Financial Data and Key Metrics Changes - The company reported a 17% increase in gross billings compared to the prior year's quarter, exceeding expectations [4][14] - Average worksite employees (WSEs) increased by 10% year-over-year and 6% sequentially from Q1 [4] - Gross margin as a percentage of gross billings improved, benefiting from favorable developments in workers' compensation [6][22] Business Line Data and Key Metrics Changes - Staffing business revenues increased by 20% over the prior year to $24.7 million [14] - The staffing business faced challenges in filling orders due to a tight labor market, with 1,300 open job positions nationally [5] - PEO gross billings increased by 17% year-over-year, with regional growth varying significantly [14][15] Market Data and Key Metrics Changes - The Mountain states saw a 36% growth in PEO gross billings, while Southern California only grew by 8% [14][15] - Southern California remains the only region with negative year-to-date WSE growth through Q2 compared to the prior year [15] - The average client wage in Southern California is historically lower than in Northern California, impacting growth [15] Company Strategy and Development Direction - The company is focused on operational efficiencies, consolidating branches to reduce costs while maintaining service quality [8] - A strategic milestone was achieved with two material workers' compensation insurance transactions that derisk the business model [6][7] - The company plans to open three new branches in Q3 2021, indicating ongoing expansion efforts [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, citing strong client retention and positive trends in business performance [12][13] - The company is cautious about the recovery in Southern California but sees potential upside as government stimulus ends [42][43] - The outlook for gross billings has been raised to an expected increase of 6% to 8% for the year [24] Other Important Information - The company remains debt-free except for a $4 million mortgage on its headquarters and returned $2.3 million in dividends and $3 million in stock repurchases [24] - Workers' compensation expenses are trending favorably, with a reduction of estimated liabilities of $5.5 million in Q2 [16][19] - The company has $110 million of unrestricted cash and investments as of June 30, down from $143 million at the end of Q1 [23] Q&A Session Summary Question: Can you explain the new workers' comp structure and its implications? - Management confirmed that the new structure reduces risk but may lead to a decrease in investment income as funds are no longer held prior to claims [27][28] Question: How will premium adjustments work under the new model? - Premium adjustments will be assessed at set milestones, with the first milestone occurring several years later [29][30] Question: Why is 18% still self-insured? - The self-insured model has less frictional cost, and the economics of an insured program may not be beneficial in certain states [32][33] Question: What are the specifics around firming workers' comp rates? - The company experienced slightly positive rate increases during Q2, a significant improvement compared to previous years [34][35] Question: Can you break down the 17% gross billings growth in PEO? - The growth was driven by a 10% increase in WSEs and a 6% increase in billing per WSE [44][45] Question: What is the outlook for worksite employee growth? - The guidance remains conservative due to slow recovery in Southern California, but there is potential for upside as stimulus ends [41][42] Question: How is the digital campaign performing? - The company is testing multiple strategies across different markets and will scale successful initiatives [58] Question: Will staffing revenues continue to grow? - Growth is constrained by the ability to find candidates, but management is optimistic about future hiring as stimulus subsides [60][61]

