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 September 30, 1995
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 1-10390
BERLITZ INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 13-355-0016
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
RESEARCH PARK, 293 WALL STREET, PRINCETON, NEW JERSEY 08540
(Address of principal executive offices)
(609) 924-8500
Registrant's telephone number, including area code
NO CHANGE
Former name, former address and former fiscal year,
if changed since last report
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
The number of shares outstanding of the registrant's common stock, at the
close of business on November 10, 1995, is 10,033,013.
Page 1 of 13
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BERLITZ INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Dollars in thousands, except per share amounts)
1995 1994
------- -------
Sales of services and products $91,410 $77,694
------- -------
Costs and expenses:
Cost of services and products sold 54,896 46,143
Selling, general and administrative 26,784 23,262
Amortization of
publishing rights, excess of cost
over net assets acquired, and other intangibles 3,330 3,155
Interest expense on long-term debt 2,158 3,428
Other (income) expense, net 1,175 (1,247)
------ ------
Total costs and expenses 88,343 74,741
------ ------
Income before income taxes 3,067 2,953
Income tax expense 1,949 2,234
------ ------
Net income available to
common shareholders $1,118 $719
====== ======
Income per common share $0.11 $0.07
===== =====
Average number of common shares outstanding (000's) 10,033 10,033
====== ======
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Page 3
BERLITZ INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(Dollars in thousands, except per share amounts)
1995 1994
-------- --------
Sales of services and products $261,490 $221,129
-------- --------
Costs and expenses:
Cost of services and products sold 158,024 132,388
Selling, general and administrative 79,669 67,395
Amortization of publishing rights,
excess of cost over net assets
acquired, and other intangibles 10,142 9,457
Interest expense on long-term debt 6,580 8,354
Other (income) expense, net 906 (1,956)
------- -------
Total costs and expenses 255,321 215,638
------- -------
Income before income taxes 6,169 5,491
Income tax expense 5,560 6,911
------ ------
Net income (loss) available to
common shareholders $609 $(1,420)
====== =======
Income (loss) per common share $0.06 $(0.14)
====== =======
Average number of common shares outstanding (000's) 10,033 10,033
====== ======
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Page 4
BERLITZ INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
1995 1994
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and temporary investments $ 27,525 $ 26,165
Accounts receivable, less allowance for
doubtful accounts of $1,757 and $1,912 34,184 25,981
Unbilled receivables 2,439 1,304
Inventories 9,282 8,973
Prepaid expenses and other current assets 7,120 4,907
------ ------
TOTAL CURRENT ASSETS 80,550 67,330
Property and equipment, net of accumulated
depreciation of $12,771 and $8,711 26,594 25,885
Publishing rights, net of accumulated amorti-
zation of $2,323 and $1,665 19,454 20,048
Excess of cost over net assets acquired and
other intangibles, net of accumulated
amortization of $32,313 and $22,675 449,383 453,712
Other assets 13,785 15,030
--------- --------
TOTAL ASSETS $ 589,766 $582,005
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 10,902 $ 9,325
Accounts payable 6,716 6,999
Deferred revenues 36,321 35,994
Payrolls and commissions 13,741 10,785
Income taxes payable 4,585 1,356
Accrued expenses and other current liabilities 11,875 10,219
--------- --------
TOTAL CURRENT LIABILITIES 84,140 74,678
Long-term debt 69,678 78,247
Notes payable to affiliates 31,512 30,424
Deferred taxes and other liabilities 25,216 25,044
Minority interest 6,908 6,377
--------- --------
TOTAL LIABILITIES 217,454 214,770
--------- --------
Commitments and Contingencies (Note 6)
SHAREHOLDERS' EQUITY:
Common stock 1,003 1,003
Additional paid-in capital 368,658 368,658
Accumulated deficit (2,038) (2,647)
Cumulative translation adjustment 4,689 221
-------- --------
TOTAL SHAREHOLDERS' EQUITY 372,312 367,235
TOTAL LIABILITIES AND SHAREHOLDERS' --------- --------
EQUITY $ 589,766 $582,005
========= ========
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Page 5
BERLITZ INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Dollars in thousands)
1995 1994
------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $609 $(1,420)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 15,321 14,181
Foreign exchange (gains) losses, net
and minority interest 1,035 (948)
Changes in operating assets and liabilities (2,973) (4,661)
------ -----
Net cash provided by operating activities 13,992 7,152
------ -----
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (6,053) (4,296)
Acquisitions of businesses (15) (894)
(Investment in) refunds from joint ventures 139 (1,058)
------ -----
Net cash used in investing activities (5,929) (6,248)
------ -----
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable to
affiliate - 30,145
Repayment of long-term debt (7,019) (23,144)
Net repayments under revolving credit agreement - (3,000)
Other (107) (196)
------ -----
Net cash provided by (used in) financing
activities (7,126) 3,805
------ -----
Effect of exchange rate changes on cash and
temporary investments 423 (457)
------ -----
Net increase in cash and temporary investments 1,360 4,252
Cash and temporary investments, beginning of
period 26,165 11,738
------ -----
Cash and temporary investments, end of period $ 27,525 $ 15,990
====== =====
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash payments for:
Interest $ 4,514 $ 5,616
====== =====
Income taxes $ 3,555 $ 4,521
====== =====
Cash receipts for income taxes $ 1,152 $ 810
====== =====
Noncash investing activities:
Accounts payable for capital expenditures
in Japan $ 832 $ -
====== =====
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Page 6
BERLITZ INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1. GENERAL
The Consolidated Financial Statements of Berlitz International, Inc. (the
"Company") have been prepared in accordance with the instructions to Form
10-Q and are unaudited. The information reflects all adjustments of a normal
recurring nature which are, in the opinion of management, necessary for a
fair presentation of such financial statements. The financial statements
should be read in conjunction with the financial statements and related
notes to the Company's 1994 Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission.
