UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission File Number: 001-16159
WATSON
WYATT & COMPANY HOLDINGS
(Exact name of Registrant as specified in its charter)
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Delaware |
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52-2211537 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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1717 H Street NW |
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(Address of principal executive offices, including zip code) |
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(202) 715-7000 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of October 31, 2003.
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Class |
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Number of Shares |
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Class A Common Stock, $.01 par value |
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33,255,044 |
WATSON
WYATT & COMPANY HOLDINGS
INDEX TO FORM 10-Q
For the Three Months Ended September 30, 2003
WATSON WYATT & COMPANY HOLDINGS
Consolidated Statements of Operations
(Thousands of U.S. Dollars, Except Per Share Data)
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Three months ended September 30 |
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2003 |
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2002 |
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(Unaudited) |
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Revenue |
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$ |
170,983 |
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$ |
178,958 |
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Costs of providing services: |
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Salaries and employee benefits |
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105,073 |
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101,513 |
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Professional and subcontracted services |
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9,086 |
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10,818 |
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Occupancy, communications and other |
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23,518 |
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26,628 |
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General and administrative expenses |
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15,601 |
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14,390 |
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Depreciation and amortization |
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4,652 |
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5,079 |
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157,930 |
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158,428 |
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Income from operations |
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13,053 |
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20,530 |
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Income from affiliates |
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1,790 |
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849 |
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Interest income, net |
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214 |
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242 |
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Other non-operating income |
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6,125 |
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520 |
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Income from continuing operations before income taxes |
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21,182 |
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22,141 |
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Provision for income taxes |
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8,685 |
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9,078 |
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Income from continuing operations |
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12,497 |
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13,063 |
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Discontinued operations: |
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Sublease income from discontinued operations, less applicable income tax expense for the three months ended September 30, 2003 |
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10 |
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— |
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Net income |
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$ |
12,507 |
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$ |
13,063 |
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Basic earnings per share: |
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Income from continuing operations |
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$ |
0.38 |
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$ |
0.40 |
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Income from discontinued operations |
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— |
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— |
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Net income |
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$ |
0.38 |
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$ |
0.40 |
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Diluted earnings per share: |
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Income from continuing operations |
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$ |
0.37 |
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$ |
0.39 |
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Income from discontinued operations |
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— |
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— |
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Net income |
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$ |
0.37 |
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$ |
0.39 |
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Weighted average shares of common stock, basic (000) |
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33,078 |
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32,945 |
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Weighted average shares of common stock, diluted (000) |
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33,424 |
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33,291 |
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See accompanying notes
1
WATSON WYATT & COMPANY HOLDINGS
(Thousands of U.S. Dollars, Except Share and Per Share Data)
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September
30, |
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June 30, |
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(Unaudited) |
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Assets |
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Cash and cash equivalents |
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$ |
118,303 |
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$ |
144,374 |
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Receivables from clients: |
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Billed, net of allowances of $1,909 and $862 |
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80,291 |
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78,373 |
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Unbilled, net of allowances of $625 and $419 |
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65,971 |
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60,549 |
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146,262 |
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138,922 |
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Deferred income taxes |
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— |
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3,885 |
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Other current assets |
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18,935 |
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11,448 |
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Total current assets |
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283,500 |
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298,629 |
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Investment in affiliates |
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27,309 |
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26,431 |
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Fixed assets, net |
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59,125 |
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60,716 |
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Deferred income taxes |
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102,205 |
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101,214 |
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Goodwill and intangible assets |
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20,816 |
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20,878 |
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Other assets |
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5,994 |
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6,594 |
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Total Assets |
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$ |
498,949 |
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