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Barrett Business Services, Inc. Announces Record Net Income and Revenues for Third Quarter 1996

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PORTLAND, Ore., Nov. 6 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) reported today net income of $1,661,000 for the third quarter

ended September 30, 1996, an increase of $148,000 or 9.8% over the third

quarter of 1995. Earnings per share for the 1996 third quarter were $.24 as

compared to $.23 for the 1995 third quarter. Net income for the nine months

ended September 30, 1996 amounted to $3,792,000, an increase of $897,000 or

31.0% over the similar period in 1995. Earnings per share for the 1996

nine-month period were $.55, which compares to $.44 for 1995.

                                      (Unaudited)       (Unaudited)

Third Quarter Nine Months

Ended Ended

September 30, September 30,

1996 1995 1996 1995

Results of Operations

(in thousands, except per share amounts)

Revenues

Staffing services $32,612 $28,333 $ 82,332 $ 73,271

Professional employer

services 27,640 21,303 72,976 60,228

60,252 49,636 155,308 133,499

Cost of revenues:

Direct payroll costs 45,817 37,444 117,695 100,847

Payroll taxes and benefits 5,248 4,477 14,570 12,101

Workers' compensation 2,161 1,160 4,144 5,174

Safety incentives 433 297 1,142 720

53,659 43,378 137,551 118,842

Gross margin 6,593 6,258 17,757 14,657

Selling, general and

administrative expenses 4,104 3,748 11,671 9,850

Amortization of intangibles 207 140 576 424

Income from operations 2,282 2,370 5,510 4,383

Other income (expense) 109 70 318 269

Income before taxes 2,391 2,440 5,828 4,652

Provision for income taxes 730 927 2,036 1,757

Net income $1,661 $1,513 $3,792 $2,895

Net income per share $.24 $.23 $.55 $.44

Weighted average shares 7,019 6,667 6,928 6,657

Revenues for the third quarter ended September 30, 1996 totaled

$60.3 million, an increase of approximately $10.6 million or 21.4% over the

$49.6 million reported for the same quarter a year ago. Revenues for the nine

months ended September 30, 1996 were $155.3 million, an increase of 16.3% over

the comparable 1995 period. The internal growth rates of revenues for the

1996 third quarter and nine-month period were 14.6% and 8.6%, respectively.

The following summarizes the unaudited balance sheet at September 30,

1996, and the audited balance sheet at December 31, 1995:

    ($ in thousands)               September 30,          December 31,

1996 1995

Cash $4,956 $3,218

Receivables, net 17,409 13,151

Note receivable 324 --

Prepaids and other 746 478

Deferred tax asset 1,203 937

Total current assets 24,638 17,784

Intangibles, net 9,326 6,452

Property and equipment, net 2,435 2,261

Restricted marketable

securities 5,716 4,681

Other 131 95

$42,246 $31,273

Current portion of long-term

debt $36 $33

Income taxes payable 648 --

Accounts payable 714 378

Accrued payroll and benefits 8,223 5,797

Accrued workers' compensation

claims 2,124 2,383

Customer safety incentives 1,037 776

Total current liabilities 12,782 9,367

Long-term debt, net 848 875

Customer deposits 861 675

Other long-term liabilities 615 322

Redeemable common stock 2,825 --

Stockholders' equity 24,315 20,034

$42,246 $31,273

Barrett is a human resource management company with offices in Washington,

Oregon, Idaho, California, Arizona, Maryland and Delaware. Barrett reported

revenues of $179.8 million and net income of $4.1 million for 1995.
SOURCE Barrett Business Services Inc.
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services Inc., 503-220-0988