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Both PEO service fee revenue and temporary staffing revenue rose at Barrett Business Services Inc. (NASD: BBSI) in the first quarter. PEO service fee revenue jumped 45.6 percent to $81.8 million in the first quarter compared to the same quarter last year, following year-over-year increases of 49.5 percent in the fourth quarter of 2012 and 47.4 percent in the third quarter of 2012.
Temporary staffing revenue also increased, up 13.4 percent on a year-over-year basis to $29.7 million in the first quarter.
Vancouver, Wash.-based Barrett provides both temporary staffing and professional employer services. Total first-quarter revenue rose 35.3 percent to $111.6 million from $82.4 million in the first quarter of 2012.
“This growth can be attributed to a variety of factors, including continued strength in our referral channels, our high client retention rate and the maturation of our brand in the marketplace,” said President and CEO Michael Elich. “Given this acceleration, we will continue to prudently invest in our operational infrastructure and professional talent throughout 2013 to support a much larger organization as we grow.”
First-quarter gross margin slipped to 7.5 percent from 8.0 percent in the year-ago quarter.
Barrett posted a net loss for the quarter of $2.5 million compared to a net loss of $2.2 million in the first quarter of 2012. Barrett historically incurs losses in the first quarter due to the higher effective payroll taxes at the beginning of each year, according to the company.
Barrett Business Services Inc. (NASD: BBSI)
For the first quarter ended March 31, 2013, compared with the same period in 2012.
Revenue: $111.6 million, +35.3 percent
Net loss: $2.5 million vs. net loss of $2.2 million