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]

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 increased by 7.9% to $8.3 billion from $7.7 billion in the prior 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 region 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 entered new markets, with 21 new market development managers contributing to growth [16] - Continued investment in technology and product development is a priority, with new product launches planned for 2025 [21][26] - The company aims to enhance its value proposition through improved service offerings and technology integration [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued hiring trends in 2025, despite client hiring remaining below historical averages [27] - The company anticipates gross billings growth of 7% to 9% and average WSE growth of 4% to 6% in 2025 [43] - Management noted that while there is pressure on workers' compensation pricing, favorable claim trends are expected to offset some of these pressures [36][45] 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 shares outstanding in 2024, returning a total of $37 million to shareholders through dividends and stock buybacks [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 baseline driver of growth [49][50] Question: Average WSE growth and client contributions - The majority of WSE growth is expected to come from new clients [51][52] Question: Mechanics of healthcare revenue generation - The company earns through reseller fees and administrative fees, with plans to provide more detailed disclosures in the future [58][60] Question: Technology investments and client attraction - Technology initiatives have been enhanced to support non-traditional clients and larger clients, with a focus on improving the employee life cycle experience [67][70] Question: Workers' compensation pricing trends - Management indicated a deceleration in rate decreases for workers' compensation, with hopes for stabilization soon [80][81] Question: Impact of California wildfires - Minimal impact on employees and clients was reported, with potential future business opportunities arising from rebuilding efforts [84][86] Question: Industry verticals leading growth - The company experienced broad-based success across various industries, with notable contributions from market development managers [94]

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 [20] - 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 [21] - Average billing per worksite employee (WSE) increased by 3.3% in Q4 [22] Business Line Data and Key Metrics Changes - PEO (Professional Employer Organization) gross billings increased by 10% in Q4, while staffing revenues declined by 9% to $20 million [21] - PEO worksite employees grew by 5.2% in Q4, driven by a record number of new client additions [21][22] - Staffing business declined by 9% year-over-year, but the rate of decline has slowed significantly compared to the previous year [11] Market Data and Key Metrics Changes - Q4 gross billings growth by region showed East Coast growth at 21%, Southern California at 11%, Mountain region at 10%, Northern California at 5%, and Pacific Northwest declining by 4% [22] - The Pacific Northwest region, while the smallest, is expected to return to growth in 2025 after stabilizing trends [22] Company Strategy and Development Direction - The company is focusing on an asset-light model and expanding into new geographies, with a record number of worksite employees added from new clients [5][6] - Continued investment in technology and product development, including the launch of new products like the BBSI Applicant Tracking System, is aimed at enhancing client support and operational efficiency [15][50] - The company aims to enhance its value proposition by integrating technology into its service offerings, particularly for white-collar clients [46][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued hiring trends in 2025, despite client growth remaining below historical averages [10][18] - The company anticipates gross billings and average WSEs to strengthen in 2025, with expected growth rates between 7% and 9% [29] - Management noted that while wage rates are increasing, they are seeing stability in client hiring metrics, which is a positive indicator for future growth [34][35] Other Important Information - The company achieved a Net Promoter Score increase of five points to 69, indicating strong client satisfaction [6][7] - The company has a strong balance sheet with $122 million in unrestricted cash and no debt, allowing for continued investments and shareholder returns [27][28] Q&A Session Summary Question: What are clients saying about growth in the current environment? - Management noted stability and recovery in metrics, with consistent wage inflation and improved hiring trends observed in Q3 and Q4 [34][35] Question: Is the majority of average WSE growth coming from new clients? - Yes, the majority of growth is attributed to controllable growth from new client additions and retention [36] Question: Can you discuss the mechanics of healthcare revenue? - The company earns through reseller fees and administrative fees, providing value through compliance and IT services [39][40] Question: Are there any signs of a turnaround in the workers' compensation pricing market? - Management indicated a deceleration in rate decreases but no clear bottom has been identified yet [56][57] Question: What is the exposure to businesses affected by California wildfires? - Minimal impact was reported on employees and branches, with expectations of future business opportunities arising from rebuilding efforts [58][60]

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]

Barrett Business Services, Inc. (NASDAQ:BBSI) Q3 2024 Earnings Conference Call November 6, 2024 5:00 PM ET Company Participants Gary Kramer - President and Chief Executive Officer Anthony Harris - Chief Financial Officer Conference Call Participants Jeff Martin - Roth Capital Partners Chris Moore - CJS Securities Vincent Colicchio - Barrington Research Marc Riddick - Sidoti & Company Operator Good afternoon, everyone, and thank you for participating today's conference call to discuss BBSI's Financial Result ...

