-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Oz7LUCZFtrFBFSJkwrKDUM+VIaB/MGmMn9UuvpL65Jnq5L5CtNalfFTRBedhZRMx VapfR/vU9CuKlTvuSwmyWg== 0000892917-04-000209.txt : 20040728 0000892917-04-000209.hdr.sgml : 20040728 20040728171208 ACCESSION NUMBER: 0000892917-04-000209 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: FILED AS OF DATE: 20040728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARRETT BUSINESS SERVICES INC CENTRAL INDEX KEY: 0000902791 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 520812977 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-61804 FILM NUMBER: 04936657 BUSINESS ADDRESS: STREET 1: 4724 S W MACADAM AVE CITY: PORTLAND STATE: OR ZIP: 97201 BUSINESS PHONE: 5032200988 MAIL ADDRESS: STREET 1: 4724 SW MACADAM AVE CITY: PORTLAND STATE: OR ZIP: 97201 8-K 1 bbs8-k72804.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 28, 2004 --------------- BARRETT BUSINESS SERVICES, INC. (Exact name of registrant as specified in charter) Maryland (State or other jurisdiction of incorporation) 0-21886 (SEC File Number) 52-0812977 (IRS Employer Identification No.) 4724 S.W. Macadam Avenue Portland, Oregon 97239 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (503) 220-0988 Item 12. Results of Operations and Financial Condition. On July 28, 2004, the Company issued a press release announcing its financial results for the quarter ended June 30, 2004, and limited financial guidance for third quarter 2004. A copy of the press release is furnished as Exhibit 99.1 to this report. Exhibits 99.1 Press release dated July 28, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BARRETT BUSINESS SERVICES, INC. Dated: July 28, 2004 By: /s/ Michael D. Mulholland ------------------------------------ Michael D. Mulholland Vice President - Finance EX-99 2 bbs8-kpr.txt 99.1 PR Exhibit 99.1 NEWS RELEASE For Immediate Release Contact: William W. Sherertz President and Chief Executive Officer Telephone: (503) 220-0988 BARRETT BUSINESS SERVICES, INC. ANNOUNCES SECOND QUARTER 2004 OPERATING RESULTS AND FINANCIAL GUIDANCE FOR 3Q04 PORTLAND, OREGON, July 28, 2004 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $1,840,000 for the second quarter ended June 30, 2004, an improvement of $1,673,000 over net income of $167,000 for the second quarter of 2003. Diluted earnings per share for the 2004 second quarter was $.30, as compared to diluted earnings per share of $.03 for the same quarter a year ago. Net revenues for the second quarter ended June 30, 2004 totaled $47.7 million, an increase of approximately $19.8 million or 71% over the $27.9 million for the same quarter in 2003.
(Unaudited) (Unaudited) Second Quarter Ended Six Months Ended June 30, June 30, ------------------- ------------------- Results of Operations 2004 2003 2004 2003 - ------------------------------------------- ------- ------- ------- ------- (in thousands, except per share amounts) Revenues: Staffing services $30,470 $23,046 $55,524 $43,156 Professional employer service fees 17,234 4,856 32,790 8,143 ------- ------- ------- ------- Total revenues 47,704 27,902 88,314 51,299 ------- ------- ------- ------- Cost of revenues: Direct payroll costs 22,551 17,079 40,871 31,877 Payroll taxes and benefits 10,649 4,385 22,180 8,190 Workers' compensation 5,644 1,982 9,680 3,407 ------- ------- ------- ------- Total cost of revenues 38,844 23,446 72,731 43,474 ------- ------- ------- ------- Gross margin 8,860 4,456 15,583 7,825 Selling, general and administrative expenses 5,701 3,869 11,233 7,465 Depreciation and amortization 253 271 495 551 ------- ------- ------- ------- Income (loss) from operations 2,906 316 3,855 (191) Other income (expense), net 38 (68) 59 (74) ------- ------- ------- ------- Income (loss) before taxes 2,944 248 3,914 (265) Provision for (benefit from) income taxes 1,104 81 1,468 (89) ------- ------- ------- ------- Net income (loss) $ 1,840 $ 167 $ 2,446 $ (176) ======= ======= ======= ======= Basic earnings (loss) per share $ .32 $ .03 $ .43 $ (.03) ======= ======= ======= ======= Weighted average basic shares outstanding 5,716 5,708 5,710 5,728 ======= ======= ======= ======= Diluted earnings (loss) per share $ .30 $ .03 $ .40 $ (.03) ======= ======= ======= ======= Weighted average diluted shares outstanding 6,134 5,726 6,138 5,728 ======= ======= ======= =======
The Company changed its reporting of PEO revenues from a gross basis to a net basis in 2002. The gross revenues and cost of revenues information below, although not in accordance with generally accepted accounting principles ("GAAP"), is presented for comparison purposes and because management believes such information is more informative as to the -1- Barrett Business Services, Inc. News Release - Second Quarter 2004 July 28, 2004 level of the Company's business activity and more useful in managing its operations.
