UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: MARCH 31, 1997
----------------------------------------------
( ) TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------------------------- ---------------------
Commission File Number: 0-23054
--------------------------------------------------------
HOSPITALITY WORLDWIDE SERVICES, INC.
(formerly Light Savers U.S.A., Inc.)
(exact name of registrant as specified in its charter)
NEW YORK 11-3096379
- - -------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
450 PARK AVENUE, SUITE 2603, NEW YORK, NY 10022
- - ----------------------------------------- -----
(Address of principle executive offices) (Zip Code)
(212) 223-0699
--------------
(Registrant's telephone number, including area code)
Check whether the issuer (1) has filed all reports to be filed by section
13 or 15(d) of the Exchange Act during the past 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.
(X) Yes ( ) No
APPLICABLE ONLY TO CORPORATE ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
Securities under a plan confirmed by a court.
( ) Yes ( ) No
APPLICABLE ONLY TO CORPORATE ISSUER
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: 8,305,989 as of May 13, 1997.
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1997
and December 31, 1996 3
Consolidated Statements of Operations for the three
months ended March 31, 1997 and 1996 4
Consolidated Statement of Changes in Stockholders'
Equity for the three months ended March 31, 1997 5
Consolidated Statements of Cash Flows for the three
months ended March 31, 1997 and 1996 6
Notes to Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of 9-10
Operations
PART II. OTHER INFORMATION
Item 2. Changes in Securities 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
2
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------- ------------
CURRENT ASSETS: Unaudited
<S> <C> <C>
Cash and cash equivalents $ 663 $ 276
Accounts receivable, less allowance for
doubtful accounts of $309 and $382 11,746 3,135
Current portion of note receivable 70 70
Costs in excess of billings 2,234 2,177
Advances to vendors 744 --
Prepaid and other current assets 687 421
----------- -----------
Total current assets 16,144 6,079
----------- -----------
Property and equipment, less accumulated depreciation
of $73 and $62 1,274 143
Notes receivable 280 280
Goodwill, less accumulated amortization of $747 and $550 17,941 6,050
Deferred taxes 65 65
Other assets 242 133
----------- -----------
Total other assets 19,802 6,671
----------- -----------
$ 35,946 $ 12,750
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
1997 1996
---------- ------------
CURRENT LIABILITIES: Unaudited
Loan Payable - Bank $ 2,100 $ 1,400
Current portion of notes payable and capital lease obligations 70 --
Accounts payable 6,200 1,175
Accrued and other liabilities 2,393 1,897
Billings in excess of costs 524 201
Customer deposits 3,351 --
Income taxes payable 346 298
----------- -----------
Total current liabilities 14,984 4,971
----------- -----------
Notes payable and capital lease obligations, net of current portion 151 --
----------- -----------
15,135 4,971
----------- -----------
STOCKHOLDERS' EQUITY
6% Convertible preferred stock, no par value, 3,000,000
shares authorized, 200,000 issued and outstanding 5,000 --
Common stock, $.01 par value, 20,000,000 shares authorized,
8,305,989 outstanding, 500,000 shares held in treasury 88 72
Additional paid-in capital 15,885 8,186
Treasury stock (715) (715)
Foreign currency adjustment (5) --
Retained earnings 558 236
----------- -----------
Total stockholders' equity 20,811 7,779
----------- -----------
$ 35,946 $ 12,750
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements
3
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1997 1996
---------- ----------
<S> <C> <C>
Net revenues $ 18,196 $ 1,993
------------ ---------
Cost of revenues 14,737 1,677
Selling, general and administrative expenses 2,644 440
------------ ---------
17,381 2,117
------------ ---------
Income (loss) from operations 815 (124)
------------ ---------
Other income (expense):
Interest income 6 3
Interest expense (35) --
------------ ---------
(29) 3
------------ ---------
Income before provision for income taxes 786 (121)
Provision for income taxes 389 --
------------ ----------
Net income (loss) 397 (121)
Preferred dividends 75 --
------------ ----------
Net income (loss) applicable to common shareholders $ 322 $ (121)
============ ==========
Net income (loss) per share $ 0.04 $ (0.02)
============ ==========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 9,031 6,950
============ ==========
</TABLE>
The accompanying notes are an integral part of these statements
4
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1997
(IN THOUSANDS)
UNAUDITED
<TABLE>
<CAPTION>
TREASURY
PREFERRED STOCK COMMON STOCK STOCK
-------------------------------------------------
FOREIGN
ADDT'L CURRENCY TOTAL
PAID IN TRANSLATION RETAINED STOCKHOLDERS'
SHARES VALUE SHARES VALUE VALUE CAPITAL ADJUSTMENT EARNINGS EQUITY
