BBSI Announces Third Quarter 2010 Operating Results, Financial Guidance For 4Q10 And Conference Call

VANCOUVER, Wash., Oct. 26, 2010 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (Nasdaq:BBSI) reported today net income of $3.7 million for the third quarter ended September 30, 2010 compared to a net income of $2.9 million for the third quarter of 2009. Diluted income per share for the 2010 third quarter was $.36, as compared to diluted earnings per share of $.28 for the same quarter a year ago. 

Net revenues for the third quarter ended September 30, 2010 totaled $73.9 million, an increase of approximately $8.4 million or 12.8% over the $65.5 million for the same quarter in 2009.

	(Unaudited)		(Unaudited)
(in thousands, except per share amounts)	Third Quarter Ended September 30,		Nine Months Ended September 30,
Results of Operations	2010	2009	2010	2009
Revenues:
Staffing services	$ 33,954	$ 33,180	$ 92,991	$ 85,224
Professional employer service fees	39,922	32,314	106,577	88,607
Total revenues	73,876	65,494	199,568	173,831
Cost of revenues:
Direct payroll costs	25,846	25,095	70,519	64,291
Payroll taxes and benefits	24,501	20,399	71,990	62,460
Workers' compensation	9,473	7,859	25,881	33,473
Total cost of revenues	59,820	53,353	168,390	160,224
Gross margin	14,056	12,141	31,178	13,607
Selling, general and administrative expenses	9,156	8,416	25,787	24,792
Depreciation and amortization	341	422	1,051	1,218
Income (loss) from operations	4,559	3,303	4,340	(12,403)
Other income, net	588	965	1,253	1,373
Income (loss) before taxes	5,147	4,268	5,593	(11,030)
Provision for (benefit from) income taxes	1,461	1,323	1,315	(4,069)
Net income (loss)	$ 3,686	$ 2,945	$ 4,278	$ (6,961)
Basic income (loss) per share	$ .36	$ .28	$ .41	$ (.67)
Weighted average basic shares outstanding	10,217	10,475	10,376	10,442
Diluted income (loss) per share	$ .36	$ .28	$ .41	$ (.67)
Weighted average diluted shares outstanding	10,251	10,559	10,410	10,442

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)
(in thousands)	Third Quarter Ended September 30,		Nine Months Ended September 30,
	2010	2009	2010	2009
Revenues:
Staffing services	$ 33,954	$ 33,180	$ 92,991	$ 85,224
Professional employer services	298,941	239,872	799,557	663,847
Total revenues	332,895	273,052	892,548	749,071
Cost of revenues:
Direct payroll costs	283,421	231,532	759,690	635,808
Payroll taxes and benefits	24,501	20,399	71,990	62,460
Workers' compensation	10,917	8,980	29,690	37,196
Total cost of revenues	318,839	260,911	861,370	735,464
Gross margin	$ 14,056	$ 12,141	$ 31,178	$ 13,607

Gross revenues of $332.9 million for the third quarter ended September 30, 2010 increased 21.9% over the similar period in 2009. 

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