<PAGE>
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, 1998
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 0-7416
SHARED MEDICAL SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 23-1704148
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
51 Valley Stream Parkway
Malvern, Pennsylvania 19355
(Address of principal executive offices) (Zip Code)
(610) 219-6300
(Registrant's telephone number, including area code)
Not Applicable
(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
----- -----
On April 30, 1998, there were 26,311,603 shares of Common Stock outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
SHARED MEDICAL SYSTEMS CORPORATION
CONSOLIDATED BALANCE SHEET
------------------------------------
(Amounts in thousands)
<TABLE>
<CAPTION>
March 31 December 31
1998 1997*
---------- -----------
(unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and short-term investments.................... $ 25,032 $ 30,692
Accounts receivable, net........................... 281,922 254,801
Prepaid expenses and other current assets.......... 33,550 33,767
---------- -----------
Total Current Assets............................. 340,504 319,260
Property and Equipment, net......................... 108,250 106,305
Computer Software, net.............................. 64,989 60,921
Other Assets........................................ 155,765 127,490
---------- -----------
$669,508 $613,976
========== ===========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Notes payable...................................... $115,567 $ 49,692
Current portion of long-term debt and
capital leases.................................... 2,752 2,670
Dividends payable.................................. 5,521 5,268
Accounts payable................................... 20,314 33,562
Accrued expenses................................... 63,357 75,370
Current deferred revenues.......................... 34,207 36,677
Accrued and current deferred income taxes.......... 31,034 26,345
---------- -----------
Total Current Liabilities........................ 272,752 229,584
---------- -----------
Deferred Revenues................................... 7,023 7,398
---------- -----------
Long-Term Debt and Capital Leases................... 15,531 16,291
---------- -----------
Deferred Income Taxes............................... 17,846 30,846
---------- -----------
Commitments
Stockholders' Investment:
Preferred stock, par value $.10;
authorized 1,000,000 shares; none issued......... - -
Common stock, par value $.01; authorized
120,000,000 shares; 30,357,562 shares issued in
1998 and 30,266,512 in 1997...................... 304 303
Paid-in capital................................... 77,570 59,897
Retained earnings................................. 347,280 334,981
Common stock in treasury, at cost, 4,067,168
shares in 1998 and 4,060,785 in 1997............. (56,567) (56,021)
Cumulative translation adjustment................. (12,231) (9,303)
---------- -----------
Total Stockholders' Investment................... 356,356 329,857
---------- -----------
$669,508 $613,976
========== ===========
</TABLE>
* Restated to reflect the acquisition of Data-Plan Software GmbH in January
1998, which was accounted for as a pooling of interests.
The accompanying notes are an integral part of this statement.
2
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
-----------------------------------
(Amounts in thousands, except for
per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
------------------------
1998 1997*
-------- --------
(unaudited)
<S> <C> <C>
Revenues:
Service and system fees............................. $213,731 $188,289
Hardware sales...................................... 41,735 29,055
-------- --------
255,466 217,344
-------- --------
Cost and Expenses:
Operating and development........................... 103,368 90,788
Marketing and installation.......................... 67,015 60,863
General and administrative.......................... 19,515 18,305
Cost of hardware sales.............................. 35,413 24,192
Interest............................................ 1,412 702
-------- --------
226,723 194,850
-------- --------
Income Before Income Taxes........................... 28,743 22,494
Provision for Income Taxes........................... 10,922 8,549
-------- --------
Net Income........................................... $ 17,821 $ 13,945
======== ========
Net Income Per Share:
Basic.............................................. $ .68 $ .54
======== ========
Diluted............................................ $ .66 $ .53
======== ========
Number of shares used to compute per share amounts:
Basic.............................................. 26,200 25,965
======== ========
Diluted............................................ 26,967 26,521
======== ========
Dividends Declared Per Common Share.................. $ .21 $ .21
======== ========
</TABLE>
* Restated to reflect the acquisition of Data-Plan Software GmbH in January
1998, which was accounted for as a pooling of interests.
The accompanying notes are an integral part of this statement.