(Unaudited) (Unaudited) Second Quarter Ended Six Months Ended ($ in thousands) June 30, June 30, -------------------- -------------------- 2004 2003 2004 2003 -------- ------- -------- ------- Revenues: Staffing services $ 30,470 $23,046 $ 55,524 $43,156 Professional employer services 97,984 28,342 189,704 48,881 -------- ------- -------- ------- Total revenues 128,454 51,388 245,228 92,037 -------- ------- -------- ------- Cost of revenues: Direct payroll costs 102,390 40,565 195,757 72,615 Payroll taxes and benefits 10,648 4,385 22,179 8,190 Workers' compensation 6,556 1,982 11,709 3,407 -------- ------- -------- ------- Total cost of revenues 119,594 46,932 229,645 84,212 -------- ------- -------- ------- Gross margin $ 8,860 $ 4,456 $ 15,583 $ 7,825 ======== ======= ======== =======
A reconciliation of non-GAAP gross revenues to net revenues is as follows: For the second quarters ended June 30, 2004 and 2003 (in thousands):
Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method -------------------- ---------------------- --------------------- 2004 2003 2004 2003 2004 2003 -------- ------- --------- -------- -------- ------- Revenues: Staffing services $ 30,470 $23,046 $ - $ - $ 30,470 $23,046 Professional employer services 97,984 28,342 (80,750) (23,486) 17,234 4,856 -------- ------- --------- -------- -------- ------- Total revenues $128,454 $51,388 $ (80,750) $(23,486) $ 47,704 $27,902 ======== ======= ========= ======== ======== ======= Cost of revenues: $119,594 $46,932 $ (80,750) $(23,486) $ 38,844 $23,446 ======== ======= ========= ======== ======== ======= For the six months ended June 30, 2004 and 2003 (in thousands): Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method -------------------- ---------------------- --------------------- 2004 2003 2004 2003 2004 2003 -------- ------- --------- -------- -------- ------- Revenues: Staffing services $ 55,524 $43,156 $ - $ - $ 55,524 $43,156 Professional employer services 189,704 48,881 (156,914) (40,738) 32,790 8,143 -------- ------- --------- -------- -------- ------- Total revenues $245,228 $92,037 $(156,914) $(40,738) $ 88,314 $51,299 ======== ======= ========= ======== ======== ======= Cost of revenues: $229,645 $84,212 $(156,914) $(40,738) $ 72,731 $43,474 ======== ======= ========= ======== ======== =======
-2- Barrett Business Services, Inc. News Release - Second Quarter 2004 July 28, 2004 William W. Sherertz, President and Chief Executive Officer, commented that: "We are very pleased with our continuing growth in earnings and revenues, both of which portend a strong second half of the year. During the second quarter, we achieved strong revenue growth in all of our operating regions, particularly in California, and we expect these trends to continue in the foreseeable future." The following summarizes the unaudited consolidated balance sheets at June 30, 2004 and December 31, 2003. ($ in thousands) June 30, December 31, 2004 2003 ------- ------- Assets ------ Current assets: Cash and cash equivalents $ 5,374 $ 7,785 Marketable securities 4,337 - Trade accounts receivable, net 27,952 18,481 Prepaid expenses and other 1,805 958 Deferred income taxes 3,057 2,196 ------- ------- Total current assets 42,525 29,420 Goodwill, net 21,738 18,749 Intangibles, net 35 13 Property, equipment and software, net 4,575 3,367 Restricted marketable securities and workers' compensation deposits 1,854 1,647 Deferred income taxes 833 1,041 Other assets 412 436 ------- ------- $71,972 $54,673 ======= ======= Liabilities and Stockholders' Equity ------------------------------------ Current liabilities: Current portion of long-term debt $ 348 $ 88 Income taxes payable 1,438 - Accounts payable 470 727 Accrued payroll, payroll taxes and related benefits 21,471 13,881 Workers' compensation claims liabilities 6,185 3,886 Safety incentives liabilities 3,787 2,007 Other accrued liabilities 1,166 361 ------- ------- Total current liabilities 34,865 20,950 Long-term debt, net of current portion 1,515 400 Customer deposits 514 455 Long-term workers' compensation claims liabilities 1,020 1,031 Other long-term liabilities - 45 Deferred gain on sale and leaseback 1,097 1,158 Stockholders' equity 32,961 30,634 ------- ------- $71,972 $54,673 ======= ======= -3- Outlook for Third Quarter 2004 - ------------------------------ The Company also disclosed today limited financial guidance with respect to its operating results for the third quarter ending September 30, 2004. The Company expects gross revenues for the third quarter to range from $135 million to $137 million and anticipates diluted earnings per share to range from $.33 to $.36 per share for the same period. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the third quarter of 2004 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable. On July 29, 2004 at 9:00 a.m. Pacific Time, William W. Sherertz and Michael D. Mulholland will host an investor telephone conference call to discuss second quarter 2004 operating results. To participate in the call, dial (877)356-3717. The call identification number is 8656923. The conference call 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 Webcast. A replay of the call will be available beginning July 29, 2004 at 11:00 a.m. and ending August 6, 2004. To listen to the recording, dial (800)642-1687 and enter conference identification code 8656923. BBSI provides 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 earnings expectations for the third quarter of 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, 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 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 2003 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. ##### -4- -----END PRIVACY-ENHANCED MESSAGE-----