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, 2024 ☐ 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 ...

EXHIBIT 99.1 BBSI Reports Strong Third Quarter 2024 Financial Results - Q3 2024 Net income of $19.6 Million, or $0.74 per Diluted Share - VANCOUVER, Washington, November 6, 2024 – Barrett Business Services, Inc. ("BBSI" or the "Company") (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the third quarter ended September 30, 2024. All share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the four-for-one stock ...

Financial Data and Key Metrics Changes - Gross billings increased by 6% year-over-year to $2 billion in Q2 2024, compared to $1.9 billion in the prior year quarter [12] - PEO gross billings also rose by 6% to $2.01 billion, while staffing revenues declined by 3% to $20 million [12] - Net income per diluted share remained stable at $0.62, consistent with the year-ago quarter [16] Business Line Data and Key Metrics Changes - The number of worksite employees (WSEs) grew by 4% year-over-year, attributed to strong growth from net new PEO clients and hiring within the customer base [12][18] - Staffing operations experienced a decline of 3% year-over-year, impacted by macroeconomic headwinds, but are expected to grow sequentially in Q3 and Q4 [7][18] Market Data and Key Metrics Changes - PEO gross billings growth varied by region: East Coast grew by 19%, Mountain States by 7%, Southern California by 6%, Northern California by 4%, while the Pacific Northwest declined by 3% [13] - The Pacific Northwest region faced challenges with slower client growth and negative hiring trends [13][39] Company Strategy and Development Direction - The company is focusing on expanding into new markets with an asset-light model and has hired 17 new market development managers [8] - A strategic partnership with Kaiser Permanente for health insurance offerings is expected to enhance revenue and client acquisition [9][10] - The company aims to leverage its new health insurance products to attract new clients and enhance its value proposition [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in worksite employees and client hiring rates, with expectations for gross billings to increase between 6% and 8% for the year [18] - The company anticipates stable wage rates and hours worked, with an increase in average billing per WSE by 3% [12][16] - Management noted that the workers' compensation program is performing well, benefiting from favorable claim trends and adjustments [14] Other Important Information - The company repurchased $7 million of shares in Q2 2024, with $45 million remaining under the repurchase program [17] - The quarterly dividend rate was increased by 7% to $0.08 per share, reflecting confidence in cash flows and growth plans [17] Q&A Session Summary Question: Insights on workers' compensation adjustments - Management highlighted a favorable adjustment of $8.9 million, emphasizing a conservative approach and strong focus on workers' compensation [19][20] Question: Revenue impact from the Kaiser relationship - Management indicated that while initial revenue contributions from Kaiser may not be significant, they expect meaningful contributions by 2025 [22][23] Question: Referral partner network improvements - Management reported growth in the referral partner network, with active partners at an all-time high, although traction with benefits brokers is still developing [25][27] Question: Client migration trends in California - Management noted no significant impact from client migration out of California, with Northern California showing strong recovery in client hiring [30][31] Question: Progress in adding larger clients - Management confirmed a focus on small businesses, with new clients primarily coming from PEO takeaways rather than larger clients [44][45]

Revenue 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].

EXHIBIT 99.1 BBSI Reports Strong Second Quarter 2024 Financial Results and Raises Quarterly Dividend - Q2 2024 Net Income of $16.7 Million, or $0.62 per Diluted Share - - Raises Dividend by 7% to $0.08 per Share - VANCOUVER, Washington, July 31, 2024 – Barrett Business Services, Inc. ("BBSI" or the "Company") (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the second quarter ended June 30, 2024. All share and per share amounts presented herein have been re ...