BBSI Reports Strong Fourth Quarter and Full Year 2024 Financial Results

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].