Barrett Business Services, Inc. Announces Third Quarter 2002 Operating Results And Schedules Investor Conference Call
PORTLAND, Ore., Oct. 30 --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of
$56,000 for the third quarter ended September 30, 2002, a decline of
$186,000 from net income of $242,000 for the third quarter of 2001. Net
income for the third quarter of 2002 represented a $55,000 improvement over
the second quarter of 2002. Cash flow per share (defined as net income (loss)
plus depreciation and amortization divided by weighted average diluted shares
outstanding) for the 2002 third quarter totaled a positive $.06, as compared
to $.05 for the second quarter of 2002.
Revenues for the third quarter ended September 30, 2002 totaled
$45.6 million, a decrease of approximately $12.7 million or 21.8% from the
$58.3 million for the same quarter in 2001. Revenues for the third quarter of
2002 increased $2.8 million or 6.5% over the $42.8 million for the second
quarter of 2002.
(Unaudited) (Unaudited)Third Quarter Ended Nine Months Ended
September 30, September 30,
Results of Operations 2002 2001 2002 2001
(in thousands, except per
share amounts)
Revenues:
Staffing services $26,935 $33,538 $74,189 $94,759
Professional employer services 18,710 24,744 55,269 71,227
Total revenues 45,645 58,282 129,458 165,986
Cost of revenues:
Direct payroll costs 35,587 45,271 100,705 128,654
Payroll taxes and benefits 3,627 4,611 10,839 13,794
Workers' compensation 2,058 2,426 5,402 7,044
Total cost of revenues 41,272 52,308 116,946 149,492
Gross margin 4,373 5,974 12,512 16,494
Selling, general and
administrative expenses 3,984 4,741 12,255 14,269
Depreciation and amortization 282 818 882 2,469
Income (loss) from operations 107 415 (625) (244)
Other (expense) income, net (14) (15) 6 (23)
Income (loss) before taxes 93 400 (619) (267)
Provision for (benefit from)
income taxes 37 158 (259) (114)
Net income (loss) $56 $242 $(360) $(153)
Basic income (loss) per share $.01 $.04 $(.06) $(.02)
Weighted average basic shares
outstanding 5,804 6,152 5,810 6,268
Diluted income (loss) per share $.01 $.04 $(.06) $(.02)
Weighted average diluted shares
outstanding 5,816 6,180 5,810 6,268
Cash flow per share $.06 $.17 $.09 $.37
As a result of the Company's adoption of Statement of Financial Accounting
Standard No. 142 - Goodwill and Other Intangible Assets as of January 1, 2002,
the Company has ceased the amortization of goodwill. Operating results for
the third quarter and the first nine months of 2001 included $446,000 and
$1,328,000 of goodwill amortization, respectively.
William W. Sherertz, President and Chief Executive Officer, commented
that: "We are moderately pleased with sequential growth for the second
consecutive quarter for revenues, net income, cash flow per share and EBITDA."
The following summarizes the unaudited balance sheets at September 30,
2002 and December 31, 2001.
($ in thousands)Sept. 30, Dec. 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $720 $1,142
Trade accounts receivable, net 12,794 13,760
Prepaid expenses and other 1,182 1,022
Deferred tax assets 3,153 2,841
Total current assets 17,849 18,765
Intangibles, net 18,820 18,878
Property, equipment and software, net 5,359 6,084
Restricted marketable securities and workers'
compensation deposits 4,318 5,425
Deferred tax assets 1,694 2,268
Other assets 1,009 1,146
$49,049 $52,566
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $447 $708
Line of credit payable 3,576 3,424
Accounts payable 641 686
Accrued payroll, payroll taxes and related
benefits 5,892 5,165
Workers' compensation claim and safety
incentive liabilities 2,912 5,735
Other accrued liabilities 452 389
Total current liabilities 13,920 16,107
Long-term debt, net of current portion 487 922
Customer deposits 434 520
Long-term workers' compensation liabilities 3,501 3,515
Other long-term liabilities 808 968
Stockholders' equity 29,899 30,534
$49,049 $52,566
On October 31, 2002, at 8:00 a.m. Pacific Time, William W. Sherertz will
host an investor telephone conference call to discuss third quarter 2002
operating results. To participate in the call, dial 800-399-3080 shortly
before 8:00 a.m. Pacific Time on October 31, 2002. A recording of the call
will be available beginning October 31, 2002 at 11:00 a.m. and ending
November 7, 2002 at 12 midnight. To listen to the recording, dial
800-642-1687 and enter conference identification code 6458333.
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. 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.
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Barrett Business Services, Inc.
Released October 30, 2002