BBSI Announces Fourth Quarter 2006 Operating Results, Financial Guidance for 1Q07 and Conference Call.VANCOUVER, Wash. -- Barrett Business Services, Inc. (Nasdaq: BBSI BBSI Bioengineering and Bioinformatics Summer Institute (NIH-NSF) BBSI Black Belt Schools International BBSI Beauty and Barber Supply Institute, Inc ) reported today net income of $5.2 million for the fourth quarter ended December 31, 2006, an improvement of $915,000 or 21.2% over net income of $4.3 million for the fourth quarter of 2005. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the 2006 fourth quarter were $.45, as compared to diluted earnings per share of $.37 for the same quarter a year ago. Net revenues for the fourth quarter ended December 31, 2006 totaled $66.8 million, an increase of approximately $8.8 million or 15.2% over the $58.0 million for the same quarter in 2005. [TABLE OMITTED] The Company reports its Professional Employer Organization A professional employer organization (PEO) provides outsourcing of payroll, workers' compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, thus becoming their employer of record. 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 The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See 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. [TABLE OMITTED] Gross revenues of $273.8 million for the fourth quarter ended December 31, 2006 rose 28.5% over the similar period in 2005. For the year ended December 31, 2006, gross revenues of $1.04 billion increased 35.9% over 2005. A reconciliation of non-GAAP gross revenues to net revenues is as follows: For the fourth quarters ended December 31, 2006 and 2005 (in thousands): [TABLE OMITTED] For the years ended December 31, 2006 and 2005 (in thousands): [TABLE OMITTED] William W. Sherertz, President and Chief Executive Officer, commented: "We are pleased with another strong quarter and surpassing the $1 billion milestone in gross revenues for 2006." The following summarizes the unaudited consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at December 31, 2006 and December 31, 2005. [TABLE OMITTED] Outlook for First Quarter 2007 The Company also disclosed today limited financial guidance with respect to its operating results for the first quarter ending March 31, 2007. The Company expects gross revenues for the first quarter of 2007 to range from $260 million to $265 million, an increase of approximately 12% over the first quarter of 2006, and anticipates diluted earnings per share for the first quarter of 2007 to range from $.13 to $.15 per share, an increase of approximately 17% over the $.12 per share for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the first quarter of 2007 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable es·ti·ma·ble adj. 1. Possible to estimate: estimable assets; an estimable distance. 2. Deserving of esteem; admirable: an estimable young professor. . The company also announced that it has incorporated a wholly-owned fully licensed captive insurance Captive insurance companies are limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups, they sometimes also insure risks of the parent company's customers. company, effective January 1, 2007, which will participate in providing BBSI with excess workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and other insurance coverages. Management expects the captive will provide opportunities to participate in more competitive and cost effective insurance markets and provide additional flexibility in risk management. Conference Call On February 9, 2007 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 2006 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 8622054. The conference call will also be webcast live at www.barrettbusiness.com. To access the webcast, click on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Web site and select Webcast. A replay of the call will be available beginning Friday, February 9, 2007 at 12:00 p.m. PT and ending on February 16, 2007. To listen to the recording, dial (800) 642-1687 and enter conference identification code 8622054. Statements in this release about future events or performance, including earnings expectations for the first quarter of 2007, 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 successfully integrate acquired businesses with its existing operations, future workers' compensation claims experience, the effect of changes in the workers' compensation regulatory environment in one or more of its primary markets, collectibility of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , and the use of $73 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , among others. Other important factors that may affect the Company's future prospects are described in the Company's 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion