12/4/2003 Print Version
PORTLAND, Ore., Dec. 4 /PRNewswire-FirstCall/ -- Barrett Business
Services, Inc. (Nasdaq: BBSI) today announced that it has reached an agreement
in principle to acquire Skills Resource Training Center ("SRTC") headquartered
in Pasco, Washington pursuant to an asset purchase agreement effective
January 1, 2004. Consideration for the transaction, valued at approximately
$5.0 million, includes $3.0 million in cash due upon closing and approximately
$2.0 million in common stock of BBSI based on current market price. The
ultimate number of shares to be issued, if any, will be based upon the level
of financial performance achieved by the SRTC offices during calendar 2004.
Barrett anticipates that this acquisition will increase 2004 earnings by
approximately 10 cents to 16 cents per share.
SRTC, a privately-held staffing services company, operates nine offices in
Central Washington, Eastern Oregon and Southern Idaho. SRTC's staffing
services have served the agricultural, food packing and processing industries
for the past 17 years. SRTC's revenues for calendar 2004 are expected to
approximate $20 to $25 million.
William W. Sherertz, BBSI's President and Chief Executive Officer,
commented, "We are very pleased with the opportunity to expand and diversify
our business in these market areas through such a quality organization, which
we expect to produce significant operating synergies with our existing
Northwest staffing offices."
Barrett Business Services, Inc. is a human resource management company
with offices in seven states, which serve customers in approximately
Statements in this release about future events or performance, including
earnings and revenue expectations for 2004, 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, the Company's ability to successfully integrate
acquired businesses with its existing operations, future workers' compensation
claims experience, collectibility of accounts receivable, and availability of
funding for working capital purposes, among others. Other important factors
that may affect the Company's future prospects are described in the Company's
2002 Annual Report on Form 10-K. 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. The Company undertakes no obligation to update or revise
forward-looking statements in this release to reflect events or changes in
circumstances that occur after the date of this release.
SOURCE Barrett Business Services, Inc.