Barrett Business Services Workforce Revenue Up 20%; Gross bills are also increasing

August 05, 2021

Barrett Business Services Inc. (NASDAQ: BBSI) revenue increased 16.0% year over year for the second quarter. Human Resources revenue rose 20.3% to $ 24.7 million in the second quarter, while net revenue of professional employers’ organizations rose 15.5% to $ 208.5 million.

Gross bills for the Vancouver, Washington-based provider of human resource and PEO services rose 17% to $ 1.60 billion. The average number of employees on the construction site increased by 10%.

(in thousands of US dollars) Q2 2021 2nd quarter 2020 % Change
PEO service fee income $ 208,496 $ 180,488 15.5%
Turnover in personnel services $ 24,707 $ 20,543 20.3%
Total sales $ 233,203 $ 201,031 16.0%
Gross margin $ 57,473 $ 46,643 23.2%
Gross Margin Percentage 24.6% 23.2%
Net income $ 17,090 $ 11,510 48.5%

“The momentum in our business increased in the second quarter with positive financial and operational results,” said BBSI President and CEO Gary Kramer. “Our gross bills and gross margin continue to improve, and our overall performance is above plan, prompting us to raise our full year outlook again. I am also very pleased with our progress in reducing business risk through the favorable restructuring of our employee compensation program. The move to a new fully insured model is a milestone for BBSI, which speaks for the tremendous progress we have made in our workers’ compensation insurance. “

The company now expects gross bills to increase from 6% to 8% for the full year, from 5% to 7% in the previous outlook. The expected growth in the average number of employees on the construction site remains at 2 to 4%.

“I am also very pleased with our progress in reducing the risk of the business through the favorable restructuring of our employee compensation program,” said Kramer. “The move to a new fully insured model is a milestone for BBSI, which speaks for the tremendous progress we have made in our workers’ compensation insurance.”

Share price and market capitalization

Barrett Business Services shares rose 5.38% to $ 75.57 at 12:35 pm Eastern Time; They were 5.22% below their 52-week high on May 10, 2021, according to FT.com. The company had a market cap of $ 542.51 million.

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