99.1
Published on April 28, 2005
EXHIBIT 99.1
NEWS RELEASE
For Immediate Release Contact: William W. Sherertz
President and
Chief Executive Officer
Telephone: (503) 220-0988
BBSI
ANNOUNCES FIRST QUARTER 2005 OPERATING RESULTS AND
FINANCIAL GUIDANCE FOR 2Q05
PORTLAND, OREGON, April 27, 2005 - Barrett Business Services, Inc.
(Nasdaq: BBSI) reported today net income of $931,000 for the first quarter ended
March 31, 2005, an improvement of $325,000 or 53.6% over net income of $606,000
for the first quarter of 2004. Diluted earnings per share for the 2005 first
quarter were $.15, as compared to diluted earnings per share of $.10 for the
same quarter a year ago.
Net revenues for the first quarter ended March 31, 2005 totaled $49.2
million, an increase of approximately $8.6 million or 21.2% over the $40.6
million for the same quarter in 2004.
(Unaudited)
($ in thousands) First Quarter Ended
March 31,
-------------------
Results of Operations 2005 2004
- ------------------------------------------- ------- -------
Revenues:
Staffing services $28,542 $25,054
Professional employer service fees 20,702 15,556
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Total revenues 49,244 40,610
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Cost of revenues:
Direct payroll costs 21,017 18,320
Payroll taxes and benefits 15,697 11,531
Workers' compensation 4,930 4,036
------- -------
Total cost of revenues 41,644 33,887
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Gross margin 7,600 6,723
Selling, general and administrative expenses 5,946 5,532
Depreciation and amortization 236 242
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Income from operations 1,418 949
Other income, net 108 21
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Income before taxes 1,526 970
Provision for income taxes 595 364
------- -------
Net income $ 931 $ 606
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Basic earnings per share $ .16 $ .11
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Weighted average basic shares outstanding 5,764 5,704
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Diluted earnings per share $ .15 $ .10
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Weighted average diluted shares outstanding 6,234 6,196
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As previously reported on April 18, 2005, the Company has declared a
3-for-2 stock split. The additional shares to be issued in the stock split will
be distributed on May 19, 2005 to stockholders of record at the close of
business on April 29, 2005. On a split adjusted basis, diluted earnings per
share for the 2005 first quarter would have been $.10, as compared to $.07 for
the same quarter a year ago.
-1-
Barrett Business Services, Inc.
News Release - First Quarter 2005
April 27, 2005
The Company changed its reporting of PEO revenues from a gross basis to a
net basis in 2002. The gross revenues and cost of revenues information below,
although not in accordance with generally accepted accounting principles
("GAAP"), is presented for comparison purposes and because management believes
such information is more informative as to the level of the Company's business
activity and more useful in managing its operations.
Unaudited
First Quarter
(in thousands) March 31,
---------------------
2005 2004
-------- --------
Revenues:
Staffing services $ 28,542 $ 25,054
Professional employer services 128,551 91,720
-------- --------
Total revenues 157,093 116,774
-------- --------
Cost of revenues:
Direct payroll costs 127,397 93,367
Payroll taxes and benefits 15,697 11,531
Workers' compensation 6,399 5,153
-------- --------
Total cost of revenues 149,493 110,051
-------- --------
Gross margin $ 7,600 $ 6,723
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A reconciliation of non-GAAP gross revenues to net revenues is as follows:
For the first quarters ended March 31, 2005 and 2004 (in thousands):
William W. Sherertz, President and Chief Executive Officer, commented
that: "Our results for the quarter reflect strong growth from all of our
operating regions, which bodes well for 2005."
The following summarizes the unaudited consolidated balance sheets at
March 31, 2005 and December 31, 2004.
-2-
Barrett Business Services, Inc.
News Release - First Quarter 2005
April 27, 2005
Outlook for Second Quarter 2005
The Company also disclosed today limited financial guidance with respect to
its operating results for the second quarter ending June 30, 2005. The Company
expects gross revenues for the second quarter of 2005 to range from $172 million
to $174 million, an increase of approximately 35% over the second quarter of
2004, and anticipates diluted earnings per share for the second quarter of 2005,
on a split-adjusted basis, to range from $.27 to $.28 per share, an increase of
approximately 37% over $.20 per share for the same period a year ago, on a
split-adjusted basis. Management expectations for diluted earnings per share for
the second quarter of 2005 on a non-split adjusted basis equate to a range of
$.40 to $.42.
-3-
Barrett Business Services, Inc.
News Release - First Quarter 2005
April 27, 2005
A reconciliation of estimated gross revenues to estimated GAAP net revenues for
the second quarter of 2005 is not included because PEO revenues and cost of PEO
revenues for the period are not reasonably estimable.
On April 28, 2005 at 9:00 a.m. Pacific Time, William W. Sherertz and
Michael D. Mulholland will host an investor telephone conference call to discuss
first quarter 2005 operating results. To participate in the call, dial (877)
356-3717. The call identification number is 5396598. The conference call will
also be webcast live at www.barrettbusiness.com. To access the webcast, click on
the Investor Relations section of the Web site and select Webcast. A replay of
the call will be available beginning April 28, 2005 at 11:00 a.m. and ending May
5, 2005. To listen to the recording, dial (800) 642-1687 and enter conference
identification code 5396598.
BBSI provides human resource management solutions to large and small
companies throughout many regions of the United States.
Statements in this release about future events or performance, including
earnings expectations for the second quarter of 2005, are forward-looking
statements, which involve known and unknown risks, uncertainties and other
factors that may cause the actual results of the Company to be materially
different from any future results expressed or implied by such forward-looking
statements. Factors that could affect future results include economic conditions
in the Company's service areas, the effect of changes in the Company's mix of
services on gross margin, future workers' compensation claims experience, the
effect of changes in the workers' compensation regulatory environment in one or
more of our primary markets, collectibility of accounts receivable, and
availability of funding for working capital purposes, among others. Other
important factors that may affect the Company's future prospects are described
in the Company's 2004 Annual Report on Form 10-K. Although forward-looking
statements help to provide complete information about the Company, readers
should keep in mind that forward-looking statements may be less reliable than
historical information. The Company undertakes no obligation to update or revise
forward-looking statements in this release to reflect events or changes in
circumstances that occur after the date of this release.
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