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Barrett’s financial report for 3Q delayed

By Aaron Corvin, Columbian Port & Economy Reporter
Published: November 12, 2014, 12:00am

Barrett Business Services said Wednesday it will be late in filing its financial report for the three-month period ending on Sept. 30.

In a filing with the U.S. Securities and Exchange Commission, the Vancouver-based provider of employment services said it’s unable to file its third-quarter report “in a timely manner without unreasonable effort or expense.”

The delay is because of the “time required to analyze and reflect the effects” of a change in Barrett’s estimate of its workers’ compensation reserves, the company said.

Barrett said it expects to file its third-quarter report no later than Nov. 17. The interruption in the company’s financial reporting comes after Barrett on Oct. 28 said it recorded a net loss of $37.8 million, largely because of an $80 million increase in its self-insured workers’ compensation reserve.

Subsequently, the company saw its stock price plummet nearly 60 percent, to $18.28 per share.

In its filing with the SEC on Wednesday, Barrett said that, as it disclosed on Oct. 28, it expects a decrease in operating income from $13 million for the third quarter of 2013 to an operating loss of $64.4 million for the third quarter of 2014.

That adjustment is connected to the company’s recording of a “workers’ compensation claims expense accrual of $101.2 million for the quarter,” Barrett said.

The company, whose stock trades as BBSI on the Nasdaq exchange, provides temporary staffing, and employee recruitment and placement services. It also acts as a co-employer for clients, handling their human resources responsibilities.

Barrett faces a class-action lawsuit, filed by investors on Nov. 6, alleging the company violated federal securities laws by misleading shareholders about its market value. Part of the suit focuses on the company’s announcement of the $80 million increase in its self-insured workers’ compensation reserve.

The company’s stock closed down 31 cents Wednesday, at $22.79 per share. The company’s shares have traded between $18.25 and $102.20 in the past 52 weeks.

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Columbian Port & Economy Reporter