Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

November 2, 2023

Documents

falseQ30000902791--12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:EmergingMarketsMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791srt:MinimumMemberus-gaap:InternalRevenueServiceIRSMemberbbsi:WageBasedTaxCreditsMember2023-01-012023-09-300000902791us-gaap:RetainedEarningsMember2023-06-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:CreditAgreementMembersrt:MinimumMember2022-12-310000902791bbsi:DirectPayrollCostsMember2023-01-012023-09-3000009027912021-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000902791bbsi:WorkersCompensationMember2022-07-012022-09-300000902791bbsi:CreditAgreementMember2022-12-310000902791us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000902791us-gaap:OtherAssetsMember2022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-09-3000009027912023-01-012023-09-300000902791us-gaap:CommonStockMember2023-06-300000902791us-gaap:CommonStockMember2023-03-310000902791us-gaap:AdditionalPaidInCapitalMember2023-03-310000902791us-gaap:MoneyMarketFundsMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000902791srt:MinimumMemberus-gaap:InternalRevenueServiceIRSMember2023-01-012023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2022-09-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000902791us-gaap:MutualFundMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000902791us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:InvestmentsMember2023-09-300000902791bbsi:CreditAgreementMember2023-01-012023-09-300000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-09-300000902791us-gaap:MortgageBackedSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2022-12-310000902791stpr:CObbsi:SelfInsuredProgramsMember2023-09-300000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMember2022-12-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberbbsi:SecuredOvernightFinancingRateMember2023-01-012023-09-300000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:MortgageBackedSecuritiesMember2022-01-012022-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MutualFundMember2023-09-300000902791stpr:CA2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMember2023-09-3000009027912022-01-012022-09-300000902791us-gaap:MoneyMarketFundsMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791stpr:CObbsi:SelfInsuredProgramsMember2020-06-300000902791us-gaap:AdditionalPaidInCapitalMember2022-03-310000902791bbsi:DirectPayrollCostsMember2023-07-012023-09-300000902791us-gaap:RetainedEarningsMember2022-01-012022-03-310000902791us-gaap:RetainedEarningsMember2023-01-012023-03-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000902791us-gaap:CommonStockMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2021-12-310000902791us-gaap:RetainedEarningsMember2022-09-300000902791bbsi:TwoThousandFourteenMember2023-01-012023-09-300000902791us-gaap:InvestmentsMember2022-12-310000902791srt:MinimumMember2023-07-012023-09-300000902791bbsi:TwoThousandTwentyOneJulyOneAndAfterMember2023-01-012023-09-300000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:InvestmentsMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:RevolvingCreditFacilityMemberbbsi:OneMonthTermSecuredOvernightFinancingRateMember2023-01-012023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:MoneyMarketFundsMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:RetainedEarningsMember2023-07-012023-09-300000902791bbsi:EmergingMarketsMemberus-gaap:InvestmentsMember2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100009027912023-09-300000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:RetainedEarningsMember2023-03-310000902791us-gaap:MoneyMarketFundsMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:RetainedEarningsMember2022-07-012022-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:GeneralBusinessMember2023-09-300000902791bbsi:TwoThousandTwentyMember2023-01-012023-09-300000902791bbsi:DirectPayrollCostsMember2022-01-012022-09-3000009027912023-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-09-300000902791us-gaap:CommonStockMember2022-01-012022-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000902791bbsi:WorkersCompensationMember2022-01-012022-09-300000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMember2023-09-300