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

PORTLAND, Ore., Aug. 7 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: "BBST") reported today net income of $1,305,000 for the second

quarter ended June 30, 1996, an increase of $266,000 or 25.6% over the second

quarter of 1995. Earnings per share for the 1996 second quarter were $.19 as

compared to $.16 for the 1995 second quarter. Net income for the six months

ended June 30, 1996 amounted to $2,132,000, an increase of $749,000 or 54.2%

over the similar period in 1995. Earnings per share for the 1996 six-month

period were $.31, which compares to $.21 for 1995.

Revenues for the second quarter ended June 30, 1996 totaled $51.9 million,

an increase of approximately $7.3 million or 16.4% over the $44.6 million

reported for the same quarter a year ago. Revenues for the six months ended

June 30, 1996 were $95.1 million, an increase of 13.3% over the comparable

1995 period. The internal growth rates of revenues for the 1996 second

quarter and six-month period were 4.8% and 5.1%, respectively.

(Unaudited) (Unaudited)

Second Quarter Six Months

Ended Ended

June 30, June 30,

Results of 0perations 1996 1995 1996 1995

(in thousands, except

per share amounts)

    Revenues

Staffing services $27,091 $24,333 $49,719 $44,937

Professional employer

services 24,780 20,231 45,337 38,926

Total revenues 51,871 44,564 95,056 83,863

Gross margin 6,147 4,919 11,164 8,398

Selling, general and

administrative expenses 3,939 3,226 7,567 6,101

Income before taxes 2,105 1,658 3,438 2,212

Net income $ 1,305 $ 1,039 $ 2,132 $ 1,383

Net income per share $ .19 $ .16 $ .31 $ .21

Weighted average shares 6,978 6,639 6,883 6,653

The following summarizes the unaudited balance sheet at June 30, 1996, and

the audited balance sheet at December 31, 1995:

    ($ in thousands)                   June 30,           December 31,

1996 1995

Cash $ 3,909 $ 3,218

Receivables, net 16,177 13,151

Note receivable 324 --

Prepaids and other 619 478

Deferred tax asset 664 937

Total current assets 21,693 17,784

Intangibles, net 8,981 6,452

Property and equipment, net 2,400 2,261

Restricted marketable securities 5,817 4,681

Other 107 95

$ 38,998 $ 31,273

Current portion of long-term debt $ 35 $ 33

Income taxes payable 443 --

Accounts payable 116 378

Accrued payroll and benefits 8,248 5,797

Accrued workers' compensation

claims 1,606 2,383

Customer safety incentives 981 776

Total current liabilities 11,429 9,367

Long-term debt, net 857 875

Customer deposits 813 675

Other long-term liabilities 419 322

Redeemable common stock 2,825 --

Stockholders' equity 22,655 20,034

$ 38,998 $ 31,273

Barrett is a provider of professional employer services and staffing

services with offices in Washington, Oregon, Idaho, California, 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