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 July 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 August 10, 2001
Common stock, $.01 par value
16,659,109
shares
COMFORCE Corporation
INDEX
Page Number
PART
I
FINANCIAL INFORMATION
..................................................................................................3
Item
1.
Financial Statements.....................................................................................................................3
and December 31, 2000 ..................................................................................................3
months ended July 1, 2001 and June 30, 2000 (unaudited).............................................4
ended July 1, 2001 and June 30, 2000 (unaudited)......................................................5
Item
2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations...........................................................10
Item
3.
Quantitative and Qualitative Disclosure about Market Risk..................................................16
PART
II
OTHER INFORMATION...................................................................................................16
Item
1.
Legal Proceedings.................................................................................................................16
Item
2.
Changes in Securities and Use of Proceeds (not applicable)................................................16
Item
3.
Defaults Upon Senior Securities (not applicable).................................................................16
Item
4.
Submission of Matters to a Vote of Security Holders............................................................16
Item
5.
Other Information (not applicable)........................................................................................17
Item
6.
Exhibits and Reports on Form 8-K........................................................................................17
SIGNATURES.........................................................................................................................................18
PART
I - FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS
COMFORCE
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(in
thousands except share and per share amounts)
|
|
July
1, |
|
December
31, 2000 |
|
ASSETS: |
(unaudited) |
|
|
|
Current
assets: |
|
|
|
|
Cash
and cash equivalents |
$
5,454 |
|
$
4,940 |
|
Accounts
receivable, net |
62,795 |
|
69,675 |
|
Funding
and service fees receivable, net |
42,029 |
|
49,392 |
|
Prepaid
expenses and other current assets |
3,332 |
|
3,467 |
|
Deferred
income taxes, net |
1,076 |
|
1,076 |
|
Total
current assets |
114,686 |
|
128,550 |
|
|
|
|
|
|
Deferred
income taxes, net |
404 |
|
404 |
|
Property
and equipment, net |
12,371 |
|
12,050 |
|
Intangible
assets, net |
136,319 |
|
137,655 |
|
Deferred
financing costs, net |
3,984 |
|
4,755 |
|
Total
assets |
$
267,764 |
|
$
283,414 |
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY: |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$
2,083 |
|
$
5,373 |
|
Accrued
expenses |
33,267 |
|
34,235 |
|
Total
current liabilities |
35,350 |
|
39,608 |
|
|
|
|
|
|
Long-term
debt |
181,905 |
|
197,421 |
|
Other
liabilities |
85 |
|
11 |
|
Total
liabilities |
$
217,340 |
|
$
237,040 |
|
Commitments
and contingencies |
|
|
|
|
Stockholders’
equity: Common
stock, $.01 par value; 100,000,000 shares authorized; 16,659,108 shares
and 16,659,027 shares issued and outstanding at July 1, 2001 and
December 31, 2000, respectively |
167 |
|
167 |
|
Additional
paid-in capital |
49,581 |
|
49,149 |
|
Accumulated
earnings (deficit) since January 1, 1996 |
676 |
|
(2,942) |
|
Total
stockholders’ equity |
50,424 |
|
46,374 |
|
Total
liabilities and stockholders’ equity |
$
267,764 |
|
$
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 |
|
Six
Months Ended |
||||
|
|
July 1, 2001 |
|
June
30, 2000 |
|
July
1, 2001 |
|
June
30, 2000 |
|
|
|
|
|
|
|
|
|
|
Revenue: Net
sales of service |
$
112,207 |
|
$117,718 |
|
$
235,559 |
|
$224,563 |
|
|
|
|
|
|
|
|
|
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
Cost
of services |
88,237 |
|
93,294 |
|
185,117 |
|
179,089 |
|
Selling,
general and administrative expenses |
16,736 |
|
16,084 |
|
34,495 |
|
31,326 |