Barrett Business Services, Inc. Announces Record Net Income and Revenues for Third Quarter 1996
PORTLAND, Ore., Nov. 6 /PRNewswire/ -- Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $1,661,000 for the third quarter
ended September 30, 1996, an increase of $148,000 or 9.8% over the third
quarter of 1995. Earnings per share for the 1996 third quarter were $.24 as
compared to $.23 for the 1995 third quarter. Net income for the nine months
ended September 30, 1996 amounted to $3,792,000, an increase of $897,000 or
31.0% over the similar period in 1995. Earnings per share for the 1996
nine-month period were $.55, which compares to $.44 for 1995.
(Unaudited) (Unaudited)Third Quarter Nine Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
Results of Operations
(in thousands, except per share amounts)
Revenues
Staffing services $32,612 $28,333 $ 82,332 $ 73,271
Professional employer
services 27,640 21,303 72,976 60,228
60,252 49,636 155,308 133,499
Cost of revenues:
Direct payroll costs 45,817 37,444 117,695 100,847
Payroll taxes and benefits 5,248 4,477 14,570 12,101
Workers' compensation 2,161 1,160 4,144 5,174
Safety incentives 433 297 1,142 720
53,659 43,378 137,551 118,842
Gross margin 6,593 6,258 17,757 14,657
Selling, general and
administrative expenses 4,104 3,748 11,671 9,850
Amortization of intangibles 207 140 576 424
Income from operations 2,282 2,370 5,510 4,383
Other income (expense) 109 70 318 269
Income before taxes 2,391 2,440 5,828 4,652
Provision for income taxes 730 927 2,036 1,757
Net income $1,661 $1,513 $3,792 $2,895
Net income per share $.24 $.23 $.55 $.44
Weighted average shares 7,019 6,667 6,928 6,657
Revenues for the third quarter ended September 30, 1996 totaled
$60.3 million, an increase of approximately $10.6 million or 21.4% over the
$49.6 million reported for the same quarter a year ago. Revenues for the nine
months ended September 30, 1996 were $155.3 million, an increase of 16.3% over
the comparable 1995 period. The internal growth rates of revenues for the
1996 third quarter and nine-month period were 14.6% and 8.6%, respectively.
The following summarizes the unaudited balance sheet at September 30,
1996, and the audited balance sheet at December 31, 1995:
($ in thousands) September 30, December 31,1996 1995
Cash $4,956 $3,218
Receivables, net 17,409 13,151
Note receivable 324 --
Prepaids and other 746 478
Deferred tax asset 1,203 937
Total current assets 24,638 17,784
Intangibles, net 9,326 6,452
Property and equipment, net 2,435 2,261
Restricted marketable
securities 5,716 4,681
Other 131 95
$42,246 $31,273
Current portion of long-term
debt $36 $33
Income taxes payable 648 --
Accounts payable 714 378
Accrued payroll and benefits 8,223 5,797
Accrued workers' compensation
claims 2,124 2,383
Customer safety incentives 1,037 776
Total current liabilities 12,782 9,367
Long-term debt, net 848 875
Customer deposits 861 675
Other long-term liabilities 615 322
Redeemable common stock 2,825 --
Stockholders' equity 24,315 20,034
$42,246 $31,273
Barrett is a human resource management company with offices in Washington,
Oregon, Idaho, California, Arizona, Maryland and Delaware. Barrett reported
revenues of $179.8 million and net income of $4.1 million for 1995.
SOURCE Barrett Business Services Inc.
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services Inc., 503-220-0988
Released November 6, 1996