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The company's unaudited interim financials show increased assets, revenues, and net income for the six months ended June 30, 2021 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities grew as of June 30, 2021, driven by higher receivables and accrued payroll Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,469 | $68,688 | | Trade accounts receivable, net | $226,582 | $118,506 | | Total current assets | $462,417 | $407,875 | | Total assets | $866,118 | $774,950 | | **Liabilities & Equity** | | | | Accrued payroll, payroll taxes and related benefits | $235,928 | $149,989 | | Workers' compensation claims liabilities (current) | $86,047 | $102,040 | | Total current liabilities | $406,848 | $290,637 | | Total liabilities | $666,696 | $576,715 | | Total stockholders' equity | $199,422 | $198,235 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues and net income increased for both the three and six-month periods ended June 30, 2021, compared to the prior year Q2 2021 vs Q2 2020 Performance (in thousands, except per share) | Metric | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Total Revenues | $233,203 | $201,031 | | Gross Margin | $57,473 | $46,643 | | Income from Operations | $20,483 | $12,217 | | Net Income | $17,090 | $11,510 | | Diluted EPS | $1.51 | $1.06 | H1 2021 vs H1 2020 Performance (in thousands, except per share) | Metric | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Total Revenues | $451,648 | $420,135 | | Gross Margin | $88,338 | $72,694 | | Income from Operations | $12,944 | $5,153 | | Net Income | $12,536 | $8,103 | | Diluted EPS | $1.64 | $1.06 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned positive while significant cash was used for investing, resulting in a net decrease in total cash Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,621 | $(114,389) | | Net cash (used in) provided by investing activities | $(211,539) | $1,983 | | Net cash used in financing activities | $(10,756) | $(5,405) | | **Net decrease in cash, cash equivalents and restricted cash** | **$(219,674)** | **$(117,811)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, investment portfolio composition, and significant legal proceedings like the Kaanaana case - The company reports Professional Employer Organization (PEO) revenues **net of direct payroll costs** because it is not the primary obligor for these payments[39](index=39&type=chunk) - On June 30, 2021, the company entered into a second loss portfolio transfer agreement (LPT 2) to remove outstanding workers' compensation claims obligations, **reducing liabilities by $53.1 million**[70](index=70&type=chunk) - The California Supreme Court affirmed a lower court's decision in the Kaanaana case, concluding that certain staffing work was a **"public work" subject to prevailing wage requirements**[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by higher PEO service fees, while improved gross margin resulted from favorable workers' compensation claims [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q2 2021 net income grew due to increased revenue from higher average billing and a rise in worksite employees (WSEs) Gross Billings and Wages (in thousands) | Period | Gross Billings | PEO and Staffing Wages | | :--- | :--- | :--- | | **Q2 2021** | $1,601,339 | $1,384,861 | | **Q2 2020** | $1,369,990 | $1,177,855 | | **H1 2021** | $3,072,880 | $2,656,253 | | **H1 2020** | $2,809,110 | $2,410,435 | Worksite Employee (WSE) Growth | Period | Metric | 2021 | % Change | 2020 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Q2** | Average WSEs | 112,363 | 9.5% | 102,602 | -10.1% | | **H1** | Average WSEs | 109,311 | 1.3% | 107,914 | -5.6% | - The decrease in workers' compensation expense in Q2 2021 was primarily due to a **favorable adjustment of $5.5 million** related to claims from prior periods[101](index=101&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Total cash decreased due to investment purchases and higher receivables, though the company maintains an undrawn credit facility - **Net cash provided by operating activities was $2.6 million** for H1 2021, compared to net cash used of $114.4 million in H1 2020[107](index=107&type=chunk) - In April 2021, a **$63.7 million standby letter of credit was replaced** with other collateral assets, and the company transferred funds to its trust accounts[109](index=109&type=chunk)[78](index=78&type=chunk) - The company **repurchased $6.6 million of common stock** and paid $4.5 million in dividends during the first six months of 2021[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes affecting its investment portfolio's fair value - As of June 30, 2021, a **50 basis point increase in market interest rates** would have a **$10.8 million negative effect** on the fair value of the Company's investment portfolio[114](index=114&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of June 30, 2021[115](index=115&type=chunk) - **No material changes in internal control** over financial reporting occurred during the quarter[116](index=116&type=chunk) [Part II - Other Information](index=30&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 6 for details on legal matters, primarily the Kaanaana class action lawsuit - For details on legal proceedings, the report **refers to Note 6** of the condensed consolidated financial statements[119](index=119&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company identifies ongoing risks from the COVID-19 pandemic as a material factor affecting its business - The primary risk factor update relates to the **ongoing COVID-19 pandemic** and its potential negative effects on the business[120](index=120&type=chunk)[121](index=121&type=chunk) - Specific pandemic-related risks include workforce reductions at client businesses, client liquidity issues, complex government relief programs, and **increased workers' compensation exposure**[121](index=121&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 42,342 shares in Q2 2021, with $35.6 million remaining under its repurchase authorization Stock Repurchases for Q2 2021 | Month | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April | 0 | $ - | | May | 11,643 | $75.25 | | June | 30,699 | $73.78 | | **Total** | **42,342** | **N/A** | - As of June 30, 2021, approximately **$35.6 million remained available for repurchase** under the company's stock repurchase plan[125](index=125&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files

Barrett Business Services, Inc. (NASDAQ:BBSI) Q1 2021 Results Conference Call May 5, 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 Jeff Martin - ROTH Capital Partners Bill Dezellem - Tieton Capital Management Vincent Colicchio - Barrington Research Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSIs financial ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-21886 BARRETT BUSINESS SERVICES, INC. (Exact name of registrant as specified in its charter) Maryland 52-0812977 (State or other jurisdictio ...