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1997 -- -- 6,726 $72 $(715) $ 8,186 -- $ 236 $ 7,779
Exercise of stock
options and warrants -- -- 330 3 -- 742 -- -- 745
Stock issued in connection
with acquisition 200 $5,000 1,250 13 -- 6,941 -- -- 11,954
Foreign currency translation -- -- -- -- -- -- $ (5) -- (5)
Stock options issued for
services -- -- -- -- -- 16 -- -- 16
Net Income -- -- -- -- -- -- -- 322 322
------------------------------------------------------------------------------------------------------
BALANCE, MARCH 31, 1997 200 $5,000 8,306 $88 $(715) $ 15,885 $ (5) $ 558 $ 20,811
======================================================================================================
</TABLE>
The accompanying notes are an integral part of these statements
5
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED
<TABLE>
<CAPTION>
Three months ended
March 31,
1997 1996
----------------- ---------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 322 $ (121)
Adjustments to reconcile net income (loss) to net cash
used for operating activities:
Depreciation and amortization 263 127
Provision for losses on accounts receivable 10 (101)
Write off of accounts receivable (83) --
Changes in operating assets and liabilities, exclusive of
impacts of purchase acquisition
(Increase) decrease in current assets:
Accounts receivable (2,433) 462
Notes receivable -- (25)
Current assets of discontinued operations -- 145
Costs in excess of billings (57) 83
Advances to vendors (190) 83
Prepaid and other current assets (159) --
Increase (decrease) in current liabilities:
Accounts payable 409 104
Accrued and other liabilities (32) (55)
Billings in excess of costs 323 (351)
Customer deposits 74 --
Accrued loss on disposal of discontinued operations -- (399)
Income taxes payable 42 --
Increase in other assets (82) 6
------- -------
NET CASH USED FOR OPERATING ACTIVITIES (1,593) (42)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of marketable securities -- 715
Costs related to business acquisition, net of acquired cash 689 --
Purchase of property and equipment (211) --
------- -------
NET CASH PROVIDED BY INVESTING ACTIVITIES 478 715
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of loan payable - bank 700 (456)
Purchase of treasury stock -- (437)
Sale of treasury stock -- 325
Proceeds from borrowings on notes payable 59 --
Repayment of notes payable and capital lease obligations (13) --
Proceeds from issuance of stocks and warrants 762 --
------- -------
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 1,508 (568)
------- -------
Effect of exchange rate changes on cash (5) --
------- -------
NET DECREASE IN CASH 387 105
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 276 391
------- -------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 663 $ 496
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes $ 307 $ --
Interest $ 35 $ --
</TABLE>
The accompanying notes are an integral part of these statements
6
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
(UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
NOTE 1: CONSOLIDATION
The consolidated financial statements of Hospitality Worldwide Services, Inc.
and Subsidiaries (the "Company") and related notes thereto as of March 31, 1997
and for the three months ended March 31, 1997 are presented as unaudited but in
the opinion of management include all adjustments necessary to present fairly
the information set forth therein. These adjustments consist solely of normal
recurring accruals. The consolidated balance sheet information for December 31,
1996 was derived from the audited financial statements included in the Company's
Form 10-KSB. These interim financial statements should be read in conjunction
with that report. The interim results are not necessarily indicative of the
results for any future period.
NOTE 2: PURCHASE ACQUISITIONS
On August 1, 1995, the Company acquired substantially all of the assets and
business, and assumed certain liabilities, of AGF Interior Services, Inc. (d/b/a
Hospitality Restoration and Builders) ("AGF"), through its newly formed
subsidiary corporation, Hospitality Restoration and Builders, Inc. ("HRB"). HRB
provides interior and exterior cosmetic renovation and maintenance for leading
hotel and hospitality customers nationwide. The acquisition was accounted for as
a purchase with the results of HRB included from the acquisition date.
On January 10, 1997, the Company completed the acquisition of The Leonard Parker
Company ("LPC"), a leading purchasing company for the hospitality industry that
acts as an agent for the purchase of goods and services for its customers which
include major hotel and management companies worldwide. LPC purchases furniture,
fixtures and equipment, kitchen supplies, linens and uniforms, guestroom
amenities, and other supplies to meet its customers' requirements for new hotel
openings and major renovations. The acquisition was accounted for as a purchase
method of accounting with the results of LPC included in the consolidated
financial statements of the Company from the acquisition date.
