Business
BBSI Reports Third Quarter 2020 Financial Results and Raises Full-Year Outlook
- Third Quarter Results Exceed Management Expectations, Diluted EPS for 2020 Now Expected to be $4.10 - VANCOUVER, Wash., Nov. 03, 2020 (GLOBE NEWSWIRE) --
About this update from Barrett Business Services, Inc.
[{"type":"text","content":"- Third Quarter Results Exceed Management Expectations, Diluted EPS for 2020 Now Expected to be $4.10 -\n VANCOUVER, Wash., Nov. 03, 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 third quarter ended September 30, 2020. Third Quarter 2020 Financial Summary vs. Year-Ago Quarter Net revenues down 8% to $227.5 million.Gross billings down 3% to $1.51 billion.Net income of $18.5 million, or $2.40 per diluted share, compared to net income of $25.0 million, or $3.24 per diluted share.Unrestricted cash and investments up 8% to $147.9 million (up 14% versus Q2 2020). “Our third quarter results exceeded our expectations and are reflective of the adaptability and resilience of small businesses in America,” said Gary Kramer, CEO of BBSI. “I am proud of the work and support that we are providing to our clients as we navigate these unprecedented times together.” Third Quarter 2020 Financial Results Net revenues in the third quarter of 2020 were down 8% to $227.5 million compared to $248.0 million in the third quarter of 2019. Total gross billings in the third quarter decreased 3% to $1.51 billion compared to $1.55 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. Non-GAAP gross workers’ compensation expense as a percent of gross billings was 3.4% in the third quarter and benefited from a favorable one-time adjustment of prior accident year liability of $3.0 million as well as other cost-saving measures. This compares to 3.6% in the third quarter of 2019. Net income for the third quarter of 2020 decreased to $18.5 million, or $2.40 per diluted share, compared to net income of $25.0 million, or $3.24 per diluted share, in the year-ago quarter. The decline in net income is primarily attributable to the decline in billing volume, decreased favorable development on claims incurred in prior years, and lower investment income in the quarter, partially offset by reductions in operating expenses in the period. Liquidity As of September 30, 2020, unrestricted cash and investments increased 8% to $147.9 milli...