Barrett Business Services, Inc. (NASDAQ:BBSI) Q3 2020 Results Conference Call November 4, 2020 12:00 PM ET Company Participants Gary Kramer - President & CEO Anthony Harris - CFO Conference Call Participants Chris Moore - CJS Securities Jeff Martin - Roth Capital Partners Vincent Colicchio - Barrington Research Josh Vogel - Sidoti & Company Bill Dezellem - Tieton Capital Management Operator Good day, everyone. Thank you for participating in today's conference call to discuss BBSI's Financial Results for the ...

Financial Data and Key Metrics Changes - Diluted income per share increased 24% to $1.81 compared to $1.46 in Q2 of 2018 [5] - Gross billings of $1.46 billion grew 6% over the same period [5] - Net revenue of $231 million decreased slightly compared to $231.6 million in Q2 of 2018 [6] - Gross margin increased 14% to $55 million compared to $48 million at Q2 of 2018 [7] - SG&A in the second quarter was $39 million or 2.7% of gross billings compared to $35.6 million or 2.6% in the prior year quarter [8] Business Line Data and Key Metrics Changes - PEO gross billings increased 7% to $1.44 billion compared to the second quarter last year [5] - Staffing revenue decreased 19% to $28 million compared to Q2 of 2018 due to a tight labor market [6] - Same-customer sales were 4% compared to 5.7% in Q2 of 2018 [5] Market Data and Key Metrics Changes - Gross billings grew by 4% in California versus 13% in all other combined geographies [5] - Southern California experienced the softest growth, with same-customer sales below 4% [33] Company Strategy and Development Direction - The company continues to focus on balancing spend against growth while investing in future business [9] - A 20% dividend increase to $1.20 per share annually and a $50 million stock repurchase plan over the next three years were announced [12] - The company aims for gross billings growth of approximately 8% for the next rolling 12-month period [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to create shareholder value and noted that business owners are optimistic but face challenges in finding skilled labor [16][18] - The company anticipates continued deceleration in staffing revenue and same-customer sales growth [14] - Management highlighted a strong pipeline and continued investment in infrastructure to support growth [20] Other Important Information - The effective tax rate estimate increased to 22% due to changes in capital allocation strategy and state allocations [9] - Unrestricted cash and investments were $101 million at June 30, 2019, which is $62 million greater than March 31, 2019 [10] Q&A Session Summary Question: What percentage of clients have workers' comp through BBSI? - Approximately 8% of new clients added in the quarter did not have workers' comp attached [23] Question: Has the pricing changed for workers' comp? - Profitability is driven by reduced frictional costs and better alignment with clients, leading to lower claims frequency [26] Question: Can you break down same-store sales results? - Same-customer sales were 4% for the company, with Southern California being the softest market [33] Question: What factors are contributing to lower growth rates in California? - The slowdown is attributed to macroeconomic factors, including tariff conversations affecting logistics and manufacturing [36] Question: How does the company view the workers' comp cycle? - The company believes it is closer to the bottom of the cycle, with rate decreases slowing down [39] Question: What is the rationale behind the $50 million share repurchase? - The strong balance sheet allows for different decisions regarding shareholder value while continuing to invest in growth [44] Question: Will the Chubb renewal be an annual event? - The renewal is not expected to be a multiyear agreement due to the changing profile of the company [51] Question: What is the trend in wage inflation across geographies? - Wage inflation is consistent across geographies, ranging from 2.7% to 3.4% [53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-21886 BARRETT BUSINESS SERVICES, INC. (Exact name of registrant as specified in its charter) Maryland 52-0812977 (State or other jurisdiction of ...

Barrett Business Services Inc. (NASDAQ:BBSI) Q1 2020 Earnings Conference Call May 6, 2020 12:00 PM ET Company Participants Gary Kramer – President and Chief Executive Officer Anthony Harris – Chief Financial Officer Gerald Blotz – Chief Operating Officer 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 Operator Good day, everyone and thank you for parti ...