VANCOUVER, Wash., April 02, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions, today announced the appointment of Thomas McGinn as Senior Vice President of Insurance. In this role, Mr. McGinn will oversee BBSI’s insurance operations, including underwriting strategy, risk management, and pricing. He will report directly to BBSI’s Chief Executive Officer, Gary Kramer. “This is a critical leadership role at BBSI, and Tom’s deep e ...

Revenue and Growth - Total revenues for 2024 reached $1,144,537, an increase from $1,069,307 in 2023, with professional employer services contributing 92.9% of total revenues[176] - Gross billings for 2024 amounted to $8,327,091, up from $7,716,152 in 2023, indicating a strong growth trajectory[178] - Revenue for 2024 totaled $1,144.5 million, reflecting a 7.0% increase from 2023, driven by an 8.3% increase in PEO service revenue[182] Net Income and Profitability - Net income for 2024 was $52,993, representing 4.7% of total revenues, slightly down from 4.8% in 2023[176] - Net income for 2024 was $53.0 million, an increase from $50.6 million in 2023, with diluted net income per share rising to $1.98 from $1.85[182] Costs and Expenses - The cost of revenues for staffing services was $891,280, accounting for 77.8% of total revenues, compared to 77.3% in 2023[176] - Payroll taxes and benefits increased to $628,534, making up 54.9% of total revenues in 2024, up from 52.0% in 2023[176] - Workers' compensation costs were $201,736, representing 17.6% of total revenues, a decrease from 19.2% in 2023[176] - Selling, general and administrative expenses were $185,869, or 16.2% of total revenues, slightly down from 16.3% in 2023[176] - A 5% increase in estimated ultimate losses for 2024 would result in a $0.5 million increase in workers' compensation expense[169] Margins - The company reported a gross margin of $253,251, which is 22.2% of total revenues, compared to 22.7% in 2023[176] - Gross margin for 2024 was $253.3 million, representing 22.2% of revenue, down from 22.7% in 2023[183] Employee Metrics - Average worksite employees (WSEs) increased by 4.2% to 129,577 in 2024, while ending WSEs rose by 4.4% to 132,069[180] Cash Flow and Financial Position - Cash balance increased by $7.7 million to $82.6 million as of December 31, 2024, compared to a decrease of $32.5 million in 2023[193] - Net cash provided by operating activities was $10.1 million in 2024, a significant decrease from $67.2 million in 2023, primarily due to increased trade accounts receivable[194] Taxation - The effective income tax rate for 2024 was 25.2%, down from 26.6% in 2023, influenced by state taxes and tax credits[189] Geographic Revenue Concentration - The company expects to continue deriving a majority of its revenues from California, which accounted for 72% of total revenues in both 2024 and 2023[159]

Barrett Business Services, Inc. (NASDAQ:BBSI) Q4 2024 Earnings Conference Call February 26, 2024 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 LLC Marc Riddick - Sidoti & Company LLC Operator Good afternoon everyone and thank you for participating today's conference call to discuss BBSI's Financial Results for the Fourth Quarter and Full Year Ended December 31st, 2024. Joining ...

