Barrett Business Services, Inc. (BBSI) Bundle
A Brief History of Barrett Business Services, Inc.
Company Overview
Barrett Business Services, Inc. (BBSI) is a provider of business management solutions, including Professional Employer Organization (PEO) services. The company primarily operates in the United States and specializes in providing comprehensive staffing and human resource management services.
Financial Performance
As of September 30, 2024, BBSI reported a net income of $36.2 million for the first nine months of 2024, showing a slight increase from $36.1 million in the same period of 2023. The diluted net income per share rose to $1.35 compared to $1.31 in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (9 months) | $36.2 million | $36.1 million |
| Diluted EPS | $1.35 | $1.31 |
| Revenue (9 months) | $839.7 million | $792.6 million |
| PEO Services Revenue Growth | 7.0% | - |
| Staffing Services Revenue Growth | -5.9% | - |
Revenue Breakdown
For the third quarter of 2024, BBSI achieved revenue of $294.3 million, reflecting a 7.7% year-over-year increase from $273.3 million in Q3 2023. This growth was primarily driven by a significant increase in PEO services revenue, which rose by 8.5%.
| Quarter | Revenue (in millions) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $294.3 | 7.7% |
| Q3 2023 | $273.3 | - |
Operational Metrics
BBSI monitored its operational efficiency through the number of worksite employees (WSEs). As of September 30, 2024, the average WSEs increased to 128,394, up from 123,577 in 2023, marking a 3.9% growth.
| Metric | 2024 | 2023 |
|---|---|---|
| Average WSEs | 128,394 | 123,577 |
| Ending WSEs | 132,698 | 128,448 |
Cost Management
BBSI reported its gross margin for the first nine months of 2024 at $181.9 million or 21.6% of revenue, compared to $176.9 million or 22.3% of revenue for the same period in 2023. The decrease in gross margin percentage is attributed to rising payroll taxes and benefits, which totaled $464.8 million or 55.4% of revenue in 2024, compared to $414.4 million or 52.3% in 2023.
| Cost Component | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Gross Margin | $181.9 million (21.6%) | $176.9 million (22.3%) |
| Payroll Taxes and Benefits | $464.8 million (55.4%) | $414.4 million (52.3%) |
Stock Performance and Shareholder Returns
BBSI announced cash dividends of $0.075 per share, resulting in total dividends paid of $6.0 million for the nine months ended September 30, 2024. The company also engaged in stock repurchases totaling $22.1 million during the same period.
| Metric | 2024 |
|---|---|
| Cash Dividends Paid | $6.0 million |
| Stock Repurchases | $22.1 million |
Liquidity and Capital Resources
As of September 30, 2024, BBSI's cash balance, which includes cash, cash equivalents, and restricted cash, was $28.7 million, a decrease of $46.1 million from the previous year. This decrease was primarily due to increased trade accounts receivable and stock repurchases.
| Metric | Amount (in millions) |
|---|---|
| Cash Balance | $28.7 |
| Decrease from Prior Year | $46.1 |
A Who Owns Barrett Business Services, Inc. (BBSI)
Ownership Structure
As of 2024, Barrett Business Services, Inc. (BBSI) has a diverse ownership structure, comprising institutional and retail investors. The total number of common shares outstanding is approximately 25,937,000 following a four-for-one stock split that occurred in June 2024.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 11,500,000 | 44.4% |
| Retail Investors | 14,437,000 | 55.6% |
Top Institutional Investors
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 9.6% |
| Vanguard Group, Inc. | 2,200,000 | 8.5% |
| State Street Corporation | 1,800,000 | 6.9% |
| Invesco Ltd. | 1,200,000 | 4.6% |
Recent Shareholder Changes
In 2024, BBSI has seen significant activity in its stock repurchase program, with a total of 1,331,658 shares repurchased at an aggregate purchase price of $38.1 million under the program authorized by the Board of Directors for up to $75 million.
Financial Performance Overview
For the nine months ended September 30, 2024, BBSI reported a revenue of $839.7 million, an increase of 5.9% from the previous year. Net income for the same period was $36.2 million, with diluted net income per share reaching $1.35.
Stock Performance and Market Trends
The stock price of BBSI has demonstrated resilience in 2024, reflecting a year-over-year growth of approximately 15%. The average trading volume has increased, indicating heightened interest from both institutional and retail investors.
Dividends and Shareholder Returns
BBSI has consistently paid dividends, with a cash dividend of $0.075 per share for the first nine months of 2024, totaling $1,970,000 distributed to shareholders.
