FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1997
-------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from NOT APPLICABLE to
------------------------------- --------------
Commission File Number 0-17840
---------------------------------------------------------
NEW HORIZONS WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 22-2941704
- -------------------------------- ---------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
500 CAMPUS DRIVE, MORGANVILLE, NEW JERSEY 07751
(Address of principal executive offices)
(Zip Code)
(732) 536-8501
(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 ____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Number of shares of common stock outstanding at September 30, 1997: 7,091,081
------------
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1997 AND DECEMBER 28, 1996
SEPTEMBER 30, 1997 DECEMBER 28, 1996
------------------ -----------------
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 3,875,377 $ 11,410,868
Marketable securities 18,600,000 300,000
Accounts receivable, net 13,807,670 17,703,228
Inventories 635,563 606,453
Deferred income tax assets - 825,329
Prepaid expenses and other current
assets 761,390 5,571,578
------------------ -----------------
Total current assets 37,680,000 36,417,456
Property, plant and equipment, net 7,996,065 6,804,774
Deferred income tax asset 309,313 -
Other non-current assets 3,546,930 3,330,111
Intangible assets 13,638,960 13,920,041
------------------ -----------------
$ 63,171,268 $ 60,472,382
================== =================
See accompanying notes to condensed consolidated financial statements.
2
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEETS
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1997 AND DECEMBER 28, 1996
SEPTEMBER 30, 1997 DECEMBER 28, 1996
------------------ -----------------
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term
obligations and notes payable $ 1,739,484 $ 1,449,052
Accounts payable 2,573,755 4,614,466
Accrued expenses 8,607,805 7,192,278
Income taxes payable 443,057 96,145
------------------ -----------------
Total current liabilities 13,364,101 13,351,941
Long-term obligations, excluding current
installments 2,493,467 2,565,207
Deferred income tax liability - 798,215
Stockholders' equity:
Preferred stock, without par value,
2,000,000 shares authorized, no
shares issued - -
Common stock, $.01 par value,
15,000,000 shares authorized;
issued 7,276,081 shares in 1997
and 7,163,660 shares in 1996 72,761 71,637
Additional paid-in capital 25,934,347 25,312,279
Retained earnings 22,604,717 19,671,228
Treasury stock at cost-185,000
shares in 1997 and 1996 (1,298,125) (1,298,125)
------------------ -----------------
Total stockholders' equity 47,313,700 43,757,019
------------------ -----------------
$ 63,171,268 $ 60,472,382
================== =================
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 28, 1996
(UNAUDITED)
NINE MONTHS ENDED THREE MONTHS ENDED
--------------------------- ---------------------------
SEPTEMBER 30 SEPTEMBER 28 SEPTEMBER 30 SEPTEMBER 28
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues
Franchising
Franchise fees 766,750 968,000 291,250 155,500
Royalties 9,215,668 6,108,319 3,456,178 2,224,914
------------ ------------ ------------ ------------
Total franchising
revenues 9,982,418 7,076,319 3,747,428 2,380,414
Company-owned training
centers 28,932,729 22,502,039 10,077,307 8,103,929
------------ ------------ ------------ ------------
Total revenues 38,915,147 29,578,358 13,824,735 10,484,343
Cost of revenues 19,987,560 14,614,479 6,970,525 5,230,727
Selling, general and
administrative expenses 17,344,841 13,732,162 5,865,653 4,763,488
------------ ------------ ------------ ------------
Operating income 1,582,746 1,231,717 988,557 490,128
Investment income (expense),
net 467,626 (102,806) 187,325 (52,467)
Gain from release of certain
franchise obligations 2,600,000 - - -
------------ ------------ ------------ ------------
Income from continuing
operations before income
taxes 4,650,372 1,128,911 1,175,882 437,661
Provision for income taxes 1,716,883 506,533 428,228 177,581
------------ ------------ ------------ ------------
Income from continuing
operations 2,933,489 622,378 747,654 260,080
Discontinued operations
(Note 2)
Income (loss) from
operations of the
discontinued environmental
segment (less applicable
income tax benefit/(expense)
of $126,101 and ($314,915)) - (135,641) - 181,240
Loss on disposal of the
environmental segment - (7,303,000) - (7,303,000)
------------ ------------ ------------ ------------
Net income (loss) $ 2,933,489 $ (6,816,263) $ 747,654 $ (6,861,680)
============ ============ ============ ============
Earnings per share from
continuing operations $ 0.41 $ 0.09 $ 0.10 $ 0.04
Loss per share from
discontinued operations - (1.08) - (1.04)
------------ ------------ ------------ ------------
Earnings (loss) per share $ 0.41 $ (0.99) $ 0.10 $ (1.00)
============ ============ ============ ============
Weighted average common
shares and equivalents
