Barrett Reports On First Quarter

Barrett Reports On First Quarter

Barrett Business Services, Inc. has reported net income of $5.5 million for the first quarter ended March 31, 2011 compared to a net loss of $1.7 million for the first quarter of 2010. Diluted earnings per share for the 2011 first quarter were $.54, as compared to a diluted loss per share of $.16 for the same quarter a year ago. Income for the first quarter of 2011 included $10.0 million of proceeds from a key man life insurance policy the Company carried on William W. Sherertz, the Company's President and Chief Executive Officer, who passed away January 20, 2011.

Net revenues for the first quarter ended March 31, 2011 totaled $68.8 million, an increase of approximately $10.5 million or 18.0% over the $58.3 million for the same quarter in 2010.

Without the benefit of the life insurance proceeds and the incremental selling, general and administrative ("SG&A") costs associated with the CEO transition, the Company experienced a net loss for the 2011 first quarter of approximately $2.0 million or $.19 cents per share

Outlook for Second Quarter 2011

The Company also disclosed today limited financial guidance with respect to its operating results for the second quarter ending June 30, 2011. The Company expects gross revenues for the second quarter of 2011 to range from $347 million to $352 million, as compared to $297.1 million for the second quarter of 2010, and anticipates diluted earnings for the second quarter of 2011 to range from $.31 to $.34 per share, as compared to diluted earnings per share of $.22 for the same period a year ago. The range of anticipated diluted earnings per share for the 2011 second quarter includes a favorable income tax rate benefit related to the effect of a much lower annual effective income tax rate attributable to the $10.0 million life insurance proceeds. Without the effect of the favorable tax rate benefit, the range of diluted earnings per share for the 2011 second quarter is estimated to be $.25 to $.28. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the second quarter of 2011 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.