updated 2/9/2011 4:16:59 PM ET 2011-02-09T21:16:59

VANCOUVER, Wash., Feb. 9, 2011 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (Nasdaq:BBSI) reported today net income of $3.1 million for the fourth quarter ended December 31, 2010 compared to net income of $2.2 million for the fourth quarter of 2009. Diluted earnings per share for the 2010 fourth quarter were $.31, as compared to diluted earnings per share of $.21 for the same quarter a year ago.

Net revenues for the fourth quarter ended December 31, 2010 totaled $73.6 million, an increase of approximately $11.0 million or 17.4% over the $62.6 million for the same quarter in 2009.

     
  (Unaudited) (Unaudited)
(in thousands, except per share amounts) Fourth Quarter Ended Year Ended
  December 31, December 31,
Results of Operations 2010 2009 2010 2009
Revenues:        
Staffing services $ 32,747 $ 30,931 $ 125,738 $ 116,155
Professional employer service fees 40,808 31,698 147,385 120,305
Total revenues 73,555 62,629 273,123 236,460
Cost of revenues:        
Direct payroll costs 24,920 23,388 95,439 87,679
Payroll taxes and benefits 24,670 19,617 96,660 82,077
Workers' compensation 10,353 7,636 36,234 41,109
Total cost of revenues 59,943 50,641 228,333 210,865
Gross margin 13,612 11,988 44,790 25,595
Selling, general and administrative expenses 9,642 8,689 35,429 33,481
Depreciation and amortization 344 423 1,395 1,641
Income (loss) from operations 3,626 2,876 7,966 (9,527)
Other income, net 758 267 2,011 1,640
Income (loss) before taxes 4,384 3,143 9,977 (7,887)
Provision for (benefit from) income taxes 1,236 950 2,551 (3,119)
Net income (loss) $ 3,148 $ 2,193 $ 7,426 $ (4,768)
Basic income (loss) per share $ .31 $ .21 $ .72 $ (.46)
Weighted average basic shares outstanding 10,202 10,480 10,333 10,452
Diluted income (loss) per share $ .31 $ .21 $ .72 $ (.46)
Weighted average diluted shares outstanding 10,260 10,497 10,372 10,452

The Company reports its Professional Employer Organization services ("PEO") revenues on a net basis because it is not the primary obligor for the services provided by the Company's PEO clients to their customers. 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 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, 
  2010 2009 2010 2009
Revenues:        
Staffing services  $ 32,747  $ 30,931  $ 125,738  $ 116,155
Professional employer services   311,495  239,884  1,111,052  903,731
Total revenues  344,242  270,815  1,236,790  1,019,886
Cost of revenues:        
Direct payroll costs  294,058  230,359  1,053,748  866,167
Payroll taxes and benefits  24,671  19,617  96,661  82,077
Workers' compensation   11,901  8,851  41,591  46,047
Total cost of revenues  330,630  258,827  1,192,000  994,291
Gross margin  $ 13,612  $ 11,988  $ 44,790  $ 25,595

Gross revenues of $344.2 million for the fourth quarter ended December 31, 2010 increased 27.1% over the similar period in 2009. 

A reconciliation of non-GAAP gross revenues to net revenues is as follows:

For the fourth quarters ended December 31, 2010 and 2009:

  (Unaudited)
  Three Months Ended December 31,
  Gross Revenue     Net Revenue
(in thousands) Reporting Method Reclassification Reporting Method
  2010 2009 2010 2009 2010 2009
Revenues:            
Staffing services  $ 32,747  $ 30,931  $ --  $ --  $ 32,747  $ 30,931
Professional             
employer services   311,495  239,884  (270,687)  (208,186)  40,808  31,698
Total revenues  $ 344,242  $ 270,815  $ (270,687)  $ (208,186)  $ 73,555  $ 62,629
Cost of revenues  $ 330,630  $ 258,827  $ (270,687)  $ (208,186)  $ 59,943  $ 50,641

For the years ended December 31, 2010 and 2009:

