Barrett Business Services, Inc. Announces Net Income and Revenues For Third Quarter 1997
PORTLAND, Ore., Nov. 3 /PRNewswire/ -- Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $947,000 for the third quarter
ended September 30, 1997. Earnings per share for the 1997 third quarter were
$.14, as compared to $.24 for the 1996 third quarter. Net income for the nine
months ended September 30, 1997 amounted to $3,031,000. Earnings per share
for the 1997 nine-month period were $.45, as compared to $.55 for the 1996
period.
Revenues for the third quarter ended September 30, 1997 totaled
$81.2 million, an increase of approximately $21.0 million or 34.8% over the
$60.3 million reported for the same quarter a year ago. Revenues for the nine
months ended September 30, 1997 were $214.4 million, an increase of 38.1% over
the comparable 1996 period. The internal growth rates of revenues were
27.0% for the 1997 third quarter and 25.8% for the nine-month period ended
September 30, 1997.
(Unaudited) (Unaudited)Third Quarter Nine Months
Ended Ended
September 30, September 30,
Results of Operations 1997 1996 1997 1996
(in thousands, except
per share amounts)
Revenues:
Staffing services $47,271 $32,612 $118,405 $82,332
Professional employer
services 33,934 27,640 96,035 72,976
Total revenues 81,205 60,252 214,440 155,308
Cost of revenues:
Direct payroll costs 62,997 45,817 165,200 117,695
Payroll taxes and
benefits 7,654 5,248 20,907 14,570
Workers' compensation 2,237 2,161 6,065 4,144
Safety incentives 464 433 1,168 1,142
Total cost of
revenues 73,352 53,659 193,340 137,551
Gross margin 7,853 6,593 21,100 17,757
Selling, general and
administrative
expenses 6,072 4,104 15,444 11,671
Amortization of
intangibles 351 207 943 576
Income from operations 1,430 2,282 4,713 5,510
Other income 22 109 144 318
Income before taxes 1,452 2,391 4,857 5,828
Provision for income
taxes 505 730 1,826 2,036
Net income $947 $1,661 $3,031 $3,792
Primary earnings per
share $.14 $.24 $.45 $.55
Primary weighted average
number of common stock
equivalent shares
outstanding 6,727 7,019 6,754 6,928
The decline in net income for the third quarter of 1997 compared to the
same period a year ago was primarily attributable to higher direct payroll
costs as a percentage of revenues, increased bad debt expense and higher
branch office operating expenses.
The following summarizes the unaudited balance sheets at September 30,
1997 and December 31, 1996:
($ in thousands) September 30, December 31,1997 1996
Assets
Cash $1,754 $1,901
Receivables, net 24,376 19,057
Note receivable -- 324
Prepaids and other 1,205 914
Deferred tax asset 1,708 1,279
Total current assets 29,043 23,475
Intangibles, net 12,434 10,226
Property and equipment, net 4,035 3,111
Restricted marketable securities 6,077 5,707
Other 139 127
$51,728 $42,646
Liabilities and Stockholders' Equity
Advances on credit line $1,614 $ --
Current portion of long-term debt 62 36
Accounts payable 1,229 667
Accrued payroll and benefits 11,808 7,354
Accrued workers' compensation
claims 2,750 2,240
Customer safety incentives 1,143 1,015
Other accrued liabilities 383 606
Total current liabilities 18,989 11,918
Long-term debt, net 810 838
Customer deposits 951 890
Long-term workers' compensation
claims 606 613
Other long-term liabilities 1,022 --
Redeemable common stock -- 2,825
Stockholders' equity 29,350 25,562
$51,728 $42,646
Barrett Business Services, Inc. is a human resource management company
with offices in Washington, Oregon, Idaho, California, Arizona, Michigan,
Maryland and Delaware. Barrett reported revenues of $215.8 million and net
income of $5.0 million for 1996.
SOURCE Barrett Business Services Inc.
CONTACT: Michael D. Mulholland, Vice President-Finance of Barrett Business Services, Inc, 503-220-0988
Released November 3, 1997