5/10/2007 Print Version
VANCOUVER, Wash.--(BUSINESS WIRE)--May 10, 2007--Barrett Business
Services, Inc. (Nasdaq: BBSI) today announced that it has reached an
agreement in principle to acquire Strategic Staffing, Inc.
headquartered in Salt Lake City, Utah pursuant to an asset purchase
agreement effective July 1, 2007. The transaction is subject to the
successful completion of due diligence. Consideration for the
transaction includes $12 million in cash due upon closing and any
additional consideration contingent upon the financial performance
during the 12-month period following the effective date. The
contingent consideration will be a multiple of pre-tax earnings above
a pre-determined target.
Strategic Staffing, a privately-held staffing company, operates
five offices in Utah and one office in Colorado Springs, Colorado. For
2006, Strategic Staffing's revenues were approximately $38 million.
BBSI anticipates that this acquisition will increase 2007 earnings by
approximately 8 to 9 cents per diluted share for the second half of
On May 11, 2007 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 8757708. 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
A replay of the call will be available beginning May 11, 2007 at
11:00 a.m. and ending May 18, 2007. To listen to the recording, dial
(800) 642-1687 and enter conference identification code 8757708.
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 earnings expectations for 2007, 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 approximately
$74 million in cash and marketable securities, among others. Other
important factors that may affect the Company's future prospects are
described in the Company's 2006 Annual Report on Form 10-K. Although
forward-looking statements help to provide complete information about
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.
President and Chief Executive Officer
William W. Sherertz, 360-828-0700
SOURCE: Barrett Business Services, Inc.