outstanding 7,224,000 6,868,000 7,301,000 6,871,000
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 28, 1996
(UNAUDITED)
NINE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, 1997 SEPTEMBER 28, 1996
------------------ ------------------
<S> <C> <C>
Cash flows from operating
activities:
Net income $ 2,933,489 $ (6,816,263)
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 2,920,519 2,008,416
Loss on disposal of equipment 5,393 -
Deferred income taxes (282,199) (12,861)
Gain from release of certain
franchise obligations (2,600,000) -
Cash provided (used) from the
change in:
Accounts receivable 3,895,558 (2,999,139)
Inventories (29,110) (190,250)
Prepaid expenses and other
current assets 4,810,188 (166,071)
Other assets (216,819) (251,855)
Accounts payable (2,040,711) 226,895
Accrued expenses 1,415,527 2,994,299
Income taxes payable 346,912 904,269
Discontinued operations -
non cash charges and working
capital changes - 7,064,702
------------------ ------------------
Net cash provided by
operating activities 11,158,747 2,762,142
------------------ ------------------
Cash flows from investing activities:
Purchase of marketable securities (18,300,000) -
Redemption of marketable
securities - 2,475,000
Gain from release of certain
franchise obligations 2,600,000 -
Additions to property, plant
and equipment:
Continuing operations (3,836,122) (3,541,441)
Discontinued operations - (736,906)
Excess of cost over net assets of
acquired company - (60,183)
------------------ ------------------
Net cash used in investing
activities (19,536,122) (1,863,530)
------------------ ------------------
Cash flows from financing activities:
Proceeds from issuance of
common stock 623,192 53,680
Proceeds from debt and other
long term obligations 1,532,279 2,851,450
Prinicipal payments on debt
obligations (1,313,587) (656,262)
Other - (3,600)
------------------ ------------------
Net cash provided by
financing activities 841,884 2,245,268
------------------ ------------------
Net increase (decrease) in cash and
cash equivalents (7,535,491) 3,143,880
Cash and cash equivalents at beginning
of period 11,410,868 3,821,474
------------------ ------------------
Cash and cash equivalents at end of
period $ 3,875,377 $ 6,965,354
================== ==================
Supplemental disclosure of cash flow
information
Cash was paid for:
Interest $ 109,248 $ 227,708
================== =================
Income taxes $ 558,472 $ 51,697
================== =================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
Notes to Condensed Consolidated Financial Statements
New Horizons Worldwide, Inc. and Subsidiaries
For the Nine and Three Months Ended September 30, 1997 and September 28, 1996
(Unaudited)
Note 1 In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (all of which
are normal and recurring) necessary to present fairly the financial
position of the Company at September 30, 1997 and the results of
operations for the nine and three month periods ended September 30,
1997 and September 28, 1996. The statements and notes should be read in
conjunction with the financial statements and notes thereto included in
the Company's annual report for the year ended December 28, 1996.
Note 2 On December 27, 1996, the Company completed a transaction to sell its
environmental business and simultaneously changed its name from Handex
Corporation to New Horizons Worldwide, Inc., to concentrate on and more
closely identify with its continuing computer training business.
The Company received aggregate consideration in the face amount of
approximately $21,954,000 in connection with the sale of Handex
Environmental, Inc. The consideration received consisted of (i)
$4,600,000 in cash; (ii) a promissory note in the original amount of
$3,700,000 (subject to adjustment in certain events) due on April 30,
2002, and bearing interest at the rate of 6% per annum; (iii) 2,000
shares of Series A Preferred Stock, stated value of $1,000 per share,
of the acquiring company; (iv) six-year warrants to acquire 300,000 and
85,000 common shares of the acquiring company at the price of $1.32 and
$1.60, respectively; and (v) one-third share of the redemption value of
a small joint venture when paid or made available to the acquiring
company. In addition, immediately prior to closing, the Company
received a dividend of cash, accounts receivable and other assets,
owned by the environmental subsidiaries having a book value of
$11,654,000 at December 27, 1996.
The net assets and results of operations of Handex Environmental, Inc.,
the divested operation, have been reflected as discontinued operations
in the accompanying condensed consolidated financial statements.
Note 3 The marketable securities are funds retained for future use in the
business and are invested in tax-exempt bonds and municipal funds. The
Company's investments are presented at their aggregate face value.
There were no unrealized gains or losses as of September 30, 1997.
Note 4 Certain items on the 1996 financial statements have been reclassified
to conform to the 1997 presentation.
