EXHIBIT 99.1
Published on February 10, 2010
Exhibit 99.1
NEWS RELEASE
For Immediate Release Contact: William W. Sherertz
President and
Chief Executive Officer
Telephone: (360) 828-0700
BBSI
ANNOUNCES FOUTH QUARTER 2009 OPERATING RESULTS,
FINANCIAL GUIDANCE FOR 1Q10, DECLARATION OF QUARTERLY CASH DIVIDEND
AND CONFERENCE CALL
VANCOUVER, WASHINGTON, February 9, 2010 Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $2.2 million compared to net income of $2.3 million for the fourth quarter of 2008. Diluted earnings per share for the 2009 fourth quarter were $.21, as compared to diluted earnings per share of $.21 for the same quarter a year ago.
Net revenues for the fourth quarter ended December 31, 2009 totaled $62.6 million, a decrease of approximately $2.0 million or 3.1% from the $64.6 million for the same quarter in 2008.
|
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||
|
(in thousands, except per share amounts) |
|
Fourth Quarter Ended |
|
Year Ended |
||||||||||
|
|
|
December 31, |
|
December 31, |
||||||||||
|
Results of Operations |
|
2009 |
|
2008 |
|
2009 |
|
2008 |
||||||
|
Revenues: |
|
|
|
|
|
|
|
|
||||||
|
Staffing services |
|
$ |
30,931 |
|
$ |
33,674 |
|
$ |
116,155 |
|
$ |
154,565 |
||
|
Professional employer service fees |
|
31,698 |
|
30,956 |
|
120,305 |
|
125,903 |
||||||
|
Total revenues |
|
62,629 |
|
64,630 |
|
236,460 |
|
280,468 |
||||||
|
Cost of revenues: |
|
|
|
|
|
|
|
|
||||||
|
Direct payroll costs |
|
23,388 |
|
25,173 |
|
87,679 |
|
114,440 |
||||||
|
Payroll taxes and benefits |
|
19,617 |
|
19,164 |
|
82,077 |
|
85,531 |
||||||
|
Workers' compensation |
|
7,636 |
|
8,208 |
|
41,109 |
|
30,887 |
||||||
|
Total cost of revenues |
|
50,641 |
|
52,545 |
|
210,865 |
|
230,858 |
||||||
|
Gross margin |
|
11,988 |
|
12,085 |
|
25,595 |
|
49,610 |
||||||
|
Selling, general and administrative expenses |
|
8,689 |
|
8,813 |
|
33,481 |
|
36,654 |
||||||
|
Depreciation and amortization |
|
423 |
|
393 |
|
1,641 |
|
1,536 |
||||||
|
Income (loss) from operations |
|
2,876 |
|
2,879 |
|
(9,527 |
) |
|
11,420 |
|||||
|
Loss on impairment of investments |
|
- |
|
- |
|
- |
|
(3,483 |
) |
|||||
|
Other income, net |
|
267 |
|
376 |
|
1,640 |
|
2,054 |
||||||
|
Income (loss) before taxes |
|
3,143 |
|
3,255 |
|
(7,887 |
) |
|
9,991 |
|||||
|
Provision for (benefit from) income taxes |
|
950 |
|
983 |
|
(3,119 |
) |
|
3,728 |
|||||
|
Net income (loss) |
|
$ |
2,193 |
|
$ |
2,272 |
|
$ |
(4,768 |
) |
|
$ |
6,263 |
|
|
Basic earnings (loss) per share |
|
$ |
.21 |
|
$ |
.21 |
|
$ |
(.46 |
) |
|
$ |
.58 |
|
|
Weighted average basic shares outstanding |
|
10,480 |
|
10,638 |
|
10,452 |
|
10,861 |
||||||
|
Diluted earnings (loss) per share |
|
$ |
.21 |
|
$ |
.21 |
|
$ |
(.46 |
) |
|
$ |
.56 |
|
|
Weighted average diluted shares outstanding |
|
10,497 |
|
10,837 |
|
10,452 |
|
11,120 |
||||||
Barrett Business Services, Inc.
