-----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, BsaNuhXfKvQWb30mPpHWeVH9ZwRh6KtGdbXtK3sVhiLfxKiRCXpFRlbPkfhMP4N5 Crb86SnNRJ+mdN4qBFRo+g== 0000892917-04-000270.txt : 20041027 0000892917-04-000270.hdr.sgml : 20041027 20041027170117 ACCESSION NUMBER: 0000892917-04-000270 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041027 DATE AS OF CHANGE: 20041027 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: 041100116 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-k102704.txt UNITED STATES 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): October 27, 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. On October 27, 2004, Barrett Business Services, Inc. (the "Company"), issued a press release announcing its financial results for the quarter ended September 30, 2004, and limited financial guidance for the 2004 fourth quarter. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference. Item 9.01. Financial Statements and Exhibits. (c) Exhibits: The following exhibit is furnished with this Form 8-K: 99.1 Press Release dated October 27, 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: October 27, 2004 By: /s/ Michael D. Mulholland -------------------------------------- Michael D. Mulholland Vice President - Finance EX-99 2 bbs8-k102704ex.txt 99.1 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 THIRD QUARTER 2004 OPERATING RESULTS AND FINANCIAL GUIDANCE FOR 4Q04 PORTLAND, OREGON, OCTOBER 27, 2004 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $2,448,000 for the third quarter ended September 30, 2004, an improvement of $1,505,000 over net income of $943,000 for the third quarter of 2003. Diluted earnings per share for the 2004 third quarter was $.40, as compared to diluted earnings per share of $.16 for the same quarter a year ago. Net revenues for the third quarter ended September 30, 2004 totaled $54.7 million, an increase of approximately $19.9 million or 57.2% over the $34.8 million for the same quarter in 2003.
(Unaudited) (Unaudited) Third Quarter Ended Nine Months Ended September 30, September 30, -------------------- -------------------- Results of Operations 2004 2003 2004 2003 - ------------------------------------------- -------- -------- -------- -------- (in thousands, except per share amounts) Revenues: Staffing services $ 35,673 $ 26,727 $ 91,197 $ 69,883 Professional employer service fees 19,006 8,046 51,796 16,189 -------- -------- -------- -------- Total revenues 54,679 34,773 142,993 86,072 -------- -------- -------- -------- Cost of revenues: Direct payroll costs 26,436 19,740 67,307 51,617 Payroll taxes and benefits 11,376 6,181 33,556 14,371 Workers' compensation 6,094 2,622 15,774 6,029 -------- -------- -------- -------- Total cost of revenues 43,906 28,543 116,637 72,017 -------- -------- -------- -------- Gross margin 10,773 6,230 26,356 14,055 Selling, general and administrative expenses 6,404 4,461 17,637 11,926 Depreciation and amortization 257 256 752 807 -------- -------- -------- -------- Income from operations 4,112 1,513 7,967 1,322 Other income (expense), net 73 (62) 132 (136) -------- -------- -------- -------- Income before taxes 4,185 1,451 8,099 1,186 Provision for income taxes 1,737 508 3,205 419 -------- -------- -------- -------- Net income $ 2,448 $ 943 $ 4,894 $ 767 ======== ======== ======== ======== Basic earnings per share $ .43 $ .17 $ .86 $ .13 ======== ======== ======== ======== Weighted average basic shares outstanding 5,739 5,645 5,720 5,700 ======== ======== ======== ======== Diluted earnings per share $ .40 $ .16 $ .80 $ .13 ======== ======== ======== ======== Weighted average diluted shares outstanding 6,144 5,927 6,140 5,805 ======== ======== ======== ========
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 - Third Quarter 2004 October 27, 2004 level of the Company's business activity and more useful in managing its operations.
