Barrett Business Services, Inc. Announces Fourth Quarter 2000 Earnings And Revenues and Schedules Investor Conference Call to Discuss Operating Results
PORTLAND, Ore., Feb. 7 /PRNewswire/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of
$63,000 for the fourth quarter ended December 31, 2000. Basic and diluted
earnings per share for the 2000 fourth quarter were $.01, as compared to basic
and diluted earnings per share of $.18 for the 1999 fourth quarter. Net
income for the year ended December 31, 2000 amounted to $2,101,000. Basic and
diluted earnings per share for 2000 were $.29, compared to $.68 for basic and
diluted earnings per share for 1999.
Revenues for the fourth quarter ended December 31, 2000 totaled
$68.1 million, a decrease of approximately $28.2 million or 29.3% from
$96.3 million for the same quarter in 1999. Revenues for the year ended
December 31, 2000 were $322.5 million, a decline of $25.4 million or 7.3% from
1999.
(in thousands, exceptper share amounts) Fourth Quarter Ended Year Ended
(Unaudited) December 31, December 31,
Results of Operations 2000 1999 2000 1999
Revenues:
Staffing services $39,154 $55,142 $188,500 $194,991
Professional employer services 28,944 41,111 133,966 152,859
Total revenues 68,098 96,253 322,466 347,850
Cost of revenues:
Direct payroll costs 52,991 75,024 251,015 270,049
Payroll taxes and benefits 5,219 7,590 27,007 28,603
Workers' compensation 3,378 3,545 12,639 11,702
Total cost of revenues 61,588 86,159 290,661 310,354
Gross margin 6,510 10,094 31,805 37,496
Selling, general and
administrative expenses 5,506 7,011 24,583 25,942
Depreciation and amortization 819 692 3,192 2,476
Income from operations 185 2,391 4,030 9,078
Other (expense) income, net (78) (165) (483) (245)
Income before taxes 107 2,226 3,547 8,833
Provision for income taxes 44 867 1,446 3,684
Net income $63 $1,359 $2,101 $5,149
Basic earnings per share $.01 $.18 $.29 $.68
Weighted average basic shares
outstanding 6,838 7,495 7,237 7,581
Diluted earnings per share $.01 $.18 $.29 $.68
Weighted average diluted shares
outstanding 6,864 7,541 7,277 7,627
The following summarizes the unaudited balance sheets at December 31, 2000
and December 31, 1999:
($ in thousands) December 31,2000 1999
Assets
Current assets:
Cash and cash equivalents $516 $550
Trade accounts receivable, net 20,660 30,216
Prepaid expenses and other 1,222 1,219
Deferred tax assets 2,702 1,658
Total current assets 25,100 33,643
Intangibles, net 20,982 21,945
Property, equipment and software, net 7,177 7,027
Restricted marketable securities and
workers' compensation deposits 4,254 6,281
Unrestricted marketable securities 1,386 --
Deferred tax assets 839 712
Other assets 1,374 1,132
$61,112 $70,740
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable $-- $865
Current portion of long-term debt 2,939 2,783
Line of credit payable 2,628 4,882
Accounts payable 1,013 1,356
Accrued payroll, payroll taxes and
related benefits 7,893 11,437
Workers' compensation claim and
safety incentive liabilities 5,274 4,219
Other accrued liabilities 1,622 413
Total current liabilities 21,369 25,955
Long-term debt, net of current portion 1,508 4,232
Customer deposits 614 815
Long-term workers' compensation liabilities 682 699
Other long-term liabilities 2,022 1,710
Stockholders' equity 34,917 37,329
$61,112 $70,740
The decline in net income for the fourth quarter of 2000 compared to the
same quarter a year ago was primarily due to a 29% decline in revenues,
coupled with a reduction in gross margin percent, as a result of higher
workers' compensation expense, expressed as a percent of revenues. Although
selling, general and administrative expenses were reduced 21.5% from a year
ago, such expenses increased from 7.3% to 8.1% as a percent of revenues.
William W. Sherertz, President and Chief Executive Officer, commented
that: "Our revenue trends reflect the varying economic conditions of the five
distinct geographic areas in which we operate. The decline in our revenues
was due to a downturn in the business conditions of our customers and, in
part, to the continuation of a tight labor market in Southern California. The
supply constraint issue in 2000 is now easing, particularly in the Northwest.
Revenues for 2000 were also negatively affected by the Company's decision to
terminate its relationship with certain customers due to unacceptable profit
margins or risks associated with credit or workplace safety. Management is
continuing to increase the Company's rates for its services within competitive
constraints and to further reduce SG&A expenses to improve profitability in
2001."
On Thursday, February 8, 2001, at 8:00 a.m. (Pacific) and 11:00 a.m.
(Eastern), William W. Sherertz will host an investor telephone conference call
to discuss fourth quarter 2000 operating results.
To participate in the call, dial 800-399-3080 shortly before 8:00 a.m.
Pacific time on Thursday, February 8, 2001. If you are unable to participate
in the call, a recording of the call will be available beginning Thursday,
February 8, 2001 at 12 noon (Pacific) and ending Thursday, February 15, 2001
at 12 noon (Pacific). To listen to the recording, enter conference
identification code 966445.
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.
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, 503-220-0988
Released February 7, 2001