EXHIBIT 99.1
Published on July 29, 2009
Exhibit 99.1
NEWS RELEASE
|
For Immediate Release |
Contact: |
William W. Sherertz |
|
|
President and |
|
|
Chief Executive Officer |
|
|
Telephone: |
(360) 828-0700 |
BBSI
ANNOUNCES SECOND QUARTER 2009 OPERATING RESULTS,
FINANCIAL GUIDANCE FOR 3Q09, DECLARATION OF QUARTERLY CASH DIVIDEND
AND CONFERENCE CALL
VANCOUVER, WASHINGTON, July 28, 2009 As a result of a previously-reported change in estimate of the ultimate cost of the Companys self-insured workers compensation claim liabilities, Barrett Business Services, Inc. (Nasdaq: BBSI) recorded an increase to its workers compensation reserve of approximately $11.8 million pre-tax, or $7.4 million after tax equating to $.72 per share, resulting in a diluted loss per share of $.65, for the second quarter of 2009. Without the effect of the increase in the workers compensation claim liabilities, net income per diluted share for the 2009 second quarter would have been $.07.
The Company reported today a net loss of $6.7 million for the second quarter ended June 30, 2009, a decline of $10.0 million from net income of $3.3 million, or diluted earnings per share of $.29, for the second quarter of 2008.
Net revenues for the second quarter ended June 30, 2009 totaled $57.3 million, a decrease of approximately $14.9 million or 20.7% from the $72.2 million for the same quarter in 2008.
|
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
| ||||||||||||
|
($ in thousands, except per share amounts) |
|
|
|
Second Quarter Ended |
|
|
|
Six Months Ended |
| ||||||||||||
|
|
|
|
|
June 30, |
|
|
|
June 30, |
| ||||||||||||
|
Results of Operations |
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staffing services |
|
|
|
$ |
28,002 |
|
|
|
$ |
40,604 |
|
|
|
$ |
52,044 |
|
|
|
$ |
76,423 |
|
|
Professional employer service fees |
|
|
|
|
29,263 |
|
|
|
|
31,579 |
|
|
|
|
56,293 |
|
|
|
|
61,954 |
|
|
Total revenues |
|
|
|
|
57,265 |
|
|
|
|
72,183 |
|
|
|
|
108,337 |
|
|
|
|
138,377 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct payroll costs |
|
|
|
|
21,127 |
|
|
|
|
29,943 |
|
|
|
|
39,196 |
|
|
|
|
56,326 |
|
|
Payroll taxes and benefits |
|
|
|
|
19,434 |
|
|
|
|
20,721 |
|
|
|
|
42,061 |
|
|
|
|
45,166 |
|
|
Workers compensation |
|
|
|
|
18,927 |
|
|
|
|
7,465 |
|
|
|
|
25,614 |
|
|
|
|
14,269 |
|
|
Total cost of revenues |
|
|
|
|
59,488 |
|
|
|
|
58,129 |
|
|
|
|
106,871 |
|
|
|
|
115,761 |
|
|
Gross margin |
|
|
|
|
(2,223 |
) |
|
|
|
14,054 |
|
|
|
|
1,466 |
|
|
|
|
22,616 |
|
|
Selling, general and administrative expenses |
|
|
|
|
8,336 |
|
|
|
|
9,165 |
|
|
|
|
16,376 |
|
|
|
|
17,834 |
|
|
Depreciation and amortization |
|
|
|
|
410 |
|
|
|
|
382 |
|
|
|
|
796 |
|
|
|
|
758 |
|
|
(Loss) income from operations |
|
|
|
|
(10,969 |
) |
|
|
|
4,507 |
|
|
|
|
(15,706 |
) |
|
|
|
4,024 |
|
|
Other income, net |
|
|
|
|
293 |
|
|
|
|
587 |
|
|
|
|
408 |
|
|
|
|
1,213 |
|
|
(Loss) income before taxes |
|
|
|
|
(10,676 |
) |
|
|
|
5,094 |
|
|
|
|
(15,298 |
) |
|
|
|
5,237 |
|
|
(Benefit from) provision for income taxes |
|
|
|
|
(3,944 |
) |
|
|
|
1,844 |
|
|
|
|
(5,392 |
) |
|
|
|
1,896 |
|
|
Net (loss) income |
|
|
|
$ |
(6,732 |
) |
|
|
$ |
3,250 |
|
|
|
$ |
(9,906 |
) |
|
|
$ |
3,341 |
|
|
Basic (loss) earnings per share |
|
|
|
$ |
(.65 |
) |
|
|
$ |
.30 |
|
|
|
$ |
(.95 |
) |
|
|
$ |
.30 |
|
|
Weighted average basic shares outstanding |
|
|
|
|
10,355 |
|
|
|
|
10,937 |
|
|
|
|
10,426 |
|
|
|
|
11,012 |
|
|
Diluted (loss) earnings per share |
|
|
|
$ |
(.65 |
) |
|
|
$ |
.29 |
|
|
|
$ |
(.95 |
) |
|
|
$ |
.30 |
|
|
Weighted average diluted shares outstanding |
|
|
|
|
10,355 |
|
|
|
|
11,221 |
|
|
|
|
10,426 |
|
|
|
|
11,322 |
|
Barrett Business Services, Inc.
