Group 1 - Barrett Business Services, Inc. (BBSI) has been invited to present at William Blair's 44th Annual Growth Stock Conference from June 4-6, 2024 [1] - BBSI's CEO Gary Kramer and CFO Anthony Harris will present on June 4 at 10:00 a.m. CT [1] - The conference will include one-on-one and small group meetings for investors with BBSI's management team [1] Group 2 - BBSI is a leading provider of business management solutions, specializing in human resource outsourcing and professional management consulting [2] - The company's integrated platform includes payroll processing, employee benefits, workers' compensation coverage, risk management, workplace safety programs, and human resource administration [2] - BBSI serves over 7,500 clients across all business sectors and is licensed to operate in all 50 states [2]

Group 1 - Barrett Business Services, Inc. (BBSI) has been invited to present at William Blair's 44th Annual Growth Stock Conference from June 4-6, 2024 [1] - BBSI's CEO Gary Kramer and CFO Anthony Harris will present on June 4 at 10:00 a.m. CT [1] - The conference will include one-on-one and small group meetings for investors with BBSI's management team [1] Group 2 - BBSI is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting [2] - The company's integrated platform includes payroll processing, employee benefits, workers' compensation coverage, risk management, workplace safety programs, and human resource administration [2] - BBSI serves over 7,500 clients across all lines of business and is licensed to operate in all 50 states [2]

Core Insights - The price-to-sales (P/S) ratio is highlighted as a valuable metric for evaluating stocks, especially for companies with negative earnings or those in early development stages [2][3] - A P/S ratio below 1 indicates a potentially undervalued stock, as investors pay less than a dollar for each dollar of revenue generated [2] - The P/S ratio is considered more reliable than the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [3] Investment Opportunities - Lakeland Industries (LAKE) is recognized for its focus on high-value protective clothing and has a Value Score of A with a Zacks Rank of 1, indicating strong potential for returns [6] - ODP Corporation (ODP) is enhancing its business through Project CORE and has a Value Score of A with a Zacks Rank of 2, suggesting a solid investment opportunity [7] - ProPetro Holding Corp. (PUMP) is positioned to benefit from its operations in the Permian Basin and has a Value Score of A with a Zacks Rank of 2, indicating growth potential [8] - Barrett Business Services (BBSI) is experiencing strong earnings growth and has a Value Score of A with a Zacks Rank of 2, making it a favorable investment [9] - JAKKS Pacific (JAKK) has diversified its product offerings and has a Value Score of A with a Zacks Rank of 1, reflecting its strong market position [10] Screening Parameters - Stocks should have a P/S ratio less than the median for their industry, a P/E ratio below the industry median, and a price-to-book ratio lower than the industry median to ensure value [4] - A debt-to-equity ratio lower than the industry median is preferred, as lower debt levels contribute to a stable P/S ratio [4] - Stocks must be trading at a minimum price of $5 and have a Zacks Rank of 1 or 2 to qualify for investment consideration [4][5]

The Zacks Outsourcing industry has experienced significant growth, driven by various economic, technological and business factors. Key drivers include the pursuit of cost savings, access to a pool of skilled talent, and the opportunity to focus on core competencies.Broadridge Financial Solutions, Inc. (BR) , Barrett Business Services, Inc. (BBSI) and Conduent Incorporated (CNDT) can be considered by investors from the in-focus Outsourcing market.About the Industry Outsourcing involves delegating a company's ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with overvalued shares [1] Group 2: Barrett Business Services (BBSI) Analysis - BBSI has shown a price increase of 0.2% over the past four weeks, indicating growing investor interest [2] - The stock gained 7.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [3] - BBSI has a beta of 1.37, suggesting it moves 37% higher than the market in either direction, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - BBSI has a Momentum Score of A, indicating a favorable time to invest based on momentum [3] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [4] - BBSI is trading at a Price-to-Sales ratio of 0.75, suggesting it is reasonably valued at 75 cents for each dollar of sales [4] Group 4: Additional Investment Opportunities - Besides BBSI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [5] - The Zacks Premium Screens offer over 45 strategies to help identify potential winning stocks [5]

Core Insights - The price-to-sales (P/S) ratio is highlighted as a valuable metric for evaluating stocks, especially for companies with negative earnings or those in early development stages [2][3] - A P/S ratio below 1 indicates a potentially undervalued stock, making it an attractive investment opportunity [2] - The P/S ratio is considered more reliable than the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [3] Investment Opportunities - Lakeland Industries (LAKE) is recognized for its protective clothing manufacturing, focusing on high-value products and market diversification, with a Value Score of A and Zacks Rank 1 [6] - PBF Energy Inc. (PBF) operates six refineries and is noted for its capacity to produce high-quality refined products, holding a Zacks Rank 2 and a Value Score of A [7] - PagSeguro Digital (PAGS) provides financial technology solutions and has shown disciplined capital allocation, achieving a Value Score of A and Zacks Rank 2 [8] - Barrett Business Services (BBSI) offers business management solutions and is experiencing growth through an expanding client base, with a Value Score of A and Zacks Rank 2 [8] - JAKKS Pacific (JAKK) has diversified its product offerings and is focusing on online sales, achieving a Value Score of A and Zacks Rank 1 [9] Screening Parameters - Stocks should have a P/S ratio less than the median for their industry, a P/E ratio below the industry median, and a price-to-book ratio lower than the industry median [4] - Companies should also have a debt-to-equity ratio below the industry median and a current price of at least $5, with a Zacks Rank of 1 or 2 to ensure strong performance [4]

