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 December 31, 2004 |
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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.) |
1717 H Street NW
Washington, D.C. 20006-3900
(Address of principal executive offices, including zip code)
(202) 715-7000
(Registrant’s telephone number, including area code)
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:
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Yes |
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No |
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Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).
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Yes |
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No |
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Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of January 31, 2005.
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Class |
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Number of Shares |
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Class A Common Stock, $.01 par value |
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32,572,186 |
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WATSON WYATT & COMPANY
HOLDINGS
INDEX TO FORM 10-Q
For the Three and Six Months Ended December 31, 2004
WATSON WYATT & COMPANY HOLDINGS
Consolidated Statements of Operations
(Thousands of U.S. Dollars, Except Per Share Data)
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Three months ended December 31 |
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Six months ended December 31 |
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2004 |
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2003 |
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2004 |
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2003 |
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(Unaudited) |
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(Unaudited) |
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Revenue |
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$ |
175,849 |
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$ |
170,353 |
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$ |
351,240 |
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$ |
341,336 |
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Costs of providing services: |
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Salaries and employee benefits |
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95,194 |
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94,374 |
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192,270 |
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199,447 |
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Professional and subcontracted services |
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11,544 |
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12,613 |
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23,523 |
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21,699 |
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Occupancy, communications and other |
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27,901 |
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25,921 |
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52,001 |
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49,439 |
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General and administrative expenses |
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19,481 |
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14,990 |
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36,369 |
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30,591 |
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Depreciation and amortization |
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4,810 |
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5,395 |
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9,493 |
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10,047 |
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158,930 |
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153,293 |
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313,656 |
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311,223 |
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Income from operations |
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16,919 |
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17,060 |
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37,584 |
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30,113 |
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Income from affiliates |
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2,724 |
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1,048 |
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4,930 |
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2,838 |
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Interest income, net |
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407 |
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170 |
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862 |
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384 |
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Other non-operating (expense)/income |
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(56 |
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27 |
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(28 |
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6,152 |
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Income from continuing operations before income taxes |
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19,994 |
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18,305 |
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43,348 |
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39,487 |
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Provision for income taxes |
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8,939 |
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7,503 |
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18,542 |
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16,188 |
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Income from continuing operations |
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11,055 |
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10,802 |
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24,806 |
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23,299 |
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Discontinued operations: |
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Sublease income from discontinued operations, less applicable income tax expense for the three and six months ended December 31, 2004 |
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6 |
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16 |
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8 |
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26 |
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Net income |
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$ |
11,061 |
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$ |
10,818 |
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$ |
24,814 |
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$ |
23,325 |
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