BBSI Reports Strong Third Quarter 2024 Financial Results
Barrett Business Services (BBSI) reported strong Q3 2024 financial results with revenues up 8% to $294.3 million and gross billings up 9% to $2.14 billion. Net income reached $19.6 million, or $0.74 per diluted share, compared to $18.2 million ($0.67 per share) in Q3 2023. The company saw a 5% increase in average worksite employees (WSEs) and maintained strong client retention. Workers' compensation expense decreased to 2.3% of gross billings. BBSI remains debt-free with $94.4 million in unrestricted cash and investments, while returning $28 million to shareholders through dividends and share repurchases year-to-date.
Barrett Business Services (BBSI) ha riportato risultati finanziari solidi per il terzo trimestre 2024, con ricavi in aumento dell'8% a $294,3 milioni e fatturato lordo in crescita del 9% a $2,14 miliardi. L'utile netto ha raggiunto $19,6 milioni, ovvero $0,74 per azione diluita, rispetto ai $18,2 milioni ($0,67 per azione) del terzo trimestre 2023. L'azienda ha registrato un aumento del 5% nel numero medio di dipendenti nei luoghi di lavoro (WSE) e ha mantenuto una forte retention dei clienti. Le spese per l'assicurazione contro gli infortuni sul lavoro sono diminuite al 2,3% del fatturato lordo. BBSI rimane priva di debiti con $94,4 milioni in contante e investimenti non vincolati, restituendo nel complesso $28 milioni agli azionisti tramite dividendi e riacquisti di azioni dall'inizio dell'anno.
Barrett Business Services (BBSI) informó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos que aumentaron un 8% a $294.3 millones y facturación bruta que creció un 9% a $2.14 mil millones. La ganancia neta alcanzó $19.6 millones, o $0.74 por acción diluida, en comparación con $18.2 millones ($0.67 por acción) en el tercer trimestre de 2023. La empresa vio un aumento del 5% en el número promedio de empleados en los lugares de trabajo (WSE) y mantuvo una fuerte retención de clientes. Los gastos por compensación laboral disminuyeron al 2.3% de la facturación bruta. BBSI se mantiene libre de deudas con $94.4 millones en efectivo e inversiones no restringidas, mientras que ha devuelto $28 millones a los accionistas a través de dividendos y recompra de acciones en lo que va del año.
바렛 비즈니스 서비스 (BBSI)는 2024년 3분기 재무 결과가 양호하다고 보고하며, 수익이 8% 증가하여 $294.3 백만에 이르렀고, 총 청구액이 9% 증가하여 $2.14 억에 달했습니다. 순이익은 $19.6 백만, 즉 희석 주당 $0.74에 도달했으며, 이는 2023년 3분기의 $18.2 백만 ($0.67 주당)과 비교되는 수치입니다. 회사는 평균 근무지 직원(WSE) 수가 5% 증가하고 강력한 고객 유지율을 유지했습니다. 근로자의 보상 비용은 총 청구액의 2.3%로 감소했습니다. BBSI는 9440만 달러의 제한 없는 현금 및 투자를 보유하고 있으며, 연초부터 주주들에게 배당금과 자사주 매입을 통해 2800만 달러를 반환하며 여전히 무부채 상태입니다.
Barrett Business Services (BBSI) a rapporté des résultats financiers solides pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 8 % à 294,3 millions de dollars et un montant brut augmenté de 9 % à 2,14 milliards de dollars. Le bénéfice net a atteint 19,6 millions de dollars, soit 0,74 dollar par action diluée, par rapport à 18,2 millions de dollars (0,67 dollar par action) au troisième trimestre 2023. L'entreprise a enregistré une augmentation de 5 % du nombre moyen d'employés sur site (WSE) et a maintenu une forte fidélisation de la clientèle. Les dépenses en assurance accidents du travail ont diminué à 2,3 % du chiffre d'affaires brut. BBSI reste sans dette avec 94,4 millions de dollars en liquidités et investissements non restreints, tout en retournant 28 millions de dollars aux actionnaires sous forme de dividendes et de rachats d'actions depuis le début de l'année.
