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Barrett Business Services, Inc. Announces 100% Increase in Earnings Per Share For First Quarter 1999

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PORTLAND, Ore., May 5 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) reported today net income of $740,000 for the first quarter

ended March 31, 1999, an increase of $353,000 or 91.2% over the first quarter

of 1998. Basic and diluted earnings per share for the 1999 first quarter were

$.10, compared to $.05 for both basic and diluted earnings per share for the

same quarter a year ago.

Revenues for the first quarter ended March 31, 1999 totaled $71.0 million,

an increase of approximately $1.8 million or 2.6% over the $69.2 million

reported for the same quarter a year ago.

                                                  (Unaudited)

First Quarter Ended

March 31,

Results of Operations 1999 1998

(in thousands, except

per share amounts)

Revenues:

Staffing services $37,229 $40,304

Professional employer services 33,786 28,937

Total revenues 71,015 69,241

Cost of revenues:

Direct payroll costs 55,163 53,667

Payroll taxes and benefits 6,251 6,440

Workers' compensation 1,969 1,996

Safety incentives 317 364

Total cost of revenues 63,700 62,467

Gross margin 7,315 6,774

Selling, general and

administrative expenses 5,710 5,816

Amortization of intangibles 374 353

Income from operations 1,231 605

Other income 72 69

Income before taxes 1,303 674

Provision for income taxes 563 287

Net income $740 $387

Basic earnings per share $.10 $.05

Weighted average basic shares 7,666 7,639

Diluted earnings per share $.10 $.05

Weighted average diluted shares 7,707 7,693

The following summarizes the unaudited balance sheets at March 31, 1999

and December 31, 1998:

    ($ in thousands)                       March 31,     December 31,

1999 1998

Assets

Cash $1,713 $4,029

Receivables, net 23,579 21,907

Prepaids and other 1,627 1,103

Deferred tax assets 1,841 1,857

Total current assets 28,760 28,896

Intangibles, net 14,968 11,508

Property and equipment, net 5,532 5,184

Restricted marketable securities 6,184 6,004

Deferred tax assets 697 552

Other assets 964 626

$57,105 $52,770

Liabilities and Stockholders' Equity

Note payable $240 $-

Current portion of long-term debt 115 61

Income taxes payable 488 438

Accounts payable 1,156 948

Accrued payroll and benefits 13,249 9,246

Accrued workers' compensation claims 2,903 3,244

Customer safety incentives 1,113 1,173

Other accrued liabilities 361 514

Total current liabilities 19,625 15,624

Long-term debt, net 541 503

Customer deposits 805 829

Long-term workers' compensation

liabilities 710 714

Other long-term liabilities 1,579 1,398

Stockholders' equity 33,845 33,702

$57,105 $52,770

Barrett Business Services, Inc. is a human resource management company

with offices in ten states. For 1998, Barrett reported revenues of

$303.0 million and net income of $3.8 million.
SOURCE Barrett Business Services, Inc.
Web site: http: //www.barrettbusiness.com
Company News On-Call: http: //www.prnewswire.com/comp/082187.html or fax, 800-758-5804, ext. 082187
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., 503-220-0988