COMPUTER HORIZONS CORP - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý	Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

	for the quarterly period ended September 30, 2004

	or

o	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 0-7282

COMPUTER HORIZONS CORP.

(Exact name of registrant as specified in its charter)

New York		13-2638902
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

49 Old Bloomfield Avenue, Mountain Lakes, New Jersey		07046-1495
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code (973) 299-4000

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 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.

		ý	o
		Yes	No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

		ý	o
		Yes	No

As of November 9, 2004 the issuer had 30,923,320 shares of common stock outstanding.

Part I Financial Information

Item 1

COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

	September 30, 2004			December 31, 2003
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	34,243		$	52,610
Accounts receivable, net of allowance for doubtful accounts of $6,260 and $5,432 at September 30, 2004 and December 31, 2003, respectively	55,083			48,295
Deferred income taxes	3,423			4,514
Refundable income taxes	3,534			—
Other	4,260			4,759
TOTAL CURRENT ASSETS	100,543			110,178

PROPERTY AND EQUIPMENT	42,695			42,252
Less accumulated depreciation	(35,602		)	(32,929		)
	7,093			9,323

OTHER ASSETS - NET:
Goodwill	45,466			34,218
Intangibles	3,737			2,408
Deferred income taxes	15,756			14,813
Other	8,674			9,386
TOTAL OTHER ASSETS	73,633			60,825

TOTAL ASSETS	$	181,269		$	180,326

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	8,856		$	8,287
Accrued payroll, payroll taxes and benefits	9,535			7,791
Income taxes payable	3,397			1,243
Tax benefit reserve	—			19,600
Restructuring reserve	1,139			2,620
Other accrued expenses	3,890			5,813
TOTAL CURRENT LIABILITIES	26,817			45,354

OTHER LIABILITIES	5,474			4,635

SHAREHOLDERS’ EQUITY:
Preferred stock, $.10 par; authorized and unissued 200,000 shares, including 50,000 Series A
Common stock, $.10 par, authorized 100,000,000 shares; issued 33,153,107 shares at September 30, 2004 and December 31, 2003 respectively	3,315			3,315
Additional paid-in capital	151,495			133,046
Accumulated comprehensive loss	(2,809		)	(2,789		)
Retained earnings	10,198			11,100
	162,199			144,672
Less shares held in treasury, at cost; 2,166,584 shares and 2,537,692 shares at September 30, 2004 and December 31, 2003, respectively	(13,221		)	(14,335		)
TOTAL SHAREHOLDERS’ EQUITY	148,978			130,337

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	181,269		$	180,326

Part I	Financial Information

Item 1	Consolidated Balance Sheets September 30, 2004 (unaudited) and December 31, 2003	3

	Consolidated Statements of Operations Three and Nine Months Ended September 30, 2004 and September 30, 2003 (unaudited)	4

	Consolidated Statements of Cash Flows Nine Months Ended September 30, 2004 and September 30, 2003 (unaudited)	5

	Notes to Consolidated Financial Statements	6

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 4	Controls and Procedures	34

Part II	Other Information

Item 6	Exhibits and Reports on Form 8-K	35

	Signatures	36