Barrett Business Services(US:BBSI)2024-07-31 21:40Revenue Performance - For the three months ended June 30, 2024, total revenues were $279.6 million, a 7.1% increase from $264.6 million in the same period of 2023[74]. - Revenue for Q2 2024 reached $279.7 million, reflecting a 5.7% increase from $264.6 million in Q2 2023, driven by a $15.6 million increase in PEO services revenue[81]. - Revenue for the first six months of 2024 was $545.4 million, a 5.0% increase from $519.3 million in the first six months of 2023, with PEO services revenue up by $29.5 million[82]. Professional Employer Services - Professional employer services accounted for 92.9% of total revenues in Q2 2024, up from 92.3% in Q2 2023[74]. - Average worksite employees (WSEs) for the three months ended June 30, 2024, were 128,734, representing a year-over-year growth of 3.7%[79]. Gross Billings and Margins - Gross billings for the six months ended June 30, 2024, reached $3.94 billion, compared to $3.70 billion in the same period of 2023, indicating a growth of 6.5%[76]. - The gross margin for the three months ended June 30, 2024, was 3.3%, slightly down from 3.5% in the same period of 2023[78]. - Gross margin for Q2 2024 was $67.9 million, or 24.2% of revenue, down from $67.0 million, or 25.3% of revenue in Q2 2023[81]. Costs and Expenses - Total cost of revenues for the three months ended June 30, 2024, was $210.8 million, representing 75.8% of total revenues, compared to 74.7% in the same period of 2023[74]. - Payroll taxes and benefits for Q2 2024 totaled $148.8 million, or 53.2% of revenue, compared to $134.1 million, or 50.7% of revenue in Q2 2023, primarily due to higher average payroll tax rates[81]. - SG&A expenses for the first six months of 2024 were $88.0 million, or 16.1% of revenue, compared to $85.0 million, or 16.4% of revenue in the first six months of 2023[83]. Net Income and Cash Flow - Net income for the three months ended June 30, 2024, was $16.7 million, a decrease from $17.0 million in the same period of 2023[74]. - Net income for Q2 2024 was $16.7 million, a slight decrease from $17.0 million in Q2 2023, with diluted net income per share remaining stable at $0.62[81]. - Net cash used in operating activities for the first six months of 2024 was $42.4 million, compared to $23.2 million for the same period in 2023, largely due to increased trade accounts receivable[87]. - The company's cash balance decreased to $70.0 million as of June 30, 2024, down from a decrease of $52.8 million in the same period of 2023[85]. Tax and Future Outlook - The effective income tax rate for Q2 2024 was 28.8%, up from 28.1% in Q2 2023, influenced by state taxes and federal/state tax credits[81]. - The company anticipates continued fluctuations in quarterly operating results due to factors such as seasonality and competition[84]. Employee Benefits - The company began offering employee benefit programs in 2023, including medical, dental, and vision plans, aimed at providing strategic value to clients[73]. Market Presence - The company operates in 68 markets across the United States, supporting local business teams to enhance client relationships and operational efficiency[69].