TRANSLATIONS SEGMENT CONTRACTS AND UNBILLED RECEIVABLES
Translations segment contracts are accounted for under the percentage of
completion method of accounting, whereby sales and costs are recognized as
work on contracts progress. Changes in estimates for sales, costs and
profits are recognized in the period in which they are determinable.
Unbilled receivables represent the difference between revenue recognized for
financial reporting purposes and amounts contractually permitted to be
billed to customers. Unbilled amounts will be invoiced in subsequent periods
upon reaching certain milestones.
RECLASSIFICATIONS
Certain reclassifications have been made to the prior period financial
statements to conform to the 1995 presentation.
2. LONG-TERM DEBT
Long-term debt consists of the following:
September 30, December 31,
1995 1994
------------- ------------
Term Loan $ 23,856 $ 30,775
Senior Notes 56,000 56,000
Other 724 797
----------- --------
Total debt 80,580 87,572
Less current maturities 10,902 9,325
----------- --------
Long-term debt $ 69,678 $78,247
=========== ========
In connection with the Merger in February 1993, the Company incurred
indebtedness through borrowing under a bank term facility (the "Bank Term
Facility") and the issuance of Senior Notes (the "Senior
Notes")(collectively the "Acquisition Debt Facilities").
<PAGE>
Page 7
3. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
a) Fair values of financial instruments
The carrying amounts and estimated fair values of the Company's financial
instruments at September 30, 1995 and December 31, 1994 were as follows:
1995 1994
-------------------- ---------------------
Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value
-------------------- ---------------------
Assets:
Cash and temporary investments $27,525 $ 27,525 $ 26,165 $ 26,165
Currency coupon swap agreements 4 4 1,011 1,011
Liabilities:
Long-term debt, including
current maturities 80,580 87,087 87,572 88,488
Notes payable to affiliates 31,512 24,301 30,424 19,538
Currency coupon swap agreements 3,465 3,465 3,226 3,226
For cash and temporary investments, the carrying amount approximates fair
value due to their short maturities. The fair values of long-term debt and
notes payable to affiliates are estimated based on the interest rates
currently available for borrowings with similar terms and maturities. The
fair values of the coupon swap agreements represent the amounts that could
be settled based on estimates obtained from a dealer. The value of these
swaps will be affected by future interest rates and exchange rates.
b) Currency coupon swap agreement settlement
In July 1995, the Company settled in full the Japanese yen floating rate
currency coupon swap agreement which it had with a financial institution.
Net cash proceeds on settlement were $695.
4. OTHER (INCOME) EXPENSE, NET
THREE MONTHS THREE MONTHS
ENDED ENDED
SEPT. 30, 1995 SEPT. 30, 1994
-------------- --------------
Interest income on temporary investments $(353) $(203)
Foreign exchange (gains) losses, net 1,487 (1,721)
Interest expense to affiliate 369 34
Joint venture-related income (250) -
Other (income) expense, net (78) 643
------ -------
Total other (income) expense, net $1,175 $(1,247)
====== =======
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPT. 30, 1995 SEPT. 30, 1994
-------------- --------------
Interest income on temporary investments $(946) $(1,385)
Foreign exchange (gains) losses, net 432 (1,208)
Interest expense to affiliate 1,069 34
Joint venture-related income (1,000) -
Loss on disposal of fixed assets 588 -
Other expense, net 763 603
----- -------
Total other (income) expense, net $906 $(1,956)
===== =======
5. EARNINGS PER SHARE
Earnings per share of common stock are computed by dividing net income
(loss) available to
<PAGE>
Page 8
common shareholders by the weighted average number of common shares
outstanding during the period. Primary and fully diluted earnings
per share of common stock are the same since the Company has no
common stock equivalents (e.g. stock options, restricted stock and other
stock equivalents) outstanding.