News Release Fourth Quarter 2009
February 9, 2010
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) |
||||||||
|
|
|
Fourth Quarter Ended |
|
Year Ended |
||||||||
|
(in thousands) |
|
December 31, |
|
December 31, |
||||||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
||||
|
Revenues: |
|
|
|
|
|
|
|
|
||||
|
Staffing services |
|
$ |
30,931 |
|
$ |
33,674 |
|
$ |
116,155 |
|
$ |
154,565 |
|
Professional employer services |
|
239,884 |
|
229,449 |
|
903,731 |
|
926,028 |
||||
|
Total revenues |
|
270,815 |
|
263,123 |
|
1,019,886 |
|
1,080,593 |
||||
|
Cost of revenues: |
|
|
|
|
|
|
|
|
||||
|
Direct payroll costs |
|
230,359 |
|
222,274 |
|
866,167 |
|
908,410 |
||||
|
Payroll taxes and benefits |
|
19,617 |
|
19,164 |
|
82,077 |
|
85,531 |
||||
|
Workers' compensation |
|
8,851 |
|
9,600 |
|
46,047 |
|
37,042 |
||||
|
Total cost of revenues |
|
258,827 |
|
251,038 |
|
994,291 |
|
1,030,983 |
||||
|
Gross margin |
|
$ |
11,988 |
|
$ |
12,085 |
|
$ |
25,595 |
|
$ |
49,610 |
Gross revenues of $270.8 million for the fourth quarter ended December 31, 2009 increased 2.9% over the similar period in 2008.
A reconciliation of non-GAAP gross revenues to net revenues is as follows:
For the fourth quarters ended December 31, 2009 and 2008:
|
|
(Unaudited) |
||||||||||||||||||
|
|
Three Months Ended December 31, |
||||||||||||||||||
|
|
Gross Revenue |
|
|
|
Net Revenue |
||||||||||||||
|
(in thousands) |
Reporting Method |
|
Reclassification |
|
Reporting Method |
||||||||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
2009 |
|
2008 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Staffing services |
$ |
30,931 |
|
$ |
33,674 |
|
$ |
- |
|
$ |
- |
|
$ |
30,931 |
|
$ |
33,674 |
||
|
Professional |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
employer services |
239,884 |
|
229,449 |
|
(208,186 |
) |
|
(198,493 |
) |
|
31,698 |
|
30,956 |
||||||
|
Total revenues |
$ |
270,815 |
|
$ |
263,123 |
|
$ |
(208,186 |
) |
|
$ |
(198,493 |
) |
|
$ |
62,629 |
|
$ |
64,630 |
|
Cost of revenues |
$ |
258,827 |
|
$ |
251,038 |
|
$ |
(208,186 |
) |
|
$ |
(198,493 |
) |
|
$ |
50,641 |
|
$ |
52,545 |
Barrett Business Services, Inc.
News Release Fourth Quarter 2009
February 9, 2010
For the years ended December 31, 2009 and 2008:
|
|
(Unaudited) |
||||||||||||||||||
|
|
Year Ended December 31, |
||||||||||||||||||
|
|
Gross Revenue |
|
|
|
Net Revenue |
||||||||||||||
|
(in thousands) |
Reporting Method |
|
Reclassification |
|
Reporting Method |
||||||||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
2009 |
|
2008 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Staffing services |
$ |
116,155 |
|
$ |
154,565 |
|
$ |
- |
|
$ |
- |
|
$ |
116,155 |
|
$ |
154,565 |
||
|
Professional |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
employer services |
903,731 |
|
926,028 |
|
(783,426 |
) |
|
(800,125 |
) |
|
120,305 |
|
125,903 |
||||||
|
Total revenues |
$ |
1,019,886 |
|
$ |
1,080,593 |
|
$ |
(783,426 |
) |
|
$ |
(800,125 |
) |
|
$ |
236,460 |
|
$ |
280,468 |
|
Cost of revenues |
$ |
994,291 |
|
$ |
1,030,983 |
|
$ |
(783,426 |
) |
|
$ |
(800,125 |
) |
|
$ |
210,865 |
|
$ |
230,858 |
The following summarizes the unaudited consolidated balance sheets at December 31, 2009 and December 31, 2008.
