News

BBSI Announces Acquisition of Pro HR, LLC

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

#3727914.

BBSI provides a comprehensive range of human resource management

solutions to large and small companies throughout many regions of the

United States.

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.