000902791srt:MaximumMemberus-gaap:InternalRevenueServiceIRSMemberbbsi:WageBasedTaxCreditsMember2023-01-012023-09-300000902791bbsi:TwoThousandTwentyTwoMember2023-01-012023-09-300000902791bbsi:EmergingMarketsMemberus-gaap:InvestmentsMember2022-12-310000902791bbsi:RestrictedCashAndInvestmentsMember2022-12-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2023-09-300000902791bbsi:ProfessionalEmployerServicesMember2022-01-012022-09-300000902791us-gaap:RetainedEarningsMember2022-03-310000902791bbsi:TwoThousandTwentyThreeToTwoThousandTwentyFourPolicyMember2023-01-012023-09-300000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:CorporateBondSecuritiesMember2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:RetainedEarningsMember2022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000902791us-gaap:CommonStockMember2022-07-012022-09-3000009027912022-12-310000902791us-gaap:MortgageBackedSecuritiesMember2023-01-012023-09-3000009027912022-01-012022-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-3100009027912017-01-012020-12-310000902791bbsi:InsuredProgramMember2021-07-012021-07-010000902791us-gaap:OtherAssetsMember2023-09-300000902791us-gaap:RetainedEarningsMember2021-12-310000902791us-gaap:USTreasurySecuritiesMember2022-12-310000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2023-09-300000902791bbsi:CreditAgreementMembersrt:MinimumMember2023-03-3100009027912022-04-012022-06-3000009027912023-10-180000902791bbsi:EmergingMarketsMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:AdditionalPaidInCapitalMember2023-06-3000009027912022-01-012022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000902791bbsi:PayrollTaxesAndBenefitsMember2023-07-012023-09-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-09-300000902791bbsi:InsuredProgramMember2023-01-012023-09-300000902791bbsi:SelfInsuredProgramsMember2023-01-012023-09-300000902791us-gaap:CommonStockMember2022-03-3100009027912022-09-300000902791us-gaap:USTreasurySecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMember2023-09-3000009027912023-07-012023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-09-300000902791bbsi:ProfessionalEmployerServicesMember2023-07-012023-09-300000902791us-gaap:InternalRevenueServiceIRSMember2021-01-012021-12-310000902791us-gaap:CommonStockMember2023-01-012023-03-310000902791bbsi:TwoThousandEighteenMember2023-01-012023-09-300000902791bbsi:EmergingMarketsMember2023-09-300000902791stpr:MDbbsi:SelfInsuredProgramsMember2020-06-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:AlternativeMinimumTaxCreditsMember2023-09-300000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:InvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100009027912022-07-012022-09-300000902791us-gaap:CommonStockMember2023-04-012023-06-300000902791us-gaap:CommonStockMember2022-04-012022-06-300000902791bbsi:WorkersCompensationMember2023-01-012023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:InvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:PayrollTaxesAndBenefitsMember2023-01-012023-09-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMember2023-09-300000902791bbsi:TwoThousandSeventeenMember2023-01-012023-09-300000902791us-gaap:CommonStockMember2023-07-012023-09-300000902791us-gaap:USTreasurySecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:TwoThousandFifteenMember2023-01-012023-09-300000902791us-gaap:AssetBackedSecuritiesMember2022-12-310000902791us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000902791us-gaap:AdditionalPaidInCapitalMember2022-06-300000902791us-gaap:RetainedEarningsMember2022-06-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000902791us-gaap:RetainedEarningsMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2022-12-310000902791stpr:MDbbsi:SelfInsuredProgramsMember2023-09-300000902791us-gaap:AccruedLiabilitiesMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMember2022-12-310000902791bbsi:TwoThousandTwentyTwoToTwoThousandTwentyThreePolicyMember2023-01-012023-09-3000009027912023-06-300000902791bbsi:ProfessionalEmployerServicesMember2022-07-012022-09-300000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMember2023-09-300000902791srt:MaximumMemberus-gaap:InternalRevenueServiceIRSMember2023-01-012023-09-300000902791us-gaap:InvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100009027912