal course of business,
is a defendant in various legal actions.
In the opinion of management, the commitments and
contingencies described above currently are not expected to
have a material adverse effect on the Company's financial
statements.
4. Seasonality of Business
The worldwide art auction market has two principal selling
seasons, spring and fall. During the summer and winter,
sales are considerably lower. The table below demonstrates
that at least 80% of the Company's auction sales are derived
from the second and fourth quarters of the year.
<TABLE>
<CAPTION>
Percentage of Annual
Auction Sales
--------------------------------
1993 1992 1991
---- ---- ----
<S> <C> <C> <C>
January - March 10% 12% 11%
April - June 38% 38% 37%
July - September 6% 8% 7%
October - December 46% 42% 45%
---- ---- ----
100% 100% 100%
==== ==== ====
</TABLE>
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Auction
The worldwide auction business is highly seasonal in nature,
with two principal selling seasons, spring and fall.
Accordingly, third quarter results reflect lower auction
sales than the second quarter and lower operating margins
due to the fixed nature of many of the operating expenses.
(See Note 4 in the Notes to the Consolidated Financial
Statements for additional information.)
Following is a geographical breakdown of the Company's
auction sales for the third quarter and nine month periods
ended September 30, 1994 and 1993 (in thousands):
<TABLE>
<CAPTION>
For the Third Quarter For the Nine Months
Ended September 30, Ended September 30,
--------------------- ---------------------
1994 1993 1994 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
North America $ 21,526 $ 21,785 $405,075 $358,311
Europe 79,292 59,385 362,130 341,352
Asia 4,336 3,497 30,029 20,242
-------- -------- -------- --------
Total $105,154 $ 84,667 $797,234 $719,905
======== ======== ======== ========
</TABLE>
For the quarter ended September 30, 1994, worldwide auction
sales increased $20.5 million, or 24%, to $105.2 million.
This increase was attributable to Europe, with growth of
$19.9 million, or 34%, compared to 1993's third quarter.
The increase in European sales is largely due to the success
of the Old Master Paintings auction in the United Kingdom as
well as several single-owner sales. Sales in Asia were $0.8
million higher when compared to 1993, while North American
sales were down slightly. Differences in year-to-year
exchange rates increased worldwide sales for the third
quarter by $2.7 million. Excluding the impact of exchange
rate movements, auction sales would have been $102.5 million
for the third quarter, an increase of 21% compared to the
prior year.
For the nine months ended September 30, 1994, worldwide
auction sales increased $77.3 million, or 11%, compared to
the first nine months of 1993. North American sales
increased $46.8 million, or 13%, over prior year levels.
Auction sales in Europe increased $20.8 million, or 6%, in
the nine month period while Asian sales increased $9.8
million, or 48%. The increase in worldwide auction sales
for the first nine months reflects broad-based growth
throughout a variety of collecting categories, with
particular strength in single owner sales. Exchange rate
movements did not materially impact nine month sales totals.
<PAGE>
Revenues from auction operations ("Auction") for the third
quarter of 1994 increased $4.2 million, or 20%, and for the
first nine months of 1994 increased $11.9 million or, 9%,
over the comparable periods of the prior year. The increase
in Auction revenues for both the third quarter and first
nine months of 1994 was attributable to increased
commissions (which are principally buyer's premium, vendor's
commission and expense recoveries); the growth in
commissions in both periods resulted from the greater volume
of auction sales discussed above. Higher rates of
commission realized during the first nine months of 1994
also contributed, to a lesser extent, to the growth in
commission revenues over the prior year. The increase in
commissions in the third quarter and first nine months of
1994 was offset, in part, by reductions in other revenue
areas. The impact of translating revenues outside North
America to U.S. dollars had a $0.7 million positive impact
for the third quarter of 1994. Exchange rate movements did
not have a material impact on revenues in the first nine
months of 1994.
Auction's operating expenses (which include direct costs of
services, salaries and related costs, general and
administrative expenses as well as depreciation and
amortization) totalled $45.4 million for the third quarter
of 1994; unfavorable movements in quarter-to-quarter
exchange rates accounted for $1.2 million of the $3.5
million, or 8%, increase. Excluding exchange rate
movements, Auction's operating expenses increased 5% when
compared to the third quarter of 1993. The increase in
third quarter operating expenses was primarily attributable
to increased salaries and related costs as well as direct
costs of services. Salaries and related costs increased
$1.6 million, or 9%, in the third quarter of 1994; excluding
the impact of foreign currency movements, salaries and
related costs increased $1.1 million, or 6%. The quarter-
to-quarter increase is principally due to salary increases
offset, in part, by incentive compensation which, in 1993,
was principally recorded in the fourth quarter. In 1994,
incentive compensation is recorded in the second and fourth
quarters, consistent with the flow of earnings. Direct
costs of services, which consist largely of catalogue
production, distribution and mailing costs, were up
approximately $1.1 million, or 20%, in the third quarter of
1994; excluding the effects of movements in exchange rates,
direct costs increased $0.9 million, or 16%. The increase
in direct costs is largely due to the increased sales
activity. Direct costs of services as a percentage of sales
is down slightly in the third quarter of 1994 when compared
to the same period of the prior year.
