Barrett Business Services, Inc. Announces Record Net Income and Revenues for 1996

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

(Nasdaq: BBSI) reported today net income of $1,244,000 for the fourth quarter

ended December 31, 1996, an increase of $21,000 or 1.7% over the fourth

quarter of 1995. Earnings per share for the 1996 fourth quarter were $.18,

even with the same quarter a year ago. Net income for the year ended December

31, 1996 amounted to $5,036,000, an increase of 22.3% over 1995. Earnings per

share for 1996 were $.73, compared to $.62 per share for 1995.

Revenues for the fourth quarter ended December 31, 1996 totaled

$60.5 million, an increase of approximately $14.2 million or 30.7% over the

$46.3 million reported for the same quarter a year ago. The internal growth

rate for 1996 fourth quarter revenues was 16.3%. Revenues for the year ended

December 31, 1996 were $215.8 million, an increase of $36.0 million or 20.0%

over 1995. The 1996 internal growth rate for revenues was 10.6%.

                                       Fourth Quarter

Ended Year Ended

Dec. 31, Dec. 31,

Results of Operations 1996 1995 1996 1995

(in thousands, except

per share amounts)

Revenues:

Staffing services $31,208 $25,962 $113,539 $99,233

Professional employer

services 29,300 20,344 102,277 80,572

Total revenues 60,508 46,306 215,816 179,805

Cost of revenues:

Direct payroll costs 46,485 35,327 164,180 136,174

Payroll taxes and benefits 5,343 3,987 19,913 16,088

Workers' compensation 1,794 899 5,938 6,073

Safety incentives 390 261 1,532 981

Total cost of revenues 54,012 40,474 191,563 159,316

Gross margin 6,496 5,832 24,253 20,489

Selling, general and

administrative expenses 4,363 3,807 16,034 13,657

Amortization of intangibles 244 140 820 564

Income from operations 1,889 1,885 7,399 6,268

Other income 133 88 452 357

Income before taxes 2,022 1,973 7,851 6,625

Provision for income taxes 778 750 2,815 2,507

Net income $1,244 $1,223 $5,036 $4,118

Net income per share $.18 $.18 $.73 $.62

Weighted average shares 6,957 6,689 6,935 6,680

The following summarizes the audited balance sheets at December 31, 1996

and 1995:

    ($ in thousands)                              December 31

1996 1995

Assets

Cash $1,901 $3,218

Receivables, net 19,057 13,151

Note receivable 324 --

Prepaids and other 914 478

Deferred tax asset 1,279 937

Total current assets 23,475 17,784

Intangibles, net 10,226 6,452

Property and equipment, net 3,111 2,261

Restricted marketable securities 5,707 4,681

Other 127 95

$42,646 $31,273

Liabilities and Stockholders' Equity

Current portion of long-term debt $36 $33

Accounts payable 667 378

Accrued payroll and benefits 7,960 5,797

Accrued workers' compensation

claims 2,240 2,383

Customer safety incentives 1,015 776

Total current liabilities 11,918 9,367

Long-term debt, net 838 875

Customer deposits 890 675

Other long-term liabilities 613 322

Redeemable common stock 2,825 --

Stockholders' equity 25,562 20,034

$42,646 $31,273

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

with offices in Washington, Oregon, Idaho, California, Arizona, Maryland and

Delaware.
SOURCE Barrett Business
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., 503-220-0988