Barrett Business Services(US:BBSI)2025-02-28 13:00Revenue 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]