Note 5 The company has received permission from the Department of the Treasury
to change its accounting period for federal income tax purposes to a
taxable year
6
<PAGE>
ending on December 31 from a 52-53 week taxable year ending on the
Saturday nearest December 31.
7
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company operates computer training centers in the United States and
franchises computer training centers in the United States and abroad. Prior to
the sale of Handex Environmental, Inc. in December 1996, the Company also
operated an environmental remediation business. As a result of the sale of
Handex Environmental, Inc. the results of operations for the Company's
environmental business segment have been classified as discontinued operations
for all periods presented in the accompanying condensed consolidated financial
statements.
Corporate revenues are defined as revenues from company-owned training centers,
initial franchise fees and royalties from franchised operations. System-wide
revenues are comprised of total revenues from all centers, both company-owned
and franchised. System-wide revenues are used to gauge the growth rate of the
entire New Horizons training network.
Revenues from company-owned training centers operated by New Horizons consist
primarily of training fees and fees derived from the sale of courseware. Cost of
revenues consists primarily of instructor costs, courseware, rent, utilities,
classroom equipment, and computer hardware, software and peripheral expenses.
Included in selling, general and administrative expenses are costs associated
with technical support personnel, facilities support personnel, scheduling
personnel, training personnel, accounting and finance personnel and sales
executives.
Revenues for the franchising operation consist primarily of initial franchise
fees paid by franchisees for the purchase of specific franchise territories and
franchise rights; royalty and advertising fees based on a percentage of gross
training revenues realized by the franchisees; and percentage royalty fees
received on the gross sales of courseware. Cost of revenues consists primarily
of costs associated with franchise support personnel who provide system
guidelines and advice on daily operating issues including sales, marketing,
instructor training, and general business problems. Included in selling, general
and administrative expenses are technical support, courseware development,
accounting and finance support, major account program support, advertising
expenses, and franchise sales expenses.
REVENUES
Revenues increased $3,340,000 or 31.9% to $13,825,000 for the third quarter of
1997 and increased $9,337,000 or 31.6% for the first nine months of 1997
compared to the same periods in 1996. This was primarily due to improved
revenues at company-owned locations, revenue increases at franchises open more
than twelve months and additional franchises added to the system. System-wide
revenues for the third quarter were $71,306,000, up 40.3% from $50,817,000 for
the same period in 1996. For the first nine months of 1997 system-wide revenues
grew 40.9% to $194,593,000 from $138,073,000 for the corresponding first nine
months of 1996. Revenues from locations open more than 12 months, both
franchised and
8
<PAGE>
company-owned, grew 36.9% in the third quarter of 1997 and 38.3% for the first
nine months of 1997 compared to the same periods in 1996.
COST OF REVENUES
Cost of revenues increased $1,740,000 or 33.3% for the third quarter of 1997 and
increased $5,373,000 or 36.8% for the first nine months of 1997 compared to the
same periods in 1996. As a percentage of revenues, cost of revenues increased to
50.4% for the third quarter of 1997 and to 51.4% for the first nine months of
1997, from 49.9% and 49.4% respectively, for the same periods in 1996. The
increases in the cost of revenues in absolute dollars was a result of the
increase in the revenues for the quarter and the first nine months of the year
as discussed above. Additionally, the increase in cost of revenues in absolute
dollars and as a percent of revenues were also due to higher training,
facilities and depreciation expenses associated with the opening of a training
center in Los Angeles and the expansion of the centers in Santa Ana and New York
City.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased $1,102,000 or 23.1% for
the third quarter of 1997 and increased $3,613,000 or 26.3% for the first nine
months of 1997, compared to the same periods in 1996. As a percentage of
revenues, selling, general and administrative expenses decreased to 42.4% for
the third quarter of 1997 and to 44.6% for the first nine months of 1997 from
45.4% and 46.4% respectively, for the same periods for 1996. The increase in
selling, general and administrative expenses in absolute dollars was due
principally to increased spending in the areas of sales and marketing, national
advertising, the expansion of the Major Accounts Program, franchise support for
domestic and international operations, and expenses associated with the new
center in Los Angeles and expansion in New York City. The decrease in selling,
general and administrative expenses as a percent of revenues was primarily due
to the increase in revenue and control of the addition of non-revenue producing
employees.
OPERATING INCOME
Operating income increased $498,000 or 102% for the third quarter of 1997 and
increased $351,000 or 28.5% for the first nine months of 1997 compared with the
same periods of 1996. The increase in operating income for the three and nine
months ended September 30, 1997 resulted from the increase in revenues and the
reduction in selling, general and administrative expenses, as a percentage of
revenues.
