Barrett Business Services, Inc. Announces First Quarter 2001 Operating Results And Schedules Investor Conference Call
PORTLAND, Ore., May 2 /PRNewswire/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today a net loss of
$211,000 for the first quarter ended March 31, 2001, a decline of $955,000
from net income of $744,000 for the first quarter of 2000. Basic and diluted
net loss per share for the 2001 first quarter were $(.03), as compared to
basic and diluted earnings of $.10 for the 2000 first quarter.
Revenues for the first quarter ended March 31, 2001 totaled $55.2 million,
a decrease of approximately $31.9 million or 36.7% from the $87.1 million for
the same quarter in 2000.
(Unaudited)First Quarter Ended
March 31,
Results of Operations 2001 2000
(in thousands, except per share amounts)
Revenues:
Staffing services $31,272 $47,767
Professional employer services 23,881 39,355
Total revenues 55,153 87,122
Cost of revenues:
Direct payroll costs 42,760 68,004
Payroll taxes and benefits 4,874 7,918
Workers' compensation 2,177 2,597
Total cost of revenues 49,811 78,519
Gross margin 5,342 8,603
Selling, general and administrative expenses 4,876 6,485
Depreciation and amortization 829 731
(Loss) income from operations (363) 1,387
Other income (expense), net 7 (132)
(Loss) income before taxes (356) 1,255
(Benefit from) provision for income taxes (145) 511
Net (loss) income $(211) $744
Basic (loss) earnings per share $(.03) $.10
Weighted average basic shares outstanding 6,400 7,459
Diluted (loss) earnings per share $(.03) $.10
Weighted average diluted shares outstanding 6,400 7,509
William W. Sherertz, President and Chief Executive Officer, commented
that: "Our decline in revenues reflects the general softening of business
conditions in our market areas, particularly in our Northern California zone.
Our industry is typically a leading indicator of business cycles; we
are among the first to benefit from improved conditions and among the first to
experience the consequences of a downturn. From our vantage point, we do not
foresee an upturn in business activity in the near future among our current
customer base. On a more positive note, our Company has a relatively scalable
SG&A expense structure enabling us to conform with business conditions and we
intend to continue to aggressively pursue new management talent, both of which
we believe will offset, in part, the effects of the economy on our bottom
line." Results for the first quarter of 2001 were also negatively affected by
an increase in workers' compensation expense, in terms of a percentage of
revenues, which increased from 3.0% of revenues in the first quarter of 2000
to 4.0% of revenues in 2001 due to higher estimates for the cost of claims.
The following summarizes the unaudited balance sheets at March 31, 2001
and December 31, 2000.
($ in thousands)March 31, December 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $318 $516
Trade accounts receivable, net 16,850 20,660
Prepaid expenses and other 2,099 1,222
Deferred tax assets 2,278 2,702
Total current assets 21,545 25,100
Intangibles, net 20,444 20,982
Property, equipment and software, net 6,778 7,177
Restricted marketable securities and workers'
compensation deposits 4,284 4,254
Unrestricted marketable securities 1,326 1,386
Deferred tax assets 1,048 839
Other assets 1,390 1,374
$56,815 $61,112
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 2,713 $ 2,939
Line of credit payable 1,637 2,628
Accounts payable 619 1,013
Accrued payroll, payroll taxes and
related benefits 8,018 7,893
Workers' compensation claim and safety incentive
liabilities 4,848 5,274
Other accrued liabilities 420 1,622
Total current liabilities 18,255 21,369
Long-term debt, net of current portion 1,051 1,508
Customer deposits 534 614
Long-term workers' compensation liabilities 678 682
Other long-term liabilities 2,070 2,022
Stockholders' equity 34,227 34,917
$56,815 $61,112
On Thursday, May 3, 2001, at 8:00 a.m. (Pacific), William W. Sherertz will
host an investor telephone conference call to discuss first quarter 2001
operating results.
To participate in the call, please dial 800-399-3080 shortly before
8:00 a.m. (Pacific) on Thursday, May 3, 2001. If you are unable to
participate in the call, a recording of the call will be available beginning
Thursday, May 3, 2001 at 12 noon (Pacific) and ending Thursday, May 10, 2001
at 12 noon (Pacific). To listen to the recording, please dial 800-642-1687
and enter conference identification code 102663.
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 or fax, 800-758-5804, ext. 082187
CONTACT: William W. Sherertz, President and Chief Executive Officer, of Barrett Business Services, Inc., 503-220-0988
Released May 2, 2001