Barrett Business Services, Inc. Announces First Quarter 2002 Operating Results And Schedules Investor Conference Call

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PORTLAND, Ore., May 2 /PRNewswire-FirstCall/ --

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

$417,000 for the first quarter ended March 31, 2002, a decline of $206,000

from a net loss of $211,000 for the first quarter of 2001. Basic and diluted

loss per share for the 2002 first quarter were $(.07), as compared to basic

and diluted loss per share of $(.03) for the 2001 first quarter. Cash flow

per share (defined as net (loss) income plus depreciation and amortization

divided by weighted average diluted shares outstanding) for the 2002 first

quarter totaled $(.02), as compared to a positive $.10 for the same quarter a

year ago.

Revenues for the first quarter ended March 31, 2002 totaled $41.0 million,

a decrease of approximately $14.2 million or 25.7% from the $55.2 million for

the same quarter in 2001.


First Quarter Ended

March 31,

Results of Operations 2002 2001

(in thousands, except per share amounts)


Staffing services $22,570 $31,272

Professional employer services 18,395 23,881

Total revenues 40,965 55,153

Cost of revenues:

Direct payroll costs 31,861 42,760

Payroll taxes and benefits 3,692 4,874

Workers' compensation 1,625 2,177

Total cost of revenues 37,178 49,811

Gross margin 3,787 5,342

Selling, general and administrative expenses 4,199 4,876

Depreciation and amortization 312 829

Loss from operations (724) (363)

Other income, net 11 7

Loss before taxes (713) (356)

Benefit from income taxes (296) (145)

Net loss $(417) $(211)

Basic loss per share $(.07) $(.03)

Weighted average basic shares outstanding 5,821 6,400

Diluted loss per share $(.07) $(.03)

Weighted average diluted shares outstanding 5,821 6,400

Cash flow per share $(.02) $.10

As a result of the Company's adoption of Statement of Financial Accounting

Standard No. 142 -- Goodwill and Other Intangible Assets as of January 1,

2002, the Company has ceased the amortization of goodwill. Operating results

for the first quarter of 2001 included $438,000 of goodwill amortization.

William W. Sherertz, President and Chief Executive Officer, commented

that: "The sequential decline in quarterly revenues appears to have

stabilized during the first quarter of 2002. In spite of disappointing

operating results, we have continued to strengthen our management team

throughout all of our operating zones and, as such, we believe the Company is

well positioned to take advantage of a potential improvement in general

economic conditions in the quarters ahead."

The following summarizes the unaudited balance sheets at March 31, 2002

and December 31, 2001.

    ($ in thousands)

March 31, December 31,

2002 2001


Current assets:

Cash and cash equivalents $516 $ 1,142

Trade accounts receivable, net 12,908 13,760

Prepaid expenses and other 1,883 1,022

Deferred tax assets 2,882 2,841

Total current assets 18,189 18,765

Intangibles, net 18,845 18,878

Property, equipment and software, net 5,834 6,084

Restricted marketable securities and workers'

compensation deposits 5,091 5,425

Deferred tax assets 2,217 2,268

Other assets 1,158 1,146

$51,334 $52,566

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt $413 $708

Line of credit payable 2,611 3,424

Accounts payable 562 686

Accrued payroll, payroll

taxes and related benefits 6,088 5,165

Workers' compensation claim

and safety incentive liabilities 4,725 5,735

Other accrued liabilities 1,226 389

Total current liabilities 15,625 16,107

Long-term debt, net of current portion 822 922

Customer deposits 473 520

Long-term workers' compensation liabilities 3,510 3,515

Other long-term liabilities 968 968

Stockholders' equity 29,936 30,534

$51,334 $52,566

On Friday, May 3, 2002, at 9:00 a.m. Pacific Time, William W. Sherertz

will host an investor telephone conference call to discuss first quarter 2002

operating results. To participate in the call, dial (800)399-3080 shortly

before 9:00 a.m. Pacific Time on Friday, May 3, 2002. A recording of the call

will be available beginning May 3, 2002 at 12 noon and ending Friday, May 10,

2002 at 12 noon. To listen to the recording, dial (800)642-1687 and enter

conference identification code 4083854.

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

with offices in nine states which serve customers in approximately 15 states.

Statements in this release 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, future workers'

compensation claims experience, collectibility of accounts receivable, and

availability of funding for working capital purposes, 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 information.

SOURCE Barrett Business Services, Inc.
Web site: http: //
Company News On-Call: http: //
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services, Inc., +1-503-220-0988