-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E9/nU5qIBLaDiEqwcdqOc5QXBEBUeHkv9E/diptQzktnPDPqUJf3pX43C9r+V8cH JEmxF95e//tYIRhFBTKK1w== 0000950164-98-000091.txt : 19980518 0000950164-98-000091.hdr.sgml : 19980518 ACCESSION NUMBER: 0000950164-98-000091 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORT BUSINESS SERVICES CORP CENTRAL INDEX KEY: 0000905401 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 541662135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-14146 FILM NUMBER: 98622973 BUSINESS ADDRESS: STREET 1: 4401 FAIR LAKES CT STE 300 CITY: FAIRFAX STATE: VA ZIP: 22033 BUSINESS PHONE: 7039688500 MAIL ADDRESS: STREET 1: 4401 FAIR LAKES COURT STE 300 STREET 2: 4401 FAIR LAKES COURT STE 300 CITY: FAIRFAX STATE: VA ZIP: 22033 FORMER COMPANY: FORMER CONFORMED NAME: NEW CORT HOLDINGS CORP DATE OF NAME CHANGE: 19930825 10-Q 1 FORM 10-Q ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 1-14146 CORT BUSINESS SERVICES CORPORATION (Exact name of registrant as specified in its charter) Delaware 54-1662135 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 4401 Fair Lakes Court, Fairfax, VA 22033 (Address of principal executive offices) (Zip Code) (703) 968-8500 (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. 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.
Outstanding as of Class May 8, 1998 ----- ----------- Common Stock, $.01 par value 13,019,419 Class B Common Stock, $.01 par value - 0 -
================================================================================ CORT BUSINESS SERVICES CORPORATION INDEX TO FORM 10-Q Page No. -------- Part I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets.....................1 Condensed Consolidated Statements of Operations...........2 Condensed Consolidated Statements of Cash Flows...........3 Notes to Condensed Consolidated Financial Statements......4 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS....................6 Part II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K..........................8 SIGNATURE...................................................................9 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
December 31, March 31, 1997 1998 ---- ---- (unaudited) ASSETS Cash and cash equivalents.......................................................... $ -- $ 1,422 Accounts receivable, net........................................................... 13,521 13,322 Prepaid expenses................................................................... 4,127 4,933 Rental furniture, net.............................................................. 164,323 170,213 Property, plant and equipment, net................................................. 38,777 39,580 Other receivables and assets, net.................................................. 3,183 3,240 Goodwill, net...................................................................... 53,910 61,775 -------- ------ Total Assets.................................................................. $277,841 $294,485 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable................................................................... $ 5,551 $ 6,410 Accrued expenses................................................................... 27,936 26,176 Deferred revenue and security deposits............................................. 17,217 18,265 Revolving credit facility.......................................................... 13,200 22,200 Senior notes, 12%.................................................................. 49,932 49,932 Deferred income taxes.............................................................. 14,673 14,673 ------ ------ 128,509 137,656 Stockholders' equity............................................................... 149,332 156,829 ------- ------- Total liabilities and stockholders' equity.................................... $277,841 $294,485 ======= =======
See accompanying notes to unaudited condensed consolidated financial statements. 1 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
Three Months Ended March 31, ------------------ 1997 1998 ---- ---- Revenue: Furniture rental............................................... $ 55,553 $ 62,814 Furniture sales................................................ 11,748 12,629 ------ ------ Total revenue.............................................. 67,301 75,443 ------ ------ Operating costs and expenses: Cost of furniture rental....................................... 10,632 11,087 Cost of furniture sales........................................ 6,908 7,615 Selling, general and administrative expenses................... 39,350 44,166 ------ ------ Total costs and expenses................................... 56,890 62,868 ------ ------ Operating earnings......................................... 10,411 12,575 Interest expense.................................................... 1,985 1,967 ----- ----- Income before income taxes................................ 8,426 10,608 Income taxes........................................................ 3,496 4,417 ----- ----- Net income................................................ $ 4,930 $ 6,191 ====== ===== Earnings per common share........................................... $ .39 $ .48 Weighted average number of common shares used in computation.................................... 12,724 12,924 Earnings per common share - assuming dilution....................... $ .37 $ .46 Weighted average number of common shares used in computation - assuming dilution................ 13,296 13,472