6. COMMITMENTS AND CONTINGENCIES
a) Contingencies
The Company was formerly included in the consolidated tax returns of the
affiliated group of which Macmillan Inc. ("Macmillan") was the parent (the
"Macmillan Group") and consequently is severally liable for any Federal
tax liabilities for the Macmillan Group arising prior to December 1989.
Pursuant to certain agreements, Macmillan agreed to pay all such Federal
tax liabilities and Maxwell Communication Corporation plc ("Maxwell
Communication") placed and agreed to maintain cash and other assets
(currently including 627,000 shares of the Company's common stock owned by
Maxwell Communication (the "Berlitz Shares")), valued at $39,500, in
escrow to secure Macmillan's obligation, including any such tax liability
assessed against the Company. Management believes that such liability, if
any, will not result in a material effect on the financial condition of
the Company.
b) Commitments
Effective May 31, 1995, the Company entered into a stock purchase
agreement (the "Stock Purchase Agreement") with Maxwell Communication
whereby the Company agreed to purchase from Maxwell Communication, and
Maxwell Communication agreed to sell to the Company, at a purchase price
of $9 per share, the Berlitz Shares on the earlier of September 16, 1996
or ten days after the Company notifies Maxwell Communication of its
intention to purchase all or a portion of the Berlitz Shares. The
Company's obligation to buy the Berlitz Shares is subject to the
satisfaction of certain conditions.
<PAGE>
Page 9
BERLITZ INTERNATIONAL, INC.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the attached
Consolidated Financial Statements and notes thereto and with the Company's
audited Consolidated Financial Statements and notes thereto for the fiscal year
ended December 31, 1994.
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 1995 VS.
THREE MONTHS ENDED SEPTEMBER 30, 1994
Sales for the quarter ended September 30, 1995 were $91.4 million, 17.7% above
the same period in the prior year, reflecting increases in the Language
Instruction and Translations segments.
Language Instruction sales for the quarter ended September 30, 1995 were $68.9
million, $6.7 million or 10.8% above the same period in 1994, primarily
reflecting increases in East Asia ($1.4 million, or 7.4%), Europe ($3.0
million, or 14.7%) and Latin America ($1.4 million, or 15.4%). The improvement
in East Asian sales from 1994 resulted from the favorable impact of exchange
rate fluctuations ($1.4 million). Europe's increase was favorably impacted by
exchange rate fluctuations ($1.5 million), and by positive volume and operating
activity in most countries. The improvement in Latin American revenues was
primarily due to volume increases in Brazil and Colombia, which more than
offset poor economic conditions in Mexico, including the devaluation of the
Mexican peso.
During the three-month period ended September 30, 1995, the number of lessons
given was approximately 1.2 million, 2.8% above the same period in the prior
year. Lesson volume in East Asia declined 3.4% from 1994, due to decreases in
Japan. Lesson volume in Latin America increased by 8.1% from prior year,
primarily due to increases in Brazil. Lesson volume in Europe increased by
6.6% over 1994, with primarily due to results in England, France, Israel and
Slovenia.
Translations sales were $18.3 million for the three-month period ended
September 30, 1995, an increase of $7.2 million, or 65.4%, from the same period
in 1994. This increase was primarily due to higher volume. Most of this growth
occurred in the United States and Ireland as a result of the continued
development of new customers, and expansion of services to existing customers.
Publishing segment sales were $4.2 million for the three months ended September
30, 1995, $0.3 million, or 5.8%, below 1994, primarily due to the timing of
sales promotions.
Cost of services and products sold and selling general and administrative
expenses for the three months ended September 30, 1995 totalled $81.7 million,
an increase of $12.3 million from the comparable prior year period. This
increase was due primarily to exchange rate fluctuations and volume increases.
As a percentage of sales, these combined expenses were slightly higher compared
to the prior year's quarter, due in large part to faster growth in the
Translations segment than in the higher margin Language Instruction segment.
