Business
BBSI Reports Second Quarter 2020 Financial Results
- Continues to Navigate COVID-19 From a Position of Strength, Reporting a 38% Sequential Quarter Increase in Unrestricted Cash and Investments to $129.7
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Continues to Navigate COVID-19 From a Position of Strength, Reporting a 38% Sequential Quarter Increase in Unrestricted Cash and Investments to $129.7 Million and $11.5 Million in Net Income -\n - Reinstates 2020 Financial Outlook, Expecting Diluted EPS of $3.70 - VANCOUVER, Washington, Aug. 04, 2020 (GLOBE NEWSWIRE) -- 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, 2020. Second Quarter 2020 Financial Summary vs. Year-Ago Quarter Net revenues down 13% to $201.0 million.Gross billings down 6% to $1.37 billion.Net income of $11.5 million, or $1.51 per diluted share, compared to net income of $13.9 million, or $1.81 per diluted share.Unrestricted cash and investments up 28% to $129.7 million (up 38% versus Q1 2020). “I am proud of the work and support that we have provided to our clients to help them navigate these unprecedented times,” said Gary Kramer, CEO of BBSI. “Our teams were there to support over 7,000 business owners in a time of great uncertainty and, for many, significant stress. “Our results reflect the strength of our business model, the execution of our COVID-19 strategy and, more importantly, the resilience of small businesses. Our people, product, information technology and financial position have never been more relevant, and we are poised to emerge from this period even stronger than when we entered it.” Second Quarter 2020 Financial Results Net revenues in the second quarter of 2020 were down 13% to $201.0 million compared to $231.0 million in the second quarter of 2019. Total gross billings in the second quarter decreased 6% to $1.37 billion compared to $1.46 billion in the same year-ago quarter (see “Key Performance Metrics and Non-GAAP Financial Measures” below). The decrease was directly attributable to the effects of the ongoing COVID-19 pandemic and its impact on the economy and operations of small businesses. Gross billings reached their lowest point in April with a rebound in payrolls occurring in May and June. Non-GAAP gross workers’ compensation expense as a percent of gross billings was 3.8% in the second quarter and benefited from a favorable one-time adjustment of prior accident year liability of $1.4 million as well as other cost-saving measures. Net inco...