See accompanying notes to unaudited condensed consolidated financial statements. 2 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three Months Ended March 31, ------------------- 1997 1998 ---- ---- Cash flows from operating activities: Net income..................................................... $ 4,930 $ 6,191 Proceeds of disposals of rental furniture in excess of gross profit....................................... 6,594 7,294 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization: Rental furniture depreciation ............................. 7,868 8,465 Other depreciation and amortization........................ 1,169 1,445 Goodwill amortization...................................... 317 434 Amortization of debt issuance costs........................ 180 184 Rental furniture inventory shrinkage........................ 709 830 Changes in operating accounts, net.......................... 890 (1,060) ----- ----- Net cash provided by operating activities.................. 22,657 23,783 ------ ------ Cash flows from investing activities: Purchases of rental furniture.................................. (20,985) (20,917) Purchase of portfolio acquisitions............................. (13,024) (9,175) Purchases of property, plant and equipment..................... (1,728) (1,975) Sales of property, plant and equipment......................... 20 106 ------- ------ Net cash used by investing activities...................... (35,717) (31,961) ------- ------ Cash flows from financing activities: Borrowings on the revolving credit facility.................... 29,400 22,700 Repayments on the revolving credit facility.................... (16,800) (13,700) Issuance of common stock....................................... 182 600 Other.......................................................... 155 -- ---- ----- Net cash provided by financing activities.................. 12,937 9,600 ------- ----- Net increase (decrease) in cash and cash equivalents....... (123) 1,422 Cash and cash equivalents at beginning of period.................... 123 -- ----- ----- Cash and cash equivalents at end of period.......................... $ -- $ 1,422 ======== ======== Supplemental disclosure of cash flow information: Interest paid.................................................. $ 3,196 $ 3,206 Income taxes paid.............................................. 821 768 Tax benefit from exercise of stock options..................... -- 708
See accompanying notes to unaudited condensed consolidated financial statements. 3 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 (1) Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of the consolidated financial position of CORT Business Services Corporation ("CORT" or the "Company") and Subsidiaries as of March 31, 1998, and the results of their operations and cash flows for the three months ended March 31, 1998 and 1997. The results of operations for the three months ended March 31, 1998 are not necessarily indicative of the results that may be expected for the full year. These condensed consolidated financial statements are unaudited, and do not include all related footnote disclosures. The interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's 1997 Annual Report on Form 10-K. (2) Income Taxes The Internal Revenue Service ("IRS") has proposed the disallowance of certain deductions taken by Fairwood Corporation for a consolidated tax group of which CORT Furniture Rental Corporation ("CFR") was previously a member (the "Former Group") through the year ended December 31, 1988. The IRS challenge includes the assertion that certain interest deductions taken by the Former Group should be recharacterized as non-deductible dividend distributions and that deductions for certain expenses related to the acquisition of Mohasco Corporation (now Consolidated Furniture Corporation ("Consolidated")), CFR's former shareholder, be disallowed. Under IRS regulations, the Company and each other member of the Former Group is severally liable for the full amount of any Federal income tax liability of the Former Group while CFR was a member of the Former Group, which could be as much as approximately $35 million for such periods (including interest through December 31, 1997). Under the agreement of sale for CFR, Consolidated agreed to indemnify the Company in full for any consolidated tax liability of the Former Group for the years during which CFR was a member of the Former Group. In addition, the Company may have rights of contribution against other members of the Former Group if the Company were required to pay more than its equitable share of any consolidated tax liability. Fairwood Corporation has indicated to the Company that it has tentatively reached an agreement in principle with the IRS Appeals Officer handling the case regarding a settlement of the principal issues in the case. A final settlement on that basis would be substantially less than the liability that would result from the proposed adjustments. The terms of such a tentative settlement are subject to further review by the IRS and by the Joint Committee on Taxation, and no assurance can be given that any settlement will be reached with the IRS. The Company is not in a position to determine the probable outcome and its impact on the Company's consolidated financial statements, if any. 4 (3) Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended March 31, ------------------ 1997 1998 ---- ---- Weighted average shares outstanding during the period 12,723,583 12,923,998 Effect of dilutive securities: Stock options 460,311 489,099 Warrants 112,095 58,699 ------- ------ Weighted average common shares - assuming dilution 13,295,989 13,471,796 ========== ========== Net income applicable to common shares $4,930,000 $6,191,000 ========== ========== Earnings per common share $ .39 $ .48 ========== ========== Earnings per common share - assuming dilution $ .37 $ .46 ========== ==========