  (Unaudited)
  Year Ended December 31,
  Gross Revenue     Net Revenue
(in thousands) Reporting Method Reclassification Reporting Method
  2010 2009 2010 2009 2010 2009
Revenues:            
Staffing services  $ 125,738  $ 116,155  $ --  $ --  $ 125,738  $ 116,155
Professional             
employer services   1,111,052  903,731  (963,667)  (783,426)  147,385  120,305
Total revenues  $ 1,236,790  $ 1,019,886  $ (963,667)  $ (783,426)  $ 273,123  $ 236,460
Cost of revenues  $ 1,192,000  $ 994,291  $ (963,667)  $ (783,426)  $ 228,333  $ 210,865

The following summarizes the unaudited consolidated balance sheets at December 31, 2010 and December 31, 2009.

  December 31, December 31,
(in thousands) 2010 2009
Assets    
Current assets:    
Cash and cash equivalents $ 30,924 $ 36,671
Marketable securities 24,511 13,766
Trade accounts receivable, net 37,596 33,070
Income taxes receivable 214 4,274
Prepaid expenses and other 1,798 979
Deferred income taxes 5,540 4,071
Total current assets 100,583 92,831
Marketable securities 5,921 7,473
Property, equipment and software, net 15,037 14,795
Restricted marketable securities and workers' compensation deposits 8,811 2,666
Other assets 3,094 3,104
Workers' compensation receivables for insured claims 3,915 3,865
Goodwill, net 47,820 47,338
  $ 185,181 $ 172,072
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Accounts payable $ 964 $ 1,117
Accrued payroll, payroll taxes and related benefits 37,525 30,244
Other accrued liabilities 442 499
Workers' compensation claims liabilities  11,462 10,509
Safety incentives liabilities 5,024 4,437
Total current liabilities 55,417 46,806
Long-term workers' compensation claims liabilities  16,944 14,560
Long-term workers' compensation liabilities for insured claims 2,686 2,729
Deferred income taxes 8,079 6,323
Customer deposits and other long-term liabilities 1,422 1,527
Stockholders' equity 100,633 100,127
  $ 185,181 $ 172,072

Outlook for First Quarter 2011

The Company also disclosed today limited financial guidance with respect to its operating results for the first quarter ending March 31, 2011. The Company expects gross revenues for the first quarter of 2011 to range from $320 million to $325 million, as compared to $262.6 million for the first quarter of 2010, and anticipates diluted earnings for the first quarter of 2011 to range from $.50 to $.54 per share, as compared to a diluted loss per share of $.16 for the same period a year ago.  The anticipated diluted earnings per share for the 2011 first quarter includes expected proceeds of $10 million from key man life insurance coverage the Company carried with respect to William W. Sherertz, the Company's President and CEO, who passed away January 20, 2011. Without the effect of the life insurance proceeds, the estimated diluted loss per share for the 2011 first quarter is $.19 to $.22 which is consistent with historical first quarter losses.  A reconciliation of estimated gross revenues to estimated GAAP net revenues for the first quarter of 2011 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.

Conference Call

On Thursday, February 10 at 9:00 a.m. Pacific Time, Tony Meeker, Michael Elich and James Miller will host an investor telephone conference call to discuss fourth quarter 2010 operating results. To participate in the call, dial (877) 214-1511. The call identification number is 42072859. 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 Thursday, February 10, 2011 at 12:00 p.m. PT and ending on Thursday, February 17, 2011. To listen to the recording, dial (800) 642-1687 and enter conference identification code 42072859.

Statements in this release about future events or performance, including gross revenues and earnings expectations for the first quarter of 2011, 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, the Company's ability to retain current customers and attract new customers, future workers' compensation claims experience, the effect of changes in the workers' compensation regulatory environment in one or more of the Company's primary markets, the collectibility of accounts receivable, and the effect of conditions in the global capital markets on the Company's investment portfolio, among others. Other important factors that may affect the Company's future prospects are described in the Company's 2009 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.

BBSI provides a comprehensive range of human resource management solutions to large and small companies throughout many regions of the United States.

CONTACT:  Michael L. Elich
          Interim President and Chief Executive Officer
          (360) 828-0700

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 1.97%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.70%
13.70%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.17%
17.17%
Source: Bankrate.com