Business
BBSI Reports Strong Third Quarter 2021 Financial Results and Raises Full-Year Gross Billings Outlook
- Q3 Net Revenues Increase 9% to $247 Million with Gross Billings Up 12% - VANCOUVER, Washington, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Barrett Business Services,
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Q3 Net Revenues Increase 9% to $247 Million with Gross Billings Up 12% - VANCOUVER, Washington, Nov. 03, 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 third quarter ended September 30, 2021. Third Quarter 2021 Financial Summary vs. Year-Ago Quarter Net revenues up 9% to $247.0 million.Gross billings up 12% to $1.69 billion.Average worksite employees (“WSEs”) up 8%.Net income of $14.9 million, or $1.96 per diluted share. “Our third quarter results exceeded our expectations and are reflective of the strength of our client base,” said BBSI President and CEO Gary Kramer. “Our small and medium-sized business customers continue to navigate the COVID-19 recovery, and we have seen continued growth in WSEs and average billing per WSE across every region, leading us once again to raise our full-year outlook for gross billings and WSE growth. This has been coupled with continued favorable performance from our workers’ compensation program, which reflected our new fully insured model for the entire quarter.” Third Quarter 2021 Financial Results Net revenues in the third quarter of 2021 increased 9% to $247.0 million compared to $227.5 million in the third quarter of 2020. Total gross billings in the third quarter increased 12% to $1.69 billion compared to $1.51 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 and an increase in average WSEs. Non-GAAP gross workers’ compensation expense as a percent of gross billings was 3.0% in the third quarter and benefited from a favorable adjustment of prior accident year liability of $0.8 million. This compares to 3.4% in the third quarter of 2020. Net income for the third quarter of 2021 was $14.9 million, or $1.96 per diluted share, compared to $18.5 million, or $2.40 per diluted share, in the year-ago quarter. The decrease is primarily attributable to higher employee-related expenses due to prior year reductions during the COVID-19 pandemic that have since been reversed, as well as increased variable employee compensation and incentive pay in the current year related to stronger than expected financial results. Liquidity As of September...