5 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (dollar figures in thousands) Results of Operations Three months ended March 31, 1998 as compared to three months ended March 31, 1997 Revenue Total revenue increased 12.1% to $75,443 for the three months ended March 31, 1998 from $67,301 for the three months ended March 31, 1997. Furniture rental revenue for the three months ended March 31, 1998 was $62,814, a 13.1% increase from $55,553 in 1997. Rental revenue growth before the impact of acquisitions and merged markets was approximately 7% which reflects growth in the number of leases as well as revenue per lease. Furniture sales increased 7.5% to $12,629 for the three months ended March 31, 1998. Operating Costs and Expenses Cost of furniture rental has decreased from 19.1% of furniture rental revenue in 1997 to 17.7% of furniture rental revenue in 1998. The improvement in rental margins is attributable to the expansion of CORT's housewares and trade show furnishings operations. Cost of furniture sales increased from 58.8% of furniture sales revenue in 1997 to 60.3% in 1998. Selling, general and administrative expenses totaled $44,166 or 58.5% of total revenue for the quarter ended March 31, 1998 as compared to $39,350 or 58.5% of total revenue in 1997. While the Company made investments in personnel, facilities and new programs, these increased costs were offset by efficiencies gained in the California markets. As a result, selling, general and administrative expenses remained flat as a percentage of revenue. Operating Earnings As a result of the changes in revenue, operating costs and expenses discussed above, operating earnings were $12,575 or 16.7% of total revenue in the first quarter of 1998 compared to $10,411 or 15.5% of total revenue in the first quarter of 1997. Furniture Purchases Furniture purchases, which totaled $20,917 in the three months ended March 31, 1998, were about equal to the $20,985 purchased in the three months ended March 31, 1997. Purchases for start-up districts and incubator businesses in 1997 included building inventory in line with expansion requirements while 1998 reflected purchases required by normal business operations. This reduction, combined with reduced furniture requirements for merged markets, were largely offset by increased purchases for acquired operations. Liquidity and Capital Resources CORT Business Services Corporation is a holding company with no independent operations, no material obligations and no material assets other than its ownership of CFR. The Company is dependent on the receipt of dividends or distributions from CFR to fund any obligations. The revolving credit facility and the indenture governing the Senior Notes restrict the ability of CFR to make advances and pay dividends to the Company. The Company's primary capital requirements are for purchases of rental furniture. The Company purchases furniture throughout each year to replace furniture which has been sold and to maintain adequate levels of rental 6 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) (dollar figures in thousands) furniture throughout each year to replace furniture which has been sold and to maintain adequate levels of rental furniture to meet existing and new customer needs. As the Company's growth strategies continue to be implemented, furniture purchases are expected to increase. The Company's other capital requirements consist primarily of purchases of property, plant and equipment, including leasehold improvements, warehouse and office equipment, standard programming enhancements and computer hardware. Net purchases of property, plant and equipment were $1,708 and $1,869 in the three months ended March 31, 1997 and 1998, respectively. During the three months ended March 31, 1997 and 1998, net cash provided by operations was $22,657 and $23,783, respectively. During the three months ended March 31, 1997 and 1998, net cash used by investing activities was $35,717 and $31,961, respectively, consisting primarily of purchases of rental furniture and portfolio acquisitions. During the three months ended March 31, 1997 and 1998, net cash provided by financing activities was $12,937 and $9,600 respectively. The Company is required to make semi-annual interest payments, in arrears on March 1 and September 1, of approximately $3,000 ($6,000 annually) on the Senior Notes. The Company will not be required to make principal repayments on the Senior Notes until maturity on September 1, 2000. CFR has available a revolving line of credit of $75,000 to meet acquisition and expansion needs as well as seasonal working capital and general corporate requirements. CFR had borrowings of $22,200 under the line of credit at March 31, 1998. The IRS has proposed the disallowance of certain deductions taken by Fairwood Corporation for a consolidated tax group of which CFR was previously a member (the "Former Group") through the year ended December 