NOTE 3: NET INCOME (LOSS) PER SHARE OF COMMON STOCK
Net income (loss) per share of common stock was computed by dividing the net
income (loss) by the weighted average number of common shares and common stock
equivalents outstanding during the period. Fully diluted net income (loss) per
share is not presented, as it does not differ materially from primary net income
(loss) per share.
NOTE 4: PRO FORMA INFORMATION
The following pro forma consolidated financial information has been prepared to
reflect the acquisition of the assets and business of LPC. The pro forma
financial information is based on the historical financial statements of the
Company and LPC, and should be read in conjunction with the accompanying
footnotes. The accompanying pro forma financial information is presented as if
the transaction occurred January 1, 1996. The pro forma financial information is
unaudited and is not necessarily indicative of what the actual results of
operation of the Company would have been assuming the transaction had been
completed as of January 1, 1996, and neither is it necessarily indicative of the
results of operations for future periods.
7
<PAGE>
HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
(UNAUDITED)
THREE MONTHS ENDED MARCH 31, 1996
------------------------------------------------------------------
(amounts in thousands, except share data) (unaudited)
Net Revenues $ 12,605
Net income applicable to common shares $ 113
Net income per share $ .01
The above unaudited pro forma statements have been adjusted to reflect the
amortization of goodwill, as generated by the acquisition, over a 30-year
period, dividends of 6% on the 5,000,000 preferred shares and the 1,250,000
shares issued as consideration in the transaction. In addition, adjustments to
reflect historical compensation per employment agreements entered into at date
of acquisition, and a provision for income taxes on LPC's pro forma income have
also been included.
8
<PAGE>
HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DESCRIPTION OF BUSINESS
Hospitality Worldwide Services, Inc., formerly Light Savers U.S.A., Inc., (the
"Company") was incorporated in the State of New York on October 10, 1991.
Through its wholly owned subsidiaries, Hospitality Restoration and Builders,
Inc., ("HRB"), and The Leonard Parker Company ("LPC"), the Company provides
interior and exterior cosmetic renovations and maintenance, as well as,
procurement services for the hospitality industry. Parker Reorder, formally a
division of LPC, is now a wholly owned subsidiary of the company. Parker Reorder
is a development stage company that allows hotels to order all products used
daily at the hotels properties. These products include china, glassware, linens,
silverware, and guest amenities which are purchased via computer link. Parker
Reorder is currently developing software to automate a majority of the
purchasing process.
The Company is also establishing a new wholly owned subsidiary corporation,
Hospitality Software Systems, Inc., ("HSS") which will be the owner of the
Parker Reorder software. HSS will grant licensing for a fee to the vendors who
wish to provide products through Parker Reorders' purchasing system.
In October 1996, the Company changed its name from Light Savers, U.S.A., Inc.,
to Hospitality Worldwide Services, Inc. The change of the corporate name is more
indicative of the nature of the Company's business in view of the significant
change in the character and strategic focus resulting from the acquisition of
AGF and the subsequent acquisition of LPC. These transactions were part of a
strategic corporate program to refocus the Company's business operations into
areas with higher growth potential. The name change was approved at the annual
shareholders meeting held in September 1996.
CERTAIN MATTERS DISCUSSED IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS THAT ARE
SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE PROJECTED.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1997 VS. THREE MONTHS ENDED MARCH 31, 1996.
The Company experienced a significant increase in its net revenues to
$18,196,000 for the first quarter of 1997 in comparison to $1,993,000 for the
first quarter of 1996, due in large part to the acquisition of LPC which
contributed $12,700,000. In addition, revenues for HRB have increased over last
year due to continued growth in its customer base, attributable to increased
sales and marketing efforts, and the further establishment of the Company's name
in the hospitality industry.
Cost of revenues for the three months ended March 31, 1997 were $14,737,000,
compared to $1,677,000 for the same period last year. This increase is due
mainly to the addition of LPC, which incurred costs $10,786,000 for the three
months ended March 31, 1997. The increase for HRB is the result of revenue
growth. Cost of revenues, as a percentage of net revenues, for the three months
ended March 31, 1997, improved to 80.9%, compared to 84.1% for the same period
last year. The cost of revenues for HRB improved to 71.6% for the three months
ended March 31, 1997 compared to 84.1% for the three months ended March 31,
1996. Due to the repetitive nature of the renovation process, and the ability of
HRB to hire and train internal personnel to perform services previously
outsourced, the Company has been able to realize greater efficiencies, which is
reflected in the percentage improvement.