INVESTMENT INCOME/(EXPENSE)
Investment income increased $256,000 or 548% for the third quarter of 1997 and
increased $711,000 or 569% for the first nine months of 1997, compared with the
same periods for 1996. As a percentage of revenues, investment income increased
to 2.2% for the 1997 quarter and 2.1% for the first nine months of 1997, from
0.4% for the same periods in 1996. The increase in investment income, both in
absolute dollars and as a percentage of revenues was due mainly to the
substantial increase in short term investment funds resulting from the sale of
the environmental business and the cash received from the release of certain
franchise obligations discussed below.
9
<PAGE>
Interest expense increased $16,000 or 16.5% for the third quarter of 1997 and
increased $140,000 or 61.6% for the first nine months of 1997, compared with the
same periods for 1996. The rise in interest expense was due mainly to purchases
of equipment under capital lease arrangements in 1996, and bank financing for
purchases in the first nine months of 1997.
GAIN FROM RELEASE OF CERTAIN FRANCHISE OBLIGATIONS
On February 28, 1997 the company received cash consideration of $2,600,000 in
return for releasing the franchise obligations of an owner of four New Horizons
training centers in the State of New York. The company is aggressively
attempting to re-franchise the territories that became available as a result of
this transaction and successfully resold one of the territories in the second
quarter of 1997. There were no items of "other income" in the first nine months
of 1996.
INCOME TAXES
The Company's effective tax rate declined to 36.4% for the third quarter 1997
and to 36.9% for the first nine months of 1997, from 40.6% and 44.9%
respectively, for the same periods in 1996. The decrease in the effective tax
rate was due principally to higher tax free interest income and substantially
lower foreign income taxes in 1997 when compared to 1996.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1997, the Company's working capital was $24,316,000, and its
cash, cash equivalents and short-term investments totaled $22,475,000. Working
capital as of September 30, 1997 reflected an increase of $1,250,000 or 5.4%
from $23,066,000 as of December 28, 1996. The increase was due principally to
collection of the cash proceeds from the sale of the environmental business, the
operating and interest income, and the gain from the release of certain
franchise obligations described above, offset by cash used for capital
acquisitions and the repayment of debt obligations.
The Company currently maintains a $2,750,000 credit facility for the purchases
of equipment with a commercial bank of which $2,692,000 was available at
September 30, 1997. This facility bears interest at a variable interest rate
equal to .5% over the bank's prime rate. When the facility expires on June 1,
1998 the amounts outstanding will be incorporated into 36 month term loans
bearing a fixed interest rate equal to 1% over the bank's prime rate. At the
expiration date the Company intends to enter into a similar credit facility for
future equipment purchases.
The nature of the computer education and training industry requires substantial
cash commitments for the purchase of computer equipment, software and training
facilities. During the first nine months of 1997 the Company spent approximately
$3,836,000 on capital items and anticipates spending up to $4,500,000 during
1997.
Management believes that its current working capital position and cash flows
from operations, along with its credit facility, will be adequate to support its
current and anticipated capital and operating expenditures and its strategies to
grow its computer education and training business through the end of 1998.
10
<PAGE>
INFORMATION ABOUT FORWARD LOOKING STATEMENTS
The statements made in this Quarterly Report on Form 10-Q that are not
historical facts are forward looking statements. Such statements are based on
current expectations but involve risks, uncertainties, and other factors which
may cause actual results to differ materially from those contemplated by such
forward looking statements. Important factors which may result in variations
from results contemplated by such forward looking statements include, but are by
no means limited to: (i) the Company's ability to respond effectively to
potential changes in the manner in which computer training is delivered,
including the increasing acceptance of technology based training which could
have more favorable economics with respect to timing and delivery costs and the
emergence of "just in time" interactive training; (ii) the Company's ability to
attract and retain qualified instructors; (iii) the rate at which new software
applications are introduced by manufacturers and the Company's ability to keep
up with new applications and enhancements to existing applications; (iv) the
level of expenditures devoted to enhancements upgrading information systems and
computer software by customers; (v) the Company's ability to compete effectively
with low cost training providers who may not be authorized by software
manufacturers; and (vi) the Company's ability to manage the growth of its
business.
The Company's strategy focuses on enhancing revenues and profits at
company-owned and franchise locations and the sale of additional franchises, and
also includes the possible opening of new company-owned locations, the selective
acquisition of existing franchises in the United States, and the acquisition of
companies in similar or complementary businesses. The Company's growth strategy
is premised on a number of assumptions concerning trends in the information
technology training industry. These include the continuation of growth in the
market for information technology training and the trend toward outsourcing. To
the extent that the Company's assumptions with respect to any of these matters
are inaccurate, its results of operations and financial condition could be
adversely affected.
