Barrett Business Services, Inc. Announces Record Earnings and Revenues For Third Quarter 1999
PORTLAND, Ore., Nov. 3 /PRNewswire/ -- Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $1,835,000 for the third quarter
ended September 30, 1999, an increase of 14.8% over the third quarter of 1998.
Diluted earnings per share for the 1999 third quarter were $.24, compared to
$.21 for the same quarter a year ago. Net income for the nine months ended
September 30, 1999 amounted to $3,790,000, an increase of 46.6% over the
comparable 1998 period. Basic and diluted earnings per share for the 1999
nine-month period were $.50, compared to $.34 for basic and diluted earnings
per share for the similar 1998 period.
Revenues for the third quarter ended September 30, 1999 totaled
$95.9 million, an increase of approximately $13.9 million or 17.0% over the
$82.0 million for the same quarter in 1998. Revenues for the nine months
ended September 30, 1999 were $251.6 million, an increase of 10.4% over the
comparable 1998 period.
Results of Operations (Unaudited) (Unaudited)(in thousands, except Third Quarter Ended Nine Months Ended
per share amounts) September 30, September 30,
1999 1998 1999 1998
Revenues:
Staffing services $56,434 $44,199 $139,848 $127,289
Professional employer
services 39,441 37,770 111,749 100,572
Total revenues 95,875 81,969 251,597 227,861
Cost of revenues:
Direct payroll costs 74,285 63,768 195,025 176,783
Payroll taxes and benefits 7,620 6,587 21,013 19,656
Workers' compensation 2,578 2,201 6,992 6,408
Safety incentives 444 446 1,165 1,146
Total cost of revenues 84,927 73,002 224,195 203,993
Gross margin 10,948 8,967 27,402 23,868
Selling, general and
administrative expenses 7,116 5,826 19,376 17,677
Merger expenses -- -- -- 750
Amortization of intangibles 532 322 1,339 1,004
Income from operations 3,300 2,819 6,687 4,437
Other (expense) income, net (138) 68 (80) 178
Income before taxes 3,162 2,887 6,607 4,615
Provision for income taxes 1,327 1,288 2,817 2,029
Net income $ 1,835 $ 1,599 $3,790 $2,586
Basic earnings per share $.24 $.21 $.50 $.34
Weighted average basic
shares outstanding 7,581 7,675 7,609 7,660
Diluted earnings per share $.24 $.21 $.50 $.34
Weighted average diluted
shares outstanding 7,634 7,714 7,655 7,710
The following summarizes the unaudited balance sheets at September 30,
1999 and December 31, 1998:
($ in thousands) September 30, December 31,1999 1998
Assets
Current assets:
Cash and cash equivalents $-- $4,029
Trade accounts receivable, net 33,223 21,907
Prepaid expenses and other 2,002 1,103
Deferred tax assets 1,629 1,857
Total current assets 36,854 28,896
Intangibles, net 22,625 11,508
Property and equipment, net 6,481 5,184
Restricted marketable securities
and workers' compensation deposits 6,431 6,004
Deferred tax assets 733 552
Other assets 1,150 626
$74,274 $52,770
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable $865 $--
Current portion of long-term debt 2,783 61
Line of credit payable 2,972 --
Income taxes payable 200 438
Accounts payable 1,362 948
Accrued payroll, payroll taxes
and related benefits 16,755 9,246
Accrued workers' compensation claim
liabilities 2,700 3,244
Customer safety incentives payable 1,135 1,173
Other accrued liabilities 512 514
Total current liabilities 29,284 15,624
Long-term debt, net of current portion 4,941 503
Customer deposits 787 829
Long-term workers' compensation
liabilities 703 714
Other long-term liabilities 1,791 1,398
Stockholders' equity 36,768 33,702
$74,274 $52,770
Barrett Business Services, Inc. is a human resource management company
with offices in eleven states.
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 November 3, 1999