Selling, general and administrative expenses for the period ended March 31, 1997
have increased to $2,644,000, compared to $440,000 for the same period last
year. Contributing to this increase is the acquisition of LPC, which incurred
expenses of $1,643,000. The expenses for LPC include a significant investment in
the development of Parker Reorder. Additionally, selling, general and
administrative expenses include $197,000 and $99,000 of goodwill amortization
for the periods ended March 31, 1997 and 1996, respectively. As a percentage of
net revenues, selling, general and administrative expenses for the three months
ended March 31, 1997 have decreased to 14.5% from 22.1% for the same period last
year. This reduction is the result of greater economies of scale provided by the
growth of the HRB operations and the acquisition of LPC.
9
<PAGE>
HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company is expected to increase its costs and expenses over the remainder of
1997 as it continues to invest in the development of Parker Reorder. Although
this increase may result in a short-term reduction in the operating margin as a
percentage of revenues, the Company anticipates Parker Reorder to have a
positive impact on its net revenues on a long-term basis.
Income (loss) from operations for the three months ended March 31, 1997 improved
to $815,000 or 4.5% of net revenues compared to a loss of ($124,000) or (6.2%)
for 1996. Exclusive of Parker Reorder, LPC contributed $451,000 to income from
operations for the three months ended March 31, 1997.
The effective income tax rate for the three months ended March 31, 1997 was
49.0%, compared to 0% for the same period last year. For the year ended December
31, 1996, the effective income tax rate was 32.7%. The effective tax rate of 49%
for the quarter ended March 31, 1997 is higher than the effective tax rate for
the year ended December 31, 1996 primarily because of the nondeductibility of
the amortization of goodwill on the LPC acquisition, and the benefits of all net
operating loss carryforwards previously recognized.
As a result of the above, net income (loss) applicable to common
shareholders for the three-month period ended March 31, 1997 was $322,000 or
$.04 per share compared to a net loss of ($121,000) or ($.02) per share for the
same period last year.
LIQUIDITY AND CAPITAL RESOURCES
In August, 1996, the Company negotiated a new bank line of credit with Marine
Midland Bank of New York, which provides the company up to a maximum of
$2,200,000. The line bears interest at the bank's prime lending rate plus .5%,
and is secured by HRB's accounts receivable. Proceeds from the borrowing are
utilized to fund short-term cash requirements. At March 31, 1997, borrowings on
the line were $2,100,000. The company also has available through LPC a
$1,000,000 line of credit with United National Bank. The line bears interest at
prime plus .25%, and is secured by accounts receivable of LPC. There were no
borrowings on the LPC line at March 31, 1997.
The Company's short-term and long-term liquidity requirements generally consist
of operating capital for its procurement and renovation maintenance related
costs and selling, general and administrative expenses. The Company continues to
satisfy its short-term and long-term liquidity requirements with cash generated
from operations, and periodic utilization of its lines of credit.
Net cash used by operating activities was ($1,586,000) for the three months
ended March 31, 1997, compared to ($42,000) for the same period last year.
During the three months ended March 31, 1997, the Company's accounts receivable
increased by $2,433,000, resulting from growth in revenue. This increase was
partially offset by an increase in accounts payable and accrued expenses of
$437,000. Due to the HRB's rapid growth, and the significant amount of work
performed on numerous projects, a backlog of billings occurred during the fourth
quarter of 1996 and the first quarter of 1997. The Company has collected a
significant amount of those billings early in the second quarter of 1997, and
expects to collect the remaining amounts by the end of the second quarter.
Net cash provided by investing activities for the three months ended March 31,
1997 was $478,000, compared to $715,000 for the three months ended March 31,
1996. For 1997, the positive cash flow from investing activities resulted from
the net cash acquired from the LPC transaction. Due to the nature of HRB's
business, with a majority of its resources allocated to personnel for
performance of its renovation services, capital requirements are insignificant.
The Company is currently developing software through Parker Reorder to enhance
the procurement services currently offered. A majority of the capital
expenditures for the software development have already been incurred, and future
commitments are at the discretion of the Company's management. As a result, the
Company can use its operating cash and available credit facilities for operating
needs.
The Company believes its present cash position, including increasing revenues
and cash on hand, and its ability to obtain additional financing as necessary,
will allow the company to meets its short-term and long-term operating needs for
at least twelve months.
