Barrett Business Services, Inc. Announces 100% Increase in Earnings for Second Quarter 1999
PORTLAND, Ore., Aug. 4 /PRNewswire/ -- Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $1,216,000 for the second quarter
ended June 30, 1999, an increase of $616,000 or 102.7% over the second quarter
of 1998. Diluted earnings per share for the 1999 second quarter were
$.16, compared to $.08 for the same quarter a year ago. 1998 second quarter
earnings included pre-tax merger expenses of $750,000 in connection with the
June 1998 merger with Western Industrial Management, Inc.
Revenues for the second quarter ended June 30, 1999 totaled $84.7 million,
an increase of approximately $8.0 million or 10.5% over the $76.7 million for
the same quarter in 1998.
Results of Operations(in thousands, except (Unaudited) (Unaudited)
per share amounts) Second Quarter Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Staffing services $46,185 $42,786 $83,414 $83,090
Professional employer services 38,522 33,865 72,308 62,802
Total revenues 84,707 76,651 155,722 145,892
Cost of revenues:
Direct payroll costs 65,575 59,348 120,738 113,015
Payroll taxes and benefits 7,142 6,629 13,393 13,069
Workers' compensation 2,445 2,211 4,414 4,207
Safety incentives 403 336 720 700
Total cost of revenues 75,565 68,524 139,265 130,991
Gross margin 9,142 8,127 16,457 14,901
Selling, general and administrative
expenses 6,551 6,035 12,261 11,851
Merger expenses -- 750 -- 750
Amortization of intangibles 434 329 808 682
Income from operations 2,157 1,013 3,388 1,618
Other (expense) income, net (15) 41 57 110
Income before taxes 2,142 1,054 3,445 1,728
Provision for income taxes 926 454 1,489 741
Net income $1,216 $600 $1,956 $987
Basic earnings per share $.16 $.08 $.26 $.13
Weighted average basic shares
outstanding 7,581 7,666 7,624 7,652
Diluted earnings per share $.16 $.08 $.26 $.13
Weighted average diluted shares
outstanding 7,624 7,722 7,666 7,707
Certain 1998 amounts have been reclassified to conform with the 1999
presentation. Such reclassifications had no impact on gross margin, net
income or stockholders' equity.
The following summarizes the unaudited balance sheets at June 30, 1999
and December 31, 1998:
($ in thousands) June 30, December 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $945 $4,029
Trade accounts receivable, net 30,145 21,907
Prepaid expenses and other 1,694 1,103
Deferred tax assets 1,761 1,857
Total current assets 34,545 28,896
Intangibles, net 23,116 11,508
Property and equipment, net 6,132 5,184
Restricted marketable securities
and workers' compensation deposits 6,364 6,004
Deferred tax assets 716 552
Other assets 1,076 626
$71,949 $52,770
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable $1,105 $--
Current portion of long-term debt 2,782 61
Line of credit payable 2,541 --
Income taxes payable -- 438
Accounts payable 1,706 948
Accrued payroll, payroll taxes
and related benefits 15,744 9,246
Accrued workers' compensation claim liabilities 2,769 3,244
Customer safety incentives payable 1,112 1,173
Other accrued liabilities 447 514
Total current liabilities 28,206 15,624
Long-term debt, net of current portion 5,632 503
Customer deposits 798 829
Long-term workers' compensation liabilities 706 714
Other long-term liabilities 1,691 1,398
Stockholders' equity 34,916 33,702
$71,949 $52,770
Barrett Business Services, Inc. is a human resource management company
with offices in eleven states. For 1998, Barrett reported revenues of
$303.0 million and net income of $3.8 million.
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 August 4, 1999