Barrett Business Services, Inc. Announces First Quarter 2003 Operating Results
PORTLAND, Ore., April 30 /PRNewswire-FirstCall/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today a net loss of
$343,000 for the first quarter ended March 31, 2003, an improvement of $74,000
from a net loss of $417,000 for the first quarter of 2002. The diluted loss
per share for the 2003 first quarter was $(.06) as compared to a diluted loss
per share of $(.07) for the same quarter a year ago.
Revenues for the first quarter ended March 31, 2003 totaled $23.4 million,
a decrease of approximately $2.3 million or 9.1% from the $25.7 million for
the same quarter in 2002.
(Unaudited)First Quarter Ended
March 31,
Results of Operations 2003 2002
(in thousands, except per share amounts)
Revenues:
Staffing services $20,110 $22,570
Professional employer service fees 3,287 3,168
Total revenues 23,397 25,738
Cost of revenues:
Direct payroll costs 14,798 16,634
Payroll taxes and benefits 3,805 3,692
Workers' compensation 1,425 1,625
Total cost of revenues 20,028 21,951
Gross margin 3,369 3,787
Selling, general and administrative expenses 3,596 4,199
Depreciation and amortization 280 312
Loss from operations (507) (724)
Other (expense) income, net (6) 11
Loss before taxes (513) (713)
Benefit from income taxes (170) (296)
Net loss $(343) $(417)
Basic loss per share $(.06) $(.07)
Weighted average basic shares outstanding 5,748 5,821
Diluted loss per share $(.06) $(.07)
Weighted average diluted shares outstanding 5,748 5,821
William W. Sherertz, President and Chief Executive Officer, commented
that: "We are relatively pleased with the improved results for the 2003 first
quarter and encouraged by our growth prospects for the balance of the year.
With the anticipated completion of a real estate sale-leaseback transaction in
the second quarter, we expect to substantially reduce our bank debt during the
current quarter, which will position the Company very well for the future."
The Company changed its reporting of PEO revenues from a gross basis to a
net basis in 2002 because it was determined that the Company was not the
primary obligor for the services provided by employees pursuant to its PEO
contracts. The gross revenue information below is presented for comparison
purposes only.
(Unaudited)First Quarter Ended
March 31,
2003 2002
Revenues:
Staffing services $20,110 $22,570
Professional employer services 20,539 18,395
Total revenues $40,649 $40,965
Cost of revenues:
Direct payroll costs 32,050 31,861
Payroll taxes and benefits 3,805 3,692
Workers' compensation 1,425 1,625
Total cost of revenues 37,280 37,178
Gross margin $3,369 $3,787
A reconciliation of gross PEO revenues to net PEO revenues is as follows:
For the quarter ended March 31, 2003 (in thousands):
Net Revenue
Gross Revenue Reporting
Reporting Method Reclassification Method
Revenues:
Staffing services $20,110 $-- $20,110
Professional employer
services 20,539 (17,252) 3,287
Total revenues $40,649 $(17,252) $23,397
Cost of revenues:
Direct payroll costs $32,050 $(17,252) $14,798
For the quarter ended March 31, 2002 (in thousands):
Net Revenue
Gross Revenue Reporting
Reporting Method Reclassification Method
Revenues:
Staffing services $22,570 $-- $22,570
Professional employer
services 18,395 (15,227) 3,168
Total revenues $40,965 $(15,227) $25,738
Cost of revenues:
Direct payroll costs $31,861 $(15,227) $16,634
The following summarizes the unaudited balance sheets at March 31, 2003
and December 31, 2002.
($ in thousands)March 31, December 31,
2003 2002
Assets
Current assets:
Cash and cash equivalents $239 $96
Income taxes receivable -- 1,923
Trade accounts receivable, net 10,983 11,357
Prepaid expenses and other 1,811 1,040
Deferred income taxes 1,944 2,111
Total current assets 14,977 16,527
Goodwill, net 18,749 18,749
Intangibles, net 46 59
Property, equipment and software, net 4,942 5,167
Restricted marketable securities and workers'
compensation deposits 4,341 4,286
Deferred income taxes 1,445 1,445
Other assets 929 1,064
$45,429 $47,297
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $422 $434
Line of credit payable 1,793 3,513
Accounts payable 979 834
Accrued payroll, payroll taxes and related
benefits 6,358 4,897
Workers' compensation claims liabilities 2,127 3,903
Safety incentives payable 346 406
Other accrued liabilities 1,108 305
Total current liabilities 13,133 14,292
Long-term debt, net of current portion 400 488
Customer deposits 444 443
Long-term workers' compensation claims liabilities 2,487 2,492
Other long-term liabilities 650 797
Stockholders' equity 28,315 28,785
$45,429 $47,297
Barrett Business Services, Inc. is a human resource management company
with offices in seven states, which serve customers in approximately 15
states.
Statements in this release about future events or performance are
forward-looking statements, which involve known and unknown risks,
uncertainties and other factors that may cause the actual results of the
Company to be materially different from any future results expressed or
implied by such forward-looking statements. Factors that could affect future
results include economic conditions in the Company's service areas, the effect
of changes in the Company's mix of services on gross margin, future workers'
compensation claims experience, collectibility of accounts receivable, and
availability of funding for working capital purposes, among others. Other
important factors that may affect the Company's future prospects are described
in the Company's 2002 Annual Report on Form 10-K. Although forward-looking
statements help to provide complete information about the Company, readers
should keep in mind that forward-looking statements may be less reliable than
historical information.
SOURCE Barrett Business Services, Inc.
Released April 30, 2003