Financial Data and Key Metrics Changes - For Q4 2024, gross billings increased by 10% to $2.25 billion compared to $2.05 billion in Q4 2023, while diluted earnings per share rose by 17% to $0.63 from $0.54 in the prior year quarter [30] - For the full year 2024, gross billings grew by 7.9% to $8.3 billion from $7.7 billion in the previous year, and diluted earnings per share increased by 7% to $1.98 from $1.85 [30] - Average billing per worksite employee (WSE) increased by 3.3% in Q4 [32] Business Line Data and Key Metrics Changes - PEO growth billings increased by 10% in Q4, while staffing revenues declined by 9% to $20 million [31] - PEO worksite employees grew by 5.2% in Q4, driven by a record number of WSEs added from new clients [31] - Staffing business declined by 9% year-over-year, but the rate of decline has slowed significantly compared to the previous year [15] Market Data and Key Metrics Changes - Year-over-year PEO gross billings growth by region for Q4: East Coast grew by 21%, Southern California by 11%, Mountain by 10%, Northern California by 5%, and Pacific Northwest declined by 4% [33] - The East Coast region has achieved 15 consecutive quarters of double-digit growth, while the Pacific Northwest is expected to return to growth in 2025 [34] Company Strategy and Development Direction - The company is focusing on expanding its asset-light model and has successfully entered new markets, with 21 new market development managers added [16] - Continued investment in technology and product development is a priority, with multiple product releases planned for 2025 [9][21] - The company aims to enhance its employee life cycle experience through new product launches and technology investments [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating gross billings to increase between 7% and 9% and average WSEs to rise between 4% and 6% [43] - The company expects continued growth in net client adds and modest improvements in client hiring [44] - Management noted that wage inflation remains stable and is a baseline driver of growth [49] Other Important Information - The company achieved a Net Promoter Score increase of 5 points to 69, indicating strong client satisfaction [10] - The balance sheet remains strong with $122 million in unrestricted cash investments and no debt [40] - The company repurchased over 3% of its outstanding shares in 2024, totaling more than $29 million [42] Q&A Session Summary Question: Insights on client hiring and wage inflation - Management noted stability and recovery in hiring metrics, with consistent wage inflation being a driver of growth [49] Question: Average WSE growth and client contributions - The majority of WSE growth is expected to come from new clients and client retention [52] Question: Healthcare revenue mechanics - The company earns through reseller fees and administrative fees, with plans to disclose more detailed metrics in the future [60] Question: Technology investments and client attraction - Technology initiatives have been enhanced to support non-traditional clients and larger clients, with a focus on software to support business operations [67] Question: Workers' compensation pricing trends - Management indicated a deceleration in rate decreases for workers' compensation, with hopes for a market turnaround soon [80] Question: Impact of California wildfires - Minimal impact on employees and clients was reported, with potential future business opportunities arising from rebuilding efforts [84][87] Question: Competitive positioning in benefits - The company emphasizes its strong local teams and expanding product offerings as key differentiators in the market [96]

Core Insights - Barrett Business Services (BBSI) reported $2.25 billion in revenue for Q4 2024, marking a year-over-year increase of 9.8% [1] - The company's EPS for the same period was $0.63, up from $0.54 a year ago, aligning with the consensus estimate [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.22 billion by 1.40% [1] Financial Performance Metrics - Gross billings reached $2.25 billion, slightly above the average estimate of $2.22 billion from two analysts [4] - Revenue from professional employer services was $284.52 million, surpassing the average estimate of $274.35 million, reflecting an 11.9% year-over-year increase [4] - Revenue from staffing services was $20.30 million, below the average estimate of $22.10 million, indicating a year-over-year decline of 9.4% [4] Stock Performance - Barrett's shares have returned -7.2% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Barrett Business Services (BBSI) reported quarterly earnings of $0.63 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.54 per share a year ago [1] - The company achieved revenues of $2.25 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.40% and up from $2.05 billion year-over-year [2] - Barrett has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Financial Performance - The earnings surprise for the previous quarter was 7.25%, with actual earnings of $0.74 per share compared to an expected $0.69 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $2.06 billion, while for the current fiscal year, it is $2.21 on revenues of $8.98 billion [7] Market Position - Barrett shares have declined approximately 7.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The Zacks Industry Rank indicates that the Outsourcing sector is currently in the bottom 12% of over 250 Zacks industries, which may impact stock performance [8] Future Outlook - The sustainability of Barrett's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Barrett is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting shares are expected to perform in line with the market in the near future [6]

Barrett Business Services (BBSI) Q4 2024 Earnings Call February 26, 2025 05:00 PM ET Company Participants Gary Kramer - President, CEO & DirectorAnthony Harris - EVP, CFO, Principal Accounting Officer & Treasurer Conference Call Participants Christopher Moore - Senior AnalystJeff Martin - Director of Research & Senior Research AnalystMarc Riddick - Business Services Analyst Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's Financial Results for t ...