023-04-012023-06-300000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:MarketableSecuritiesCurrentMemberus-gaap:CashAndCashEquivalentsMember2022-12-310000902791us-gaap:CommonStockMember2022-06-300000902791bbsi:DirectPayrollCostsMember2022-07-012022-09-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMember2022-12-310000902791us-gaap:InvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000902791us-gaap:MutualFundMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:TwoThousandTwentyThreeMember2023-01-012023-09-300000902791bbsi:WorkersCompensationMember2023-07-012023-09-300000902791us-gaap:RetainedEarningsMember2023-04-012023-06-300000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2022-12-310000902791bbsi:StaffingServicesMember2023-01-012023-09-300000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:CorporateBondSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000902791bbsi:InsuredProgramMember2020-06-292020-06-290000902791us-gaap:MutualFundMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791srt:MinimumMember2023-01-012023-03-310000902791bbsi:StaffingServicesMember2022-07-012022-09-300000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:InvestmentsMember2022-12-310000902791bbsi:SelfInsuredProgramsMember2020-01-012020-06-300000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:CreditAgreementMember2023-09-300000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-3000009027912022-06-300000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:TwoThousandSixteenMember2023-01-012023-09-3000009027912022-12-312022-12-310000902791us-gaap:RevolvingCreditFacilityMemberbbsi:SecuredOvernightFinancingRateMember2023-01-012023-09-300000902791bbsi:StaffingServicesMember2023-07-012023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:InvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:TwoThousandNineteenMember2023-01-012023-09-300000902791us-gaap:MoneyMarketFundsMember2022-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:MoneyMarketFundsMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100009027912023-01-012023-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:CommonStockMember2022-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MutualFundMember2022-12-310000902791us-gaap:USTreasurySecuritiesMemberus-gaap:InvestmentsMember2023-09-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:AssetBackedSecuritiesMember2023-09-300000902791us-gaap:USTreasurySecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:TwoThousandTwentyOneThroughJuneThirtyMember2023-01-012023-09-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000902791bbsi:PayrollTaxesAndBenefitsMember2022-01-012022-09-300000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:EmergingMarketsMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2023-06-300000902791bbsi:TwoThousandTwentyOneToTwoThousandTwentyTwoPolicyMember2023-01-012023-09-300000902791us-gaap:USTreasurySecuritiesMember2023-09-300000902791us-gaap:CommonStockMember2021-12-310000902791us-gaap:CorporateBondSecuritiesMember2022-12-310000902791bbsi:CreditAgreementMemberus-gaap:LineOfCreditMember2023-01-012023-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:StaffingServicesMember2022-01-012022-09-300000902791bbsi:CreditAgreementMemberus-gaap:StandbyLettersOfCreditMember2023-09-300000902791bbsi:CreditAgreementMembersrt:MaximumMember2023-01-012023-09-300000902791bbsi:MarketableSecuritiesCurrentMemberus-gaap:CashAndCashEquivalentsMember2023-09-300000902791srt:MinimumMember2022-10-012022-12-310000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2023-01-012023-09-3000009027912022-03-310000902791srt:MinimumMember2023-04-012023-06-300000902791us-gaap:USTreasurySecuritiesMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791bbsi:PayrollTaxesAndBenefitsMember2022-07-012022-09-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:RetainedEarningsMember2022-04-012022-06-300000902791us-gaap:CommonStockMember2022-09-300000902791us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:MutualFundMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2022-12-310000902791us-gaap:InternalRevenueServiceIRSMember2017-01-012020-12-310000902791bbsi:ProfessionalEmployerServicesMember2023-01-012023-09-30xbrli:purexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesbbsi:Company

