EXHIBIT 99.1
Published on April 24, 2008
Exhibit 99.1
NEWS RELEASE
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For Immediate Release |
Contact: |
William W. Sherertz |
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President and |
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Chief Executive Officer |
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Telephone: |
(360) 828-0700 |
BBSI
ANNOUNCES FIRST QUARTER 2008 OPERATING RESULTS,
FINANCIAL GUIDANCE FOR 2Q08 AND CONFERENCE CALL
VANCOUVER, WASHINGTON, April 23, 2008 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $91,000 for the first quarter ended March 31, 2008, a decline of $1.6 million or 94.7% from net income of $1.7 million for the first quarter of 2007. Diluted earnings per share for the 2008 first quarter were $.01, as compared to diluted earnings per share of $.15 for the same quarter a year ago.
Net revenues for the first quarter ended March 31, 2008 totaled $66.2 million, an increase of approximately $5.6 million or 9.3% over the $60.6 million for the same quarter in 2007.
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(Unaudited) |
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($ in thousands, except per share amounts) |
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First Quarter Ended |
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March 31, |
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Results of Operations |
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2008 |
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2007 |
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Revenues: |
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Staffing services |
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$ |
35,819 |
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$ |
28,015 |
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Professional employer service fees |
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30,375 |
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32,573 |
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Total revenues |
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66,194 |
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60,588 |
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Cost of revenues: |
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Direct payroll costs |
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26,383 |
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21,142 |
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Payroll taxes and benefits |
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24,445 |
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23,911 |
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Workers compensation |
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6,804 |
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5,844 |
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Total cost of revenues |
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57,632 |
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50,897 |
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Gross margin |
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8,562 |
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9,691 |
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Selling, general and administrative expenses |
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8,669 |
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7,388 |
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Depreciation and amortization |
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376 |
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349 |
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Income from operations |
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(483 |
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1,954 |
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Other income, net |
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626 |
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785 |
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Income before taxes |
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143 |
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2,739 |
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Provision for income taxes |
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52 |
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1,011 |
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Net income |
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$ |
91 |
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$ |
1,728 |
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Basic earnings per share |
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$ |
.01 |
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$ |
.15 |
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Weighted average basic shares outstanding |
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11,087 |
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11,255 |
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Diluted earnings per share |
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$ |
.01 |
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$ |
.15 |
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Weighted average diluted shares outstanding |
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11,423 |
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11,681 |
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- 1 -
Barrett Business Services, Inc.
News Release First Quarter 2008
April 23, 2008
The Company reports its Professional Employer Organization services (PEO) revenues on a net basis because it is not the primary obligor for the services provided by the Companys PEO clients to their customers. 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 Companys business activity and more useful in managing its operations.
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(Unaudited) | ||||||
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First Quarter | ||||||
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(in thousands) |
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March 31, | ||||||
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2008 |
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2007 | ||
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Revenues: |
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Staffing services |
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$ |
35,819 |
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$ |
28,015 |
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Professional employer services |
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223,761 |
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229,513 |
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Total revenues |
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259,580 |
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257,528 |
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Cost of revenues: |
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Direct payroll costs |
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217,853 |
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216,628 |
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Payroll taxes and benefits |
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24,445 |
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23,911 |
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Workers compensation |
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8,720 |
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7,298 |
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Total cost of revenues |
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251,018 |
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247,837 |
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Gross margin |
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$ |
8,562 |
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$ |
9,691 |
Gross revenues of $259.6 million for the first quarter ended March 31, 2008 rose 0.8% over the similar period in 2007.
