-----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, R+3aBjgXRiuLD70fEY4ayNJLlsll+Kc8GRXUC5EZWrVKZMsZwuFU9aOLdK48zjVN 3dyY4DLC4rdOoq0ZgmDVfg== 0000892917-05-000027.txt : 20050309 0000892917-05-000027.hdr.sgml : 20050309 20050309133902 ACCESSION NUMBER: 0000892917-05-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050309 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050309 DATE AS OF CHANGE: 20050309 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: 05668843 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-k3905.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): March 9, 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 7.01. Regulation FD Disclosure. On March 9, 2005, Barrett Business Services, Inc. (the "Company"), issued a press release announcing resolution of an accounting issue regarding the reporting of assets and liabilities relating to workers' compensation claims that are insured by the Company's prior excess workers' compensation insurance carrier. The resolution resulted in a revision in classification on the Company's December 31, 2003 and 2004 balance sheets. This revision in classification had no effect on the Company's financial condition, results of operations, cash flows or working capital. 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 March 9, 2005. SIGNATURE 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: March 9, 2005 By: /s/ Michael D. Mulholland -------------------------------------- Michael D. Mulholland Vice President - Finance EX-99 2 bbs8-k3905ex.txt 99.1 EXHIBIT 99.1 NEWS RELEASE For Immediate Release Contact: William W. Sherertz President and Chief Executive Officer Telephone: (503) 220-0988 BBSI ANNOUNCES RESOLUTION OF BALANCE SHEET ACCOUNTING TREATMENT PORTLAND, OREGON, March 9, 2005 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today that management has completed its analysis and determination as to the treatment of certain estimated reimbursements due from its excess workers' compensation insurance carriers and the corresponding estimated liabilities to claimants. On February 10, 2005, in connection with announcement of the Company's 2004 fourth quarter operating results and preliminary balance sheets for December 31, 2004 and 2003, the Company stated that the balance sheet effect, if any, on long-term assets and long-term liabilities related to this issue had not been determined. The Company retains certain levels of exposure with respect to its self-insured workers' compensation program and purchases insurance coverage from third-party insurers for exposures in excess of those levels. Until December 31, 2004, the Company established accrued liabilities for workers' compensation claims, both reported and incurred but not reported, within its level of retention based on currently available information, as well as its historical claims experience. During the year ended December 31, 2004, the Company determined that it should present its accrued liabilities for workers' compensation claims on a gross basis along with a corresponding receivable from its insurers, as the Company is the primary obligor for payment of the related insured claims. As a result of this revision in classification, the Company has increased its accrued workers' compensation claims liabilities as of December 31, 2004 by $4.4 million (of which $0.2 million is estimated to be currently payable and the balance a long-term liability) and has also recorded corresponding receivables for these insured claims from its prior excess workers' compensation insurer, CNA Financial Corporation. In order to conform the Company's prior financial statements for this revision in classification, the Company has increased its accrued workers' compensation claims liabilities as of December 31, 2003 by $4.2 million (of which $0.4 million was estimated to be currently payable and the balance a long-term liability) and has recorded corresponding receivables for these insured claims from its prior excess workers' compensation insurer, CNA Financial Corporation. The Company will continue its past practice of evaluating the financial capacity of its insurers to assess the recoverability of the related insurer receivables. The revision in classification had no impact on the Company's financial condition, results of operations, cash flows or working capital. -1- Barrett Business Services, Inc. News Release March 9, 2005 The following summarizes the unaudited consolidated balance sheets at December 31, 2004 and December 31, 2003.
(Unaudited) ----------------------- December 31, December 31, ($ in thousands) 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 Workers' compensation receivables for insured claims 213 393 -------- -------- Total current assets 46,300 29,813 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 Workers' compensation receivables for insured claims 4,158 3,768 -------- -------- $ 79,985 $ 58,834 ======== ======== 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 Workers' compensation claims liabilities for insured claims 213 393 Safety incentives liabilities 4,807 2,007 Other accrued liabilities 414 361 -------- -------- Total current liabilities 29,149 21,343 Long-term debt, net of current portion 1,441 400 Customer deposits 608 455 Long-term workers' compensation claims liabilities 4,840 1,031 Long-term workers' compensation liabilities for insured claims 4,158 3,768 Other long-term liabilities -- 45 Deferred gain on sale and leaseback 1,036 1,158 Stockholders' equity 38,753 30,634 -------- -------- $ 79,985 $ 58,834 ======== ========
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 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, -2- Barrett Business Services, Inc. News Release March 9, 2005 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. ##### -3- -----END PRIVACY-ENHANCED MESSAGE-----