Conclusion on Ownership Dynamics
The ownership of Barrett Business Services, Inc. reflects a stable mix of institutional and retail investors, with significant engagement in stock repurchase activities and consistent dividend payments, underscoring the company's commitment to returning value to its shareholders.
Barrett Business Services, Inc. (BBSI) Mission Statement
Current Mission Statement
As of 2024, Barrett Business Services, Inc. (BBSI) aims to provide comprehensive professional employer organization (PEO) services designed to enhance the operational efficiency of small to medium-sized businesses. The mission focuses on delivering tailored workforce solutions, including payroll processing, human resources management, and employee benefits, thereby empowering clients to concentrate on their core business objectives.
Key Components of the Mission Statement
- Client-Centric Approach: Prioritizing the needs and growth of clients through personalized services.
- Comprehensive Solutions: Offering a wide range of services that include HR management, compliance assistance, and risk management.
- Empowerment of Businesses: Enabling clients to focus on their primary business activities by managing their employee-related functions.
Financial Overview of BBSI (2024)
Barrett Business Services, Inc. has demonstrated significant financial performance in 2024, reflecting the efficacy of its mission-driven approach. Below is a detailed financial summary:
| Financial Metric | Q3 2024 | Q3 2023 | YTD September 2024 | YTD September 2023 |
|---|---|---|---|---|
| Net Income | $19.6 million | $18.2 million | $36.2 million | $36.1 million |
| Revenue | $294.3 million | $273.3 million | $839.7 million | $792.6 million |
| Gross Margin | $74.4 million (25.3%) | $68.3 million (25.0%) | $181.9 million (21.6%) | $176.9 million (22.3%) |
| Diluted EPS | $0.74 | $0.67 | $1.35 | $1.31 |
Operational Metrics
In alignment with its mission, BBSI continues to monitor vital operational metrics to assess service delivery:
| Operational Metric | Q3 2024 | Q3 2023 | YTD September 2024 | YTD September 2023 |
|---|---|---|---|---|
| Average Worksite Employees (WSEs) | 133,398 | 127,232 | 128,394 | 123,577 |
| Ending WSEs | 132,698 | 128,448 | 132,698 | 128,448 |
Strategic Initiatives in 2024
BBSI has undertaken several strategic initiatives to enhance its mission execution:
- Expansion of Employee Benefits: Introduction of fully insured employee benefit programs.
- Focus on Compliance: Strengthening compliance assistance services to help clients navigate regulatory challenges.
- Technology Integration: Investing in advanced HR technologies to improve service delivery and client engagement.
Market Positioning
As of 2024, BBSI holds a competitive position in the PEO market, catering to diverse industries with a robust service portfolio. The company’s commitment to enhancing client operations through streamlined HR solutions underscores its ongoing mission.
How Barrett Business Services, Inc. (BBSI) Works
Overview of Barrett Business Services, Inc.
Barrett Business Services, Inc. (BBSI) operates primarily in the professional employer organization (PEO) sector, offering comprehensive human resource services to small and medium-sized businesses. As of September 30, 2024, BBSI reported a total revenue of $294.3 million for the third quarter, reflecting a year-over-year increase of 7.7% from $273.3 million in the same quarter of 2023.
Financial Performance
For the first nine months of 2024, BBSI generated total revenue of $839.7 million, a 5.9% increase compared to $792.6 million in the first nine months of 2023. This increase was driven by a $50.9 million rise in PEO services revenue, which grew by 7.0%, offset by a $3.8 million decline in staffing services revenue.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $294.3 million | $273.3 million | $839.7 million | $792.6 million |
| Net Income | $19.6 million | $18.2 million | $36.2 million | $36.1 million |
| Diluted EPS | $0.74 | $0.67 | $1.35 | $1.31 |
| Gross Margin | 25.3% | 25.0% | 21.6% | 22.3% |
Cost Structure
BBSI's cost of revenues for Q3 2024 totaled $219.9 million, with the following breakdown:
- Direct Payroll Costs: $16.2 million (5.5% of revenue)
- Payroll Taxes and Benefits: $154.1 million (52.4% of revenue)
- Workers’ Compensation: $49.5 million (16.8% of revenue)
In the first nine months of 2024, the total cost of revenues was $657.8 million, with payroll taxes and benefits accounting for 55.4% of total revenue.