3
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
(Amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31
----------------------
1998 1997*
-------- --------
(unaudited)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income...................................... $ 17,821 $ 13,945
Adjustments to reconcile net income to net
cash used for operating activities -
Depreciation and amortization................ 9,837 10,139
Asset (increase) decrease -
Accounts receivable........................ (20,914) (15,146)
Prepaid expenses and other current assets.. 1,747 (4,332)
Other assets............................... (8,607) 3,452
Liability increase (decrease) -
Accounts payable and accrued expenses...... (28,369) (20,410)
Accrued and current deferred income taxes.. 4,688 4,677
Deferred revenues.......................... (4,387) (8,729)
Deferred income taxes...................... 1,000 1,000
Other........................................ (4,372) (1,876)
-------- --------
Net cash used for operating activities..... (31,556) (17,280)
-------- --------
Cash Flows from Investing Activities:
Property and equipment additions................ (6,025) (3,498)
Investment in computer software................. (6,070) (4,269)
Dispositions of equipment....................... 35 -
Acquisition of businesses....................... (25,101) -
-------- --------
Net cash used for investing activities..... (37,161) (7,767)
-------- --------
Cash Flows from Financing Activities:
Dividends paid.................................. (5,268) (4,944)
Exercise of stock options....................... 3,674 2,855
Increase in notes payable....................... 65,875 1,454
Payments of long-term debt and capital
lease obligations.............................. (678) (2,460)
Change in treasury stock........................ (546) (7)
-------- --------
Net cash provided by (used for)
financing activities...................... 63,057 (3,102)
-------- --------
Net Decrease in Cash and Short-Term Investments.. (5,660) (28,149)
Cash and Short-Term Investments, Beginning
of Period....................................... 30,692 42,123
-------- --------
Cash and Short-Term Investments, End of Period... $ 25,032 $ 13,974
======== ========
</TABLE>
* Restated to reflect the acquisition of Data-Plan Software GmbH in January
1998, which was accounted for as a pooling of interests.
The accompanying notes are an integral part of this statement.
4
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
Notes to Consolidated Financial Statements - March 31, 1998 (unaudited):
1. Basis of Presentation:
The information furnished in this Form 10-Q reflects all normal and
recurring adjustments which are, in the opinion of management, necessary
for a fair presentation of the financial statements contained herein.
Prior period financial statements have been restated to reflect the
Company's business combination with Data-Plan Software GmbH (Data-Plan),
which was completed on January 28, 1998 and accounted for as a pooling of
interests.
2. Businesses Acquired:
On January 28, 1998, the Company acquired Data-Plan Software GmbH, a
provider of client/server clinical, financial, and administrative health
information systems. Under the terms of the agreement, the Company issued
1,119,428 shares of the Company's common stock. This transaction was
accounted for as a pooling of interests.
Separate operating results for Shared Medical Systems Corporation (SMS)
and Data-Plan for the three months ended March 31, 1997 are as follows
(amounts in thousands):
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1997
------------------------
(unaudited)
Revenues:
<S> <C>
SMS............... $209,879
Data-Plan......... 7,465
------------------------
$217,344
========================
Net Income:
SMS............... $14,096
Data-Plan......... (151)
------------------------
$13,945
========================
</TABLE>
On January 31, 1998, the Company increased its ownership interest in Delta
Health Systems from 50% to 100% by purchasing the remaining equity from
Delta Computer Systems, Inc. for $21,176,000.
3. Accounts Receivable:
At March 31, 1998 and December 31, 1997, the Company's trade accounts
receivable were reduced by allowances for doubtful accounts of $10,931,000
and $10,828,000, respectively.
4. Property and Equipment:
The major classes of property and equipment at March 31, 1998 and
December 31, 1997 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
March 31 December 31
1998 1997
-------- -----------
(unaudited)
<S> <C> <C>
Land and land improvements...... $ 11,596 $ 11,615
Buildings....................... 67,993 64,559
Equipment....................... 193,010 188,563
-------- --------
272,599 264,737
Less accumulated depreciation
and amortization.............. 164,349 158,432
-------- --------
$108,250 $106,305
======== ========
</TABLE>
5
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
5. Computer Software:
The accumulated amortization for capitalized internally produced computer
software and purchased software at March 31, 1998 and December 31, 1997
was $52,620,000 and $50,640,000, respectively.