For the first nine months of 1994, operating expenses
totalled $146.7 million, an increase of $8.3 million, or 6%,
over the previous year's first nine months. Exchange rate
movements did not have a material impact on operating
expenses in the first nine months of 1994. The increase in
nine month Auction operating expenses was principally due to
increases in salaries and related costs as well as direct
costs of services offset, in part, by a decline in general
and administrative costs. The increase in salaries and
<PAGE>
related costs of $6.9 million, or 13%, for the first nine
months of 1994 is principally due to salary increases as
well as the timing of incentive compensation, as
discussed above. Excluding the impact of incentive
compensation, salaries and related costs increased 10%.
Direct costs of services were up approximately $3.0 million
in the first nine months of 1994, resulting from the
increased sales activity. Direct costs of services as a
percentage of sales is flat for the first nine months of
1994 when compared to the same period in 1993. General and
administrative expenses decreased $2.2 million, or 4%, for
the first nine months of 1994. This decrease reflects lower
levels of various provisions for reserves as well as cost
control efforts in 1994 when compared to 1993.
Income from inventory and other auction-related activities
includes net gains on sales of inventory (including gains on
sales of inventory obtained as a result of the auction
process and the Company's share of earnings from the sale of
inventory through the Acquavella Modern Art Partnership),
net of provisions for writedowns of inventory to estimated
realizable value. For the quarter ended September 30, 1994,
inventory and other auction-related activities generated
pre-tax income of $0.4 million, compared to 1993's third
quarter where earnings were essentially flat. The increase
in third quarter results was due to increased earnings from
inventory sold during the period as well as a reduction in
provisions to write down inventory to estimated net
realizable value. For the nine months ended September 30,
1994, income from inventory and other auction-related
activities totalled $1.1 million compared to a loss of $0.6
million in the comparable period of the prior year. The
growth in nine month results is largely due to a reduction
in provisions to write down inventory to estimated net
realizable value and, to a much lesser extent, increased
earnings from inventory sold during the period.
Auction's operating loss decreased $1.1 million, or 5%, to
$20.1 million for the quarter ended September 30, 1994.
Excluding the impact of translating results outside North
America to U.S. dollars, Auction's operating loss declined
by $1.7 million. For the nine months ended September 30,
1994, Auction recorded operating income of $1.6 million,
compared to an operating loss of $3.7 million in 1993.
Exchange rate movements did not materially affect Auction
operating income for the first nine months of 1994. North
America generated Auction operating income of $7.1 million
for September year-to-date, an increase of $3.1 million over
the prior year. Europe's operating loss decreased by $2.0
million while results in Asia were $0.2 million better than
the prior year.
Auction's interest income, which is earned on short-term
investments of excess cash, decreased in the first nine
months of 1994 compared to 1993 due primarily to a lower
level of invested funds in Europe when compared to the prior
year. Interest expense decreased primarily due to a lower
average level of commercial paper borrowings compared to the
first nine months of 1993.
<PAGE>
Financial Services
Revenues from Financial Services increased to $2.6 million
for the third quarter of 1994 from $1.8 million last year.
For the first nine months of 1994, revenues from Financial
Services increased to $6.6 million from $5.8 million in last
year's first nine months. The growth in revenues for both
the third quarter and nine month periods was primarily due
to an increase in the average outstanding loan portfolio
and, to a lesser extent, to higher rates of interest earned
on outstanding loans. Average month-end portfolio balances
were $132.6 million for the third quarter of 1994, compared
to $107.2 million in 1993's third quarter. Average month-
end portfolio balances were $124.1 million and $113.0
million for the first nine months of 1994 and 1993,
respectively.
For the third quarter of 1994, income before taxes increased
$0.3 million from the comparable period in 1993. Higher
third quarter revenues were offset, in part, by an increase
in the net interest expense from Auction, which represents
the cost of Auction funding a portion of the client loan
portfolio. For the first nine months of 1994, income before
taxes increased $0.8 million due largely to the increase in
revenues discussed above as well as lower levels of bad debt
reserves. These factors were offset, in part, by an
increase in the net interest expense from Auction.
In certain instances, consignor advances are made with
recourse limited only to the works of art consigned for sale
and pledged as security for the loan, or with recourse
limited to the consigned works and to other works of art
owned by the consignor but not pledged as security. As of
September 30, 1994, $9.5 million of these consignor advances
were outstanding (net of applicable reserves).
