Barrett Business Services, Inc. Announces Fourth Quarter 2001 Operating Results and Schedules Investor Conference Call to Discuss Operating Results
PORTLAND, Ore., Feb. 6 /PRNewswire-FirstCall/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today a net loss of
$432,000 for the fourth quarter ended December 31, 2001, as compared to net
income of $63,000 for the fourth quarter of 2000. The net loss for the 2001
fourth quarter included a $600,000 pre-tax charge for anticipated future
increases in the cost of existing workers' compensation claims, as recommended
by the Company's external actuaries and independent accountants. Basic and
diluted net loss per share for the 2001 fourth quarter were $.07, as compared
to basic and diluted earnings per share of $.01 for the 2000 fourth quarter.
Cash flow per share (defined as net (loss) income plus depreciation and
amortization divided by weighted average diluted shares outstanding) for the
2001 fourth quarter totaled a positive $.06, as compared to a positive
$.13 for the same quarter a year ago. Net loss for the year ended
December 31, 2001 amounted to $585,000. Basic and diluted net loss per share
for 2001 were $.09. Cash flow per share for 2001 was a positive $.43 as
compared to a positive $.73 for 2000.
Revenues for the fourth quarter ended December 31, 2001 totaled
$50.7 million, a decrease of $17.4 million or 25.6% from the $68.1 million for
the same quarter in 2000. Revenues for 2001 totaled $216.7 million, a decline
of $105.8 million or 32.8% from 2000.
William W. Sherertz, President and Chief Executive Officer, commented
that: "2001 and particularly the fourth quarter were difficult from a
workers' compensation expense standpoint. Internally, we are very focused on
reducing the operational issues which have contributed to these trends. We
take pride in effectively managing this dynamic operating cost for the benefit
of all our customers. In spite of a tough economic climate, we are pleased
that we have continued to balance SG&A expenses with our revenues and gross
margin, so as to continue to generate relatively strong cash flow from
operations. In response to our ongoing challenge to maintain revenues,
especially in Northern California and Portland, we have added talented new
management in these regions."
(Unaudited) (Unaudited)Fourth Quarter Ended Year Ended
December 31, December 31,
Results of Operations 2001 2000 2001 2000
(in thousands, except per share amounts)
Revenues:
Staffing services $28,351 $39,154 $123,110 $188,500
Professional employer
services 22,326 28,944 93,553 133,966
Total revenues 50,677 68,098 216,663 322,466
Cost of revenues:
Direct payroll costs 39,368 52,991 168,022 251,015
Payroll taxes and benefits 3,841 5,219 17,635 27,007
Workers' compensation 3,077 3,378 10,121 12,639
Total cost of revenues 46,286 61,588 195,778 290,661
Gross margin 4,391 6,510 20,885 31,805
Selling, general and
administrative expenses 4,318 5,506 18,587 24,583
Depreciation and amortization 808 819 3,277 3,192
(Loss) income from operations (735) 185 (979) 4,030
Other income (expense), net 6 (78) (17) (483)
(Loss) income before taxes (729) 107 (996) 3,547
(Benefit from) provision
for income taxes (297) 44 (411) 1,446
Net (loss) income $(432) $63 $(585) $2,101
Basic (loss) earnings
per share $(.07) $.01 $(.09) $.29
Weighted average basic
shares outstanding 5,969 6,838 6,193 7,237
Diluted (loss) earnings
per share $(.07) $.01 $(.09) $.29
Weighted average diluted
shares outstanding 5,969 6,864 6,193 7,277
Cash flow per share $.06 $.13 $.43 $.73
The following summarizes the unaudited balance sheets at
December 31, 2001 and December 31, 2000.
December 31,
($ in thousands) 2001 2000
Assets
Current assets:
Cash and cash equivalents $1,142 $516
Trade accounts receivable, net 13,910 20,660
Prepaid expenses and other 1,316 1,222
Deferred tax assets 2,515 2,702
Total current assets 18,883 25,100
Intangibles, net 18,878 20,982
Property, equipment and software, net 6,084 7,177
Restricted marketable securities and workers'
compensation deposits 4,139 4,254
Unrestricted marketable securities 1,286 1,386
Deferred tax assets 1,156 839
Other assets 1,385 1,374
$51,811 $61,112
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $508 $ 2,939
Line of credit payable 3,424 2,628
Accounts payable 686 1,013
Accrued payroll, payroll taxes and
related benefits 5,539 7,893
Workers' compensation claim and safety
incentive liabilities 5,735 5,274
Other accrued liabilities 319 1,622
Total current liabilities 16,211 21,369
Long-term debt, net of current portion 347 1,508
Customer deposits 520 614
Long-term workers' compensation liabilities 665 682
Other long-term liabilities 2,071 2,022
Stockholders' equity 31,997 34,917
$51,811 $61,112
On Friday, February 8, 2002, at 9:00 a.m. Pacific Time,
William W. Sherertz will host an investor telephone conference call to discuss
fourth quarter 2001 operating results. To participate in the call, dial
800-399-3080 shortly before 9:00 a.m. Pacific Time on February 8, 2002. A
recording of the call will be available beginning Friday, February 8, 2002 at
12 noon and ending Friday, February 15, 2002 at 12 noon. To listen to the
recording, dial 800-642-1687 and enter conference identification code 3201527.
Barrett Business Services, Inc. is a human resource management company
with offices in ten 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, and future
workers' compensation claims experience, 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 February 6, 2002