Barrett Business Services, Inc. Announces Second Quarter 2001 Operating Results and Schedules Investor Conference Call
PORTLAND, Ore., Aug. 1 /PRNewswire/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today a net loss of
$184,000 for the second quarter ended June 30, 2001, a decline of
$978,000 from net income of $794,000 for the second quarter of 2000. Basic
and diluted net loss per share for the 2001 second quarter were $.03, as
compared to basic and diluted earnings of $.11 for the 2000 second quarter.
Revenues for the second quarter ended June 30, 2001 totaled $52.6 million,
a decrease of approximately $33.9 million or 39.2% from the $86.5 million for
the same quarter in 2000.
(Unaudited) (Unaudited)Second Quarter Ended Six Months Ended
June 30, June 30,
Results of Operations 2001 2000 2001 2000
(in thousands, except per
share amounts)
Revenues:
Staffing services $29,949 $51,698 $61,221 $99,465
Professional employer
services 22,602 34,804 46,483 74,159
Total revenues 52,551 86,502 107,704 173,624
Cost of revenues:
Direct payroll costs 40,623 67,155 83,383 135,159
Payroll taxes and benefits 4,309 7,306 9,183 15,224
Workers' compensation 2,441 3,263 4,618 5,860
Total cost of revenues 47,373 77,724 97,184 156,243
Gross margin 5,178 8,778 10,520 17,381
Selling, general and
administrative expenses 4,652 6,464 9,528 12,949
Depreciation and amortization 822 822 1,651 1,553
(Loss) income from operations (296) 1,492 (659) 2,879
Other expense, net (15) (151) (8) (283)
(Loss) income before taxes (311) 1,341 (667) 2,596
(Benefit from) provision
for income taxes (127) 547 (272) 1,058
Net (loss) income $(184) $794 $(395) $1,538
Basic (loss) earnings
per share $(.03) $.11 $(.06) $.21
Weighted average basic
shares outstanding 6,252 7,416 6,326 7,438
Diluted (loss) earnings
per share $(.03) $.11 $(.06) $.21
Weighted average diluted
shares outstanding 6,252 7,459 6,326 7,484
William W. Sherertz, President and Chief Executive Officer, commented
that: "Our decline in revenues and operating results continue to reflect the
current downturn in economic conditions, which has affected most of our
customers. While these results are disappointing, we reduced second quarter
SG&A expenses by 28% compared to a year ago. In addition, we were cash flow
positive for the six months ended June 30, which is a significant
accomplishment, in view of a 38% decline in revenues. Our long-term debt to
equity ratio also compares quite favorably to other companies in our
industry."
Results for the second quarter of 2001 were also negatively affected by an
increase in workers' compensation expense, in terms of a percentage of
revenues, which increased from 3.8% of revenues in the second quarter of
2000 to 4.6% of revenues in 2001 due to higher estimates for the cost of
claims.
The following summarizes the unaudited balance sheets at June 30, 2001 and
December 31, 2000.
June 30, December 31,($ in thousands) 2001 2000
Assets
Current assets:
Cash and cash equivalents $697 $516
Trade accounts receivable, net 15,903 20,660
Prepaid expenses and other 1,685 1,222
Deferred tax assets 2,386 2,702
Total current assets 20,671 25,100
Intangibles, net 19,909 20,982
Property, equipment and software, net 6,547 7,177
Restricted marketable securities and
workers' compensation deposits 4,174 4,254
Unrestricted marketable securities 1,311 1,386
Deferred tax assets 1,039 839
Other assets 1,321 1,374
$54,972 $61,112
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $1,056 $2,939
Line of credit payable 2,824 2,628
Accounts payable 551 1,013
Accrued payroll, payroll taxes and
related benefits 7,756 7,893
Workers' compensation claim and safety
incentive liabilities 5,187 5,274
Other accrued liabilities 531 1,622
Total current liabilities 17,905 21,369
Long-term debt, net of current portion 372 1,508
Customer deposits 488 614
Long-term workers' compensation liabilities 674 682
Other long-term liabilities 2,045 2,022
Stockholders' equity 33,488 34,917
$54,972 $61,112
On Thursday, August 2, 2001, at 8:00 a.m. Pacific Time,
William W. Sherertz will host an investor telephone conference call to discuss
second quarter 2001 operating results. To participate in the call, dial
1-800-399-3080 shortly before 8:00 a.m. Pacific Time on Thursday,
August 2, 2001. A recording of the call will be available beginning Thursday,
August 2, 2001 at 12 noon and ending Thursday, August 9, 2001 at 12 noon. To
listen to the recording, dial 1-800-642-1687 and enter conference
identification code 1501408.
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 of Barrett Business Services, Inc., +1-503-220-0988
Released August 1, 2001