11
<PAGE>
NEW ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 128, "Earnings per Share," (SFAS
No. 128"). The Company is required to adopt SFAS No. 128 in the fourth quarter
of 1997 and at that time will restate earnings per share (EPS) data for prior
periods to conform with SFAS No. 128. Earlier application is not permitted. SFAS
No. 128 replaces current EPS reporting requirements and requires a dual
presentation of basic and diluted EPS. Basic EPS is computed by dividing net
Income by the weighted average number of common shares outstanding for the
period. Diluted EPS reflects the potential dilution that could occur if
contracts to issue common stock were exercised or converted to common stock.
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
130. "Reporting Comprehensive Income," (SFAS No. 130). SFAS 130 establishes
standards for the reporting and display of comprehensive income and its
components (revenues, expenses, gains and losses) in a full set of general
purpose financial statements. SFAS 130 requires all items that are required to
be recognized under accounting standards as components of comprehensive income
to be reported in a financial statement that is displayed with the same
prominence as other financial statements. SFAS 130 does not require a specific
format for that financial statement but requires that an enterprise display an
amount representing total comprehensive income for the period covered by that
financial statement. SFAS 130 requires an enterprise to (a) classify items of
other comprehensive income by their nature in a financial statement and (b)
display the accumulated balance of other comprehensive income separately from
retained earnings and additional paid-in-capital in the equity section of a
statement of financial position. SFAS 130 is effective for fiscal years
beginning after December 15, 1997. Management has not determined whether the
adoption of SFAS 130 will have a material impact on the Company's consolidated
financial position or results of operations.
In June 1997, FASB issued Statement of Financial Accounting Standards No. 131,
Disclosures about Segments of an Enterprise and Related Information (SFAS 131).
SFAS 131 establishes standards for the way public business enterprises are to
report information about operating segments in annual financial statements and
requires those enterprises to report selected information about operating
segments in interim financial reports issued to shareholders. It also
establishes standards for related disclosures about products and services,
geographic areas, and major customers. Statement 131 uses a "management
approach" concept as the basis for identifying reportable segments. The
management approach is based on the way that management organizes the segments
within the enterprise for making operating decisions and assessing performance.
Consequently, the segments are evident from the structure of the enterprise's
internal organization. Furthermore, the management approach facilitates
consistent descriptions of an enterprise in its annual report and various other
published information. It focuses on financial information that an enterprise's
decision makers use to make decisions about the enterprise's operating matters.
Statement 131 is effective for financial statements for periods beginning after
December 15, 1997. Earlier application is encouraged. In the initial year of
application, comparative information for earlier years is to be restated, unless
it is impracticable to do so. Statement 131 need not be applied to interim
financial statements in the initial year of its application, but comparative
information for interim periods in the initial year of application shall be
reported in financial statement for interim periods in the second year of
application.
12
<PAGE>
FORM 10Q - PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit Index
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENTS
------- ------------------------
27 Financial Data Schedule*
* Filed herewith
13
<PAGE>
SIGNATURE
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 thereto duly authorized.
NEW HORIZONS WORLDWIDE, INC.
(Registrant)
Date: November 12, 1997 By: /S/ ROBERT S. MCMILLAN
-------------------------
Robert S. McMillan
NEW HORIZONS WORLDWIDE, INC.
Chief Financial Officer
14
<PAGE>
EXHIBIT INDEX
Exhbit Description
- ------ -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,875,377
<SECURITIES> 18,600,000
<RECEIVABLES> 16,599,553
<ALLOWANCES> (2,791,883)
<INVENTORY> 635,563
<CURRENT-ASSETS> 37,680,000
<PP&E> 14,572,461
<DEPRECIATION> (6,576,396)
<TOTAL-ASSETS> 63,171,268
<CURRENT-LIABILITIES> 13,364,101
<BONDS> 2,493,467
0
0
<COMMON> 72,761
<OTHER-SE> 47,240,939
<TOTAL-LIABILITY-AND-EQUITY> 63,171,268
<SALES> 38,915,147
<TOTAL-REVENUES> 38,915,147
<CGS> 19,987,560
<TOTAL-COSTS> 37,332,401
<OTHER-EXPENSES> (835,655)
<LOSS-PROVISION> 297,346
<INTEREST-EXPENSE> 368,029
<INCOME-PRETAX> 4,650,372
<INCOME-TAX> 1,716,883
<INCOME-CONTINUING> 2,933,489
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,933,489
<EPS-PRIMARY> 0.41
<EPS-DILUTED> 0.41
</TABLE>