6. Goodwill:
Goodwill included in other assets, net of accumulated amortization, was
$50,668,000 and $26,639,000 as of March 31, 1998 and December 31, 1997,
respectively. The increase in goodwill from December 31, 1997 was
primarily the result of the Company increasing its ownership interest in
Delta Health Systems as further described in Note 2.
7. Comprehensive Income:
In June 1997, the Financial Accounting Standards Board issued Statement
130, Reporting Comprehensive Income, which established standards for
reporting of comprehensive income and its components. The Company's only
component of other comprehensive income at March 31, 1998 consisted of
foreign currency translation adjustments. The adoption of this statement
had no impact on the Company's net income or stockholders' equity. The
Company's comprehensive income for the three months ended March 31 was:
<TABLE>
<CAPTION>
Quarter Ended
March 31
-----------------------
1998 1997
------- -------
(unaudited)
<S> <C> <C>
Net Income $17,821 $13,945
Other comprehensive income:
Foreign currency translation
adjustments.................. (2,928) (3,988)
------- -------
Comprehensive income........... $14,893 $ 9,957
======= =======
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Material Changes in Financial Condition
- ---------------------------------------
The Company's financial condition has remained strong throughout the three
months ended March 31, 1998. Management is not aware of any potential material
impairments to, or material changes in, the Company's current financial
position.
The most significant requirements for funds now anticipated are for construction
of an office building at the Company's corporate headquarters, purchases of
equipment, and payment of cash dividends. The Company plans to fund construction
of the office building principally through external financing. All other
anticipated expenditures will be funded primarily through internally generated
funds supplemented from time to time by external borrowings.
At March 31, 1998, the Company had lines of credit with banks of approximately
$173,065,000, generally at their prime interest rates. At March 31, 1998,
approximately $57,498,000 of these lines of credit were unused.
6
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
Material Changes in Results of Operations
- -----------------------------------------
Three Months Ended March 31, 1998 Compared to the Three Months Ended
March 31, 1997.
Revenues
--------
Service and system fees revenues were $213,731,000, an increase of 13.5%
compared to the first quarter of 1997. This increase was primarily due to
higher levels of professional services and software fees. The higher level
of professional services was generally attributable to system support,
consulting fees, and system installations. The increase in software fees
was due to higher levels of sales and installations to new and existing
customers.
Hardware sales revenues increased to $41,735,000 for the first quarter of
1998 from $29,055,000 in the first quarter of 1997, primarily due to the
installation of IBM mainframe systems to new and existing customers that
process the Company's INVISION product at their site, and changes in the
timing and product mix of systems installed.
Cost and Expenses
-----------------
Operating and development expenses increased to 48.4% of service and system
fees revenues in the first quarter of 1998 from 48.2% for the first quarter
1997. This change was principally due to a higher rate of growth, as
compared to the growth in service and system fees revenues, for personnel
and related costs associated with software development and facilities
management services provided to customers, partially offset by a lower rate
of growth for computer hardware and associated costs at the Company's
Information Services Center.
Marketing and installation expenses decreased to 31.4% of service and
system fees revenues in the first quarter of 1998 from 32.3% in the first
quarter of 1997, primarily due to a lower rate of growth, as compared to
the growth in service and system fees revenues, for customer implementation
costs.
General and administrative expenses, as a percentage of service and systems
fees revenues, decreased to 9.1% in the first quarter of 1998 from 9.7% in
the first quarter of 1997. This change was primarily due to a lower rate of
growth for personnel and related costs as part of the Company's continuing
efforts to leverage administrative costs over an increasing revenue base.
Cost of hardware sales increased to 84.9% of hardware sales revenues in the
first quarter of 1998 from 83.3% in the first quarter of 1997. This change
was primarily due to the different product mixes of systems installed in
each quarter.
Interest expense was $1,412,000 in the quarter ended March 31, 1998
compared to $702,000 in the same period in 1997. This change was generally
attributable to a higher level of average outstanding short-term borrowings
during the current period. The increase in average outstanding short-term
borrowings was partially attributable to funds used for businesses and
investments acquired in the first quarter of 1998 and fourth quarter of
1997.
7
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
Provision for Income Taxes
--------------------------
Income taxes increased $2,373,000 in the quarter ended March 31, 1998 when
compared to the same period in 1997. This change was primarily due to an
increase of $6,249,000 in income before income taxes. The Company's
effective tax rate for federal, state and foreign income taxes was 38.0% in
the first quarter of 1998 and 1997.