In addition, included in selling, general and administrative expenses in 1995
were costs of $0.6 million, which related to the Company's worldwide corporate
image campaign
<PAGE>
Page 10
and certain other strategic expansion efforts; these types of expenses were
not incurred in prior years' periods.
Other expense, net for the three months ended September 30, 1995 increased by
$2.4 million from the same prior year period, primarily due to net foreign
exchange losses in 1995 as compared to net foreign exchange gains in 1994.
The Company recorded an income tax expense of $1.9 million, or an effective
rate of 63.5%, during the current period. This compared to an income tax
expense of $2.2 million in the prior year's quarter. The effective tax rates
in both 1995 and 1994 were above the U.S. statutory Federal tax rate primarily
as a result of nondeductible charges related to the amortization of goodwill.
Net income available to common shareholders for the quarter ended September 30,
1995 was $1.1 million, or $0.11 per common share, compared to $0.7 million, or
$0.07 per common share. This increase occurred primarily as increased
operating profit, lower interest expense on long-term debt, and a lower tax
expense in 1995 were partially offset by increases in foreign exchange losses,
net in 1995.
RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1995 VS.
NINE MONTHS ENDED SEPTEMBER 30, 1994
Sales for the nine months ended September 30, 1995 were $261.5 million, 18.3%
above the same period in the prior year, reflecting increases in the Language
Instruction, Translations and Publishing segments.
Language Instruction sales for the nine months ended September 30, 1995 were
$204.8 million, $24.2 million or 13.4% above the same period in 1994, primarily
reflecting increases in East Asia ($7.1 million, or 13.2%), Europe ($12.1
million, or 19.4%) and Latin America ($3.3 million, or 13.1%). The improvement
in East Asian sales from 1994 resulted primarily from the favorable impact of
exchange rate fluctuations ($6.8 million). Europe's increase was favorably
impacted by exchange rate fluctuations ($7.7 million) and by operating activity
in almost all countries. The improvement in Latin American revenues was
primarily due to volume increases in Brazil, Mexico, and Colombia, which more
than offset the unfavorable effect of the devaluation of the Mexican peso.
During the nine-month period ended September 30, 1995, the number of lessons
given was approximately 3.7 million, 4.5% above the same period in the prior
year. Lesson volume in East Asia increased 1.0% from 1994, favorably impacted
by Hong Kong and Thailand. Lesson volume in Latin America increased by 9.6%
from prior year, primarily due to increases in Brazil, Mexico and Colombia.
Lesson volume in Europe increased by 7.4% over 1994 primarily due to results in
the Czech and Slovak Republics, Italy, Poland, France, Italy, and Hungary.
Translations sales were $44.1 million for the nine-month period ended September
30, 1995, an increase of $15.3 million, or 53.2%, from the same period in 1994.
This increase was primarily due to higher volume and other operating activity
($12.3 million) and, to a lesser degree, favorable exchange rate fluctuations
($3.0 million). Most of this growth occurred in the United States, Ireland,
Denmark, Germany, France and Norway.
Publishing segment sales were $12.6 million for the nine months ended September
30, 1995, $0.8 million or 7.2% above 1994, reflecting both favorable exchange
rate fluctuations and a strong second
<PAGE>
Page 11
quarter in the United States.
Cost of services and products sold and selling, general and administrative
expenses for the nine months ended September 30, 1995 totalled $237.7 million,
an increase of $37.9 million from the comparable prior year period. This
increase was due primarily to exchange rate fluctuations and volume increases.
As a percentage of sales, these combined expenses were higher compared to the
prior year's period, due in large part to faster growth in the Translations
segment than in the higher margin Language Instruction segment. In addition,
included in selling, general and administrative expenses in 1995 were costs of
$1.7 million, which related to the Company's worldwide corporate image campaign
and certain other strategic expansion efforts; these types of expenses were not
incurred in prior years' periods.
Other income, net for the nine months ended September 30, 1995 decreased by
$2.9 million from the same prior year period, primarily as joint venture-
related income was more than offset by increases in foreign exchange losses,
interest expense to an affiliate, losses in 1995 from the disposal of fixed
assets in connection with the consolidation and relocation of certain Japanese
centers for the purpose of reducing overhead costs, and increases in other
expenses.
The Company recorded an income tax expense of $5.6 million, or an effective
rate of 90.1%, during the current period. This compared to an income tax
expense of $6.9 million in the prior year. The effective tax rates in both
1995 and 1994 were above the U.S. statutory Federal tax rate primarily as a
result of nondeductible charges related to the amortization of goodwill.
