Business
BBSI Reports Strong Third Quarter 2022 Financial Results
- Q3 2022 Net Income of $17.4 Million, or $2.45 per Diluted Share -- Raises Full-Year Outlook - VANCOUVER, Wash., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Barrett
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Q3 2022 Net Income of $17.4 Million, or $2.45 per Diluted Share -- Raises Full-Year Outlook - VANCOUVER, Wash., Nov. 02, 2022 (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, 2022. Third Quarter 2022 Financial Summary vs. Year-Ago Quarter Revenues up 11% to $273.8 million.Gross billings up 13% to $1.91 billion.Average worksite employees (“WSEs”) up 8%.Net income up to $17.4 million, or $2.45 per diluted share, compared to $14.9 million, or $1.96 per diluted share. “We once again exceeded our expectation for the quarter, which is setting us up for a strong finish to the year,” said BBSI President and CEO, Gary Kramer. “We continue to see positive trends in our sales efforts as well as resiliency in our clients’ hiring. We also successfully launched our new health benefits offering in select markets for a January 2023 start. I’m excited about expanding our market opportunities and the value we can bring to clients as we roll out this offering nationwide in the year ahead.” Third Quarter 2022 Financial Results Revenues in the third quarter of 2022 increased 11% to $273.8 million compared to $247.0 million in the third quarter of 2021. Total gross billings in the third quarter increased 13% to $1.91 billion compared to $1.69 billion in the same year-ago quarter (see “Key Performance Metrics and Non-GAAP Financial Measures” below). The increase was driven by higher WSEs from net client additions and net client hiring, as well as from higher average billings per WSE. 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 $1.4 million. This compares to 3.0% in the third quarter of 2021. Net income for the third quarter of 2022 was $17.4 million, or $2.45 per diluted share, compared to $14.9 million, or $1.96 per diluted share, in the year-ago quarter. The increase is primarily attributable to growth in revenue. Liquidity As of September 30, 2022, unrestricted cash and investments were $132.1 million compared to $111.4 million in the prior quarter. BBSI was debt free at quarter end. Capital Allocation BBSI’s board of directors has confirmed its...