Barrett Business Services, Inc. Announces First Quarter 2002 Operating Results And Schedules Investor Conference Call
PORTLAND, Ore., May 2 /PRNewswire-FirstCall/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today a net loss of
$417,000 for the first quarter ended March 31, 2002, a decline of $206,000
from a net loss of $211,000 for the first quarter of 2001. Basic and diluted
loss per share for the 2002 first quarter were $(.07), as compared to basic
and diluted loss per share of $(.03) for the 2001 first quarter. Cash flow
per share (defined as net (loss) income plus depreciation and amortization
divided by weighted average diluted shares outstanding) for the 2002 first
quarter totaled $(.02), as compared to a positive $.10 for the same quarter a
year ago.
Revenues for the first quarter ended March 31, 2002 totaled $41.0 million,
a decrease of approximately $14.2 million or 25.7% from the $55.2 million for
the same quarter in 2001.
(Unaudited)First Quarter Ended
March 31,
Results of Operations 2002 2001
(in thousands, except per share amounts)
Revenues:
Staffing services $22,570 $31,272
Professional employer services 18,395 23,881
Total revenues 40,965 55,153
Cost of revenues:
Direct payroll costs 31,861 42,760
Payroll taxes and benefits 3,692 4,874
Workers' compensation 1,625 2,177
Total cost of revenues 37,178 49,811
Gross margin 3,787 5,342
Selling, general and administrative expenses 4,199 4,876
Depreciation and amortization 312 829
Loss from operations (724) (363)
Other income, net 11 7
Loss before taxes (713) (356)
Benefit from income taxes (296) (145)
Net loss $(417) $(211)
Basic loss per share $(.07) $(.03)
Weighted average basic shares outstanding 5,821 6,400
Diluted loss per share $(.07) $(.03)
Weighted average diluted shares outstanding 5,821 6,400
Cash flow per share $(.02) $.10
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 first quarter of 2001 included $438,000 of goodwill amortization.
William W. Sherertz, President and Chief Executive Officer, commented
that: "The sequential decline in quarterly revenues appears to have
stabilized during the first quarter of 2002. In spite of disappointing
operating results, we have continued to strengthen our management team
throughout all of our operating zones and, as such, we believe the Company is
well positioned to take advantage of a potential improvement in general
economic conditions in the quarters ahead."
The following summarizes the unaudited balance sheets at March 31, 2002
and December 31, 2001.
($ in thousands)March 31, December 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $516 $ 1,142
Trade accounts receivable, net 12,908 13,760
Prepaid expenses and other 1,883 1,022
Deferred tax assets 2,882 2,841
Total current assets 18,189 18,765
Intangibles, net 18,845 18,878
Property, equipment and software, net 5,834 6,084
Restricted marketable securities and workers'
compensation deposits 5,091 5,425
Deferred tax assets 2,217 2,268
Other assets 1,158 1,146
$51,334 $52,566
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $413 $708
Line of credit payable 2,611 3,424
Accounts payable 562 686
Accrued payroll, payroll
taxes and related benefits 6,088 5,165
Workers' compensation claim
and safety incentive liabilities 4,725 5,735
Other accrued liabilities 1,226 389
Total current liabilities 15,625 16,107
Long-term debt, net of current portion 822 922
Customer deposits 473 520
Long-term workers' compensation liabilities 3,510 3,515
Other long-term liabilities 968 968
Stockholders' equity 29,936 30,534
$51,334 $52,566
On Friday, May 3, 2002, at 9:00 a.m. Pacific Time, William W. Sherertz
will host an investor telephone conference call to discuss first quarter 2002
operating results. To participate in the call, dial (800)399-3080 shortly
before 9:00 a.m. Pacific Time on Friday, May 3, 2002. A recording of the call
will be available beginning May 3, 2002 at 12 noon and ending Friday, May 10,
2002 at 12 noon. To listen to the recording, dial (800)642-1687 and enter
conference identification code 4083854.
Barrett Business Services, Inc. is a human resource management company
with offices in nine 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
Company News On-Call: http: //www.prnewswire.com/comp/082187.html
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., +1-503-220-0988
Released May 2, 2002