10
<PAGE>
PART II. OTHER INFORMATION
Item 2. Changes in Securities
On January 10, 1997, the Registrant acquired The Leonard Parker Company, for
consideration including 1,250,000 shares of the Registrant's Common Stock and
160,000 shares of the Registrant's Redeemable Convertible Preferred Stock (the
"Preferred Stock"). Holders of the Preferred Stock have the right at such
holders' option, at any one time during the period from January 11, 1998 to
January 10, 2000, to convert all of such holder's shares of Preferred Stock into
(i) such whole number of shares of Common Stock equal to the product of 25,
which represents the stated value of the Preferred Stock and the number of such
holder shares of Preferred Stock, divided by the average closing sale price for
the Common Stock for the 20 trading days immediately prior to the date written
notice of the holder's intention to exercise the conversion option is given;
PROVIDED, HOWEVER, that in no case shall the number of shares of Common stock
into which each share of Preferred Stock may be converted be less than five or
greater than 25 or (ii) such whole number of shares of common stock, par value
$1.00 per share, of Parker Reorder (the "Parker Common Stock") equal to 9.80% of
the outstanding shares of Parker Common Stock as calculated immediately after
such conversion. The sale of the Preferred Stock was exempt from registration
under Section 4(2) of the Securities Act of 1933, as amended, as a transaction
not involving a public offering.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
JANUARY 24, 1997 THE FOLLOWING EVENT WAS REPORTED:
The Company filed a Form 8-K to report that the Company had entered into a
merger agreement with The Leonard Parker Company. ("LPC") The filing included
the "Agreement and Plan of Merger" between the Company and LPC, and the Articles
of Incorporation" of Hospitality Worldwide Services, as amended.
The following financial statements were filed with this report: None.
MARCH 25, 1997 THE FOLLOWING EVENT WAS REPORTED:
The Company filed report 8-K/A to amend the filing of Form 8-K on January 24,
1997 to include the requisite financial statements of the Leonard Parker Company
("LPC") and affiliates, and the pro forma financial information with respect to
Registrants acquisition of LPC.
The following financial statements were filed with this report:
Leonard Parker Company
Combined Report of Independent Certified Public Accountants
Combined Statements of Operations
Combined Balance Sheet
Combined Statements of Stockholders' Equity
Combined Statements of Cash Flows
Notes to combined Financial Statements
Hospitality Worldwide Services, Inc. and The Leonard Parker Company
Unaudited Pro forma Condensed Consolidated Financial Information
Unaudited Pro Forma Condensed Consolidated Balance Sheets as of December 31,
1996
Unaudited Pro Forma Condensed Consolidated Statements of Operations as of
December 31, 1995
Unaudited Pro Forma Condensed Consolidated Statements of
Operations as of December 31, 1996
Notes to Pro Forma Financial Statements
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOSPITALITY WORLDWIDE SERVICES, INC.
By: /S/ ROBERT A. BERMAN
--------------------------------------
Robert A. Berman
PRESIDENT AND CHIEF EXECUTIVE OFFICER
By: /S/ HOWARD G. ANDERS
--------------------------------------
HOWARD G. ANDERS
EXECUTIVE VICE PRESIDENT, CHIEF
FINANCIAL OFFICER (PRINCIPAL FINANCIAL
OFFICER, PRINCIPAL ACCOUNT OFFICER) AND
SECRETARY
Dated: May 14, 1997
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS, NOTES, THERETO.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 663
<SECURITIES> 0
<RECEIVABLES> 12,055
<ALLOWANCES> 309
<INVENTORY> 0
<CURRENT-ASSETS> 16,144
<PP&E> 1,347
<DEPRECIATION> 73
<TOTAL-ASSETS> 35,946
<CURRENT-LIABILITIES> 14,984
<BONDS> 0
0
5,000
<COMMON> 88
<OTHER-SE> 15,723
<TOTAL-LIABILITY-AND-EQUITY> 35,946
<SALES> 0
<TOTAL-REVENUES> 18,196
<CGS> 14,737
<TOTAL-COSTS> 17,381
<OTHER-EXPENSES> (29)
<LOSS-PROVISION> 10
<INTEREST-EXPENSE> 35
<INCOME-PRETAX> 786
<INCOME-TAX> 389
<INCOME-CONTINUING> 397
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 397
<EPS-PRIMARY> 0.04
<EPS-DILUTED> 0.00
</TABLE>