Net income available to common shareholders for the year-to-date period ended
September 30, 1995 was $0.6 million, or $0.06 per common share, compared to a
net loss of $1.4 million, or $0.14 per common share, in the prior year's
period. This improvement of $2.0 million resulted primarily from increased
operating profit, lower interest expense on long-term debt, and a lower tax
expense in 1995, partially offset by increases in foreign exchange losses in
1995.
FINANCIAL CONDITION
The primary source of the Company's liquidity is the cash provided by
operations. The Company's businesses are generally not capital intensive and,
historically, capital expenditures, working capital requirements and
acquisitions have been funded from internally generated cash. Although each
geographic area exhibits different patterns of lesson volume over the course of
the year, the Company's sales are generally not seasonal in the aggregate.
Generally, the Company collects cash from customers in the form of prepayment
of fees for instruction that gives rise to deferred revenues.
Cash and non-cash capital expenditures during the nine-month period ended
September 30, 1995 were $6.9 million, primarily for the refurbishing of
existing centers, the opening of new centers, and the consolidation and
relocation of certain centers in Japan. Of this amount, $0.8 million for the
Japanese centers were included in accounts payable at September 30, 1995,
payable substantially in installments over the next seven months. During the
nine months of 1995, one center was opened, bringing the worldwide total to
323.
Pursuant to a covenant under the Acquisition Debt Facilities, the Company was
party to five currency coupon swap agreements with a financial institution at
September 30, 1995. These agreements require the Company, in exchange for U.S.
dollar receipts, to periodically make foreign currency payments, denominated in
the Japanese yen, the Swiss franc, the Canadian dollar, the British pound, and
the
<PAGE>
Page 12
German mark. Credit loss from counterparty nonperformance is not
anticipated. The fair market value of these swap agreements at September 30,
1995, representing the amount that could be settled based on estimates obtained
from a dealer, was a net liability of approximately $3.5 million.
In July 1995, the Company settled in full the Japanese yen floating rate
currency coupon swap agreement. Net cash proceeds on settlement were $695.
The Company is party to a Stock Purchase Agreement with Maxwell Communication
whereby the Company agreed to purchase from Maxwell Communication, and Maxwell
Communication agreed to sell to the Company, at a purchase price of $9 per
share, 627,000 shares of the Company's common stock (the "Berlitz Shares") on
the earlier of September 16, 1996 or ten days after the Company notifies
Maxwell Communication of its intention to purchase all or a portion of the
Berlitz Shares. The Company's obligation to buy the Berlitz Shares is subject
to the satisfaction of certain conditions.
At September 30, 1995, the Company's liquid assets of $27.5 million consisted
of cash and temporary investments. The Company plans to meet its debt service
requirements and future working capital needs through funds generated from
operations.
BERLITZ INTERNATIONAL, INC.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
All exhibits listed below are filed with this Quarterly Report on Form 10-Q.
EXHIBIT NO.
27 Financial Data Schedule, for the nine months ended September 30, 1995.
(B) REPORTS ON FORM 8-K
A Form 8-K was filed on July 21, 1995 related to a) an amendment to the Escrow
Agreement dated as of January 28, 1993 between Maxwell Communication, the
Registrant and an escrow agent, and b) the Stock Purchase Agreement dated as
of May 31, 1995 between the Registrant and Maxwell Communication.
<PAGE>
Page 13
BERLITZ INTERNATIONAL, INC.
SIGNATURES
Pursuant to the requirements of the Exchange Act the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BERLITZ INTERNATIONAL, INC.
-------------------------------
(Registrant)
Date: November 13, 1995 By: /S/ HENRY D. JAMES
-------------------------------
Henry D. James
Vice President and
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FORM 10-Q OF BERLITZ INTERNATIONAL, INC. FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
<MULTIPLIER>1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 27,525
<SECURITIES> 0
<RECEIVABLES> 35,941
<ALLOWANCES> 1,757
<INVENTORY> 9,282
<CURRENT-ASSETS> 80,550
<PP&E> 39,365
<DEPRECIATION> 12,771
<TOTAL-ASSETS> 589,766
<CURRENT-LIABILITIES> 84,140
<BONDS> 0
<COMMON> 1,003
0
0
<OTHER-SE> 371,309
<TOTAL-LIABILITY-AND-EQUITY> 589,766
<SALES> 0
<TOTAL-REVENUES> 261,490
<CGS> 0
<TOTAL-COSTS> 158,024
<OTHER-EXPENSES> 10,142
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,580
<INCOME-PRETAX> 6,169
<INCOME-TAX> 5,560
<INCOME-CONTINUING> 609
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 609
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
