SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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):
March 4, 2004
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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
Item 9. Regulation FD Disclosure.
On March 4, 2004, William W. Sherertz, President and Chief Executive
Officer, and Michael D. Mulholland, Chief Financial Officer, of Barrett Business
Services, Inc. (the "Company"), will speak to the investment community at the
Robins Group "Spot-a-Winner" Conference in San Francisco, California. During
their remarks, Messrs. Sherertz and Mulholland will comment on the Company's
expected financial performance for 2004:
o The Company's gross revenues for the first quarter of 2004 are
estimated to be $110.0 million, compared to $101.0 million for the
fourth quarter of 2003 and $41.0 million for the first quarter of
2003. Net revenues were $36.3 million and $23.4 million for the
quarters ended December 31, 2003 and March 31, 2003, respectively.
o Earnings per diluted share for the first quarter of 2004 are
estimated to range from $0.00 to $0.05, compared to earnings per
diluted share of $0.22 for the fourth quarter of 2003 and a loss of
$(0.06) per diluted share for the first quarter of 2003.
The Company changed its reporting of PEO revenues from a gross basis
to a net basis in 2002 because it was determined that the Company was not the
primary obligor for the services provided by employees pursuant to its PEO
contracts. Gross revenues information, although not in accordance with generally
accepted accounting principles ("GAAP"), is presented 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. In addition, the
Company historically reported PEO revenues on a gross basis and believes that
continued disclosure of gross revenues information provides consistency in the
Company's financial reporting for comparative purposes.
A reconciliation of the historical non-GAAP gross revenues discussed
above to net revenues is as follows (in thousands):
Gross Revenue Net Revenue
Reporting Method Reclassification Reporting Method
--------------------- --------------------- -------------------
Fourth First Fourth First Fourth First
Quarter Quarter Quarter Quarter Quarter Quarter
Ended Ended Ended Ended Ended Ended
12/31/03 3/31/03 12/31/03 3/31/03 12/31/03 3/31/03
-------- -------- --------- --------- -------- -------
Revenues:
Staffing services $ 23,661 $ 20,110 $ --- $ --- $ 23,661 $ 20,110
Professional
employer services 77,366 20,539 (64,378) (17,252) 12,988 3,287
------- ------- -------- -------- ------- -------
Total revenues $101,027 $ 40,649 $(64,378) $(17,252) $ 36,349 $ 23,397
======= ======= ======== ======== ======= =======
Cost of revenues: $ 93,830 $ 32,050 $(64,378) $(17,252) $ 29,452 $ 14,798
======= ======= ======== ======== ======= =======
A reconciliation of estimated gross revenues to estimated GAAP net
revenues for the first quarter of 2004 is not included in this report because
estimated PEO revenues and cost of PEO revenues for the period cannot be
determined without unreasonable effort and expense.
Statements in this report about future events or performance,
including gross revenues and earnings per share expectations for 2004, 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 successful integration of the operations of Skills Resource Training
Center acquired by the Company on January 1, 2004, the effect of changes in the
Company's mix of services on gross margin, future workers' compensation claims
experience, collectability of accounts receivable, and availability of funding
for working capital purposes, among others. Other important factors that may
affect the Company's future prospects are described in the Company's 2002 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 report to reflect events or changes in circumstances that occur after
the date of this report.
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: March 4, 2004 By: /s/ Michael D. Mulholland
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Michael D. Mulholland
Vice President - Finance