Barrett Business Services, Inc. Announces Second Quarter 2002 Operating Results and Schedules Investor Conference Call
PORTLAND, Ore., July 31 /PRNewswire-FirstCall/ -- Barrett Business
Services, Inc. (Nasdaq: BBSI) reported today net income of $1,000 for the
second quarter ended June 30, 2002, an improvement of $185,000 from a net loss
of $184,000 for the second quarter of 2001 and a $418,000 improvement over the
first 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 second quarter totaled a positive $.05, as compared
to a positive $.10 for the same quarter a year ago.
Revenues for the second quarter ended June 30, 2002 totaled $42.8 million,
a decrease of approximately $9.8 million or 18.5% from the $52.6 million for
the same quarter in 2001. Revenues for the second quarter of 2002 increased
$1.8 million or 4.4% over the $41.0 million for the first quarter of 2002.
(Unaudited) (Unaudited)Second Quarter Ended Six Months Ended
June 30, June 30,
Results of Operations 2002 2001 2002 2001
(in thousands, except per share amounts)
Revenues:
Staffing services $24,684 $29,949 $47,254 $ 61,221
Professional employer
services 18,164 22,602 36,559 46,483
Total revenues 42,848 52,551 83,813 107,704
Cost of revenues:
Direct payroll costs 33,257 40,623 65,118 83,383
Payroll taxes and benefits 3,520 4,309 7,212 9,183
Workers' compensation 1,719 2,441 3,344 4,618
Total cost of revenues 38,496 47,373 75,674 97,184
Gross margin 4,352 5,178 8,139 10,520
Selling, general and
administrative expenses 4,072 4,652 8,271 9,528
Depreciation and amortization 288 822 600 1,651
Loss from operations (8) (296) (732) (659)
Other income (expense), net 9 (15) 20 (8)
Income (loss) before taxes 1 (311) (712) (667)
Benefit from income taxes -- (127) (296) (272)
Net income (loss) $1 $(184) $(416) $(395)
Basic income (loss) per share $-- $(.03) $(.07) $(.06)
Weighted average basic
shares outstanding 5,806 6,252 5,814 6,326
Diluted income (loss)
per share $-- $(.03) $(.07) $(.06)
Weighted average diluted
shares outstanding 5,826 6,252 5,814 6,326
Cash flow per share $.05 $.10 $.03 $.20
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 second quarter and the first six months of 2001 included $444,000 and
$882,000 of goodwill amortization, respectively.
William W. Sherertz, President and Chief Executive Officer, commented
that: "We are guardedly optimistic about the significance of the sequential
growth in quarterly revenues, as compared to the first quarter and we are very
pleased with a positive EBITDA of $340,000 for the second quarter of 2002,
which represents a $695,000 improvement over the first quarter of 2002. We
expect cash flow to continue to improve and we are confident that a new
bank-credit facility will be in place in the near future."
The following summarizes the unaudited balance sheets at June 30, 2002 and
December 31, 2001.
($ in thousands)June 30, December 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $580 $1,142
Trade accounts receivable, net 13,274 13,760
Prepaid expenses and other 1,347 1,022
Deferred tax assets 3,225 2,841
Total current assets 18,426 18,765
Intangibles, net 18,832 18,878
Property, equipment and software, net 5,583 6,084
Restricted marketable securities
and workers' compensation deposits 5,086 5,425
Deferred tax assets 1,694 2,268
Other assets 1,067 1,146
$50,688 $52,566
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $139 $708
Line of credit payable 3,609 3,424
Accounts payable 846 686
Accrued payroll, payroll taxes
and related benefits 5,981 5,165
Workers' compensation claim and
safety incentive liabilities 3,851 5,735
Other accrued liabilities 711 389
Total current liabilities 15,137 16,107
Long-term debt, net of current portion 808 922
Customer deposits 451 520
Long-term workers' compensation
liabilities 3,505 3,515
Other long-term liabilities 886 968
Stockholders' equity 29,901 30,534
$50,688 $52,566
On Thursday, August 1, 2002, at 2:00 p.m. Pacific Time, William W.
Sherertz will host an investor telephone conference call to discuss second
quarter 2002 operating results. To participate in the call, dial 800-399-3080
shortly before 2:00 p.m. Pacific Time on August 1, 2002. A recording of the
call will be available beginning August 1, 2002 at 5:00 p.m. and ending August
8, 2002 at 12 midnight. To listen to the recording, dial 800-642-1687 and
enter conference identification code 5138792.
Barrett Business Services, Inc. is a human resource management company
with offices in eight 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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SOURCE Barrett Business Services, Inc.
Web site: http: //www.barrettbusiness.com
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., +1-503-220-0988
Released July 31, 2002