Financial Data and Key Metrics Changes - The company reported a 14% increase in gross billings year-over-year, reaching $1.8 billion for the PEO business, while staffing revenues increased by 21% to $30 million [16][8] - Average worksite employees (WSEs) increased by 9% compared to the prior year, with average billing per WSE rising by 5% [16][8] - The company raised its full-year outlook, now expecting gross billings to increase between 11% and 13%, up from 10% to 12% previously [23] Business Line Data and Key Metrics Changes - The PEO business saw a 14% growth in gross billings, driven by stronger-than-expected growth from net new clients and higher average billing per WSE [16][8] - Staffing operations experienced a 21% increase year-over-year, with improvements in fill ratios despite challenges in the tight labor market [8][16] - The company added approximately 3,200 worksite employees year-over-year from net new clients, indicating strong client retention and growth [7][8] Market Data and Key Metrics Changes - PEO gross billings growth by region showed significant increases: Mountain States grew 34%, East Coast grew 22%, and Southern California grew 11% [17] - The company operates in 13 states and 68 markets, maintaining consistent operations across these regions [9] Company Strategy and Development Direction - The company is focusing on a three-pronged strategy to enhance client relationships and expand its referral partner network [5][6] - A new health benefits offering is being launched, which is expected to diversify the client profile and expand the total addressable market [12][10] - The company is actively looking for acquisition opportunities but remains cautious about deals that do not make sense [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in worksite employee growth and client retention [14][15] - Despite challenges such as tight labor markets and inflation, the company does not see signs of an economic slowdown affecting its operations [13][14] - The management is optimistic about the future, particularly with the new benefits offering expected to accelerate growth [15][24] Other Important Information - The company renewed its workers' compensation facility with better pricing and terms, reflecting improved underwriting and loss experience [10][19] - The company repurchased 270,000 shares at an average price of $73.88 per share, continuing its $75 million share repurchase program [22] Q&A Session Summary Question: Can you explain the mechanics of the health care benefits offering? - The company plans to start selling the health care benefits outside of California, with a seamless enrollment process leading to a master plan effective January 1, 2023 [27][28] Question: Is the health care offering exclusive to one insurance company? - The company has partnered with one health insurance company for the primary offering and another for ancillary benefits [30] Question: What is the pipeline for new sales prospects and referral partners? - The company is seeing increased lead activity and stronger business coming in compared to pre-pandemic levels [39] Question: What are the growth expectations for worksite employees in the second half of the year? - The company has tempered expectations for the second half, anticipating a more moderate pace of hiring due to the tight labor market [41] Question: What should Q3 revenue look like compared to Q2? - Q3 billings are expected to show strong year-over-year growth similar to Q2, with consistent trends observed [44] Question: Will the company be opportunistic in acquisitions if the market changes? - The company is actively looking for acquisition opportunities but will only pursue deals that make sense [48]

Financial Data and Key Metrics Changes - The company reported a gross billings increase of 16% year-over-year, reaching $1.68 billion for the PEO business, while staffing revenues increased by 18% to $28.9 million [13][7] - Average worksite employees (WSEs) rose by 9% compared to the prior year, with average billing per WSE increasing by 6% due to higher wages [13][14] - The company generated positive net income in Q1 for the first time in over 10 years, typically showing a loss in Q1 due to payroll tax timing [16] Business Line Data and Key Metrics Changes - The PEO business saw a 16% increase in gross billings, driven by stronger client growth and hiring [13][14] - The staffing business experienced an 18% year-over-year growth, with improvements in applicant placement and fill ratios despite a tight labor market [7][8] - The company added approximately 3,500 worksite employees year-over-year from net new clients, marking the best quarter in over five years [6][29] Market Data and Key Metrics Changes - PEO gross billings growth varied by region, with the Mountain States growing by 38%, East Coast by 25%, and Southern California by 13% [14] - The company operates in 13 states and 68 markets, maintaining consistent market presence compared to the previous quarter [9] Company Strategy and Development Direction - The company is focused on a three-pronged strategy to enhance sales leads, including deepening relationships with existing partners and utilizing technology for new client acquisition [4][5] - An asset-light model is being employed to enter new markets, allowing for efficient client servicing and sales through digital initiatives [9][39] - The company plans to continue investing in technology and growth initiatives while maintaining a disciplined approach to acquisitions [12][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, citing strong client retention and growth in prospects [11][50] - Despite macroeconomic challenges such as inflation and labor market tightness, the company does not see immediate signs of a slowdown in its data [10][50] - The company raised its full-year guidance for gross billings growth to 10%-12%, up from 7%-9%, reflecting confidence in continued performance [19] Other Important Information - The company has a new $75 million stock repurchase plan and has already purchased 241,000 shares at an average price of $74.80 [18] - The unrestricted cash investments decreased to $127 million from $166 million at year-end, primarily due to payroll tax payments and stock repurchases [17] Q&A Session Summary Question: Can you talk about the distribution of revenue and earnings in the final three quarters of 2022? - Management expects sequential growth each quarter, with Q4 potentially impacted by one less business day [22][23] Question: Will the company be more cautious on acquisitions given economic risks? - Management indicated that pricing has improved for sellers, and they remain active in the acquisition market while being prudent [24][25] Question: What was the year-over-year same customer WSE growth in the quarter? - The company added approximately 3,400 worksite employees from net new customers and about 6,500 from customer hiring year-over-year [29] Question: Can you comment on the asset-light model and its progress? - Management reported positive outcomes from the asset-light model, with markets performing at or better than expectations [39] Question: Is the average WSE growth guidance of 4% to 6% conservative? - Management acknowledged some conservatism in the guidance, considering the tight labor market and hiring trends [42][44]

