UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
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
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of |
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(Address of principal executive offices) |
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of April 19, 2023,
BARRETT BUSINESS SERVICES, INC.
INDEX TO FORM 10-Q
2
PART I – FINANCIAL INFORMATION
Item 1. Unaudited Interim Condensed Consolidated Financial Statements
Barrett Business Services, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Par Value)
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March 31, |
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December 31, |
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2023 |
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2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Investments |
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Trade accounts receivable, net |
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Prepaid expenses and other |
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Restricted cash and investments |
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Total current assets |
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Property, equipment and software, net |
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Operating lease right-of-use assets |
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Restricted cash and investments |
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Goodwill |
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Other assets |
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Deferred income taxes |
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Total assets |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued payroll, payroll taxes and related benefits |
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Income taxes payable |
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Current operating lease liabilities |
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Other accrued liabilities |
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Workers' compensation claims liabilities |
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Safety incentives liability |
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Total current liabilities |
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Long-term workers' compensation claims liabilities |
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Long-term operating lease liabilities |
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Customer deposits and other long-term liabilities |
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Total liabilities |
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Stockholders' equity: |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive expense |
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Retained earnings |
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Total stockholders' equity |
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Total liabilities and stockholders' equity |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
Barrett Business Services, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
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Three Months Ended |
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March 31, |
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2023 |
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2022 |
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Revenues: |
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Professional employer services |
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$ |
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$ |
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Staffing services |
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Total revenues |
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Cost of revenues: |
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Direct payroll costs |
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Payroll taxes and benefits |
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Workers' compensation |
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Total cost of revenues |
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Gross margin |
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Selling, general and administrative expenses |
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Depreciation and amortization |
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Loss from operations |
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Other income (expense): |
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Investment income, net |
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Interest expense |
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Other, net |
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Other income, net |
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Income before income taxes |
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Provision for income taxes |
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Net income |
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$ |
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$ |
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Basic income per common share |
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$ |
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$ |
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Weighted average number of basic common shares |
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Diluted income per common share |
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$ |
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$ |
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Weighted average number of diluted common |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Barrett Business Services, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(In Thousands)
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Three Months Ended |
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March 31, |
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2023 |
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2022 |
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Net income |
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$ |
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$ |
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Unrealized income (losses) on investments, net of tax of $ |
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Comprehensive income (loss) |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
5
Barrett Business Services, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Three Months Ended March 31, 2023
(Unaudited)
(In Thousands)
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Accumulated |
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Other |
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Additional |
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Comprehensive |
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Common Stock |
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Paid-in |
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(Loss) |
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Retained |
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Shares |
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Amount |
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Capital |
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Income |
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Earnings |
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Total |
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Balance, December 31, 2022 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Common stock issued on exercise of options, |
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- |
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- |
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- |
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Common stock repurchased on vesting of |
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- |
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- |
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- |
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Share-based compensation expense |
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- |
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- |
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- |
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- |
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Company repurchases of common stock |
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- |
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Cash dividends on common stock ($ |
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- |
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- |
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- |
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- |
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Unrealized income on investments, net of tax |
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- |
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- |
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- |
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- |
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Net income |
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- |
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- |
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- |
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- |
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Balance, March 31, 2023 |
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$ |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
6
Barrett Business Services, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Three Months Ended March 31, 2022
(Unaudited)
(In Thousands)
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Accumulated |
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Other |
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Additional |
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Comprehensive |
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Common Stock |
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Paid-in |
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Income |
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Retained |
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Shares |
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Amount |
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Capital |
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(Loss) |
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Earnings |
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Total |
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Balance, December 31, 2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Common stock issued on exercise of options, |
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- |
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- |
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- |
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Common stock repurchased on vesting of |
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- |
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- |
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- |
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( |
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Share-based compensation expense |
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- |
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- |
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- |
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- |
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Company repurchases of common stock |
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- |
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( |
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Cash dividends on common stock ($ |
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- |
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- |
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- |
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- |
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( |
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( |
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Unrealized loss on investments, net of tax |
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- |
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- |
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- |
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( |
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- |
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( |
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Net income |
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- |
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- |
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- |
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- |
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Balance, March 31, 2022 |
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$ |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
7
Barrett Business Services, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
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Three Months Ended |
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March 31, |
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2023 |
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2022 |
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Cash flows from operating activities: |
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Net income |
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$ |
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$ |
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Reconciliations of net income to net cash used in |
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Depreciation and amortization |
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Non-cash lease expense |
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Investment amortization and losses recognized |
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Deferred Income taxes |
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- |
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Share-based compensation |
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Changes in certain operating assets and liabilities: |
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Trade accounts receivable |
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( |
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Income taxes |
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Prepaid expenses and other |
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( |
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( |
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Accounts payable |
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( |
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Accrued payroll, payroll taxes and related benefits |
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Other accrued liabilities |
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( |
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Workers' compensation claims liabilities |
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( |
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( |
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Safety incentives liability |
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( |
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( |
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Operating lease liabilities |
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( |
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( |
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Other assets and liabilities, net |
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( |
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( |
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Net cash used in operating activities |
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( |
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Cash flows from investing activities: |
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Purchase of property, equipment and software |
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Proceeds from sales and maturities of investments |
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Purchase of restricted investments |
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( |
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Proceeds from sales and maturities of restricted investments |
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Net cash (used in) provided by investing activities |
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Cash flows from financing activities: |
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Payments on long-term debt |
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- |
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Repurchases of common stock |
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( |
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( |
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Common stock repurchased on vesting of stock awards |
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( |
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Dividends paid |
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( |
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Proceeds from exercise of stock options |
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Net cash used in financing activities |
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( |
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Net decrease in cash, cash equivalents and restricted cash |
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Cash, cash equivalents and restricted cash, beginning of period |
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Cash, cash equivalents and restricted cash, end of period |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.