PORTLAND, Ore., Oct. 23 /PRNewswire/ --
Barrett Business Services, Inc. (Nasdaq: BBSI) announced today that it expects
to report operating results for the third quarter ended September 30, 2000
that are lower than those for the comparable 1999 quarter. The anticipated
results are attributable primarily to a 16% decline in revenues and a lower
gross margin percent due to higher workers' compensation expense, as compared
to the same quarter last year.
The Company's revenues continue to be adversely affected by the reduced
availability of qualified employees in a low unemployment economy, as well as
the Company's decision to terminate its relationship with certain customers
due to unacceptable profit margins or risks associated with credit or
workplace safety. In an effort to improve future operating results,
management is continuing to increase the Company's rates for services to
reflect the continuing imbalance between the demand for and supply of
qualified employees for its customers, in addition to reducing selling,
general and administrative expenses.
Management expects the Company's net earnings per diluted share for the
third quarter ended September 30, 2000 to be $.07, as compared to $.24 for the
same quarter last year. The Company anticipates that its third quarter 2000
operating results will be reported on November 1, 2000.
The Company also announced that its board of directors has authorized the
repurchase of up to an additional 250,000 shares under the Company's stock
repurchase program from time to time in open market purchases. This action
increases the total number of common shares authorized for repurchase from
700,000 to 950,000. Since the inception of the repurchase program, the
Company has repurchased 599,600 common shares.
Barrett Business Services is a human resource management company with
offices in ten states. For 1999, Barrett reported net income of
$5.1 million and revenues of $347.9 million.
Statements above about future events or performance 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, and future workers' compensation
claims experience, among others. 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
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