Real Estate
Revenues from Sotheby's International Realty, Inc. ("Real
Estate") for the third quarter of 1994 increased to $2.9
million from $2.2 million in 1993. Real Estate revenues for
the first nine months of 1994 increased to $9.0 million,
compared to $7.5 million in the same period of the prior
year. The increase in both periods reflects a higher level
of property sales when compared to the 1993 period. Real
Estate's pre-tax income for the third quarter of 1994 was
$0.3 million better than the prior year quarter. For the
first nine months of 1994, Real Estate's income before taxes
increased $0.6 million compared to 1993. The increase in
both periods is due to the greater property sales volume
offset, in part, by higher operating expenses.
Corporate
Corporate expenses of $1.7 million for the third quarter of
1994 were down $0.4 million from the third quarter of 1993.
Corporate expenses were $4.9 million in the first nine
months of 1994 compared to $5.1 million in the first nine
months of 1993. The decline in both periods is largely due
to a decrease in professional fees.
<PAGE>
Provision for Income Taxes
The consolidated effective tax rate was 40% in the first
nine months of 1994 and 1993.
Net Income(Loss) and Earnings(Loss) Per Share
For the third quarter of 1994, the net loss decreased 9%, to
$11.5 million, compared to a net loss of $12.7 million in
the third quarter of 1993. For the first nine months of
1994, net income increased to $2.5 million, from a net loss
of $1.3 million for the comparable period of the prior year.
The loss per share for the third quarter of 1994 decreased
to $0.21 from $0.23 for the third quarter of 1993. Earnings
per share for the nine months ended September 30, 1994
totalled $0.04, compared to a loss per share of $0.02 in the
first nine months of 1993.
LIQUIDITY AND CAPITAL RESOURCES
The Company's net debt position (total debt, which includes
short-term borrowings and commercial paper less cash and
cash equivalents) totalled $53.2 million at September 30,
1994, compared to a net cash position of $53.3 million at
December 31, 1993. Working capital (current assets less
current liabilities) at September 30, 1994 was $161.3
million compared to $124.0 million at December 31, 1993.
The Company relies on internally generated funds and
borrowings to meet its financing requirements. The Company
may issue up to $200 million of short-term notes pursuant to
its U.S. commercial paper program, of which $71.0 million
was issued and outstanding at September 30, 1994. The
Company supports any short-term notes issued under its U.S.
commercial paper program with committed credit facilities.
Prior to August 3, 1994, the Company had $175 million
available under committed revolving credit facilities and
$30 million available under a line of credit; these
arrangements were discontinued effective August 3, 1994, at
which date the Company entered into a new Bank Credit
Agreement which provides $300 million of committed available
financing to January 31, 1998 (See Note 2).
For the nine month period ended September 30, 1994, cash
used by operating activities totalled $64.2 million compared
to $27.4 million of cash provided by operations for the
corresponding period of 1993. The Company's primary sources
of liquidity for the first nine months of 1994 were derived
from available cash balances, commercial paper and short-
term borrowings, while the most significant cash uses were
operations, net funding of the client loan portfolio and
shareholder dividends. The Company's primary source of
liquidity for the first nine months of 1993 was commercial
paper, while the most significant cash requirements were
operations and shareholder dividends.
<PAGE>
Capital expenditures, consisting primarily of office and
auction facility refurbishment and the acquisition of
computer equipment, totalled $4.0 million for the first nine
months of 1994 and $5.3 million for the first nine months of
1993.
The Company believes that operating cash flows will be
adequate to meet normal working capital requirements and
that the commercial paper program and credit facilities will
continue to be adequate to fund the client loan program,
peak working capital requirements and other short-term
commitments to consignors.
The Company evaluates, on an ongoing basis, the adequacy of
its principal auction premises for the requirements of the
present and future conduct of its business. Any significant
alteration to these premises may require utilization of
additional capital resources and review and approval by the
Company's Board of Directors.
<PAGE>
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
No report on Form 8-K has been filed for the
quarter ended September 30, 1994.
<PAGE>
SOTHEBY'S HOLDINGS, INC.
AND SUBSIDIARIES
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed this
14th day of November, 1994, on its behalf by the undersigned,
thereunto duly authorized and in the capacity indicated.
SOTHEBY'S HOLDINGS, INC.
By: THOMAS F. GANNALO
----------------------
Vice President, Controller
and Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 27282
<SECURITIES> 0
<RECEIVABLES> 223624
<ALLOWANCES> 12486
<INVENTORY> 79959
<CURRENT-ASSETS> 352829
<PP&E> 66417
<DEPRECIATION> 54026
<TOTAL-ASSETS> 461647
<CURRENT-LIABILITIES> 191531
<BONDS> 71000
<COMMON> 5582
0
0
<OTHER-SE> 191999
<TOTAL-LIABILITY-AND-EQUITY> 461647
<SALES> 0
<TOTAL-REVENUES> 162789
<CGS> 0
<TOTAL-COSTS> 31509
<OTHER-EXPENSES> 71591
<LOSS-PROVISION> 1271
<INTEREST-EXPENSE> 3019
<INCOME-PRETAX> 4132
<INCOME-TAX> 1653
<INCOME-CONTINUING> 2479
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2479
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
