SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d)
OF THE SECURITIES EXC-HANGE ACT OF 1934
For
the quarterly period ended April 1, 2001
OR
[ ] 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: 1-6081
COMFORCE
Corporation
(Exact name of registrant as specified in
its charter)
Delaware 36-2262248 .
(State or other jurisdiction of (IRS Employer Identification
No.)
incorporation or organization)
415 Crossways Park Drive, P.O. Box 9006,
Woodbury, New York 11797
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including
area code: (516) 437-3300
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 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 X No
Indicate the number of shares outstanding
of each of the issuer’s classes of common stock, as of the latest practicable
date.
Class Outstanding
at May 10, 2001
Common stock, $.01 par value 16,659,099 shares
COMFORCE Corporation
INDEX
Page
Number
PART I FINANCIAL
INFORMATION................................................................................................................................ 3
Item 1. Financial
Statements................................................................................................................................................ 3
Consolidated
Balance Sheets at April 1, 2001(unaudited)
and December 31, 2000..................................................................................................................................... 3
Consolidated
Statements of Operations for the three
months ended April 1, 2001 and March 31, 2000 (unaudited).................................................................... 4
Consolidated
Statements of Cash Flows for the three months
ended April 1, 2001 and March 31, 2000 (unaudited).................................................................................. 5
Notes to Unaudited
Consolidated Financial Statements.................................................................................... 6
Item 2. Management's
Discussion and Analysis of
Financial
Condition and Results of Operations........................................................................................... 9
Item 3. Quantitative
and Qualitative Disclosure about Market Risk........................................................................... 13
PART II OTHER
INFORMATION....................................................................................................................................... 13
Item 1. Legal
Proceedings.................................................................................................................................................. 13
Item 2. Changes
in Securities and Use of Proceeds....................................................................................................... 13
Item 3. Defaults
Upon Senior Securities (not applicable).............................................................................................. 13
Item 4. Submission
of Matters to a Vote of Security Holders (not applicable).......................................................... 13
Item 5. Other
Information (not applicable)....................................................................................................................... 13
Item 6. Exhibits
and Reports on Form 8-K................................................................................................................... 14
SIGNATURES................................................................................................................................................................................. 15
PART
I - FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS
COMFORCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share
amounts)
|
|
April 1, 2001 |
|
December 31, 2000 |
|
ASSETS: |
(unaudited) |
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 4,965 |
|
$ 4,940 |
|
Accounts receivable, net |
66,443 |
|
69,675 |
|
Funding and service fees receivable,
net |
46,788 |
|
49,392 |
|
Prepaid expenses and other current
assets |
2,951 |
|
3,467 |
|
Deferred income taxes |
1,076 |
|
1,076 |
|
Total current assets |
122,223 |
|
128,550 |
|
|
|
|
|
|
Deferred income taxes, net |
404 |
|
404 |
|
Property and equipment, net |
12,412 |
|
12,050 |
|
Intangible assets, net |
137,246 |
|
137,655 |
|
Deferred financing costs, net |
4,037 |
|
4,755 |
|
Total assets |
$
276,322 |
|
$
283,414 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 2,525 |
|
$ 5,373 |
|
Accrued expenses |
42,921 |
|
34,235 |
|
Total current liabilities |
45,446 |
|
39,608 |
|
|
|
|
|
|
Long-term debt |
179,964 |
|
197,421 |
|
Other liabilities |
87 |
|
11 |
|
Total liabilities |
$
225,497 |
|
$
237,040 |
|
Commitments and contingencies |
|
|
|
|
Stockholders’ equity: Common stock, $.01 par value;
100,000,000 shares authorized; 16,659,062 shares and 16,659,027 shares issued
and outstanding at April 1, 2001 and December 31, 2000, respectively |
167 |
|
167 |
|
Additional paid-in capital |
49,581 |
|
49,149 |
|
Accumulated earnings (deficit) since
January 1, 1996 |
1,077 |
|
(2,942) |
|
Total stockholders’ equity |
50,825 |
|
46,374 |
|
Total liabilities and stockholders’
equity |
$
276,322 |
|
$
283,414 |
The
accompanying notes are an integral part of the unaudited consolidated financial
statements.
COMFORCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in
thousands except per share amounts)
(unaudited)
|
|
Three Months ended |
|||
|
|
April 1, 2001 |
|
March 31, 2000 |
|
|
Revenue: Net sales of services |
$ 123,352 |
|
$ 106,845 |
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of services |
96,880 |
|
85,795 |
|
|
Selling, general and
administrative |
17,759 |
|
15,242 |
|
|
Depreciation and amortization |
1,918 |
|
1,809 |
|
|
Total costs and expenses |
116,557 |
|
102,846 |
|
|
Operating income |
6,795 |
|
3,999 |
|
|
|
|
|
|
|