12/20/2005 Print Version
PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 20, 2005--Barrett Business
Services, Inc. (Nasdaq:BBSI) today announced that it has reached an
agreement in principle to acquire certain assets of Pro HR, LLC,
headquartered in Boise, Idaho, effective January 1, 2006.
Consideration for the transaction, valued at $5.5 million all cash,
includes $4.0 million due upon closing and $1.5 million contingent
upon 2006 financial performance. Any shortfall from the 2006 targeted
financial performance will result in a pro rata reduction to the
purchase price up to $1.5 million. Closing of the acquisition is
conditioned upon execution of a definitive asset purchase agreement.
Pro HR, LLC, a privately-held professional employer organization
(PEO) company, operates three offices in Boise and Rexburg, Idaho, and
Grand Junction, Colorado. Pro HR has estimated its 2006 gross
(non-GAAP) PEO revenues will total $110 million, which equates to
approximately $14 million in net (GAAP) revenues. BBSI anticipates
that this acquisition will increase BBSI's 2006 earnings by
approximately 7 to 9 cents per diluted share.
On December 20, 2005, at 9:00 a.m. Pacific Time, William W.
Sherertz, President and Chief Executive Officer, and Michael D.
Mulholland, Vice President-Finance, of BBSI will host a telephone
conference call to discuss this acquisition. To participate in the
call, dial 877-356-3717. The call identification number is #3727914.
The conference will also be webcast live at www.barrettbusiness.com.
To access the webcast, click on the investor relations section of the
Web site and select webcasts.
A replay of the call will be available beginning December 20,
2005, at 11:00 a.m. PT and ending December 27, 2005. To listen to the
recording, dial 800-642-1687 and enter conference identification code
BBSI provides a comprehensive range of human resource management
solutions to large and small companies throughout many regions of the
Statements in this release about future events or performance,
including revenue and earnings expectations for 2006, 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, the effect of changes in the
workers' compensation regulatory environment in one or more of our
primary markets, collectibility of accounts receivable, and the use of
net proceeds of approximately $33.1 million and other effects of the
Company's recent follow-on equity offering, among others. Other
important factors that may affect the Company's future prospects are
described in the Company's 2004 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.
CONTACT: Barrett Business Services, Inc., Portland
William W. Sherertz, 503-220-0988
SOURCE: Barrett Business Services, Inc.