Net Income
----------
Net income was $17,821,000 in the quarter ended March 31, 1998 compared to
$13,945,000 in the quarter ended March 31, 1997 for the reasons discussed
above.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Following the Company's initiation of legal action against PeopleSoft, Inc., as
described in the Company's report on Form 10-K for the year ended December 31,
1997, the parties agreed to submit their issues to an expedited arbitration.
The Company remains confident in its position and expects the arbitration to be
concluded within the next two calendar quarters.
Item 2. Changes In Securities
On January 28, 1998 the Company issued 1,119,428 shares of its Common Stock to
acquire Data-Plan Software GmbH (Data-Plan), in a transaction not subject to the
Securities Act of 1933, as amended (the Act), or exempt from registration under
Section 4(2) of the Act. On February 27, 1998 the Company filed a registration
statement on Form S-3 registering for resale the shares of its Common Stock
issued in connection with the business combination with Data-Plan. An amendment
to the registration statement was filed on April 27, 1998. The registration
statement, as amended, was declared effective on April 29, 1998.
Item 6. Exhibits and Reports on Form 8-k.
(a) The following exhibits are included in this report:
No. Description
---- -----------------------------------------------------------
(27) Financial Data Schedules:
For the Three Months Ended March 31, 1998
Restated for the Year Ended December 31, 1997
Restated for the Nine Months Ended September 30, 1997
Restated for the Six Months Ended June 30, 1997
Restated for the Three Months Ended March 31, 1997
Restated for the Year Ended December 31, 1996
Restated for the Nine Months Ended September 30, 1996
Restated for the Six Months Ended June 30, 1996
Restated for the Three Months Ended March 31, 1996
Restated for the Year Ended December 31, 1995
(b) No reports on Form 8-K were filed during the three-month
period ended March 31, 1998.
8
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
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.
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
Registrant
May 15, 1998 /S/ Terrence W. Kyle
- ------------ ----------------------------------
Date Terrence W. Kyle
Senior Vice President, Treasurer,
and Assistant Secretary,
Principal Financial Officer and
Duly Authorized Officer
9
<PAGE>
SHARED MEDICAL SYSTEMS CORPORATION
----------------------------------
Exhibit Index
No. Description
--- ------------------------------------------------------------
(27) Financial Data Schedules:
For the Three Months Ended March 31, 1998
Restated for the Year Ended December 31, 1997
Restated for the Nine Months Ended September 30, 1997
Restated for the Six Months Ended June 30, 1997
Restated for the Three Months Ended March 31, 1997
Restated for the Year Ended December 31, 1996
Restated for the Nine Months Ended September 30, 1996
Restated for the Six Months Ended June 30, 1996
Restated for the Three Months Ended March 31, 1996
Restated for the Year Ended December 31, 1995
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 25,032
<SECURITIES> 0
<RECEIVABLES> 292,853
<ALLOWANCES> 10,931
<INVENTORY> 0
<CURRENT-ASSETS> 340,504
<PP&E> 272,599
<DEPRECIATION> 164,349
<TOTAL-ASSETS> 669,508
<CURRENT-LIABILITIES> 272,752
<BONDS> 15,531
0
0
<COMMON> 304
<OTHER-SE> 356,052
<TOTAL-LIABILITY-AND-EQUITY> 669,508
<SALES> 41,735
<TOTAL-REVENUES> 255,466
<CGS> 35,413
<TOTAL-COSTS> 170,383
<OTHER-EXPENSES> 19,515
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,412
<INCOME-PRETAX> 28,743
