Barrett Business Services, Inc. Announces Net Income for Fourth Quarter 1997 and Additions of New Officer And Director
PORTLAND, Ore., Feb. 11 /PRNewswire/ -- Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $794,000 for the fourth quarter
ended December 31, 1997, a decrease of $450,000 or 36.2% from the fourth
quarter of 1996. Basic earnings per share for the 1997 fourth quarter were
$.12, compared to $.18 for the same quarter a year ago. Net income for the
year ended December 31, 1997 amounted to $3,825,000, a decrease of 24.0% from
1996. Basic earnings per share for 1997 were $.57, compared to basic earnings
per share of $.75 for 1996.
Revenues for the fourth quarter ended December 31, 1997 totaled
$69.9 million, an increase of approximately $10.1 million or 16.9% over the
$59.8 million for the same quarter a year ago. The internal growth rate for
1997 fourth quarter revenues was 15.1%. Revenues for the year ended December
31, 1997 were $281.0 million, an increase of $67.1 million or 31.4% over 1996.
The 1997 internal growth rate for revenues was 22.1%.
Results of Operations Fourth Quarter(in thousands, except Ended Year Ended
per share amounts) December 31, December 31,
1997 1996 1997 1996
Revenues:
Staffing services $ 38,793 $ 30,830 $155,192 $112,778
Professional employer services 31,104 28,984 125,814 101,148
Total revenues 69,897 59,814 281,006 213,926
Cost of revenues:
Direct payroll costs 54,690 46,125 218,249 163,448
Payroll taxes and benefits 5,779 5,009 24,996 18,755
Workers' compensation 2,081 1,794 8,146 5,938
Safety incentives 341 390 1,509 1,532
Total cost of revenues 62,891 53,318 252,900 189,673
Gross margin 7,006 6,496 28,106 24,253
Selling, general and
administrative expenses 5,443 4,363 20,887 16,034
Amortization of intangibles 349 244 1,292 820
Income from operations 1,214 1,889 5,927 7,399
Other income 57 133 201 452
Income before taxes 1,271 2,022 6,128 7,851
Provision for income taxes 477 778 2,303 2,815
Net income $ 794 $ 1,244 $ 3,825 $ 5,036
Basic earnings per share $ .12 $ .18 $ .57 $ .75
Weighted average basic shares 6,739 6,784 6,751 6,714
Diluted earnings per share $ .12 $ .18 $ .56 $ .73
Weighted average
diluted shares 6,812 6,957 6,885 6,935
Certain prior year revenue and cost of revenue amounts have been
reclassified to conform with the 1997 presentation. Such reclassifications
had no impact on gross margin, net income or stockholders' equity.
The following summarizes the audited balance sheets at December 31, 1997
and 1996:
($ in thousands) December 311997 1996
Assets
Cash $ 3,380 $ 1,901
Receivables, net 19,366 19,057
Note receivable -- 324
Prepaids and other 1,080 914
Deferred tax asset 1,926 1,279
Total current assets 25,752 23,475
Intangibles, net 12,094 10,226
Property and equipment, net 4,263 3,111
Restricted marketable securities 6,095 5,707
Other 206 127
$48,410 $42,646
Liabilities and Stockholders' Equity
Current portion of long-term debt 323 36
Accounts payable 801 667
Accrued payroll and benefits 9,403 7,354
Accrued workers' compensation
claims 3,140 2,240
Customer safety incentives 1,073 1,015
Other accrued liabilities 399 606
Total current liabilities 15,139 11,918
Long-term debt, net 531 838
Customer deposits 934 890
Long-term workers' compensation
claims 632 613
Other long-term liabilities 1,030 --
Redeemable common stock -- 2,825
Stockholders' equity 30,144 25,562
$48,410 $42,646
The Company also announced today the recent addition of Herbert L.
Hochberg to the Board of Directors and the appointment of Gregory R. Vaughn as
Vice President.
The election of Mr. Hochberg expands the Board from six to seven
positions. Mr. Hochberg is a Managing Director of Corporate Finance at
Ladenburg Thalmann & Co. Inc. in New York. He has been associated with the
firm in a senior corporate finance capacity for over thirty years and is a
member of its Board of Directors.
Mr. Hochberg is a Chartered Financial Analyst and is qualified as a
Supervisory Analyst by the New York Stock Exchange. Mr. Hochberg has a
Bachelor of Science Degree from the Massachusetts Institute of Technology and
a Masters Degree in Business Administration from the Harvard Graduate School
of Business Administration.
Mr. Vaughn joined the Company in July 1997 as Operations Manager. Prior
to joining Barrett, Mr. Vaughn was Chief Executive Officer of Insource
America, a privately-held human resource management company headquartered in
Portland, Oregon with annual revenues of approximately $60 million. Mr.
Vaughn has also held senior management positions with Sundial Time Systems and
Continental Information Systems. He was also affiliated with Price Waterhouse
for five years in the management consulting services practice. Mr. Vaughn is
a Certified Data Processing Professional and holds a Master of Business
Administration Degree in operations management and human resources and a
Bachelor of Science Degree in computer science and statistics from the State
University of New York at Buffalo.
Barrett Business Services, Inc. is a human resource management company
with offices in Washington, Oregon, Idaho, California, Arizona, Michigan,
Maryland and Delaware.
SOURCE Barrett Business Services, Inc.
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., 503-220-0988
CNOC: http: //www.prnewswire.com or fax, 800-758-5804, ext. 082187
Released February 11, 1998