31, 1988. The IRS challenge includes the assertion that certain interest deductions taken by the Former Group should be recharacterized as non-deductible dividend distributions and that deductions for certain expenses related to the acquisition of Consolidated, CFR's former shareholder, be disallowed. Under IRS regulations, the Company and each other member of the Former Group is severally liable for the full amount of any Federal income tax liability of the Former Group while CFR was a member of the Former Group, which could be as much as approximately $35 million for such periods (including interest through December 31, 1997). Under the agreement of sale for CFR, Consolidated agreed to indemnify the Company in full for any consolidated tax liability of the Former Group for the years during which CFR was a member of the Former Group. In addition, the Company may have rights of contribution against other members of the Former Group if the Company were required to pay more than its equitable share of any consolidated tax liability. Fairwood Corporation has indicated to the Company that it has tentatively reached an agreement in principle with the IRS Appeals Officer handling the case regarding a settlement of the principal issues in the case. A final settlement on that basis would be substantially less than the liability that would result from the proposed adjustments. The terms of such a tentative settlement are subject to further review by the IRS and by the Joint Committee on Taxation, and no assurance can be given that any settlement will be reached with the IRS. The Company is not in a position to determine the probable outcome and its impact on the Company's consolidated financial statements, if any. Forward-Looking Statements In addition to historical information, this Quarterly Report on Form 10-Q includes certain forward-looking statements as such term is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements involve certain risks and uncertainties, including but not limited to acquisitions, additional financing requirements, development of new products and services, purchases of rental property, the effect of competitive products and pricing and the effect of general economic conditions, that could cause actual results to differ materially from those in such forward-looking statements. 7 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES PART II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits (see Index on page E-1) (b) Reports on Form 8-K: None. 8 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CORT BUSINESS SERVICES CORPORATION (Registrant) Date: May 15, 1998 By: /s/Frances Ann Ziemniak ---------------------- ---------------------------- Frances Ann Ziemniak Vice President, Finance, CFO and Assistant Secretary (Principal financial and principal accounting officer) 9 CORT BUSINESS SERVICES CORPORATION AND SUBSIDIARIES EXHIBIT INDEX
Exhibit Number Description Page ------ ----------- ---- 2.1 Stock Purchase Agreement, dated June 22, 1993, by and among the Company, Interfinancial, Inc., General Furniture Leasing Company and Fortis, Inc.; incorporated by reference to Exhibit 2.1 to CFR's Registration Statement on Form S-1, No. 33-65094, filed on June 25, 1993 2.2 First Amendment to Stock Purchase Agreement, dated as of August 31, 1993, by and among the Company, Fortis, Inc., Interfinancial, Inc. and General Furniture Leasing Company; incorporated by reference to Exhibit 2.2 to CFR's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1993 2.3 Assignment and Assumption Agreement, dated as of August 31, 1993, between CFR and the Company; incorporated by reference to Exhibit 2.3 to CFR's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1993 2.4 Acquisition Agreement, dated March 15, 1996, by and among the Company, CE Merger Sub Inc. and Evans Rents; incorporated by reference to Exhibit 2.4 to the Company's Annual Report on Form 10-K for the year ended December 31, 1995 3.1 Restated Certificate of Incorporation of the Company; incorporated by reference to Exhibit 3.1 to Amendment No. 3 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on November 13, 1995 3.2 Amendment to Restated Certificate of Incorporation; incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A, filed as of March 31, 1997 3.3 By-laws of the Company; incorporated by reference to Exhibit 3.2 to Amendment No. 3 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on November 13, 1995 4.1 Form of Indenture between CFR and United States Trust Company of New York, as Trustee, with respect to CFR's 12% Senior Notes due 2000; incorporated by reference to Exhibit 4.1 to Amendment No. 3 to the Company's Registration Statement on Form S-1, No. 33-65094, filed on August 20, 1993 4.2 First Supplemental Indenture between CFR and United States Trust Company of New York, as Trustee, dated August 25, 1995; incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on September 29, 1995 4.3 Second Supplemental Indenture between CFR and United States Trust Company of New York, as Trustee, dated September 29, 1995; incorporated by reference to Exhibit 4.9 to Amendment No. 1 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on October 23, 1995 4.4 Warrant Agreement, dated September 1, 1993, between the Company and United States Trust Company of New York, as Warrant Agent; incorporated by reference to Exhibit 4.7 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on September 29, 1995
E-1
