SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) JULY 24, 1996
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CAREER HORIZONS, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-23534 22-3038096
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
177 CROSSWAYS PARK DRIVE, WOODBURY, NY 11797
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (516) 682-1400
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ITEM 5.
Other Events
On July 24, 1996, Career Horizons, Inc. announced the results of operations
for the three and six month periods ended June 30, 1996.
Revenues rose 58 percent to $148.7 million for the three months ended June 30,
1996, from $94.2 million for the corresponding period a year ago. Net income
advanced 76 percent to $4.8 million, or $0.25 per share, from $2.7 million, or
$0.22 per share. The increases were attributable primarily to the Company's
aggressive acquisition strategy and continued internal growth in general
staffing and PL Services. The earnings per share comparison reflects an 88
percent increase in the number of average shares outstanding as a result of
two financings completed in previous quarters.
For the six months ended June 30, 1996, revenues were $275.9 million, an
increase of 50 percent from $183.7 million a year ago. Net income rose 74
percent to $7.3 million, or $0.43 per share, from $4.2 million (before special
charge of $550,000), or $0.34 per share, for the first half of 1995. Shares
outstanding increased by 74 percent.
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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 hereunto duly authorized.
CAREER HORIZONS, INC.
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(Registrant)
Date July 26, 1996 By: /s/ Michael T. Druckman
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Michael T. Druckman
Sr. Vice President, Treasurer
and Asst. Secretary
(Principal Financial and
Accounting Officer)
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CAREER HORIZONS, INC. and SUBSIDIARIES
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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20.1 Press release announcing the results of operations for
the three and six months ended June 30, 1996 and 1995.
For Immediate Release
Career Horizons, Inc. Reports 1996 Second Quarter
and First Half Results
Woodbury, NY-July 24, 1996 -- Career Horizons, Inc. (NYSE: CHZ) today reported
record financial results for the quarter and first half ended June 30, 1996.
Revenues rose 58 percent to $148.7 million for the quarter, from $94.2
million for the corresponding quarter a year ago. Net income advanced 76
percent to $4.8 million, or $0.25 per share, from $2.7 million, or $0.22 per
share. The increases were attributable primarily to the Company's aggressive
acquisition strategy and continued internal growth in general staffing and
PL Services. The earnings per share comparison reflects an 88 percent
increase in the number of average shares outstanding as a result of two
financings completed in previous quarters.
Carefully selected acquisitions in specialty staffing and targeted geographic
markets are central to Career Horizons' growth plans. In the second quarter,
Career Horizons completed five such acquisitions. Two were information
technology staffing companies, American Computer Professionals and WHY Systems.
Three were general staffing companies, CenCor Temporary Services, The Richard
Michael Group and Dial A Temporary. By mid-year, all of the recent
acquisitions, including the two with the largest number of offices, CenCor
and Temps & Co., were successfully integrated into Career Horizons' systems,
support services, and quality, training and human resources programs.
For the first half, revenues were $275.9 million, an increase of 50 percent
from $183.7 million a year ago. Net income rose 74 percent to $7.3 million,
or $0.43 per share, from $4.2 million (before special charge of $550,000),
or $0.34 per share, for the first half of 1995. Shares outstanding increased
by 74 percent.
Walter W. Macauley, President and Chief Executive Officer, said, "During the
second quarter, we continued to add companies which fit strategically and
have the potential to enhance our financial performance. Prospects for
additional acquisition activity remain strong based on the number of
companies attracted to the benefits of joining Career Horizons, our ability
to integrate these acquisitions and availability of capital."
Mr. Macauley continued, "PL Services, which provides financial, back-office
and other support services to independent staffing companies, had an
exceptionally strong quarter. Additionally, shortly after the end of the
quarter, 17 new Associates from an affiliated group of permanent placement
staffing companies joined the PL Services division. The benefits of pursuing
consistent long-term growth with a portfolio of businesses broadly
diversified within the staffing industry were evident in the quarter."
In addition to general and supplemental staffing, Career Horizon serves four
specialty markets: information technology, health care, desktop publishing
and pharmacy. It has 577 company-owned, franchised and private label offices
operating under recognized local and regional brand names in 43 states and
the District of Columbia.
Contacts:
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Career Horizons, Inc. Lundy Associates, Inc.
Michael T. Druckman Michael A. Lundy
Chief Financial Officer 201-660-1100
516-682-1403
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CAREER HORIZONS, INC. and SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(data in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
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1996 1995 1996 1995
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REVENUES $148,659 $94,150 $275,851 $183,733
EXPENSES:
Cost of services 112,824 72,091 210,233 141,115
Selling, general and
administrative expenses 21,988 12,667 41,637 25,429
Remittance to franchisees 5,246 4,605 9,898 9,235
Other expense, net 202 82 389 1,134
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Total expenses 140,260 89,445 262,157 176,913
Income from operations 8,399 4,705 13,694 6,820
Interest expense, net (624) (443) (1,802) (960)
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Income before income taxes 7,775 4,262 11,892 5,860
Provision for income taxes (2,993) (1,542) (4,578) (2,216)
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NET INCOME $ 4,782 $ 2,720 $ 7,314 $ 3,644
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INCOME PER COMMON SHARE:
Primary $.26 $.22 $.45 $.30
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Fully Diluted $.25 $.22 $.43 $.30
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Weighted average common
shares outstanding
Primary 18,281 12,342 16,417 12,330
Fully Diluted 23,260 12,342 21,452 12,332