 

 

 

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 September 30, 2023

☐

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
Incorporation or organization)

 

(IRS Employer
Identification No.)

 

 

 

8100 NE Parkway Drive, Suite 200

 

 

Vancouver, Washington

 

98662

(Address of principal executive offices)

 

(Zip Code)

(360) 828-0700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par Value $0.01 Per Share

BBSI

The NASDAQ Stock Market LLC

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. Yes ☒ No ☐

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). Yes ☒ No ☐

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

☐

Accelerated filer

☒

Non-accelerated filer

☐

 

Smaller reporting company

☐

 

 

 

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 ☐ No ☒

As of October 18, 2023, 6,616,653 shares of the registrant’s common stock ($0.01 par value) were outstanding.

 

 

 

BARRETT BUSINESS SERVICES, INC.

INDEX TO FORM 10-Q

 

Part I - Financial Information (Unaudited)

Page

Item 1.

Unaudited Interim Condensed Consolidated Financial Statements

3

 

Condensed Consolidated Balance Sheets - September 30, 2023 and December 31, 2022

3

 

Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2023 and 2022

4

 

 

Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2023 and 2022

5

 

Condensed Consolidated Statements of Stockholders’ Equity - Three and Nine Months Ended September 30, 2023

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity - Three and Nine Months Ended September 30, 2022

 

7

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2023 and 2022

8

 

Notes to Condensed Consolidated Financial Statements

9

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

 

Item 4.

Controls and Procedures

27

 

Part II - Other Information

 

 

Item 1.

Legal Proceedings

28

 

Item 1A.

Risk Factors

28

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

29

 

Item 6.

 

Exhibits

 

30

 

 

 

 

 

Signatures

30

 

 

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)

 

 

September 30,

 

 

December 31,

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,579

 

 

$

91,423

 

Investments

 

 

87,653

 

 

 

68,325

 

Trade accounts receivable, net

 

 

205,217

 

 

 

163,838

 

Prepaid expenses and other

 

 

17,136

 

 

 

19,787

 

Restricted cash and investments

 

 

75,876

 

 

 

110,989

 

Total current assets

 

 

427,461

 

 

 

454,362

 

Property, equipment and software, net

 

 

48,679

 

 

 

45,954

 

Operating lease right-of-use assets

 

 

18,428

 

 

 

19,804

 

Restricted cash and investments

 

 

131,619

 

 

 

104,277

 

Goodwill

 

 

47,820

 

 

 

47,820

 

Other assets

 

 

3,765

 

 

 

3,281

 

Deferred income taxes

 

 

12,236

 

 

 

11,440

 

Total assets

 

$

690,008

 

 

$

686,938

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,268

 

 

$

8,264

 

Accrued payroll, payroll taxes and related benefits

 

 

247,454

 

 

 

222,331

 

Income taxes payable

 

 

786

 

 

 

610

 

Current operating lease liabilities

 

 

6,753

 

 

 

6,957

 

Current premium payable

 

 

18,853

 

 

 

18,920

 

Other accrued liabilities

 

 

6,904

 

 

 

12,683

 

Workers' compensation claims liabilities

 

 

53,622

 

 

 

62,917

 

Safety incentives liability

 

 

1,469

 

 

 

2,049

 

Total current liabilities

 

 

341,109

 

 

 

334,731

 

Long-term workers' compensation claims liabilities

 

 

124,180

 

 

 

153,070

 

Long-term premium payable

 

 

23,301

 

 

 

-

 

Long-term operating lease liabilities

 

 

13,049

 

 

 

14,225

 

Customer deposits and other long-term liabilities

 

 

7,923

 

 

 

7,070

 

Total liabilities

 

 

509,562

 

 

 

509,096

 

Commitments and contingencies (Notes 4 and 6)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $.01 par value; 20,500 shares authorized, 6,617
   and 6,871 shares issued and outstanding

 

 

66

 

 

 

69

 

Additional paid-in capital

 

 

34,847

 

 

 

32,744

 

Accumulated other comprehensive loss

 

 

(29,677

)

 

 

(27,594

)

Retained earnings

 

 

175,210

 

 

 

172,623

 

Total stockholders' equity

 

 

180,446

 

 

 

177,842

 

Total liabilities and stockholders' equity

 

$

690,008

 

 

$

686,938

 

 

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)

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2023

 

 

2022

 

2023

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Professional employer services

 

$

251,423

 

 

$

244,567

 

$

727,986

 

 

$

694,174

 

Staffing services

 

 

21,905

 

 

 

29,255

 

 

64,639

 

 

 

88,202

 

Total revenues

 

 

273,328

 

 

 

273,822

 

 

792,625

 

 

 

782,376

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

Direct payroll costs

 

 

16,318

 

 

 

22,112

 

 

48,299

 

 

 

66,491

 

Payroll taxes and benefits

 

 

135,704

 

 

 

128,459

 

 

414,395

 

 

 

390,677

 

Workers' compensation

 

 

52,977

 

 

 

56,350

 

 

153,012

 

 

 

151,069

 

Total cost of revenues

 

 

204,999

 

 