Barrett Business Services, Inc.
News Release Fourth Quarter 2009
February 9, 2010
|
|
December 31, |
|
December 31, |
||
|
(in thousands) |
2009 |
|
2008 |
||
|
Assets |
|
|
|
||
|
Current assets: |
|
|
|
||
|
Cash and cash equivalents |
$ |
36,671 |
|
$ |
42,214 |
|
Marketable securities |
13,766 |
|
17,968 |
||
|
Trade accounts receivable, net |
33,070 |
|
34,389 |
||
|
Income taxes receivable |
4,274 |
|
- |
||
|
Prepaid expenses and other |
979 |
|
1,440 |
||
|
Deferred income taxes |
4,071 |
|
2,373 |
||
|
Workers' compensation receivables for insured claims |
225 |
|
225 |
||
|
Total current assets |
93,056 |
|
98,609 |
||
|
Marketable securities |
7,473 |
|
427 |
||
|
Goodwill, net |
47,338 |
|
47,338 |
||
|
Property, equipment and software, net |
14,795 |
|
15,503 |
||
|
Restricted marketable securities and workers' compensation deposits |
2,666 |
|
2,701 |
||
|
Other assets |
3,104 |
|
1,645 |
||
|
Workers' compensation receivables for insured claims |
3,640 |
|
3,837 |
||
|
|
$ |
172,072 |
|
$ |
170,060 |
|
|
|
|
|
||
|
Liabilities and Stockholders' Equity |
|
|
|
||
|
Current liabilities: |
|
|
|
||
|
Accounts payable |
$ |
1,117 |
|
$ |
881 |
|
Accrued payroll, payroll taxes and related benefits |
30,244 |
|
32,296 |
||
|
Other accrued liabilities |
499 |
|
902 |
||
|
Workers' compensation claims liabilities |
10,509 |
|
7,186 |
||
|
Workers' compensation claims liabilities for insured claims |
225 |
|
225 |
||
|
Safety incentives liabilities |
4,437 |
|
4,626 |
||
|
Total current liabilities |
47,031 |
|
46,116 |
||
|
Customer deposits |
600 |
|
706 |
||
|
Long-term workers' compensation claims liabilities |
14,560 |
|
5,235 |
||
|
Long-term workers' compensation liabilities for insured claims |
2,504 |
|
2,438 |
||
|
Deferred income taxes |
6,323 |
|
4,394 |
||
|
Other long-term liabilities |
500 |
|
- |
||
|
Deferred gain on sale and leaseback |
427 |
|
549 |
||
|
Stockholders' equity |
100,127 |
|
110,622 |
||
|
|
$ |
172,072 |
|
$ |
170,060 |
Outlook for First Quarter 2010
The Company also disclosed today limited financial guidance with respect to its operating results for the first quarter ending March 31, 2010. The Company expects gross revenues for the first quarter of 2010 to range from $258 million to $262 million, as compared to $227.9 million for the first quarter of 2009, and anticipates diluted loss per share for the first quarter of 2010 to range from $.19 to $.22 per share, as compared to a diluted loss per share of $.30 for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the first quarter of 2010 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.
Barrett Business Services, Inc.
News Release – Fourth Quarter 2009
February 9, 2010
Declaration of Quarterly Cash Dividend
The Company’s board of directors declared a regular quarterly cash dividend of $0.08 per share. The cash dividend will be paid on March 12, 2010 to all stockholders of record as of February 26, 2010.
Conference Call
On February 10 at 9:00 a.m. Pacific Time, William W. Sherertz and James D. Miller will host an investor telephone conference call to discuss fourth quarter 2009 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 55213927. 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 Wednesday, February 10, 2010 at 12:00 p.m. PT and ending on Wednesday, February 17, 2010. To listen to the recording, dial (800) 642-1687 and enter conference identification code 55213927.
Statements in this release about future events or performance, including gross revenues and earnings expectations for the first quarter of 2010, 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 Company’s investment portfolio, among others. Other important factors that may affect the Company’s future prospects are described in the Company’s 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.
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