Revenue Growth - Fourth quarter revenues increased by 10% to $304.8 million compared to $276.7 million in the same quarter of 2023[4] - For the full year 2024, revenues increased by 7% to $1.14 billion, up from $1.07 billion in 2023[8] - Total revenues for Q4 2024 reached $304,820,000, a 10.1% increase from $276,682,000 in Q4 2023[27] - Professional employer services revenue increased to $284,517,000, up 11.9% from $254,282,000 year-over-year[27] Gross Billings - Total gross billings for the fourth quarter rose by 10% to $2.25 billion, up from $2.05 billion year-over-year[4] - Full year gross billings rose by 8% to $8.33 billion compared to $7.72 billion in 2023[8] - BBSI expects gross billings growth of 7% to 9% and average WSE growth of 4% to 6% in 2025[13] Net Income - Net income for the fourth quarter increased by 15% to $16.8 million, or $0.63 per diluted share, compared to $14.6 million, or $0.54 per diluted share in the prior year[7] - Net income for the year ended December 31, 2024, was $52,993,000, compared to $50,612,000 in 2023, reflecting a 4.5% growth[27] Earnings Per Share - Basic income per share rose to $2.03 in 2024, up from $1.88 in 2023, representing an increase of 8.0%[27] Employee Growth - Average worksite employees (WSEs) grew by 5% in the fourth quarter, reaching 133,124 compared to 126,492 in the previous year[20] Financial Position - The company maintained a debt-free status with unrestricted cash and investments of $121.9 million as of December 31, 2024[10] - Total current assets increased to $475,442,000 in 2024, compared to $447,502,000 in 2023, marking a growth of 6.2%[25] - Total assets grew to $745,508,000 in 2024, up from $721,538,000 in 2023, indicating a 3.3% increase[25] - Total current liabilities increased to $358,896,000 in 2024, compared to $343,252,000 in 2023, reflecting a rise of 4.6%[25] Gross Margin - Gross margin for the year was $253,251,000, compared to $242,532,000 in 2023, showing an increase of 4.4%[27] Investment Income - Investment income increased to $11,130,000 in 2024, up from $8,643,000 in 2023, a growth of 28.8%[27] Workers' Compensation - Workers' compensation expense as a percentage of gross billings was 2.3% in Q4 2024, down from 2.6% in Q4 2023[6] - Long-term workers' compensation claims liabilities decreased to $89,365,000 in 2024 from $117,757,000 in 2023, a reduction of 24.0%[25] Stock Repurchase - The company repurchased $7 million of stock in the fourth quarter, with approximately $29.8 million remaining under the stock repurchase program[11]

Core Viewpoint - Barrett Business Services, Inc. (BBSI) reported strong financial results for the fourth quarter and full year ended December 31, 2024, with significant growth in revenues, net income, and gross billings, indicating a positive outlook for continued growth in 2025 [3][4][8]. Financial Performance Summary - Fourth quarter revenues increased by 10% to $304.8 million compared to $276.7 million in the same quarter of 2023 [4][9]. - Total gross billings for the fourth quarter rose by 10% to $2.25 billion, up from $2.05 billion year-over-year, driven by growth in professional employer services [5][9]. - Net income for the fourth quarter increased by 15% to $16.8 million, or $0.63 per diluted share, compared to $14.6 million, or $0.54 per diluted share, in the prior year [7][9]. - For the full year 2024, revenues grew by 7% to $1.14 billion from $1.07 billion in 2023, while total gross billings increased by 8% to $8.33 billion from $7.72 billion [8][9]. Operational Metrics - Average worksite employees (WSEs) increased by 5% in the fourth quarter, contributing to the overall growth in gross billings [9]. - Workers' compensation expense as a percentage of gross billings was 2.3% in Q4 2024, down from 2.6% in Q4 2023, benefiting from lower costs and favorable prior year adjustments [6][10]. Capital Allocation and Shareholder Returns - The company repurchased $7 million of stock in the fourth quarter, with approximately $29.8 million remaining under the $75 million repurchase program [12][13]. - BBSI paid $2.1 million in dividends during the quarter, with a confirmed quarterly cash dividend of $0.08 per share to be paid on March 28, 2025 [13]. Liquidity Position - As of December 31, 2024, BBSI had unrestricted cash and investments totaling $121.9 million, an increase from $94.4 million at the end of the previous quarter, and remained debt-free [11].

Core Insights - Barrett Business Services, Inc. (BBSI) has launched a new Applicant Tracking System (ATS) aimed at enhancing the hiring process for businesses of all sizes [1][2][3] Company Overview - BBSI is a leading provider of business management solutions, integrating human resource outsourcing and professional management consulting [4] - The company serves over 8,000 clients across various industries in all 50 states [4] Product Features - The ATS offers an intuitive, end-to-end solution for attracting, managing, and onboarding new employees [2] - Key features include: - Easy job posting creation on popular job boards [5] - Centralized dashboard for tracking applicants throughout the interview process [5] - Streamlined electronic onboarding experience for new hires [5] - The ATS is fully integrated with BBSI's existing suite of products, allowing seamless data flow into the payroll system, which reduces manual entry and errors [2][3] Leadership Perspective - Gary Kramer, President and CEO of BBSI, emphasized the importance of hiring the right talent for client success and highlighted how the ATS simplifies the hiring process [3]