News Release Second Quarter 2009
July 28, 2009
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.
|
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
| ||||||||||||
|
|
|
|
|
Second Quarter Ended |
|
|
|
Six Months Ended |
| ||||||||||||
|
(in thousands) |
|
|
|
June 30, |
|
|
|
June 30, |
| ||||||||||||
|
|
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staffing services |
|
|
|
$ |
28,002 |
|
|
|
$ |
40,604 |
|
|
|
$ |
52,044 |
|
|
|
$ |
76,423 |
|
|
Professional employer services |
|
|
|
|
220,150 |
|
|
|
|
228,891 |
|
|
|
|
423,975 |
|
|
|
|
452,652 |
|
|
Total revenues |
|
|
|
|
248,152 |
|
|
|
|
269,495 |
|
|
|
|
476,019 |
|
|
|
|
529,075 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct payroll costs |
|
|
|
|
210,720 |
|
|
|
|
225,887 |
|
|
|
|
404,276 |
|
|
|
|
443,740 |
|
|
Payroll taxes and benefits |
|
|
|
|
19,434 |
|
|
|
|
20,721 |
|
|
|
|
42,061 |
|
|
|
|
45,166 |
|
|
Workers compensation |
|
|
|
|
20,221 |
|
|
|
|
8,833 |
|
|
|
|
28,216 |
|
|
|
|
17,553 |
|
|
Total cost of revenues |
|
|
|
|
250,375 |
|
|
|
|
255,441 |
|
|
|
|
474,553 |
|
|
|
|
506,459 |
|
|
Gross margin |
|
|
|
$ |
(2,223 |
) |
|
|
$ |
14,054 |
|
|
|
$ |
1,466 |
|
|
|
$ |
22,616 |
|
Gross revenues of $248.2 million for the second quarter ended June 30, 2009 declined 7.9% from the similar period in 2008.
|
|
A reconciliation of non-GAAP gross revenues to net revenues is as follows: |
For the second quarters ended June 30, 2009 and 2008:
|
|
|
(Unaudited) |
| ||||||||||||||||||||||||||
|
|
|
Three Months Ended June 30, |
| ||||||||||||||||||||||||||
|
|
|
Gross Revenue |
|
|
|
|
|
|
|
Net Revenue |
| ||||||||||||||||||
|
(in thousands) |
|
Reporting Method |
|
|
|
Reclassification |
|
|
|
Reporting Method |
| ||||||||||||||||||
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
| ||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staffing services |
|
$ |
28,002 |
|
|
|
$ |
40,604 |
|
|
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
28,002 |
|
|
|
$ |
40,604 |
|
|
Professional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
employer services |
|
|
220,150 |
|
|
|
|
228,891 |
|
|
|
|
(190,887 |
) |
|
|
|
(197,312 |
) |
|
|
|
29,263 |
|
|
|
|
31,579 |
|
|
Total revenues |
|
$ |
248,152 |
|
|
|
$ |
269,495 |
|
|
|
$ |
(190,887 |
) |
|
|
$ |
(197,312 |
) |
|
|
$ |
57,265 |
|
|
|
$ |
72,183 |
|
|
Cost of revenues |
|
$ |
250,375 |
|
|
|
$ |
255,441 |
|
|
|
$ |
(190,887 |
) |
|
|
$ |
(197,312 |
) |
|
|
$ |
59,488 |
|
|
|
$ |
58,129 |
|
Barrett Business Services, Inc.
News Release Second Quarter 2009
July 28, 2009
For the six months ended June 30, 2009 and 2008:
|
|
|
(Unaudited) |
| ||||||||||||||||||||||||||
|
|
|
Six Months Ended June 30, |
| ||||||||||||||||||||||||||
|
|
|
Gross Revenue |
|
|
|
|
|
|
|
Net Revenue |
| ||||||||||||||||||
|
(in thousands) |
|
Reporting Method |
|
|
|
Reclassification |
|
|
|
Reporting Method |
| ||||||||||||||||||
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
|
|
|
2009 |
|
|
|
2008 |
| ||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staffing services |
|
$ |
52,044 |
|
|
|
$ |
76,423 |
|
|
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
52,044 |
|
|
|
$ |
76,423 |
|
|
Professional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
employer services |
|
|
423,975 |
|
|
|
|
452,652 |
|
|
|
|
(367,682 |
) |
|
|
|
(390,698 |
) |
|
|
|
56,293 |
|
|
|
|
61,954 |
|
|
Total revenues |
|
$ |
476,019 |
|
|
|
$ |
529,075 |
|
|
|
$ |
(367,682 |
) |
|
|
$ |
(390,698 |
) |
|
|
$ |
108,337 |
|
|
|
$ |
138,377 |
|
|
Cost of revenues |
|
$ |
474,553 |
|
|
|
$ |
506,459 |
|
|
|
$ |
(367,682 |
) |
|
|
$ |
(390,698 |
) |
|
|
$ |
106,871 |
|
|
|
$ |
115,761 |
|
The following summarizes the unaudited consolidated balance sheets at June 30, 2009 and December 31, 2008.