Client Base and Employee Support - In 2021, the company supported over 7,600 PEO clients with an average of 112,928 worksite employees (WSEs), compared to 7,500 clients and 108,249 WSEs in 2020, reflecting a growth in client base and employee support [26]. - As of December 31, 2021, the company had a total of 121,660 employees, including 116,154 under PEO client service agreements [42]. - The small and mid-sized business segment remains a key focus for the company, as it is large, underserved, and generally more dependent on external resources [30]. Revenue and Financial Performance - Total revenues for 2021 were $955,166 thousand, an increase from $880,824 thousand in 2020, representing a growth of 8.5% [125]. - Revenues increased by 8.4% in 2021 but decreased by 6.5% in 2020, indicating volatility in revenue growth [64]. - Net income for 2021 was $38,079 thousand, compared to $33,765 thousand in 2020, reflecting an increase of 12.9% [125]. - Professional employer service fees accounted for 88.3% of total revenues in 2021, remaining consistent with 2020 [125]. - Gross billings for 2021 reached $6,569,986 thousand, up from $5,924,539 thousand in 2020, indicating a growth of 10.9% [128]. Operational Model and Technology - The company operates a decentralized delivery model with 50 branch locations across 47 states and the District of Columbia, enhancing local decision-making and client service [20]. - The company’s client-facing technology platform, myBBSI, provides tools for payroll processing, time and attendance management, and human resource information, enhancing operational efficiency for clients [33]. - The company’s operations are affected by the need to constantly improve technology to meet client expectations, with potential risks associated with technological upgrades [59]. Risk Management and Compliance - The company emphasizes risk mitigation and workplace safety, tying the employment of area managers and risk management consultants to their effectiveness in managing client safety compliance [36]. - The company is subject to various federal and state laws and regulations, which impose compliance costs but have not had a material adverse effect on its business to date [45]. - The company faces risks related to compliance with complex and evolving laws and regulations, which could adversely affect profitability and competitiveness [90]. Workers' Compensation and Claims Management - Approximately 82% of the company's workers' compensation exposure is covered through an insured program, which allows for premium adjustments based on overall portfolio performance, with potential savings of up to $20 million [38]. - The company’s self-insured programs cover approximately 18% of its workers' compensation exposure, with specific retention limits based on state regulations [40]. - The company has a comprehensive claims management program aimed at reducing workers' compensation costs through managed-care systems and early settlements [41]. Economic and Market Conditions - California operations accounted for approximately 73% of total revenues in 2021, making the company highly dependent on the economic and regulatory conditions in California [65]. - Economic downturns may lead to reduced revenues as small- and mid-sized clients could cut costs or cease operations, impacting the company's ability to attract new clients [67]. - The company is vulnerable to economic fluctuations, which can affect demand for staffing services and the availability of qualified employees [68]. Shareholder and Investment Activities - The company has repurchased a total of 91,104 shares during the quarter ended December 31, 2021, with an aggregate purchase price of $25.3 million as of that date [107]. - The company has authorized a new repurchase program of up to $75 million of its common stock over a two-year period starting February 28, 2022 [107]. - The investment portfolio is subject to market and credit risks, which could adversely impact the company's financial condition or results of operations [85]. Financial Position and Assets - The company's total current assets decreased slightly to $406.719 million in 2021 from $407.875 million in 2020 [157]. - Total liabilities decreased to $538.422 million in 2021 from $576.715 million in 2020, indicating a reduction of approximately 6.6% [157]. - The company's retained earnings increased to $178.323 million in 2021, up from $165.710 million in 2020, marking a growth of 7.7% [157]. Employee Relations and Community Engagement - The company’s employee relations with management employees are reported to be good, emphasizing the importance of attracting and retaining talent [42]. - The company has implemented a program providing paid volunteer time to encourage management employees' participation in community service projects [42].

Barrett Business Services, Inc. (NASDAQ:BBSI) Q4 2021 Earnings Conference Call March 2, 2022 5:00 PM ET Company Participants Gary Kramer - President & Chief Executive Officer Anthony Harris - Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Jeff Martin - ROTH Capital Partners Vincent Colicchio - Barrington Research Matt Dane - Titan Capital Management Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's Financial Res ...

Barrett Business Services, Inc. (NASDAQ:BBSI) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Gary Kramer - President and Chief Executive Officer Anthony Harris - Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Josh Vogel - Sidoti & Company Jeff Martin - ROTH Capital Partners Vincent Colicchio - Barrington Research Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's Financial Resul ...

Barrett Business Services, Inc. (NASDAQ:BBSI) Q2 2021 Earnings Conference Call August 4, 2021 5:00 PM ET Company Participants Gary Kramer - President and CEO Anthony Harris - CFO Conference Call Participants Chris Moore - CJS Securities Jeff Martin - Roth Capital Partners Josh Vogel - Sidoti & Company Vincent Colicchio - Barrington Research Bill Dezellem - Tieton Capital Management Rich Glass - Glass Capital Operator Good afternoon everyone, and thank you for participating in today's conference call to disc ...