4.5 Amendment No. 1 to Warrant Agreement, dated February 1, 1994, between the Company and United States Trust Company of New York, as Warrant Agent; incorporated by reference to Exhibit 4.8 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on September 29, 1995 10.1 Credit Agreement dated as of February 13, 1998 by and among CFR, the Company, the lenders identified therein, and NationsBank, N.A., as agent; incorporated by reference to Exhibit 10.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997 10.2 Stock Option, Securities Purchase and Stockholders Agreement, dated as of January 18, 1994, by and among the Company, CFR, Citicorp Venture Capital Ltd. and certain investors named therein; incorporated by reference to Exhibit 4.6 to the Company's Registration Statement on Form S-8, No. 33-72724, filed on December 9, 1993 10.3 Amendment 1 to New Cort Holdings Corporation and Subsidiaries Employee Stock Option and Stock Purchase Plan as adopted by the Board of Directors of the Company on December 21, 1993; incorporated by reference to Exhibit 10.11 to CFR's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 10.4 New Cort Holdings Corporation and Subsidiaries Employee Stock Option and Stock Purchase Plan (1995 Plan Distribution) as adopted by the Board of Directors of the Company on December 16, 1994; incorporated by reference to Exhibit 10.13 to CFR's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1995 10.5 Form of First Amendment to Stockholders Agreement, dated as of November 13, 1995, by and among the Company, Citicorp Venture Capital Ltd., and certain investors named therein; incorporated by reference to Exhibit 10.5 to Amendment No. 3 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on November 13, 1995 10.6 Registration Rights Agreement for Common Stock, dated as of January 18, 1994, by and among the Company, Citicorp Venture Capital Ltd. and certain investors named therein; incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1994 10.7 CFR's Supplemental Executive Retirement Plan, dated October 28, 1992, as revised effective January 1, 1993, restated through the Second Amendment; incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the year ended December 31, 1996 10.8 Agreement for Irrevocable Trust Under CORT Furniture Rental Supplemental Executive Retirement Plan, dated June 1, 1996, between CFR and Mentor Trust Company; incorporated by reference to Exhibit 10.9 to the Company's Annual Report on Form 10-K for the year ended December 31, 1996 10.9 Letter Agreement, dated July 24, 1992, between CFR and Paul N. Arnold; incorporated by reference to Exhibit 10.16 to CFR's Registration Statement on Form S-1, No. 33-65094, filed on June 25, 1993 10.10 Letter Agreement, dated August 18, 1993, between CFR and Paul N. Arnold; incorporated by reference to Exhibit 10.26 to Amendment No. 5 to the Company's Registration Statement on Form S-1, No. 33-65094, filed on August 25, 1993
E-2
10.11 Employment Agreement, dated September 1, 1994, between CFR and Charles M. Egan; incorporated by reference to Exhibit 10.10 to CFR's Annual Report on Form 10-K for the year ended December 31, 1994 10.12 Amended and Restated CORT Business Services Corporation 1995 Directors Stock Option Plan adopted by the Board of Directors October 18, 1995 and amended and restated on May 14, 1997; incorporated by reference to Exhibit 10.13 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1997 10.13 Equity Share Agreement, between CFR and Lloyd and Eileen S. Lenson, dated April 20, 1994; incorporated by reference to Exhibit 10.17 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on September 29, 1995 10.14 Form of Senior Notes Purchase Agreement between CFR and certain holders of CFR's 12% Senior Notes Due 2000, dated September 28, 1995; incorporated by reference to Exhibit 10.18 to Amendment No. 2 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on November 1, 1995 10.15 Private Exchange Commitment Letter by and among the Company, Citicorp Venture Capital Ltd. and certain investors, dated September 28, 1995; incorporated by reference to Exhibit 10.19 to Amendment No. 1 to the Company's Registration Statement on Form S-1, No. 33-97568 filed on October 23, 1995 10.16 Amended and Restated CORT Business Services Corporation 1995 Stock Based Incentive Compensation Plan as adopted by the Board of Directors on July 25, 1995 and amended and restated on May 14, 1997; incorporated by reference to Exhibit 10.17 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1997. 10.17 CORT Business Services Corporation 1997 Directors Stock Option Plan, as adopted by the stockholders of the Company at the Annual Meeting of Stockholders on May 14, 1997; incorporated by reference to Appendix C to the Company's Definitive Proxy Statement on Schedule 14A, filed as of March 31, 1997 11.1 Statement re computation of per share earnings; incorporated by reference to page 5 of the Company's Form 10-Q for the fiscal quarter ended March 31, 1998 27 Financial Data Schedules
EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS 3-MOS DEC-31-1998 DEC-31-1997 MAR-31-1998 MAR-31-1997 1,422 0 0 0 16,393 16,041 3,071 1,989 170,213 157,006 0 0 55,400 59,429 15,820 23,181 294,485 268,880 0 0 0 0 0 0 0 0 130 128 156,699 130,136 294,485 268,880 12,629 11,748 75,443 67,301 7,615 6,908 18,702 17,540 0 0 151 301 1,967 1,985 10,608 8,426 4,417 3,496 6,191 4,930 0 0 0 0 0 0 6,191 4,930 .48 .39 .46 .37
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