(Unaudited) (Unaudited) Third Quarter Ended Nine Months Ended ($ in thousands) September 30, September 30, -------------------- -------------------- 2004 2003 2004 2003 -------- --------- -------- -------- Revenues: Staffing services $ 35,673 $ 26,727 $ 91,197 $ 69,883 Professional employer services 109,435 46,886 299,139 95,767 -------- --------- -------- -------- Total revenues 145,108 73,613 390,336 165,650 -------- --------- -------- -------- Cost of revenues: Direct payroll costs 115,580 57,977 311,337 130,592 Payroll taxes and benefits 11,376 6,181 33,555 14,371 Workers' compensation 7,379 3,225 19,088 6,632 -------- --------- -------- -------- Total cost of revenues 134,335 67,383 363,980 151,595 -------- --------- -------- -------- Gross margin $ 10,773 $ 6,230 $ 26,356 $ 14,055 ======== ========= ======== ========
A reconciliation of non-GAAP gross revenues to net revenues is as follows: For the third quarters ended September 30, 2004 and 2003 (in thousands):
Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method --------------------- --------------------- ---------------------- 2004 2003 2004 2003 2004 2003 -------- -------- -------- -------- -------- -------- Revenues: Staffing services $ 35,673 $ 26,727 $ - $ - $ 35,673 $ 26,727 Professional employer services 109,435 46,886 (90,429) (38,840) 19,006 8,046 -------- -------- -------- -------- -------- -------- Total revenues $145,108 $ 73,613 $(90,429) $(38,840) $ 54,679 $ 34,773 ======== ======== ======== ======== ======== ======== Cost of revenues: $134,335 $ 67,383 $(90,429) $(38,840) $ 43,906 $ 28,543 ======== ======== ======== ======== ======== ======== For the nine months ended September 30, 2004 and 2003 (in thousands): Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method --------------------- --------------------- ---------------------- 2004 2003 2004 2003 2004 2003 -------- -------- --------- -------- -------- -------- Revenues: Staffing services $ 91,197 $ 69,883 $ - $ - $ 91,197 $ 69,883 Professional employer services 299,139 95,767 (247,343) (79,578) 51,796 16,189 -------- -------- --------- -------- -------- -------- Total revenues $390,336 $165,650 $(247,343) $(79,578) $142,993 $ 86,072 ======== ======== ========= ======== ======== ======== Cost of revenues: $363,980 $151,595 $(247,343) $(79,578) $116,637 $ 72,017 ======== ======== ========= ======== ======== ========
-2- William W. Sherertz, President and Chief Executive Officer, commented that: "We are very pleased with the continued momentum of our earnings and revenue growth, as well as the strengthening of our balance sheet. Our third quarter represents the eighth consecutive quarter in which our operating results improved over the comparable period." The following summarizes the unaudited consolidated balance sheets at September 30, 2004 and December 31, 2003.
($ in thousands) September 30, December 31, 2004 2003 ------- ------ Assets Current assets: Cash and cash equivalents $10,009 $ 7,785 Marketable securities 4,503 - Trade accounts receivable, net 30,523 18,481 Prepaid expenses and other 1,243 958 Deferred income taxes 5,168 2,196 ------- ------- Total current assets 51,446 29,420 Goodwill, net 21,738 18,749 Intangibles, net 30 13 Property, equipment and software, net 4,439 3,367 Restricted marketable securities and workers' compensation deposits 1,775 1,647 Deferred income taxes 758 1,041 Other assets 399 436 ------- ------- $80,585 $54,673 ======= ======= Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 348 $ 88 Income taxes payable 2,685 - Accounts payable 430 727 Accrued payroll, payroll taxes and related benefits 23,829 13,881 Workers' compensation claims liabilities 4,977 3,886 Safety incentives liabilities 4,534 2,007 Other accrued liabilities 606 361 ------- ------- Total current liabilities 37,409 20,950 Long-term debt, net of current portion 1,478 400 Customer deposits 501 455 Long-term workers' compensation claims liabilities 4,576 1,031 Other long-term liabilities - 45 Deferred gain on sale and leaseback 1,067 1,158 Stockholders' equity 35,554 30,634 ------- ------- $80,585 $54,673 ======= =======
-3- Outlook for Fourth Quarter 2004 The Company also disclosed today limited financial guidance with respect to its operating results for the fourth quarter ending December 31, 2004. The Company expects gross revenues for the fourth quarter to range from $144 million to $146 million and anticipates diluted earnings per share to range from $.35 to $.38 per share for the same period. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the fourth quarter of 2004 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable. On October 28, 2004 at 9:00 a.m. Pacific Time, William W. Sherertz and Michael D. Mulholland will host an investor telephone conference call to discuss third quarter 2004 operating results. To participate in the call, dial (877)356-3717. The call identification number is 1430173. 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 October 28, 2004 at 11:00 a.m. and ending November 4, 2004. To listen to the recording, dial (800)642-1687 and enter conference identification code 1430173. 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 fourth 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-----