Barrett Business Services (BBSI) berichtete über starke finanzielle Ergebnisse im dritten Quartal 2024 mit einem Umsatzanstieg von 8% auf 294,3 Millionen Dollar und einem Bruttoauftragsvolumen von 9% auf 2,14 Milliarden Dollar. Der Nettogewinn erreichte 19,6 Millionen Dollar, bzw. 0,74 Dollar pro verwässerter Aktie, verglichen mit 18,2 Millionen Dollar (0,67 Dollar pro Aktie) im dritten Quartal 2023. Das Unternehmen verzeichnete einen Anstieg der durchschnittlichen Beschäftigten an Arbeitsplätzen (WSE) um 5% und hielt eine starke Kundenbindung aufrecht. Die Unfallversicherungsaufwendungen sanken auf 2,3% des Bruttoauftragsvolumens. BBSI bleibt schuldenfrei mit 94,4 Millionen Dollar an nicht eingeschränkten Zahlungsmitteln und Investitionen und gab seit Jahresbeginn 28 Millionen Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück.
- Revenue growth of 8% to $294.3 million
- Gross billings increased 9% to $2.14 billion
- Net income improved to $19.6 million from $18.2 million YoY
- Workers' compensation expense decreased to 2.3% from 2.7%
- 5% growth in average worksite employees
- Raised full-year gross billings guidance to 7-8%
- Debt-free status maintained
- Unrestricted cash decreased to $94.4 million from $110.4 million QoQ
Insights
BBSI delivered a robust Q3 2024 performance with
The company's financial health remains strong with
Management's raised guidance for gross billings growth to
The PEO industry metrics reveal BBSI's competitive positioning is strengthening. The record number of gross WSE additions from new clients, combined with strong client retention, indicates market share gains in a competitive landscape. The increase in average billings per WSE suggests successful pricing power and value-added service adoption.
The expansion of BBSI Benefits and other value-added offerings is particularly noteworthy as it helps differentiate their service offering and potentially increases client stickiness. The stable gross margin of
- Q3 2024 Net income of
VANCOUVER, Wash., Nov. 06, 2024 (GLOBE NEWSWIRE) -- 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 split that was distributed in the form of a stock dividend in June 2024 (the “Stock Split”).
Third Quarter 2024 Financial Summary vs. Year-Ago Quarter
- Revenues up
8% to$294.3 million . - Gross billings up
9% to$2.14 billion . - Average worksite employees (“WSEs”) up
5% . - Net income of
$19.6 million , or$0.74 per diluted share, compared to net income of$18.2 million , or$0.67 per diluted share.
“The momentum of our business strengthened in the third quarter, with billings growth ahead of our expectations and a record number of gross WSE additions from new clients,” said BBSI President and CEO Gary Kramer. “Once again, these results are attributed to various strategies to increase our sales funnel, strong client retention and the continued rollout of value-added offerings like BBSI Benefits. Our performance highlights the value we deliver to our clients, which in turn drives robust shareholder returns. We are excited to build on this momentum as we end 2024 and believe we are well-positioned for a strong 2025.”
Third Quarter 2024 Financial Results
Revenues in the third quarter of 2024 increased
Total gross billings in the third quarter of 2024 increased
Workers’ compensation expense as a percent of gross billings was
Net income for the third quarter of 2024 was
Liquidity
As of September 30, 2024, unrestricted cash and investments were
Capital Allocation
Continuing under the Company’s stock repurchase program established in July 2023, BBSI repurchased
The Company paid
Through the combination of stock repurchases and dividends, year-to-date capital returned to shareholders totaled
Outlook
BBSI expects the following for 2024:
- Gross billings growth of
7% to8% (versus6% to8% prior) - Growth in the average number of WSEs of
4% to5% - Gross margin as a percent of gross billings of
3.03% to3.07% (versus3.0% to3.1% prior) - Effective annual tax rate to remain at
26% to27%
Conference Call
BBSI will conduct a conference call on Wednesday, November 6, 2024, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the quarter ended September 30, 2024.
BBSI’s CEO Gary Kramer and CFO Anthony Harris will host the conference call, followed by a question and answer period.
