VANCOUVER, WA--(Marketwired - Apr 28, 2015) - Barrett Business Services, Inc. ("BBSI" or the "Company") (
First Quarter 2015 Financial Highlights vs. Year-Ago Quarter
- Net revenues up 24% to $166.9 million
- Gross revenues up 23% to $896.9 million
- Net loss of $5.8 million or $(0.81) per diluted share, compared to a net loss of $3.6 million or $(0.50) per diluted share
First Quarter 2015 Financial Results
Net revenues in the first quarter of 2015 increased 24% to $166.9 million compared to $135.1 million in the first quarter of 2014.
Total non-GAAP gross revenues in the first quarter of 2015 increased 23% to $896.9 million compared to $727.4 million in the first quarter of 2014 (see "Reconciliation of Non-GAAP Financial Measures" below). The increase was primarily due to the continued build in the Company's co-employed client count and same-store sales growth.
Net loss in the first quarter of 2015 was $5.8 million or $(0.81) per diluted share, compared to a net loss of $3.6 million or $(0.50) per diluted share in the year-ago quarter. The Company historically incurs losses in the first quarter due to the higher effective payroll taxes at the beginning of each year.
At March 31, 2015, the Company's cash, cash equivalents, marketable securities and restricted securities totaled $248.3 million compared to $239.1 million at December 31, 2014.
Management Commentary
"The momentum we experienced in our business at the end of 2014 has continued into the first quarter," said Michael Elich, president and CEO of BBSI. "Our gross revenue expanded by 23%, supported by 7.6% same-store sales growth. Additionally, we experienced an approximate net build of 229 new clients. This continued build speaks to the strength of our referral relationships, as well as to the value our operational teams deliver in support of our clients.
"We are maintaining our rolling 12-month outlook due to the stability of our current client base, the strength of our new business channels and the scalability of our operations. In fact, the strategic investments in our infrastructure over the past several years have laid the groundwork for our performance and we are confident these investments will help BBSI's brand continue to mature in the marketplace."
12 Month Outlook
BBSI continues to expect gross revenues for the next 12-month period to increase approximately 18%. Included in this expectation is a high single-digit contribution from same-store sales growth as well as growth from new business consistent with current trends.
Conference Call
BBSI will conduct a conference call tomorrow, April 29, 2015 at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) to discuss its financial results for the first quarter ended March 31, 2015. The Company's President and CEO Michael Elich and CFO James Miller will host the call, followed by a question and answer period.
Date: Wednesday, April 29, 2015 Time: 12:00 p.m. Eastern time (9:00 a.m. Pacific time) Toll-free dial-in number: 1-888-481-2844 International dial-in number: 1-719-325-2455 Conference ID: 3372136
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860 .
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=114000 and via BBSI's investor relations section of the BBSI website at www.barrettbusiness.com .
A replay of the conference call will be available after 3:00 p.m. Eastern time on the same day through May 29, 2015.
Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay ID: 3372136
Reconciliation of Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles ("GAAP"), the Company is disclosing non-GAAP gross revenues.
The Company reports its Professional Employer Service revenues on a net basis because it is not the primary obligor for the services provided by the Company's co-employed clients to their customers. The gross revenues and cost of revenues information below, although not in accordance with 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) | ||||||||
| First Quarter Ended | ||||||||
| (in thousands) | March 31, | |||||||
| 2015 | 2014 | |||||||
| Revenues: | ||||||||
| Professional employer services | $ | 857,760 | $ | 693,926 | ||||
| Staffing services | 39,166 | 33,451 | ||||||
| Total revenues | 896,926 | 727,377 | ||||||
| Cost of revenues: | ||||||||
| Direct payroll costs | 754,435 | 613,320 | ||||||
| Payroll taxes and benefits | 88,294 | 72,817 | ||||||
| Workers' compensation | 45,221 | 31,934 | ||||||
| Total cost of revenues | 887,950 | 718,071 | ||||||
| Gross margin | $ | 8,976 | $ | 9,306 | ||||
A reconciliation of non-GAAP gross revenues to net revenues is as follows:
| (Unaudited) | ||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||
| Gross Revenue | Net Revenue | |||||||||||||||||||||
| (in thousands) | Reporting Method | Reclassification | Reporting Method | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Professional employer services | $ | 857,760 | $ | 693,926 | $ | (730,009 | ) | $ | (592,237 | ) | $ | 127,751 | $ | 101,689 | ||||||||
| Staffing services | 39,166 | 33,451 | - | - | 39,166 | 33,451 | ||||||||||||||||
| Total revenues | $ | 896,926 | $ | 727,377 | $ | (730,009 | ) | $ | (592,237 | ) | $ | 166,917 | $ | 135,140 | ||||||||
| Cost of revenues | $ | 887,950 | $ | 718,071 | $ | (730,009 | ) | $ | (592,237 | ) | $ | 157,941 | $ | 125,834 | ||||||||
About BBSI
BBSI (
Forward-Looking Statements
Statements in this release about future events or performance, including expectations for gross revenues for the next 12 months, 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 clients and attract new clients, the availability of financing or other sources of capital, the potential for material deviations from expected 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 collectability of accounts receivable, the carrying value of deferred income tax assets and goodwill, 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 2014 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 are 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.
