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View All NewsBarrett Q4 staffing, PEO revenue up
Both PEO and temporary staffing revenue rose at Barrett Business Services Inc. (NASD: BBSI) in the fourth quarter, and net income rose.
However, the Vancouver, Wash.-based company posted a loss for full-year 2014 that came as a result of an increase in workers’ compensation reserves during the third quarter.
| (US$ thousands) | Q4 2014 | Q4 2013 | % growth |
| Revenue | $175,016 | $144,525 | 21.1% |
| Gross margin | $34,041 | $24,301 | 40.1% |
| Gross margin percentage | 19.5% | 16.8% | |
| Net income | $7,034 | $5,560 | 26.5% |
Quote
“Over the course of the last year, we’ve continued to strengthen operations while maturing our entire organization,” said President and CEO Michael Elich. “We’ve taken significant steps to strengthen our workers’ compensation reserves and increased our financial capacity to support the company and our growing client base. These steps, along with the momentum we experienced in our fourth quarter, positions BBSI for a strong 2015.”
Revenue by segment
| (US$ thousands) | Q4 2014 | Q4 2013 | % growth |
| Professional employer service fees | $129,703 | $107,407 | 20.8% |
| Staffing services | $45,313 | $37,118 | 22.1% |
Full-year results
| (US$ thousands) | 2014 | 2013 | % growth |
| Revenue | $636,184 | $532,844 | 19.4% |
| Gross margin | $30,417 | $86,524 | -64.8% |
| Gross margin percentage | 4.8% | 16.2% | |
| Net income/loss | -$27,084 | $17,892 | -251.4% |
Guidance
BBSI expects gross revenues for all of 2015 to increase approximately 18% and diluted earnings per share for the full year of 2015 to increase to approximately $3.30.
Share price and market cap
Shares in Barrett rose 17.64% in early afternoon trading today to $35.68. The company had a market cap of approximately $253.90 million, according to Yahoo!