-----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, LU4jGYTeHGCafgC7DNeGcIEkuZ/Q8LuTUGQVr5STSRVt/S5PVPvVXFN+ZEn7WWTM ejPA8Oj2TTf+4zOvoqzsqQ== 0000892917-05-000016.txt : 20050211 0000892917-05-000016.hdr.sgml : 20050211 20050210203723 ACCESSION NUMBER: 0000892917-05-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050210 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050211 DATE AS OF CHANGE: 20050210 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: 05594861 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-k210.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): February 10, 2005 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 February 10, 2005, Barrett Business Services, Inc. (the "Company"), issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2004, and limited financial guidance for the first quarter of 2005. 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 February 10, 2005. 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: February 10, 2005 By: /s/ Michael D. Mulholland -------------------------------------- Michael D. Mulholland Vice President - Finance EX-99 2 bbs8-kpr210.txt Exhibit 99.1 NEWS RELEASE For Immediate Release Contact: William W. Sherertz President and Chief Executive Officer Telephone: (503) 220-0988 BBSI ANNOUNCES FOURTH QUARTER 2004 OPERATING RESULTS AND FINANCIAL GUIDANCE FOR 1Q05 PORTLAND, OREGON, February 10, 2005 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $2,477,000 for the fourth quarter ended December 31, 2004, an improvement of $1,159,000 over net income of $1,318,000 for the fourth quarter of 2003. Diluted earnings per share for the 2004 fourth quarter were $.40, as compared to diluted earnings per share of $.22 for the same quarter a year ago. For 2004, diluted earnings per share were $1.19, as compared to $.35 for 2003. Net revenues for the fourth quarter ended December 31, 2004 totaled $52.0 million, an increase of approximately $15.4 million or 42.1% over the $36.6 million for the same quarter in 2003. For 2004, net revenues were $195 million, an increase of 58.9% over 2003.
(Unaudited) (Unaudited) Fourth Quarter Ended Year Ended December 31, December 31, -------------------- -------------------- Results of Operations 2004 2003 2004 2003 - ------------------------------------------- -------- -------- -------- -------- (in thousands, except per share amounts) Revenues: Staffing services $ 32,317 $ 23,661 $123,514 $ 93,544 Professional employer service fees 19,651 12,988 71,447 29,177 -------- -------- -------- -------- Total revenues 51,968 36,649 194,961 122,721 -------- -------- -------- -------- Cost of revenues: Direct payroll costs 23,883 17,482 91,190 69,099 Payroll taxes and benefits 11,988 8,545 45,544 22,916 Workers' compensation 5,783 3,680 21,557 9,709 -------- -------- -------- -------- Total cost of revenues 41,654 29,707 158,291 101,724 -------- -------- -------- -------- Gross margin 10,314 6,942 36,670 20,997 Selling, general and administrative expenses 6,207 4,884 23,844 16,810 Depreciation and amortization 256 251 1,008 1,058 -------- -------- -------- -------- Income from operations 3,851 1,807 11,818 3,129 Other income (expense), net 300 (18) 432 (154) -------- -------- -------- -------- Income before taxes 4,151 1,789 12,250 2,975 Provision for income taxes 1,674 471 4,879 890 -------- -------- -------- -------- Net income $ 2,477 $ 1,318 $ 7,371 $ 2,085 -------- -------- -------- -------- Basic earnings per share $ .43 $ .23 $ 1.29 $ .36 -------- -------- -------- -------- Weighted average basic shares outstanding 5,741 5,660 5,725 5,690 -------- -------- -------- -------- Diluted earnings per share $ .40 $ .22 $ 1.19 $ .35 -------- -------- -------- -------- Weighted average diluted shares outstanding 6,192 6,088 6,193 5,876 -------- -------- -------- --------
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 -1- Barrett Business Services, Inc. News Release - Fourth Quarter 2004 February 10, 2005 accounting principles ("GAAP"), is presented for comparison purposes and because management believes such information is more informative as to the level of the Company's business activity and more useful in managing its operations.
(Unaudited) (Unaudited) Fourth Quarter Ended Year Ended ($ in thousands) December 31, December 31, -------------------- -------------------- 2004 2003 2004 2003 -------- -------- -------- -------- Revenues: Staffing services $ 32,317 $ 23,661 $123,514 $ 93,544 Professional employer services 119,871 77,366 419,010 173,134 -------- -------- -------- -------- Total revenues 152,188 101,027 542,524 266,678 -------- -------- -------- -------- Cost of revenues: Direct payroll costs 122,697 80,510 434,034 211,102 Payroll taxes and benefits 11,988 8,545 45,544 22,916 Workers' compensation 7,189 5,030 26,276 11,663 -------- -------- -------- -------- Total cost of revenues 141,874 94,085 505,854 245,681 -------- -------- -------- -------- Gross margin $ 10,314 $ 6,942 $ 36,670 $ 20,997 ======== ======== ======== ========
Gross revenues of $152.2 million for the 2004 fourth quarter rose 50.6% over the comparable 2003 period. For 2004, gross revenues of $542.5 million increased 103.4% over 2003. A reconciliation of non-GAAP gross revenues to net revenues is as follows: For the fourth quarters ended December 31, 2004 and 2003 (in thousands):
Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method --------------------- --------------------- --------------------- 2004 2003 2004 2003 2004 2003 -------- -------- --------- -------- -------- -------- Revenues: Staffing services $ 32,317 $ 23,661 $ -- $ -- $ 32,317 $ 23,661 Professional employer services 119,871 77,366 (100,220) (64,378) 19,651 12,988 -------- -------- --------- -------- -------- -------- Total revenues $152,188 $101,027 $(100,220) $(64,378) $ 51,968 $ 36,649 ======== ======== ========= ======== ======== ======== Cost of revenues: $141,874 $ 94,085 $(100,220) $(64,378) $ 41,654 $ 29,707 ======== ======== ========= ======== ======== ======== For the years ended December 31, 2004 and 2003 (in thousands): Gross Revenue Net Revenue Reporting Method Reclassification Reporting Method --------------------- --------------------- --------------------- 2004 2003 2004 2003 2004 2003 -------- -------- --------- --------- -------- -------- Revenues: Staffing services $123,514 $ 93,544 $ -- $ -- $123,514 $ 93,544 Professional employer services 419,010 173,134 (347,563) (143,957) 71,447 29,177 -------- -------- --------- --------- -------- -------- Total revenues $542,524 $266,678 $(347,563) $(143,957) $194,961 $122,721 ======== ======== ========= ========= ======== ======== Cost of revenues: $505,854 $245,681 $(347,563) $(143,957) $158,291 $101,724 ======== ======== ========= ========= ======== ========
-2- William W. Sherertz, President and Chief Executive Officer, commented that: "We are very pleased with another quarter of strong earnings and revenues, both of which results in 2004 being a record year. The continuing expansion of our PEO and staffing services with a high quality customer base bodes well for an even stronger year in 2005." The following summarizes the unaudited consolidated balance sheets at December 31, 2004 and December 31, 2003. Please note that the Company is currently analyzing, but no determination has been made as to the effect, if any, on long-term assets and long-term liabilities related to an accounting principle under which the Company would gross up its balance sheet to include (1) estimated future receivables from the Company's excess workers' compensation insurance carriers for the estimated future reimbursements to the Company relating to claims that such insurers are obligated to pay pursuant to insurance policies in effect at the time of the insured losses and (2) identical estimated future liabilities for payments to claimants relating to such insured losses.
(Unaudited) ---------------------------- ($ in thousands) December 31, December 31, 2004 2003 ------------- ------------ Assets Current assets: Cash and cash equivalents $12,153 $ 7,785 Marketable securities 4,630 -- Trade accounts receivable, net 23,840 18,481 Prepaid expenses and other 1,364 958 Deferred income taxes 4,100 2,196 ------- ------ Total current assets 46,087 29,420 Goodwill, net 22,516 18,749 Intangibles, net 25 13 Property, equipment and software, net 4,301 3,367 Restricted marketable securities and workers' compensation deposits 1,702 1,647 Deferred income taxes 582 1,041 Other assets 401 436 ------- ------ $75,614 $54,673 ======= ======= Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 348 $ 88 Accounts payable 994 727 Accrued payroll, payroll taxes and related benefits 17,427 13,881 Workers' compensation claims liabilities 4,946 3,886 Safety incentives liabilities 4,807 2,007 Other accrued liabilities 414 361 ------- ------- Total current liabilities 28,936 20,950 Long-term debt, net of current portion 1,441 400 Customer deposits 608 455 Long-term workers' compensation claims liabilities 4,840 1,031 Other long-term liabilities -- 45 Deferred gain on sale and leaseback 1,036 1,158 Stockholders' equity 38,753 30,634 ------- ------ $75,614 $54,673 ======= =======
-3- Outlook for First Quarter 2005 The Company also disclosed today limited financial guidance with respect to its operating results for the first quarter ending March 31, 2005. The Company expects gross revenues for the first quarter of 2005 to range from $152 million to $154 million, an increase of approximately 30% over the first quarter of 2004, and anticipates diluted earnings per share for the first quarter of 2005 to range from $.13 to $.14 per share, an increase of 30% to 40% over the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the first quarter of 2005 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable. On February 11, 2005 at 9:00 a.m. Pacific Time, William W. Sherertz and Michael D. Mulholland will host an investor telephone conference call to discuss fourth quarter 2004 operating results. To participate in the call, dial (877)356-3717. The call identification number is 3986981. 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 February 11, 2005 at 11:00 a.m. and ending February 18, 2005. To listen to the recording, dial (800)642-1687 and enter conference identification code 3986981. 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 first quarter of 2005, 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-----