Barrett Business Services, Inc. Announces Third Quarter 2001 Operating Results, Schedules Investor Conference Call And Increases Authorization for Stock Repurchase Program
PORTLAND, Ore., Oct. 31 /PRNewswire/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of
$242,000 for the third quarter ended September 30, 2001, an increase of
$426,000 over the net loss of $184,000 for the second quarter ended
June 30, 2001. For the third quarter of 2000, the Company reported net income
of $500,000. Basic and diluted net earnings per share for the 2001 third
quarter were $.04, as compared to a net loss per share of $.03 for the second
quarter ended June 30, 2001. For the 2000 third quarter, basic and diluted
earnings per share were $.07.
Revenues for the third quarter ended September 30, 2001 totaled $58.3
million, an increase of $5.7 million or 10.9% over the second quarter ended
June 30, 2001. Revenues for the 2001 third quarter declined approximately
$22.4 million or 27.8% from the $80.7 million for the same quarter in 2000.
(Unaudited) (Unaudited)Third Quarter Ended Nine Months Ended
September 30, September 30,
Results of Operations 2001 2000 2001 2000
(in thousands, except per
share amounts)
Revenues:
Staffing services $33,538 $49,881 $94,759 $149,346
Professional employer
services 24,744 30,863 71,227 105,022
Total revenues 58,282 80,744 165,986 254,368
Cost of revenues:
Direct payroll costs 45,271 62,865 128,654 198,024
Payroll taxes and
benefits 4,611 6,564 13,794 21,788
Workers' compensation 2,426 3,401 7,044 9,261
Total cost of revenues 52,308 72,830 149,492 229,073
Gross margin 5,974 7,914 16,494 25,295
Selling, general and
administrative expenses 4,741 6,128 14,269 19,077
Depreciation and
amortization 818 820 2,469 2,373
Income (loss) from
operations 415 966 (244) 3,845
Other expense, net (15) (122) (23) (405)
Income (loss) before
taxes 400 844 (267) 3,440
Provision for (benefit from)
income taxes 158 344 (114) 1,402
Net income (loss) $242 $500 $(153) $2,038
Basic earnings (loss)
per share $.04 $.07 $(.02) $.28
Weighted average basic
shares outstanding 6,152 7,236 6,268 7,371
Diluted earnings (loss)
per share $.04 $.07 $(.02) $.27
Weighted average diluted
shares outstanding 6,180 7,276 6,268 7,415
William W. Sherertz, President and Chief Executive Officer, commented
that: "While our comparative operating results were down as compared to last
year, we are pleased that we have returned to profitability after reporting
losses in the first two quarters of this year. Although there is much
uncertainty in the marketplace, we have a strong balance sheet and continue to
generate positive cash flow in spite of lower revenues."
The following summarizes the unaudited balance sheets at
September 30, 2001 and December 31, 2000.
September 30, December 31,($ in thousands) 2001 2000
Assets
Current assets:
Cash and cash equivalents $784 $516
Trade accounts receivable, net 17,771 20,660
Prepaid expenses and other 1,312 1,222
Deferred tax assets 2,511 2,702
Total current assets 22,378 25,100
Intangibles, net 19,374 20,982
Property, equipment and software, net 6,335 7,177
Restricted marketable securities and
workers' compensation deposits 4,142 4,254
Unrestricted marketable securities 1,286 1,386
Deferred tax assets 1,110 839
Other assets 1,418 1,374
$56,043 $61,112
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $873 $ 2,939
Line of credit payable 3,615 2,628
Accounts payable 774 1,013
Accrued payroll, payroll taxes and related
benefits 8,208 7,893
Workers' compensation claim and safety
incentive liabilities 5,080 5,274
Other accrued liabilities 496 1,622
Total current liabilities 19,046 21,369
Long-term debt, net of current portion 360 1,508
Customer deposits 531 614
Long-term workers' compensation liabilities 669 682
Other long-term liabilities 2,158 2,022
Stockholders' equity 33,279 34,917
$56,043 $61,112
On Thursday, November 1, 2001, at 8:00 a.m. Pacific Time, William W.
Sherertz will host an investor telephone conference call to discuss third
quarter 2001 operating results. To participate in the call, dial
800-399-3080 shortly before 8:00 a.m. Pacific Time on November 1, 2001. A
recording of the call will be available beginning Thursday, November 1, 2001
at 12 noon and ending Thursday, November 8, 2001 at 12 noon. To listen to the
recording, dial 800-642-1687 and enter conference identification code 2245128.
The Company also announced that its board of directors had recently
increased the authorization under the Company's stock repurchase program by
$1.0 million. Mr. Sherertz stated that: "This increase indicates that our
board continues to believe that the Company's stock is a sound investment
opportunity at current market values."
Barrett Business Services, Inc. is a human resource management company
with offices in ten states serving customers throughout 22 states. For 2000,
Barrett reported revenues of $322.5 million and net income of $2.1 million.
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, +1-503-220-0988
Released October 31, 2001