Barrett Business Services revenue increases 8.5% and gross bills increase

05/11/2021

Barrett Business Services Inc. (NASDAQ: BBSI) revenue increased 8.5% year over year for the third quarter. Human Resources revenue rose 1.9% to $ 29.0 million for the third quarter, while net revenue for professional employers’ organizations rose 9.5% to $ 217.0 million.

Gross bills for the Vancouver, Washington-based provider of human resource and PEO services rose 12% to $ 1.69 billion, largely due to an 8% increase in the average on-site workforce and higher average bills per WSE .

(in thousands of US dollars)	3rd quarter 2021	3rd quarter 2020	% Change
PEO service fee income	$ 217,972	$ 199,082	9.5%
Turnover in personnel services	$ 28,978	$ 28,431	1.9%
Total sales	$ 246,950	$ 227,513	8.5%
Gross margin	$ 60,235	$ 59,234	1.7%
Gross Margin Percentage	24.4%	26.0%
Net result	$ 14,929	$ 18,511	-19.4%

“Our third quarter results exceeded our expectations and reflect the strength of our customer base,” said BBSI President and CEO Gary Kramer. “Our small and medium business customers continue to navigate the recovery from Covid-19, and we’ve seen continued growth in WSEs and average billing per WSE across all regions, prompting us to raise our full year outlook for gross bills again and WSE growth. “

The company now expects gross bills to increase from 9% to 10% for the full year, from 6% to 8% in the previous outlook. In addition, the average number of employees on the construction site is now expected to rise by 3 to 5%, after an increase of 2 to 4% had previously been forecast.

Share price and market capitalization

Barrett Business Services shares rose 4.57% to $ 83.03 at 11:23 am Eastern Time today; They were 4.37% below their 52-week high from November 3rd, according to FT.com. The company had a market capitalization of $ 600.1 million.