UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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ý Quarterly Report
Under Section 13 or 15(d) |
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for the quarterly period ended September 30, 2003 |
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or |
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o Transition Report
pursuant to Section 13 or 15(d) |
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for the transition period from to |
Commission File Number 0-7282
COMPUTER HORIZONS CORP.
(Exact name of registrant as specified in its charter)
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New York |
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13-2638902 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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49 Old Bloomfield Avenue, Mountain Lakes, New Jersey 07046-1495 |
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(Address of principal executive offices) (Zip code) |
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Registrant’s telephone number, including area code (973) 299-4000 |
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Not Applicable |
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(Former name, former address and former fiscal year, if |
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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 twelve 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.
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o |
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Yes |
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No |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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ý |
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o |
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Yes |
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No |
As of November 11, 2003 the issuer had 30,528,278 shares of common stock outstanding.
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
Index
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Part I Financial Information |
Page No. |
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Consolidated Balance Sheets September 30, 2003 (unaudited) and December 31, 2002 |
3 |
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4 |
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5 |
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6 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
25 |
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31 |
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32 |
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32 |
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33 |
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34 |
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2
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
(dollars in thousands, except per share data)
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September 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
50,748 |
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$ |
59,769 |
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Accounts receivable, net of allowance for doubtful accounts of $8,207 and $7,696 at September 30, 2003 and December 31, 2002, respectively |
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52,506 |
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56,616 |
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Deferred income taxes |
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5,167 |
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4,557 |
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Refundable income taxes |
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— |
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19,051 |
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Other |
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5,557 |
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7,219 |
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TOTAL CURRENT ASSETS |
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113,978 |
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147,212 |
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PROPERTY AND EQUIPMENT |
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41,476 |
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37,643 |
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Less accumulated depreciation |
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(31,357 |
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(26,626 |
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10,119 |
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11,017 |
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OTHER ASSETS - NET: |
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Goodwill (Note 3) |
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33,551 |
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19,203 |
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Intangibles (Note 3) |
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2,966 |
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— |
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Deferred income taxes |
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12,361 |
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8,020 |
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Other |
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11,267 |
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8,279 |
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TOTAL OTHER ASSETS |
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60,145 |
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35,502 |
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TOTAL ASSETS |
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$ |
184,242 |
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$ |
193,731 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
10,836 |
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$ |
10,830 |
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Accrued payroll, payroll taxes and benefits |
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3,636 |
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4,529 |
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Restructuring reserve |
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3,028 |
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3,266 |
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Income taxes payable |
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1,144 |
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— |
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Tax benefit reserve |
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19,600 |
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19,600 |
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Other accrued expenses |
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5,932 |
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3,408 |
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TOTAL CURRENT LIABILITIES |
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44,176 |
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41,633 |
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OTHER LIABILITIES |
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6,488 |
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6,243 |
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SHAREHOLDERS’ EQUITY: |
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Preferred stock, $.10 par; authorized and unissued 200,000 shares, including 50,000 Series A |
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Common stock, $.10 par, authorized 100,000,000 shares; issued 33,153,107 shares at September 30, 2003 and December 31, 2002 respectively |
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3,315 |
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3,315 |
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Additional paid-in capital |
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133,162 |
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133,518 |
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Accumulated comprehensive loss |
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(3,324 |
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(4,306 |
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Retained earnings |
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14,996 |
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28,255 |
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148,149 |
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160,782 |
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Less shares held in treasury, at cost; 2,586,344 shares and 2,660,667 shares at September 30, 2003 and December 31, 2002, respectively |
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(14,571 |
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(14,927 |
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TOTAL SHAREHOLDERS’ EQUITY |
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133,578 |
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145,855 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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$ |
184,242 |
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$ |
193,731 |
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3
COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(dollars in thousands, except per share data)
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THREE MONTHS ENDED |
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NINE MONTHS ENDED |
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September 30, 2003 |
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September 30, 2002 |
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September 30, 2003 |
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September 30, 2002 |
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% of |
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% of |
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% of |
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% of |
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REVENUES: |
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IT Services |
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$ |
32,235 |
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50.0 |
% |
$ |
49,127 |
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66.8 |
% |
$ |
103,738 |
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56.5 |
% |
$ |
157,800 |
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68.6 |
% |
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Solutions Group |
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27,016 |
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41.9 |
% |
20,151 |
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27.4 |
% |
65,308 |
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35.6 |
% |
60,294 |
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26.2 |
% |
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Chimes |
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5,208 |
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8.1 |
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4,296 |
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5.8 |
% |
14,499 |
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7.9 |
% |
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