Business
BBSI Reports Strong First Quarter 2021 Financial Results and Raises Full-Year Outlook
- Q1 Net Revenues of $218.4 Million with Gross Billings Up 2% - VANCOUVER, Wash., May 05, 2021 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Q1 Net Revenues of $218.4 Million with Gross Billings Up 2% - VANCOUVER, Wash., May 05, 2021 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or the “Company”) (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the first quarter ended March 31, 2021. First Quarter 2021 Financial Summary vs. Year-Ago Quarter Net revenues essentially flat at $218.4 million versus $219.1 million.Gross billings up 2% to $1.47 billion.Average worksite employees (“WSEs”) down 6%.Net loss of $4.6 million, or $(0.60) per diluted share, compared to net loss of $3.4 million, or $(0.45) per diluted share.Unrestricted cash and investments up 52% to $142.7 million. “Our performance in the first quarter was strong and exceeded our expectations,” said BBSI President and CEO, Gary Kramer. “While the year-over-year comparison includes results prior to the effects of the pandemic, our gross billings and gross margin exceeded the prior year quarter, and our overall performance is trending ahead of plan, leading us to raise our full-year outlook.” First Quarter 2021 Financial Results Net revenues in the first quarter of 2021 decreased slightly to $218.4 million compared to $219.1 million in the first quarter of 2020. Total gross billings in the first quarter increased 2% to $1.47 billion compared to $1.44 billion in the same year-ago quarter (see “Key Performance Metrics and Non-GAAP Financial Measures” below). The increase was primarily due to higher average billings per WSE, partially offset by a decrease in average WSEs attributable to the effects of the COVID-19 pandemic. Non-GAAP gross workers’ compensation expense as a percent of gross billings was 3.2% in the first quarter and benefited from a favorable one-time adjustment of prior accident year liability of $1.2 million as well as other cost-saving measures. This compares to 4.3% in the first quarter of 2020. Net loss for the first quarter of 2021 was $4.6 million, or $(0.60) per diluted share, compared to net loss of $3.4 million, or $(0.45) per diluted share, in the year-ago quarter. The decline is attributable to increased SG&A expense of $5.0 million, primarily related to one-time cost reversals in the prior year due to management changes, as well as lower investment income of $1.4 million, partially offset by increased gross margin of $4.8 m...