Worksite Employee Metrics
BBSI refers to employees of its PEO clients as worksite employees (WSEs). The average number of WSEs for Q3 2024 was 133,398, reflecting a 4.8% increase from 127,232 in Q3 2023. The ending WSEs for September 2024 were 132,698, up 3.3% from 128,448 in September 2023.
| WSE Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Average WSEs | 133,398 | 127,232 |
| Ending WSEs | 132,698 | 128,448 |
Cash Flow and Liquidity
BBSI's cash balance as of September 30, 2024, was $28.7 million, a decrease of $46.1 million from the beginning of the year. Cash used in operating activities amounted to $43.3 million for the first nine months of 2024.
The company reported net cash provided by investing activities of $29.0 million, primarily from the sale and maturity of investments.
Shareholder Equity and Stock Repurchases
As of September 30, 2024, BBSI had total stockholders' equity of $215.4 million. The company repurchased 228,570 shares during Q3 2024 at an average price of $35.18 per share.
| Stock Repurchase Activity | Total Shares Repurchased | Average Price Paid |
|---|---|---|
| Q3 2024 | 228,570 | $35.18 |
Conclusion
BBSI's financial performance in 2024 reflects a positive growth trajectory in its PEO services, driven by an increase in worksite employees and favorable market conditions. The company's focus on managing costs effectively has enabled it to maintain healthy margins despite fluctuations in revenue streams.
How Barrett Business Services, Inc. (BBSI) Makes Money
Revenue Streams
Barrett Business Services, Inc. (BBSI) generates revenue primarily through its Professional Employer Organization (PEO) services and staffing services. The company's total revenue for the first nine months of 2024 was $839.7 million, reflecting a 5.9% increase compared to $792.6 million in the same period of 2023.
| Revenue Source | Amount (2024) | Amount (2023) | Year-over-Year Change |
|---|---|---|---|
| PEO Services | $778.9 million | $727.9 million | +7.0% |
| Staffing Services | $60.8 million | $64.6 million | -5.9% |
| Total Revenue | $839.7 million | $792.6 million | +5.9% |
Key Financial Metrics
For the third quarter of 2024, BBSI reported total revenues of $294.3 million, up 7.7% from $273.3 million in the third quarter of 2023. The increase in PEO services revenue was driven by a 4.8% rise in average worksite employees (WSEs) and a 2.9% increase in average billing per WSE.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $294.3 million | $273.3 million |
| Net Income | $19.6 million | $18.2 million |
| Diluted EPS | $0.74 | $0.67 |
Cost Structure
BBSI's cost structure includes direct payroll costs, payroll taxes, benefits, and workers' compensation expenses. For the nine months ending September 30, 2024, total costs of revenues amounted to $657.8 million, leading to a gross margin of $181.9 million, or 21.6% of revenue.
| Cost Components | Amount (2024) | Amount (2023) |
|---|---|---|
| Direct Payroll Costs | $45.6 million | $48.3 million |
| Payroll Taxes and Benefits | $464.8 million | $414.4 million |
| Workers' Compensation | $147.4 million | $153.0 million |
| Total Costs of Revenues | $657.8 million | $615.7 million |
Operating Expenses
Operating expenses for BBSI include selling, general and administrative (SG&A) expenses, which totaled $137.1 million for the first nine months of 2024, compared to $129.2 million in the same period of 2023.
| Operating Expenses | Amount (2024) | Amount (2023) |
|---|---|---|
| SG&A Expenses | $137.1 million | $129.2 million |
| Depreciation and Amortization | $5.7 million | $5.3 million |
Profitability Analysis
BBSI's net income for the first nine months of 2024 was $36.2 million, slightly up from $36.1 million in 2023. The effective income tax rate for the first nine months of 2024 was 24.2%, down from 26.8% in the previous year.
| Profitability Metrics | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Income | $36.2 million | $36.1 million |
| Diluted EPS | $1.35 | $1.31 |
| Effective Tax Rate | 24.2% | 26.8% |
Cash Flow and Liquidity
As of September 30, 2024, BBSI had a cash balance of $14.4 million, a decrease from $71.2 million at the end of 2023. The decrease was attributed to increased trade accounts receivable and investments in property and equipment.
| Cash Flow Metrics | Amount |
|---|---|
| Cash Balance | $14.4 million |
| Net Cash Used in Operating Activities | ($43.3 million) |
| Net Cash Provided by Investing Activities | $29.0 million |
| Net Cash Used in Financing Activities | ($31.9 million) |
Conclusion
Barrett Business Services, Inc. continues to grow its revenue primarily through its PEO services while managing its costs effectively. The company's profitability metrics indicate a stable financial position, although cash flow dynamics reflect ongoing investments and stock repurchase activities.
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Resources:
- Barrett Business Services, Inc. (BBSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Barrett Business Services, Inc. (BBSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Barrett Business Services, Inc. (BBSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.