<INCOME-TAX> 10,922
<INCOME-CONTINUING> 17,821
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,821
<EPS-PRIMARY> .68
<EPS-DILUTED> .66
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 30,692
<SECURITIES> 0
<RECEIVABLES> 265,629
<ALLOWANCES> 10,828
<INVENTORY> 0
<CURRENT-ASSETS> 319,260
<PP&E> 264,737
<DEPRECIATION> 158,432
<TOTAL-ASSETS> 613,976
<CURRENT-LIABILITIES> 229,584
<BONDS> 16,291
0
0
<COMMON> 303
<OTHER-SE> 329,554
<TOTAL-LIABILITY-AND-EQUITY> 613,976
<SALES> 118,813
<TOTAL-REVENUES> 921,341
<CGS> 97,872
<TOTAL-COSTS> 648,231
<OTHER-EXPENSES> 72,700
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,987
<INCOME-PRETAX> 98,551
<INCOME-TAX> 37,449
<INCOME-CONTINUING> 61,102
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 61,102
<EPS-PRIMARY> 2.34
<EPS-DILUTED> 2.30
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 26,326
<SECURITIES> 0
<RECEIVABLES> 253,008
<ALLOWANCES> 9,411
<INVENTORY> 0
<CURRENT-ASSETS> 307,177
<PP&E> 258,436
<DEPRECIATION> 155,590
<TOTAL-ASSETS> 564,533
<CURRENT-LIABILITIES> 196,697
<BONDS> 16,550
0
0
<COMMON> 302
<OTHER-SE> 311,557
<TOTAL-LIABILITY-AND-EQUITY> 564,533
<SALES> 84,716
<TOTAL-REVENUES> 664,558
<CGS> 71,859
<TOTAL-COSTS> 468,012
<OTHER-EXPENSES> 52,475
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,817
<INCOME-PRETAX> 69,395
<INCOME-TAX> 26,371
<INCOME-CONTINUING> 43,024
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 43,024
<EPS-PRIMARY> 1.65
<EPS-DILUTED> 1.62
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 30,042
<SECURITIES> 0
<RECEIVABLES> 240,897
<ALLOWANCES> 9,611
<INVENTORY> 0
<CURRENT-ASSETS> 290,308
<PP&E> 258,503
<DEPRECIATION> 155,594
<TOTAL-ASSETS> 535,671
<CURRENT-LIABILITIES> 174,243
<BONDS> 17,579
0
0
<COMMON> 301
<OTHER-SE> 303,821
<TOTAL-LIABILITY-AND-EQUITY> 535,671
<SALES> 57,505
<TOTAL-REVENUES> 434,711
<CGS> 48,633
<TOTAL-COSTS> 304,194
<OTHER-EXPENSES> 34,716
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,810
<INCOME-PRETAX> 45,358
<INCOME-TAX> 17,236
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<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,122
<EPS-PRIMARY> 1.08
<EPS-DILUTED> 1.06
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<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> 13,974
<SECURITIES> 0
<RECEIVABLES> 241,973
<ALLOWANCES> 9,463
<INVENTORY> 0
<CURRENT-ASSETS> 281,571
<PP&E> 258,312
<DEPRECIATION> 159,379
<TOTAL-ASSETS> 506,048
<CURRENT-LIABILITIES> 160,946
<BONDS> 14,342
0
0
<COMMON> 300
<OTHER-SE> 293,531
<TOTAL-LIABILITY-AND-EQUITY> 506,048
<SALES> 29,055
<TOTAL-REVENUES> 217,344
<CGS> 24,192
<TOTAL-COSTS> 151,651
<OTHER-EXPENSES> 18,305
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 702
<INCOME-PRETAX> 22,494
<INCOME-TAX> 8,549
<INCOME-CONTINUING> 13,945
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,945
<EPS-PRIMARY> .54
<EPS-DILUTED> .53
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 42,124
<SECURITIES> 0
<RECEIVABLES> 226,754
<ALLOWANCES> 9,389
<INVENTORY> 0
<CURRENT-ASSETS> 290,243
<PP&E> 258,348
<DEPRECIATION> 154,436
<TOTAL-ASSETS> 522,592
<CURRENT-LIABILITIES> 185,331
<BONDS> 15,361
0
0
<COMMON> 299
<OTHER-SE> 285,799
<TOTAL-LIABILITY-AND-EQUITY> 522,592
<SALES> 89,854
<TOTAL-REVENUES> 806,950
<CGS> 76,424
<TOTAL-COSTS> 582,456
<OTHER-EXPENSES> 66,319
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,655
<INCOME-PRETAX> 78,096
<INCOME-TAX> 29,322
<INCOME-CONTINUING> 48,774
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 48,774
<EPS-PRIMARY> 1.89
<EPS-DILUTED> 1.84
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
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