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A reconciliation of non-GAAP gross revenues to net revenues is as follows: |
For the first quarters ended March 31, 2008 and 2007:
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(Unaudited) | |||||||||||||||||||||||||||
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Three Months Ended March 31, | |||||||||||||||||||||||||||
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Gross Revenue |
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Net Revenue | |||||||||||||||||||||
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(in thousands) |
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Reporting Method |
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Reclassification |
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Reporting Method | |||||||||||||||||||||
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2008 |
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2007 |
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2008 |
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2007 |
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2008 |
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2007 | ||||||||||||
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Revenues: |
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Staffing services |
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$ |
35,819 |
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$ |
28,015 |
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$ |
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$ |
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$ |
35,819 |
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$ |
28,015 |
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Professional |
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employer services |
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223,761 |
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229,513 |
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(193,386 |
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(196,940 |
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30,375 |
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32,573 |
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Total revenues |
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$ |
259,580 |
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$ |
257,528 |
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$ |
(193,386 |
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$ |
(196,940 |
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$ |
66,194 |
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$ |
60,588 |
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Cost of revenues |
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$ |
251,018 |
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$ |
247,837 |
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$ |
(193,386 |
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$ |
(196,940 |
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$ |
57,632 |
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$ |
50,897 |
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- 2 -
Barrett Business Services, Inc.
News Release First Quarter 2008
April 23, 2008
The following summarizes the unaudited consolidated balance sheets at March 31, 2008 and December 31, 2007.
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March 31, |
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December 31, | ||||
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(in thousands) |
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2008 |
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2007 | ||||
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
54,906 |
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$ |
62,779 |
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Marketable securities |
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1,458 |
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1,717 |
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Trade accounts receivable, net |
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41,204 |
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36,673 |
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Prepaid expenses and other |
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3,816 |
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2,336 |
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Deferred income taxes |
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3,249 |
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3,138 |
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Workers compensation receivables for insured claims |
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225 |
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225 |
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Total current assets |
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104,858 |
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106,868 |
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Marketable securities |
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419 |
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417 |
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Goodwill, net |
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45,435 |
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41,508 |
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Property, equipment and software, net |
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15,934 |
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16,136 |
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Restricted marketable securities and workers compensation deposits |
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3,198 |
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2,750 |
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Other assets |
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1,547 |
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1,649 |
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Workers compensation receivables for insured claims |
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3,570 |
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3,896 |
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$ |
174,961 |
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$ |
173,224 |
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Liabilities and Stockholders Equity |
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Current liabilities: |
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Accounts payable |
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$ |
929 |
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$ |
1,516 |
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Accrued payroll, payroll taxes and related benefits |
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38,716 |
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33,553 |
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Other accrued liabilities |
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647 |
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1,064 |
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Workers compensation claims liabilities |
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6,463 |
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6,031 |
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Workers compensation claims liabilities for insured claims |
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225 |
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225 |
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Safety incentives liabilities |
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5,637 |
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5,911 |
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Total current liabilities |
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52,617 |
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48,300 |
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Customer deposits |
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724 |
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752 |
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Long-term workers compensation claims liabilities |
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4,013 |
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4,021 |
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Long-term workers compensation liabilities for insured claims |
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2,417 |
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2,464 |
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Deferred income taxes |
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3,269 |
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3,268 |
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Deferred gain on sale and leaseback |
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640 |
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671 |
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Stockholders equity |
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111,281 |
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113,748 |
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$ |
174,961 |
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$ |
173,224 |
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- 3 -
Barrett Business Services, Inc.
News Release First Quarter 2008
April 23, 2008
Outlook for Second Quarter 2008
The Company also disclosed today limited financial guidance with respect to its operating results for the second quarter ending June 30, 2008. The Company expects gross revenues for the second quarter of 2008 to range from $262 million to $267 million, as compared to $267.7 million for the second quarter of 2007, and anticipates diluted earnings per share for the second quarter of 2008 to range from $.24 to $.28 per share, as compared to $.42 per share for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the second quarter of 2008 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.
Conference Call
On April 24 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 2008 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 44463566. 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 Thursday, April 24, 2008 at 12:00 p.m. PT and ending on Thursday, May 1, 2008. To listen to the recording, dial (800) 642-1687 and enter conference identification code 44463566.
Statements in this release about future events or performance, including gross revenues and earnings expectations for the second quarter of 2008, 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, the Company's ability to successfully integrate acquired businesses with its existing operations, future workers' compensation claims experience, the effect of changes in the workers compensation regulatory environment in one or more of its primary markets, the collectibility of accounts receivable and the effect of conditions in the global capital markets on the Companys investment portfolio, among others. Other important factors that may affect the Companys future prospects are described in the Companys 2007 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.
BBSI provides a comprehensive range of human resource management solutions to large and small companies throughout many regions of the United States.
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