| Barrett Business Services, Inc. | ||||||||
| Condensed Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| (in thousands) | 2015 | 2014 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 15,205 | $ | 11,544 | ||||
| Marketable securities | 21,670 | 29,957 | ||||||
| Trade accounts receivable, net | 130,376 | 102,627 | ||||||
| Income taxes receivable | 13,586 | 11,421 | ||||||
| Prepaid expenses and other | 6,658 | 3,813 | ||||||
| Restricted markertabe securities and workers' compensation deposits | 12,533 | 3,776 | ||||||
| Deferred income taxes | 15,763 | 15,791 | ||||||
| Total current assets | 215,791 | 178,929 | ||||||
| Marketable securities | 6,034 | 20,930 | ||||||
| Property, equipment and software, net | 22,648 | 22,675 | ||||||
| Restricted certificates of deposit | 114,335 | 114,335 | ||||||
| Restricted marketable securities and workers' compensation deposits | 78,516 | 58,533 | ||||||
| Other assets | 4,960 | 5,306 | ||||||
| Goodwill | 47,820 | 47,820 | ||||||
| $ | 490,104 | $ | 448,528 | |||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | 5,772 | $ | - | ||||
| Current portion of long-term debt | 25,220 | 25,220 | ||||||
| Accounts payable | 3,500 | 2,719 | ||||||
| Accrued payroll, payroll taxes and related benefits | 154,508 | 120,133 | ||||||
| Other accrued liabilities | 1,784 | 1,917 | ||||||
| Workers' compensation claims liabilities | 56,480 | 54,049 | ||||||
| Safety incentives liabilities | 15,499 | 14,232 | ||||||
| Total current liabilities | 262,763 | 218,270 | ||||||
| Long-term workers' compensation claims liabilities | 165,785 | 161,933 | ||||||
| Long term debt | 19,778 | 19,833 | ||||||
| Deferred income taxes | 8,159 | 8,159 | ||||||
| Customer deposits and other long-term liabilities | 1,534 | 1,675 | ||||||
| Stockholders' equity | 32,085 | 38,658 | ||||||
| $ | 490,104 | $ | 448,528 | |||||
| Barrett Business Services, Inc. | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (Unaudited) | ||||||||||
| (in thousands, except per share amounts) | First Quarter Ended | |||||||||
| March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Revenues: | ||||||||||
| Professional employer service fees | $ | 127,751 | $ | 101,689 | ||||||
| Staffing services | 39,166 | 33,451 | ||||||||
| Total revenues | 166,917 | 135,140 | ||||||||
| Cost of revenues: | ||||||||||
| Direct payroll costs | 29,764 | 25,417 | ||||||||
| Payroll taxes and benefits | 88,294 | 72,817 | ||||||||
| Workers' compensation | 39,883 | 27,600 | ||||||||
| Total cost of revenues | 157,941 | 125,834 | ||||||||
| Gross margin | 8,976 | 9,306 | ||||||||
| Selling, general and administrative expenses | 16,975 | 14,369 | ||||||||
| Depreciation and amortization | 683 | 584 | ||||||||
| Loss from operations | (8,682 | ) | (5,647 | ) | ||||||
| Other income, net | (445 | ) | 90 | |||||||
| Loss before taxes | (9,127 | ) | (5,557 | ) | ||||||
| Benefit from income taxes | (3,325 | ) | (1,974 | ) | ||||||
| Net loss | $ | (5,802 | ) | $ | (3,583 | ) | ||||
| Basic loss per common share | $ | (0.81 | ) | $ | (0.50 | ) | ||||
| Weighted average basic common shares outstanding | 7,135 | 7,170 | ||||||||
| Diluted income loss per common share | $ | (0.81 | ) | $ | (0.50 | ) | ||||
| Weighted average diluted common shares outstanding | 7,135 | 7,170 | ||||||||
Company Contact: Michael L. Elich President and CEO Tel 1-360-828-0700 Investor Relations: Liolios Group, Inc. Cody Slach Tel 1-949-574-3860 Email Contact
