-----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, Tfhh84pzVCyGmOs1QBmHTWsQGjkjg5XLhps4USeUiq+6OdtMkwHSw6OG2NhhMa4j L6/T+51nd9+RYm0nzPXfRw== 0000892917-05-000179.txt : 20050804 0000892917-05-000179.hdr.sgml : 20050804 20050803202909 ACCESSION NUMBER: 0000892917-05-000179 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050803 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050804 DATE AS OF CHANGE: 20050803 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: 05997398 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-k8305.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): August 3, 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 August 3, 2005, Barrett Business Services, Inc. (the "Company"), issued a press release announcing its financial results for the second quarter ended June 30, 2005, and limited financial guidance for the third 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 August 3, 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: August 3, 2005 By: /s/ Michael D. Mulholland -------------------------------------- Michael D. Mulholland Vice President - Finance EX-99 2 bbs8-k8305ex.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 SECOND QUARTER 2005 OPERATING RESULTS AND FINANCIAL GUIDANCE FOR 3Q05 PORTLAND, OREGON, August 3, 2005 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $2,905,000 for the second quarter ended June 30, 2005, an improvement of $1,065,000 or 57.9% over net income of $1,840,000 for the second quarter of 2004. Diluted earnings per share for the 2005 second quarter were $.31, as compared to diluted earnings per share of $.20 for the same quarter a year ago, which have been adjusted for a 3-for-2 stock split effected on May 19, 2005. Net revenues for the second quarter ended June 30, 2005 totaled $59.6 million, an increase of approximately $11.9 million or 24.9% over the $47.7 million for the same quarter in 2004.
(Unaudited) (Unaudited) ($ in thousands) Second Quarter Ended Six Months Ended June 30, June 30, ------------------- -------------------- Results of Operations 2005 2004 2005 2004 - -------------------------------------------- -------- -------- -------- -------- Revenues: Staffing services $ 35,637 $ 30,470 $ 64,179 $55,524 Professional employer service fees 23,994 17,234 44,696 32,790 -------- -------- -------- -------- Total revenues 59,631 47,704 108,875 88,314 -------- -------- -------- -------- Cost of revenues: Direct payroll costs 26,598 22,551 47,615 40,871 Payroll taxes and benefits 15,303 10,649 31,000 22,180 Workers' compensation 6,295 5,978 11,701 10,332 -------- -------- -------- -------- Total cost of revenues 48,196 39,178 90,316 73,383 -------- -------- -------- -------- Gross margin 11,435 8,526 18,559 14,931 Selling, general and administrative expenses 6,251 5,367 11,721 10,581 Depreciation and amortization 217 253 453 495 -------- -------- -------- -------- Income from operations 4,967 2,906 6,385 3,855 Other income, net (205) 38 (97) 59 -------- -------- -------- -------- Income before taxes 4,762 2,944 6,288 3,914 Provision for income taxes 1,857 1,104 2,452 1,468 -------- -------- -------- -------- Net income $ 2,905 $ 1,840 $ 3,836 $ 2,446 ======== ======== ======== ======== Basic earnings per share $ .33 $ .21 $ .44 $ .29 ======== ======== ======== ======== Weighted average basic shares outstanding 8,717 8,573 8,681 8,565 ======== ======== ======== ======== Diluted earnings per share $ .31 $ .20 $ .41 $ .26 ======== ======== ======== ======== Weighted average diluted shares outstanding 9,398 9,279 9,375 9,286 ======== ======== ======== ========
-1- Barrett Business Services, Inc. News Release - Second Quarter 2005 August 3, 2005 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"), are 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) Second Quarter Six Months Ended (in thousands) June 30, June 30, ------------------- ------------------- 2005 2004 2005 2004 -------- -------- -------- -------- Revenues: Staffing services $ 35,637 $ 30,470 $ 64,179 $ 55,524 Professional employer services 147,945 97,984 276,496 189,704 -------- -------- -------- -------- Total revenues 183,582 128,454 340,675 245,228 -------- -------- -------- -------- Cost of revenues: Direct payroll costs 148,927 102,390 276,324 195,757 Payroll taxes and benefits 15,303 10,648 31,000 22,179 Workers' compensation 7,917 6,890 14,792 12,361 -------- -------- -------- -------- Total cost of revenues 172,147 119,928 322,116 230,297 -------- -------- -------- -------- Gross margin $ 11,435 $8,526 $ 18,559 $ 14,931 ======== ======== ======== ======== Gross revenues of $183.6 million for the second quarter ended June 30, 2005 rose 42.9% over the similar period in 2004. For the six months ended June 30, 2005, gross revenues of $340.7 million increased 38.9% over the comparable period in 2004. A reconciliation of non-GAAP gross revenues to net revenues is as follows: For the second quarters ended June 30, 2005 and 2004 (in thousands):
(Unaudited) Three Months Ended June 30, -------------------------------------------------------------- Gross Revenue Net Revenue (in thousands) Reporting Method Reclassification Reporting Method ------------------ -------------------- ----------------- 2005 2004 2005 2004 2005 2004 Revenues: Staffing services $ 35,637 $ 30,470 $ -- $ -- $35,637 $30,470 Professional employer services 147,945 97,984 (123,951) (80,750) 23,994 17,234 -------- -------- --------- -------- ------- ------- Total revenues $183,582 $128,454 $(123,951) $(80,750) $59,631 $47,704 ======== ======== ========= ======== ======= ======= Cost of revenues: $172,147 $119,928 $(123,951) $(80,750) $48,196 $39,178 ======== ======== ========= ======== ======= =======