Barrett Business Services, Inc.
News Release Second Quarter 2009
July 28, 2009
|
|
|
June 30, |
|
|
|
December 31, |
| ||
|
(in thousands) |
|
2009 |
|
|
|
2008 |
| ||
|
Assets |
|
|
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,137 |
|
|
|
$ |
42,214 |
|
|
Marketable securities |
|
|
13,114 |
|
|
|
|
17,968 |
|
|
Trade accounts receivable, net |
|
|
41,466 |
|
|
|
|
34,389 |
|
|
Income taxes receivable |
|
|
2,555 |
|
|
|
|
|
|
|
Prepaid expenses and other |
|
|
2,796 |
|
|
|
|
1,440 |
|
|
Deferred income taxes |
|
|
3,781 |
|
|
|
|
2,373 |
|
|
Workers compensation receivables for insured claims |
|
|
225 |
|
|
|
|
225 |
|
|
Total current assets |
|
|
91,074 |
|
|
|
|
98,609 |
|
|
Marketable securities |
|
|
11,184 |
|
|
|
|
427 |
|
|
Goodwill, net |
|
|
47,338 |
|
|
|
|
47,338 |
|
|
Property, equipment and software, net |
|
|
15,265 |
|
|
|
|
15,503 |
|
|
Restricted marketable securities and workers compensation deposits |
|
|
3,283 |
|
|
|
|
2,701 |
|
|
Other assets |
|
|
1,639 |
|
|
|
|
1,645 |
|
|
Workers compensation receivables for insured claims |
|
|
3,626 |
|
|
|
|
3,837 |
|
|
|
|
$ |
173,409 |
|
|
|
$ |
170,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders Equity |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
876 |
|
|
|
$ |
881 |
|
|
Accrued payroll, payroll taxes and related benefits |
|
|
38,851 |
|
|
|
|
32,296 |
|
|
Other accrued liabilities |
|
|
453 |
|
|
|
|
902 |
|
|
Workers compensation claims liabilities |
|
|
11,299 |
|
|
|
|
7,186 |
|
|
Workers compensation claims liabilities for insured claims |
|
|
225 |
|
|
|
|
225 |
|
|
Safety incentives liabilities |
|
|
4,593 |
|
|
|
|
4,626 |
|
|
Total current liabilities |
|
|
56,297 |
|
|
|
|
46,116 |
|
|
Customer deposits |
|
|
626 |
|
|
|
|
706 |
|
|
Long-term workers compensation claims liabilities |
|
|
13,667 |
|
|
|
|
5,235 |
|
|
Long-term workers compensation liabilities for insured claims |
|
|
2,366 |
|
|
|
|
2,438 |
|
|
Deferred income taxes |
|
|
2,946 |
|
|
|
|
4,394 |
|
|
Deferred gain on sale and leaseback |
|
|
488 |
|
|
|
|
549 |
|
|
Stockholders equity |
|
|
97,019 |
|
|
|
|
110,622 |
|
|
|
|
$ |
173,409 |
|
|
|
$ |
170,060 |
|
Outlook for Third Quarter 2009
The Company also disclosed today limited financial guidance with respect to its operating results for the third quarter ending September 30, 2009. The Company expects gross revenues for the third quarter of 2009 to range from $258 million to $263 million, as compared to $288.4 million for the third quarter of 2008, and anticipates diluted earnings per share for the third quarter of 2009 to range from $.17 to $.20 per share, as compared to diluted earnings per share of $.06 for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the third quarter of 2009 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.
Barrett Business Services, Inc.
News Release Second Quarter 2009
July 28, 2009
Declaration of Quarterly Cash Dividend
The Company announced today that its board of directors declared a regular quarterly cash dividend of $0.08 per share. The cash dividend will be paid on September 11, 2009 to all stockholders of record as of August 28, 2009.
Conference Call
On July 29 at 9:00 a.m. Pacific Time, William W. Sherertz, Michael L. Elich and James D. Miller will host an investor telephone conference call to discuss second quarter 2009 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 21826392. 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 July 29, 2009 at 12:00 p.m. PT and ending on Wednesday, August 5, 2009. To listen to the recording, dial (800) 642-1687 and enter conference identification code 21826392.
Statements in this release about future events or performance, including gross revenues and earnings expectations for the third quarter of 2009, 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 2008 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.
#####