Barrett Business Services, Inc. Announces Net Income and Revenues for First Quarter 1997

PORTLAND, Ore., May 5 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) reported today net income of $830,000 for the first quarter

ended March 31, 1997, an increase of $3,000 over the first quarter of 1996.

Earnings per share for the 1997 first quarter were $.12, the same amount as

the 1996 first quarter.

Revenues for the first quarter ended March 31, 1997 totaled $62.8 million,

an increase of approximately $19.6 million or 45.4% over the $43.2 million

reported for the same quarter a year ago. The internal growth rate for 1997

first quarter revenues was 25.1%.

                                                   (Unaudited)

First quarter Ended

March 31,

Results of Operations 1997 1996

(in thousands, except

per share amounts)

Revenues:

Staffing services $ 32,731 $ 22,629

Professional employer

services 30,049 20,556

Total revenues 62,780 43,185

Cost of revenues:

Direct payroll costs 48,039 32,718

Payroll taxes and benefits 6,459 4,334

Workers' compensation 1,855 770

Safety incentives 323 347

Total cost of revenues 56,676 38,169

Gross margin 6,104 5,016

Selling, general and

administrative expenses 4,515 3,626

Amortization of intangibles 317 160

Income from operations 1,272 1,230

Other income 78 103

Income before taxes 1,350 1,333

Provision for income taxes 520 506

Net income $ 830 $ 827

Net income per share $ .12 $ .12

Weighted average shares 6,800 6,787

President and Chief Executive Officer William W. Sherertz commented that,

"We are very pleased with the accelerating growth in revenues and that our

operating results were consistent with our expectations."

The following summarizes the unaudited balance sheets at March 31, 1997

and December 31, 1996:

    (in thousands)                           March 31,    December 31,

1997 1996

Assets

Cash $ 1,615 $ 1,901

Receivables, net 21,337 19,057

Note receivable -- 324

Prepaids and other 1,379 914

Deferred tax asset 1,363 1,279

Total Current assets 25,694 23,475

Intangibles, net 12,894 10,226

Property and equipment, net 3,203 3,111

Restricted marketable securities 5,699 5,707

Other 145 127

$47,635 $42,646

Liabilities and Stockholders' Equity

Current portion of long-term debt $ 65 $ 36

Income taxes payable 515 --

Accounts payable 705 667

Accrued payroll and benefits 9,307 7,354

Accrued workers' compensation

claims 2,423 2,240

Customer safety incentives 1,029 1,015

Other accrued liabilities 516 606

Total current liabilities 14,560 11,918

Long-term debt, net 849 838

Customer deposits 888 890

Other long-term liabilities 1,616 613

Redeemable common stock 2,825 2,825

Stockholders' equity 26,897 25,562

$47,635 $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: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services Inc., 503-220-0988