Business
BBSI Reports Strong Second Quarter 2023 Financial Results and Announces New $75 Million Stock Repurchase Program
- Q2 2023 Net Income of $17.0 Million, or $2.47 per Diluted Share - VANCOUVER, Wash., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc.
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Q2 2023 Net Income of $17.0 Million, or $2.47 per Diluted Share - VANCOUVER, Wash., Aug. 02, 2023 (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, 2023. Second Quarter 2023 Financial Summary vs. Year-Ago Quarter Revenues up 1% to $264.6 million.Gross billings up 5% to $1.91 billion.Average worksite employees (“WSEs”) up 2%.Net income of $17.0 million, or $2.47 per diluted share, compared to $18.0 million, or $2.48 per diluted share. “In the second quarter, we continued to exceed expectations by adding net new clients and expanding benefits sales,” said BBSI President and CEO, Gary Kramer. “These positive results in our controllable growth have helped offset slower client hiring in the quarter as small businesses remained cautious. We are pleased with the ongoing ramp of our BBSI Benefits offering as we have continued to broaden our client base, and our profitability metrics continue to exceed our internal expectations. I am also pleased that our board has authorized a new $75 million stock repurchase program, which speaks to the strength of our operations, the durability of our cash flows and our long-term optimism.” Second Quarter 2023 Financial Results Revenues in the second quarter of 2023 increased 1% to $264.6 million compared to $262.2 million in the second quarter of 2022. Total gross billings in the second quarter of 2023 increased 5% to $1.91 billion compared to $1.83 billion in the same year-ago quarter (see “Key Performance Metrics” below). The increase was driven by WSEs from net client additions and higher average billings per WSE, offset in part by net client hiring. Workers’ compensation expense as a percent of gross billings was 2.6% in the second quarter of 2023 and benefited from favorable prior year liability and premium adjustments of $6.3 million. This compares to 2.5% in the second quarter of 2022, which included favorable prior year liability and premium adjustments of $8.5 million. Net income for the second quarter of 2023 was $17.0 million, or $2.47 per diluted share, compared to $18.0 million, or $2.48 per diluted share, in the year-ago quarter. The decrease is primarily attributable to lower favorable adjustments to workers’ compensation ex...