Barrett Business Services, Inc. · NASDAQ:BBSI
Barrett Business Services — Shareholder Meeting (June 2016)
20 slides from Barrett Business Services's shareholder meeting presentation, Jun 24, 2016
Slide 1: June 2016 Annual Meeting of Shareholders
NASDAQ: BBSI | JUNE 2016 ANNUAL MEETING OF SHAREHOLDERS
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 2 Statements in this presentation about future events or performance, including expectations for market opportunities, growth in new clients, rate of client retention, operating margins, workers’ compensation liability, and gross revenues and diluted earnings per share,
Slide 3: Continuum of an Industry
CONTINUUM OF AN INDUSTRY Historically, the industry has been commodity - driven. PAYROLL DAY LABOR TEMP STAFFING MANAGED LABOR/ ONSITE PEO 3
Slide 4: Our Competitive Advantage
OUR COMPETITIVE ADVANTAGE DAY LABOR PAYROLL TEMP STAFFING MANAGED LABOR/ ONSITE PEO CONSULTING/ KNOWLEDGE - BASED BBSI’S HIGHEST LEVERAGE POINT 4
Slide 5: How We Are Positioned
HOW WE ARE POSITIONED We integrate management tools with expertise in human capital related to the structure and succession of organizations • Engage as a tactical subordinate • Minimal integration with the business TYPICAL OUTCOME: TOOLS, SYSTEMS, PROCESSES • Engage as an expert guide • Highly inte
Slide 6: Vision & Purpose for Approaching the Market
VISION & PURPOSE FOR APPROACHING THE MARKET BUSINESS FORMATION GRASSROOTS GROWTH INFLECTION POINT MANAGEMENT PLATFORM STABILITY 6
Slide 7: Value Proposition to Owners
7 TIME VOLUME RE - LEVER INFLECTION POINT REINVENT WORKING OPS VALUE PROPOSITION TO OWNERS
Slide 8: Market Opportunity
MARKET OPPORTUNITY BBSI works with approximately 4,000 businesses – roughly 2% BBSI works with less than 1% of target market in U.S. 8
Slide 9: Capturing the Market
CAPTURING THE MARKET • Drive development in referral channels • Expand within existing markets • Penetrate adjacent markets to meet demand 9
Slide 10: Process of Client Alignment
PROCESS OF CLIENT ALIGNMENT 90%+ CLIENT RETENTION 10 90 BUSINESS TEAMS REFERRAL NETWORK 5,000 FIRST MEETINGS 1,250 NEW CLIENTS
Slide 11: Economics of a Business Team
ECONOMICS OF A BUSINESS TEAM • $500K spend per business team • Max capacity of ~90 clients at an average of 30 employees per client • 2 years runway to get to ~75% capacity • Ability to lever operating margins as we improve efficiencies through people and systems 11
Slide 12: Field Structure & Footprint
FIELD STRUCTURE & FOOTPRINT • 55 branches in 12 states • Decentralized model supports relevancy • Most clients within 50 - mile radius of BBSI branch • Supports scalability: 90 teams across the organization 12
Slide 13: Leadership-Based Structure
LEADERSHIP - BASED STRUCTURE 13 SYSTEMS PEOPLE MARKETING & SALES QUALITY & UNDER - WRITING
Slide 14: Leadership, Not Management
• Leadership is our DNA – it’s e ssential to our culture • Shapes profile of who we hire • Influences operational principles • Supports sustainable decentralized structure • Defines client engagement – we apply what we’ve learned to our clients’ success LEADERSHIP, NOT MANAGEMENT 14
Slide 15: Profile of a BBSI Professional
• Seasoned, tenured professionals • Entrepreneurial, possessing drive and vision • Demonstrate an ownership mentality • Operationalize concepts with business acumen • Innately curious PROFILE OF A BBSI PROFESSIONAL 15
Slide 16: Drivers of Our Growth
• ORGANIC GROWTH • New client stack • Runoff • Same store sales • LEVERAGE • Capacity utilization against management payroll • RISK • Decrease in relative frequency • Stable severity metrics 16 DRIVERS OF OUR GROWTH
Slide 17: Annual Net Revenue Growth
$316 $404 $537 $636 $741 2011 2012 2013 2014 2015 ANNUAL NET REVENUE GROWTH 17 $Millions
Slide 18: Annual Gross Revenue & PEO Client Growth
$1,534 $2,087 $2,817 $3,357 $4,016 2011 2012 2013 2014 2015 Gross Revenues ($Millions) ~1,800 ~2,200 ~2,600 ~3,000 ~4,000 PEO Customers¹ ANNUAL GROSS REVENUE & PEO CLIENT GROWTH 18 1) PEO customers defined as the active number of customer Federal Employee Identification Numbers (FEINs). Please take
Slide 19: Annual Diluted EPS Performance
$1.09 $1.47 $2.12 - $3.57 $3.47 2011 2012 2013 2014¹ 2015 ANNUAL DILUTED EPS PERFORMANCE 19 2016 Outlook • Gross revenue growth of ~18% vs. 2015 • Diluted EPS: $3.50 • Includes $6.4 million (~$0.57 per share) in accounting & legal costs associated with restatements, investigations & legal proceeding
Slide 20: BBSI Contacts
Barrett Business Services, Inc. 8100 NE Parkway Drive, Suite 200 Vancouver, WA 98662 Tel (360) 828 - 0700 Company Contact Mike Elich, CEO Tom Carley , Interim CFO Investor Relations Liolios Group, Inc. Cody Slach Tel (949) 574 - 3860 BBSI@liolios.com BBSI CONTACTS
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