Barrett Business Services reports preliminary Q4 results
Barrett Business Services, Inc. ("BBSI" or the "Company") (NASDAQ: BBSI), a leading provider of business management solutions, reported preliminary results for the fourth quarter ended December 31, 2013.
For the fourth quarter of 2013, the Company expects to report net revenues of approximately $144.5 million, an increase of 27% compared to $113.7 million in the fourth quarter of 2012. BBSI also expects to report non-GAAP gross revenues for the fourth quarter of approximately $779.3 million, an increase of 31% compared to $596.7 million in the same year-ago quarter (see "Reconciliation of Non-GAAP Financial Measures" below).
The Company expects to record an increase to its self-insured workers' compensation reserve of approximately $5.1 million, or $3.1 million after tax, equating to approximately $0.42 per diluted share in the fourth quarter of 2013. The increase represents approximately 5% of the Company's total workers' compensation reserves and is a result of increased estimated reserves for prior year injury claims, primarily in the state of California.
Taking into account the effect of the increase in workers' compensation expense, the Company expects diluted earnings per share in the fourth quarter of 2013 to range between $0.71 to $0.73. Excluding the increase, BBSI expects diluted earnings per share to range between $1.13 and $1.15, compared to $0.80 per diluted share in the fourth quarter of 2012.
"2013 was a very successful year for BBSI as our company matured significantly over the past twelve months," said Michael Elich, president and CEO of BBSI. "Part of this organizational maturation is to bring greater predictability to the model. One area of focus is how we consistently review our reserving practices for our workers' compensation liabilities, while remaining aligned with our actuarial firm. During the quarter, we determined the need to increase this reserve as a result of our actuarial firm's quarterly and annual review, in combination with insights provided through our new relationship with ACE Group to provide workers' compensation coverage in California.
"BBSI is well positioned for continued strong revenue and earnings growth, and we remain committed to investing in our organization to ultimately support a much larger and more mature company. The proactive steps we are taking, and have taken over the past several years, aligns with our growth prospects for 2014 and beyond."