Financial Data and Key Metrics Changes - Gross billings increased by 7% year-over-year to $1.9 billion in Q1 2024, consistent with expectations [11] - PEO gross billings also rose by 7% to $1.89 billion, while staffing revenues declined by 12% to $20 million [11] - Net loss for Q1 was $0.1 million or $0.02 per diluted share, compared to net income of $0.8 million or $0.12 per diluted share in the prior year [15] Business Line Data and Key Metrics Changes - The staffing business experienced a decline of 12% compared to the prior year quarter, which was within expected ranges [7] - PEO worksite employees grew by 3.1% year-over-year, attributed to strong controllable growth from new clients and modest hiring within existing clients [11][12] - Average billing per worksite employee increased by 3.5% in the quarter [12] Market Data and Key Metrics Changes - Client hiring showed moderate positive trends across all regions except the Northwest, which was impacted by declines in the construction sector [12] - The East Coast saw a 17% growth in PEO gross billings, while the Pacific Northwest declined by 6% [12] Company Strategy and Development Direction - The company is focused on expanding its asset-light model and has added 15 new Market Development Managers [7] - A strategic multi-year partnership with Kaiser Permanente was announced, expected to enhance product offerings and drive growth [9] - The company aims to continue its controllable growth strategy by adding and retaining clients, with expectations for gross billings to increase between 6% and 8% for the year [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook, anticipating greater growth in billings for 2024 compared to 2023 [37] - The company noted that payroll tax rates have increased, which will impact margins but is expected to stabilize over the year [46] - Overall, the company remains confident in its growth trajectory and product offerings, particularly with the upcoming launch of the Kaiser partnership [9][17] Other Important Information - The company repurchased $7 million of shares in Q1 at an average price of $120 per share, with $52 million remaining under the repurchase program [16] - A four-for-one stock split was announced, pending shareholder approval, aimed at increasing liquidity and trading efficiency [16] Q&A Session Summary Question: Insights on gross billings growth and hiring expectations - Management indicated that modest growth in client hiring is expected, particularly in the construction sector, which could benefit billings growth [18][19] Question: Clarification on health care plan client numbers - The increase in clients on the health care plan was attributed to the timing of reporting, with a focus on February and March data [21] Question: Expectations for the Kaiser partnership - Initial expectations for the Kaiser program were tempered, with ongoing marketing and sales efforts underway [23] Question: Enrollment process for health insurance - The majority of health insurance enrollments will occur on January 1, with July 1 being the second largest effective date [29] Question: Details on the asset-light model and branch development - Two markets are transitioning to traditional branches, specifically in Dallas and Chicago, with ongoing investments in local HR professionals [31] Question: Earnings cadence and seasonal trends - The company expects Q3 to be the peak season for operations, with Q2 and Q4 showing similar patterns [33]

For the quarter ended March 2024, Barrett Business Services (BBSI) reported revenue of $1.91 billion, up 6.6% over the same period last year. EPS came in at -$0.02, compared to $0.12 in the year-ago quarter.The reported revenue represents a surprise of +1.62% over the Zacks Consensus Estimate of $1.88 billion. With the consensus EPS estimate being -$0.31, the EPS surprise was +93.55%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Core Insights - Barrett Business Services (BBSI) reported a quarterly loss of $0.02 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.31, and compared to earnings of $0.12 per share a year ago, indicating a 93.55% earnings surprise [1] - The company achieved revenues of $1.91 billion for the quarter ended March 2024, exceeding the Zacks Consensus Estimate by 1.62% and showing an increase from $1.79 billion year-over-year [1] Financial Performance - Over the last four quarters, Barrett has consistently surpassed consensus EPS estimates, achieving this four times [1] - The company has also topped consensus revenue estimates two times in the last four quarters [1] Stock Performance and Outlook - Barrett shares have increased approximately 4.9% since the beginning of the year, while the S&P 500 has gained 5.6% [2] - The current consensus EPS estimate for the upcoming quarter is $2.33, with expected revenues of $2.03 billion, and for the current fiscal year, the EPS estimate is $7.78 on revenues of $8.24 billion [4] Industry Context - The Outsourcing industry, to which Barrett belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [4] - Genpact, another company in the same industry, is expected to report its quarterly results on May 9, with an anticipated EPS of $0.69, reflecting a year-over-year change of +1.5% [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-21886 BARRETT BUSINESS SERVICES, INC. (Exact name of registrant as specified in its charter) Maryland 52-0812977 (State or other jurisdiction of ...