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View All NewsBarrett Q4 revenue falls 2.8% on decrease in temp staffing division
Barrett Business Services Inc. (NASD: BBSI) reported revenue fell 2.8% in the fourth quarter, with the loss coming from its staffing services division. PEO revenue was flat at the Vancouver, Wash.-based company.
Gross margin improved to 26.2%, and net income increased.
Total gross billings in the fourth quarter increased 6% year over year to $1.52 billion, primarily due to higher PEO client count and same-customer sales growth, partially offset by a decrease in staffing revenue.
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Revenue | $237,832 | $244,726 | -2.8% |
| Gross margin | $62,244 | $48,950 | 27.2% |
| Gross margin percentage | 26.2% | 20.0% | |
| Net income | $16,856 | $10,486 | 60.7% |
Quote
“While the topline remains softer than historical levels, we feel very good about record gross client additions and our ability to create shareholder value,” President and CEO Mike Elich said. “As we look at 2019, we believe we are well positioned to execute on the foundation we have built.”
Revenue by segment
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Professional employer service fees | $200,840 | $200,731 | 0.1% |
| Staffing services | $36,992 | $43,995 | -15.9% |
Full-year revenue
| (US$ thousands) | 2018 | 2017 | % change |
| Revenue | $940,698 | $920,432 | 2.2% |
| Gross margin | $186,673 | $158,531 | 17.8% |
| Gross margin percentage | 19.8% | 17.2% | |
| Net income | $38,062 | $25,170 | 51.2% |
Share price and market cap
Barrett shares rose 9.94% to $79.67 at 11:09 p.m. Eastern time today; the company had a market cap of $549.89 million, according to FT.com.