Date: Wednesday, November 6, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-877-407-4018
International dial-in number: 1-201-689-8471
Conference ID: 13748631
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the Investors section of the BBSI website at www.ir.bbsi.com.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through December 6, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13748631
Key Performance Metrics
We report PEO revenues net of direct payroll costs because we are not the primary obligor for wage payments to our clients’ employees. However, management believes that gross billings and wages are useful in understanding the volume of our business activity and serve as important performance metrics in managing our operations, including the preparation of internal operating forecasts and establishing executive compensation performance goals. We therefore present for purposes of analysis gross billings and wage information for the three and nine months ended September 30, 2024 and 2023.
| (Unaudited) | (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross billings | $ | 2,138,510 | $ | 1,963,462 | $ | 6,075,094 | $ | 5,664,230 | ||||||||
| PEO and staffing wages | $ | 1,860,466 | $ | 1,706,302 | $ | 5,281,092 | $ | 4,919,323 | ||||||||
In monitoring and evaluating the performance of our operations, management also reviews the following ratios, which represent selected amounts as a percentage of gross billings. Management believes these ratios are useful in understanding the efficiency and profitability of our service offerings.
| (Unaudited) | (Unaudited) | |||||||
| Percentage of Gross Billings | Percentage of Gross Billings | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| PEO and staffing wages | ||||||||
| Payroll taxes and benefits | ||||||||
| Workers' compensation | ||||||||
| Gross margin | ||||||||
We refer to employees of our PEO clients as WSEs. Management reviews average and ending WSE growth to monitor and evaluate the performance of our operations. Average WSEs are calculated by dividing the number of unique individuals paid in each month by the number of months in the period. Ending WSEs represents the number of unique individuals paid in the last month of the period.
| (Unaudited) | ||||||||||
| Three Months Ended September 30, | ||||||||||
| 2024 | Year-over-year % Growth | 2023 | Year-over-year % Growth | |||||||
| Average WSEs | 133,398 | 127,232 | ||||||||
| Ending WSEs | 132,698 | 128,448 | ||||||||
| (Unaudited) | ||||||||||
| Nine Months Ended September 30, | ||||||||||
| 2024 | Year-over-year % Growth | 2023 | Year-over-year % Growth | |||||||
| Average WSEs | 128,394 | 123,577 | ||||||||
| Ending WSEs | 132,698 | 128,448 | ||||||||
About BBSI
BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The Company’s integrated platform is built upon expertise in payroll processing, employee benefits, workers’ compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI’s partnerships help businesses of all sizes improve the efficiency of their operations. The company works with more than 8,000 clients across all lines of business and is licensed to operate in all 50 states. For more information, please visit www.bbsi.com.
Forward-Looking Statements
Statements in this release about future events and financial outlook are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could affect future results include: economic conditions in the Company’s service areas; the effects of inflation on our operating expenses and those of our clients; the availability of certain fully insured medical and other health and welfare benefits to qualifying worksite employees; the effect of changes in the Company’s mix of services on gross margin; the Company’s ability to attract and retain clients and to achieve revenue growth; the availability of financing or other sources of capital; the Company’s relationship with its primary bank lender; the potential for material deviations from expected future workers’ compensation claims experience; changes in the workers’ compensation regulatory environment in the Company’s primary markets; PEO client benefits costs; litigation costs; security breaches or failures in the Company’s information technology systems; the collectability of accounts receivable; changes in executive management; changes in effective payroll tax rates and federal and state income tax rates; the carrying value of deferred income tax assets and goodwill; the outcome of tax audits; the effects of conditions in the global capital markets on the Company’s investment portfolio; and the potential for and effect of acquisitions, among others. Other important factors that may affect the Company’s prospects are described in the Company’s 2023 Annual Report on Form 10-K and in subsequent reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements are less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.
