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Barrett Business Services, Inc. Announces Record Fourth Quarter 1999 Earnings And Revenues

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PORTLAND, Ore., Feb. 9 /PRNewswire/ --

Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of

$1,359,000 for the fourth quarter ended December 31, 1999, an increase of

10.0% over the fourth quarter of 1998. Diluted earnings per share for the

1999 fourth quarter were $.18, compared to $.16 for the same quarter a year

ago. Net income for the year ended December 31, 1999 amounted to $5,149,000,

an increase of 34.8% over the comparable 1998 period. Basic and diluted

earnings per share for the 1999 12-month period were $.68, compared to

$.50 for basic and diluted earnings per share for the similar 1998 period.

Revenues for the fourth quarter ended December 31, 1999 totaled

$96.3 million, an increase of approximately $21.1 million or 28.1% over the

$75.2 million for the same quarter in 1998. Revenues for the year ended

December 31, 1999 were $347.9 million, an increase of 14.8% over the

comparable 1998 period. The internal growth rate for revenues was 11.5% for

the 1999 fourth quarter and 3.3% for the year ended December 31, 1999.

    Results of Operations

(in thousands, except

per share amounts)

Fourth Quarter Ended Year Ended

December 31, December 31,

1999 1998 1999 1998

Revenues:

Staffing services $55,142 $38,154 $194,991

$165,443

      Professional employer services     41,111    37,014   152,859  137,586

Total revenues 96,253 75,168 347,850 303,029

Cost of revenues:

Direct payroll costs 75,024 58,482 270,049 235,265

Payroll taxes and benefits 7,590 5,894 28,603 25,550

Workers' compensation 3,545 2,636 11,702 10,190

Total cost of revenues 86,159 67,012 310,354 271,005

Gross margin 10,094 8,156 37,496 32,024

Selling, general and

administrative expenses 7,175 5,804 26,551 23,481

Merger expenses -- -- -- 750

Amortization of intangibles 528 312 1,867 1,316

Income from operations 2,391 2,040 9,078 6,477

Other (expense) income, net (165) 89 (245) 267

Income before taxes 2,226 2,129 8,833 6,744

Provision for income taxes 867 894 3,684 2,923

Net income $ 1,359 $ 1,235 $5,149 $3,821

Basic earnings per share $.18 $.16 $.68 $.50

Weighted average basic shares

outstanding 7,495 7,676 7,581 7,664

Diluted earnings per share $.18 $.16 $.68 $.50

Weighted average diluted

shares outstanding 7,541 7,714 7,627 7,711

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 December 31, 1999

and December 31, 1998:

     ($ in thousands)                                 December 31,

1999 1998

Assets

Current assets:

Cash and cash equivalents $550 $4,029

Trade accounts receivable, net 30,216 21,907

Prepaid expenses and other 1,219 1,103

Deferred tax assets 1,658 1,857

Total current assets 33,643 28,896

Intangibles, net 21,945 11,508

Property and equipment, net 7,027 5,184

Restricted marketable securities

and workers' compensation deposits 6,281 6,004

Deferred tax assets 712 552

Other assets 1,132 626

$70,740 $52,770

Liabilities and Stockholders' Equity

Current liabilities:

Notes payable $865 $--

Current portion of long-term debt 2,783 129

Line of credit payable 4,882 --

Income taxes payable -- 438

Accounts payable 1,356 948

Accrued payroll, payroll taxes

and related benefits 11,437 9,246

Workers' compensation claim and

safety incentive liabilities 4,219 4,417

Other accrued liabilities 413 446

Total current liabilities 25,955 15,624

Long-term debt, net of current portion 4,232 435

Customer deposits 815 829

Long-term workers' compensation

liabilities 699 714

Other long-term liabilities 1,710 1,466

Stockholders' equity 37,329 33,702

$70,740 $52,770

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

with offices in ten states.
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, 503-220-0988