English Spanish

News

Barrett Business Services, Inc. Announces 100% Increase in Earnings for Second Quarter 1999

Print Version

PORTLAND, Ore., Aug. 4 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) reported today net income of $1,216,000 for the second quarter

ended June 30, 1999, an increase of $616,000 or 102.7% over the second quarter

of 1998. Diluted earnings per share for the 1999 second quarter were

$.16, compared to $.08 for the same quarter a year ago. 1998 second quarter

earnings included pre-tax merger expenses of $750,000 in connection with the

June 1998 merger with Western Industrial Management, Inc.

Revenues for the second quarter ended June 30, 1999 totaled $84.7 million,

an increase of approximately $8.0 million or 10.5% over the $76.7 million for

the same quarter in 1998.

    Results of Operations

(in thousands, except (Unaudited) (Unaudited)

per share amounts) Second Quarter Ended Six Months Ended

June 30, June 30,

1999 1998 1999 1998

Revenues:

Staffing services $46,185 $42,786 $83,414 $83,090

Professional employer services 38,522 33,865 72,308 62,802

Total revenues 84,707 76,651 155,722 145,892

Cost of revenues:

Direct payroll costs 65,575 59,348 120,738 113,015

Payroll taxes and benefits 7,142 6,629 13,393 13,069

Workers' compensation 2,445 2,211 4,414 4,207

Safety incentives 403 336 720 700

Total cost of revenues 75,565 68,524 139,265 130,991

Gross margin 9,142 8,127 16,457 14,901

Selling, general and administrative

expenses 6,551 6,035 12,261 11,851

Merger expenses -- 750 -- 750

Amortization of intangibles 434 329 808 682

Income from operations 2,157 1,013 3,388 1,618

Other (expense) income, net (15) 41 57 110

Income before taxes 2,142 1,054 3,445 1,728

Provision for income taxes 926 454 1,489 741

Net income $1,216 $600 $1,956 $987

Basic earnings per share $.16 $.08 $.26 $.13

Weighted average basic shares

outstanding 7,581 7,666 7,624 7,652

Diluted earnings per share $.16 $.08 $.26 $.13

Weighted average diluted shares

outstanding 7,624 7,722 7,666 7,707

Certain 1998 amounts have been reclassified to conform with the 1999

presentation. Such reclassifications had no impact on gross margin, net

income or stockholders' equity.

The following summarizes the unaudited balance sheets at June 30, 1999

and December 31, 1998:

($ in thousands) June 30, December 31,

1999 1998

Assets

Current assets:

Cash and cash equivalents $945 $4,029

Trade accounts receivable, net 30,145 21,907

Prepaid expenses and other 1,694 1,103

Deferred tax assets 1,761 1,857

Total current assets 34,545 28,896

Intangibles, net 23,116 11,508

Property and equipment, net 6,132 5,184

Restricted marketable securities

and workers' compensation deposits 6,364 6,004

Deferred tax assets 716 552

Other assets 1,076 626

$71,949 $52,770

Liabilities and Stockholders' Equity

Current liabilities:

Notes payable $1,105 $--

Current portion of long-term debt 2,782 61

Line of credit payable 2,541 --

Income taxes payable -- 438

Accounts payable 1,706 948

Accrued payroll, payroll taxes

and related benefits 15,744 9,246

Accrued workers' compensation claim liabilities 2,769 3,244

Customer safety incentives payable 1,112 1,173

Other accrued liabilities 447 514

Total current liabilities 28,206 15,624

Long-term debt, net of current portion 5,632 503

Customer deposits 798 829

Long-term workers' compensation liabilities 706 714

Other long-term liabilities 1,691 1,398

Stockholders' equity 34,916 33,702

$71,949 $52,770

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

with offices in eleven 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