| Barrett Business Services, Inc. Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| (in thousands) | 2024 | 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,429 | $ | 71,168 | ||||
| Investments | 79,934 | 81,027 | ||||||
| Trade accounts receivable, net | 253,749 | 171,407 | ||||||
| Income taxes receivable | 2,796 | 7,987 | ||||||
| Prepaid expenses and other | 18,768 | 18,443 | ||||||
| Restricted cash and investments | 83,009 | 97,470 | ||||||
| Total current assets | 452,685 | 447,502 | ||||||
| Property, equipment and software, net | 55,633 | 50,295 | ||||||
| Operating lease right-of-use assets | 20,595 | 19,898 | ||||||
| Restricted cash and investments | 140,834 | 145,583 | ||||||
| Goodwill | 47,820 | 47,820 | ||||||
| Other assets | 5,995 | 6,222 | ||||||
| Deferred income taxes | 2,206 | 4,218 | ||||||
| Total assets | $ | 725,768 | $ | 721,538 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,222 | $ | 6,593 | ||||
| Accrued payroll, payroll taxes and related benefits | 268,831 | 234,080 | ||||||
| Current operating lease liabilities | 6,304 | 6,623 | ||||||
| Current premium payable | 12,778 | 35,276 | ||||||
| Other accrued liabilities | 10,453 | 10,674 | ||||||
| Workers' compensation claims liabilities | 42,291 | 50,006 | ||||||
| Total current liabilities | 344,879 | 343,252 | ||||||
| Long-term workers' compensation claims liabilities | 94,512 | 117,757 | ||||||
| Long-term premium payable | 44,621 | 37,812 | ||||||
| Long-term operating lease liabilities | 15,416 | 14,590 | ||||||
| Customer deposits and other long-term liabilities | 10,954 | 8,987 | ||||||
| Stockholders' equity | 215,386 | 199,140 | ||||||
| Total liabilities and stockholders' equity | $ | 725,768 | $ | 721,538 | ||||
| Barrett Business Services, Inc. Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | ||||||||||||||||
| Professional employer services | $ | 272,793 | $ | 251,423 | $ | 778,869 | $ | 727,986 | ||||||||
| Staffing services | 21,485 | 21,905 | 60,842 | 64,639 | ||||||||||||
| Total revenues | 294,278 | 273,328 | 839,711 | 792,625 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Direct payroll costs | 16,208 | 16,318 | 45,618 | 48,299 | ||||||||||||
| Payroll taxes and benefits | 154,109 | 135,704 | 464,814 | 414,395 | ||||||||||||
| Workers' compensation | 49,549 | 52,977 | 147,403 | 153,012 | ||||||||||||
| Total cost of revenues | 219,866 | 204,999 | 657,835 | 615,706 | ||||||||||||
| Gross margin | 74,412 | 68,329 | 181,876 | 176,919 | ||||||||||||
| Selling, general and administrative expenses | 49,060 | 44,160 | 137,051 | 129,194 | ||||||||||||
| Depreciation and amortization | 1,899 | 1,867 | 5,663 | 5,273 | ||||||||||||
| Income from operations | 23,453 | 22,302 | 39,162 | 42,452 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Investment income, net | 2,265 | 2,412 | 8,608 | 6,856 | ||||||||||||
| Interest expense | (45 | ) | (80 | ) | (133 | ) | (118 | ) | ||||||||
| Other, net | 31 | 38 | 124 | 93 | ||||||||||||
| Other income, net | 2,251 | 2,370 | 8,599 | 6,831 | ||||||||||||
| Income before income taxes | 25,704 | 24,672 | 47,761 | 49,283 | ||||||||||||
| Provision for income taxes | 6,076 | 6,453 | 11,568 | 13,229 | ||||||||||||
| Net income | $ | 19,628 | $ | 18,219 | $ | 36,193 | $ | 36,054 | ||||||||
| Basic income per common share (1) | $ | 0.75 | $ | 0.68 | $ | 1.38 | $ | 1.33 | ||||||||
| Weighted average basic common shares outstanding (1) | 26,052 | 26,795 | 26,133 | 27,088 | ||||||||||||
| Diluted income per common share (1) | $ | 0.74 | $ | 0.67 | $ | 1.35 | $ | 1.31 | ||||||||
| Weighted average diluted common shares outstanding (1) | 26,620 | 27,182 | 26,736 | 27,541 | ||||||||||||
| (1) Prior period results have been adjusted to reflect the Stock Split. | ||||||||||||||||
Investor Relations:
Gateway Group, Inc.
Cody Slach
Tel 1-949-574-3860
BBSI@gateway-grp.com
FAQ
What was BBSI's Q3 2024 revenue growth?
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