Barrett Business Services, Inc. Announces Net Income and Revenues For First Quarter 1998

PORTLAND, Ore., May 6 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) reported today net income of $323,000 for the first quarter

ended March 31, 1998, a decrease of $507,000 from the first quarter of 1997.

Basic and diluted earnings per share for the 1998 first quarter were

$.05, compared to $.12 for both basic and diluted earnings per share for the

same quarter a year ago.

Revenues for the first quarter ended March 31, 1998 totaled $62.8 million,

an increase of approximately $.7 million or 1.1% over the $62.1 million

reported for the same quarter a year ago. The internal growth rate for 1998

first quarter revenues was .5%.

                                            (Unaudited)

First Quarter Ended

March 31,

Results of Operations 1998 1997

(in thousands, except

per share amounts)

Revenues:

Staffing services $34,511 $32,436

Professional employer

services 28,254 29,650

Total revenues 62,765 62,086

Cost of revenues:

Direct payroll costs 48,926 47,807

Payroll taxes and benefits 5,808 5,997

Workers' compensation 1,866 1,855

Safety incentives 364 323

Total cost of revenues 56,964 55,982

Gross margin 5,801 6,104

Selling, general and

administrative expenses 5,021 4,515

Amortization of intangibles 341 317

Income from operations 439 1,272

Other income 99 78

Income before taxes 538 1,350

Provision for income taxes 215 520

Net income $323 $830

Basic earnings per share $.05 $.12

Weighted average

basic shares 6,744 6,800

Diluted earnings per share $.05 $.12

Weighted average

diluted shares 6,798 6,997

The following summarizes the unaudited balance sheets at March 31, 1998

and December 31, 1997:

    ($ in thousands)                                 March 31,    December 31,

1998 1997

Assets

Cash $3,435 $3,380

Receivables, net 20,551 19,366

Prepaids and other 1,476 1,080

Deferred tax asset 2,002 1,926

Total current assets 27,464 25,752

Intangibles, net 11,753 12,094

Property and equipment, net 4,489 4,263

Restricted marketable securities 6,013 6,095

Other assets 200 206

$49,919 $48,410

Liabilities and Stockholders' Equity

Current portion of long-term debt $312 $323

Income taxes payable 54 --

Accounts payable 846 801

Accrued payroll and benefits 10,505 9,403

Accrued workers' compensation claims 3,094 3,140

Customer safety incentives 1,070 1,073

Other accrued liabilities 378 399

Total current liabilities 16,259 15,139

Long-term debt, net 520 531

Customer deposits 882 934

Long-term workers' compensation

liabilities 728 632

Other long-term liabilities 1,038 1,030

Stockholders' equity 30,492 30,144

$49,919 $48,410

Barrett Business Services, Inc. is a human resource management company

with offices in Washington, Oregon, Idaho, California, Arizona, Michigan,

Maryland and Delaware. For 1997, Barrett reported revenues of $281.0 million

and net income of $3.8 million.
SOURCE Barrett Business Services Inc.
Company News On-Call: http: //www.prnewswire.com or fax, 800-758-5804, ext. 082187
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., 503-220-0988