-2- Barrett Business Services, Inc. News Release - Second Quarter 2005 August 3, 2005 For the six months ended June 30, 2005 and 2004 (in thousands):
(Unaudited) Six Months Ended June 30, ---------------------------------------------------------------- Gross Revenue Net Revenue (in thousands) Reporting Method Reclassification Reporting Method ------------------- -------------------- ------------------- 2005 2004 2005 2004 2005 2004 -------- -------- --------- --------- -------- -------- Revenues: Staffing services $ 64,179 $ 55,524 $ -- $ -- $ 64,179 $ 55,524 Professional employer services 276,496 189,704 (231,800) (156,914) 44,696 32,790 -------- -------- --------- --------- -------- -------- Total revenues $340,675 $245,228 $(231,800) $(156,914) $108,875 $ 88,314 ======== ======== ========= ========= ======== ======== Cost of revenues: $322,116 $230,297 $(231,800) $(156,914) $ 90,316 $ 73,383 ======== ======== ========= ========= ======== ========
William W. Sherertz, President and Chief Executive Officer, commented that: "We had a great quarter and our business continues to grow. Our management team is proud that we were recently named the number one company in The Seattle Times's Northwest Top 100, as well as of our recent inclusion in the new Russell Microcap Index." The following summarizes the unaudited consolidated balance sheets at June 30, 2005 and December 31, 2004. -3- Barrett Business Services, Inc. News Release - Second Quarter 2005 August 3, 2005
June 30, December 31, ($ in thousands) 2005 2004 -------- -------- Assets ------ Current assets: Cash and cash equivalents $ 21,662 $ 12,153 Marketable securities 5,568 4,630 Trade accounts receivable, net 36,420 23,840 Prepaid expenses and other 2,074 1,364 Deferred income taxes 5,588 4,100 Workers' compensation receivables for insured claims 213 213 -------- -------- Total current assets 71,525 46,300 Goodwill, net 22,516 22,516 Intangibles, net 16 25 Property, equipment and software, net 4,161 4,301 Restricted marketable securities and workers' compensation deposits 2,060 1,702 Unrestricted marketable securities 391 -- Deferred income taxes 336 582 Other assets 405 401 Workers' compensation receivables for insured claims 4,019 4,158 -------- -------- $105,429 $ 79,985 ======== ======== Liabilities and Stockholders' Equity ------------------------------------ Current liabilities: Current portion of long-term debt $ 348 $ 348 Income taxes payable 1,264 -- Accounts payable 585 994 Accrued payroll, payroll taxes and related benefits 32,200 17,427 Workers' compensation claims liabilities 5,648 4,946 Workers' compensation claims liabilities for insured claims 213 213 Safety incentives liabilities 6,758 4,807 Other accrued liabilities 1,255 414 -------- -------- Total current liabilities 48,271 29,149 Long-term debt, net of current portion 1,168 1,441 Customer deposits 670 608 Long-term workers' compensation claims liabilities 6,712 4,840 Long-term workers' compensation liabilities for insured claims 4,019 4,158 Deferred gain on sale and leaseback 976 1,036 Stockholders' equity 43,613 38,753 -------- -------- $105,429 $ 79,985 ======== ========
Outlook for Third Quarter 2005 The Company also disclosed today limited financial guidance with respect to its operating results for the third quarter ending September 30, 2005. The Company expects gross revenues for the third quarter of 2005 to range from $198 million to $201 million, an increase of approximately 38% over the third quarter of 2004, and anticipates diluted earnings per share for the third quarter of 2005, including the approximate effect of its recent follow-on equity offering, to range from $.35 to $.37 per share, an increase of approximately 33% over $.27 per share for the same period a year ago, on a split-adjusted basis. Excluding the approximate effect of its recent follow-on equity offering, anticipated diluted earnings per share for the third quarter of 2005 would -4- Barrett Business Services, Inc. News Release - Second Quarter 2005 August 3, 2005 range from $.40 to $.42 per share, an increase of approximately 52% over $.27 per share for the same period last year, on a split-adjusted basis. Calculation of the approximate effect of the Company's recent follow-on equity offering is based on the issuance of 1,864,000 shares of common stock on August 2, 2005, as well as the issuance of an additional 320,850 shares assuming exercise of the underwriters' over-allotment option prior to its expiration on August 26, 2005. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the third quarter of 2005 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable. On August 4, 2005 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 2005 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 8219159. 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 August 4, 2005 at 11:00 a.m. and ending on August 11, 2005. To listen to the recording, dial (800) 642-1687 and enter conference identification code 8219159. BBSI provides a comprehensive range of 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 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 the effect of our recent follow-on equity offering, among others. Other important factors that may affect the Company's future prospects are described in the Company's 2004 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. ##### -----END PRIVACY-ENHANCED MESSAGE-----