Barrett Business: Bbsi Reports Second Quarter 2014 Financial Results
The following excerpt is from the company's SEC filing
VANCOUVER, Washington, July 29, 2014 –
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, 2014.
Net revenues in the second quarter of 2014 increased
17% to $151.1 million compared to $128.8 million in the second quarter of 2013.
Total non-GAAP gross revenues in the second quarter
of 2014 increased 18% to $798.4 million compared to $675.0 million in the second quarter of 2013 (see “Reconciliation of
Non-GAAP Financial Measures” below). The increase was due primari
ly to the continued build in the Company’s co-employed
client count and same-store sales growth.
Net income in the second quarter of 2014 increased
24% to $7.3 million compared to net income of $5.9 million in the year-ago quarter. Diluted earnings per share in the second quarter
of 2014 increased 23% to $0.98 compared to $0.80 per diluted share in the year-ago quarter.
At June 30, 2014, the Company’s cash, cash
equivalents, marketable securities, and restricted securities totaled $146.1 million compared to $143.2 million at December 31,
2013. At June 30, 2014, the Company had no outstanding borrowings on its revolving credit facility.
“The growth in our business for the second
quarter of 2014 is a direct result of BBSI’s continued brand maturation in the marketplace,” said Michael Elich, president
and CEO of BBSI. “Complemented by healthy organic growth from our existing client base and strong referral channels, we continue
to drive new business and maintain our high client retention rate.
“Looking towards the second half of the year,
BBSI remains well-positioned to deliver another strong year for our shareholders, despite the client backfilling process we have
undertaken. We also continue to expand and invest in our infrastructure and internal talent, which we believe will help us ultimately
support a much larger, more mature company.”
For the third quarter of 2014, the Company expects
gross revenues to increase at least 14% to range between $870 million and $890 million compared to $764.1 million in the third
quarter of 2013. Diluted earnings per common share in the third quarter of 2014 is expected to range between $1.30 and $1.35 compared
to $1.21 in the third quarter of 2013. Diluted earnings per common share in the third quarter of 2013 included a positive impact
of approximately $0.08 per common share from a more favorable tax rate compared to the estimated tax rate for the third quarter
BBSI will conduct a conference call tomorrow, July 30, 2014
at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) to discuss its financial results for the second quarter ended June 30, 2014.
The Company’s president and CEO Michael Elich and CFO James Miller will host the call, followed by a question and answer
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 Liolios Group at 1-949-574-3860.
The conference call will be broadcast live and available for
replay at http://public.viavid.com/index.php?id=110019 and via BBSI’s investor relations section of the BBSI website
A replay of the conference call will be available after 3:00
p.m. Eastern time on the same day through August 30, 2014.
The Company reports its Professional Employer Service
revenues on a net basis because it is not the primary obligor for the services provided by the Company’s co-employed clients
to their customers. The gross revenues and cost of revenues information below, although not in accordance with GAAP, is presented
for comparison purposes and because management believes such information is more informative as to the level of the Company’s
business activity and more useful in managing its operations.
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 3,000 clients across all lines of business in 23 states. For more information, please visit www.barrettbusiness.com.
Statements in this release about future events or
performance, including gross revenues and earnings expectations for the third quarter of 2014, are forward-looking statements which
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 effect of changes in the Company's mix of services on gross margin,
the Company's ability to retain current clients and attract new clients, the availability of financing or other sources of capital,
future workers' compensation claims experience, the effect of changes in the workers’ compensation regulatory environment
in one or more of the Company’s primary markets, the collectability of accounts receivable, and the effect of conditions
in the global capital markets on the Company’s investment portfolio, among others. Other important factors that may affect
the Company’s future prospects are described in the Company’s 2013 Annual Report on Form 10-K. 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.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Barrett Business Services next reports earnings on July 29, 2014.
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