 

206,921

 

 

615,706

 

 

 

608,237

 

Gross margin

 

 

68,329

 

 

 

66,901

 

 

176,919

 

 

 

174,139

 

Selling, general and administrative expenses

 

 

44,160

 

 

 

43,001

 

 

129,194

 

 

 

125,438

 

Depreciation and amortization

 

 

1,867

 

 

 

1,554

 

 

5,273

 

 

 

4,585

 

Income from operations

 

 

22,302

 

 

 

22,346

 

 

42,452

 

 

 

44,116

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Investment income, net

 

 

2,412

 

 

 

1,584

 

 

6,856

 

 

 

4,790

 

Interest expense

 

 

(80

)

 

 

(35

)

 

(118

)

 

 

(102

)

Other, net

 

 

38

 

 

 

19

 

 

93

 

 

 

70

 

Other income, net

 

 

2,370

 

 

 

1,568

 

 

6,831

 

 

 

4,758

 

Income before income taxes

 

 

24,672

 

 

 

23,914

 

 

49,283

 

 

 

48,874

 

Provision for income taxes

 

 

6,453

 

 

 

6,476

 

 

13,229

 

 

 

13,134

 

Net income

 

$

18,219

 

 

$

17,438

 

$

36,054

 

 

$

35,740

 

Basic income per common share

 

$

2.72

 

 

$

2.48

 

$

5.32

 

 

$

4.96

 

Weighted average number of basic common shares
   outstanding

 

 

6,699

 

 

 

7,036

 

 

6,772

 

 

 

7,201

 

Diluted income per common share

 

$

2.68

 

 

$

2.45

 

$

5.24

 

 

$

4.91

 

Weighted average number of diluted common
   shares outstanding

 

 

6,795

 

 

 

7,127

 

 

6,885

 

 

 

7,286

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4

 

Barrett Business Services, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(In Thousands)

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Net income

 

$

18,219

 

 

$

17,438

 

Unrealized losses on investments, net of tax of ($1,417) and ($3,401) in 2023 and 2022, respectively

 

 

(3,707

)

 

 

(8,900

)

Comprehensive income

 

$

14,512

 

 

$

8,538

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Net income

 

$

36,054

 

 

$

35,740

 

Unrealized losses on investments, net of tax of ($796) and ($12,184) in 2023 and 2022, respectively

 

 

(2,083

)

 

 

(31,882

)

Comprehensive income

 

$

33,971

 

 

$

3,858

 

 

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 and Nine Months Ended September 30, 2023

(Unaudited)

(In Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Retained

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance, December 31, 2022

 

6,871

 

 

$

69

 

 

$

32,744

 

 

$

(27,594

)

 

$

172,623

 

 

$

177,842

 

Common stock issued on exercise of options,
   purchase of ESPP shares and vesting of
   restricted stock units and performance awards

 

31

 

 

 

-

 

 

 

339

 

 

 

-

 

 

 

-

 

 

 

339

 

Common stock repurchased on vesting of
   restricted stock units and performance
   awards

 

(11

)

 

 

-

 

 

 

(1,005

)

 

 

-

 

 

 

-

 

 

 

(1,005

)

Share-based compensation expense

 

-

 

 

 

-

 

 

 

1,928

 

 

 

-

 

 

 

-

 

 

 

1,928

 

Company repurchases of common stock

 

(91

)

 

 

(1

)

 

 

(447

)

 

 

-

 

 

 

(7,582

)

 

 

(8,030

)

Cash dividends on common stock ($0.30 per share)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,067

)

 

 

(2,067

)

Unrealized gain on investments, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

3,652

 

 

 

-

 

 

 

3,652

 

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

819

 

 

 

819

 

Balance, March 31, 2023

 

6,800

 

 

$

68

 

 

$

33,559

 

 

$

(23,942

)

 

$

163,793

 

 

$

173,478

 

Common stock issued on exercise of options
   and vesting of restricted stock units

 

13

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

2

 

Common stock repurchased on vesting of
   restricted stock units

 

(3

)

 

 

-

 

 

 

(304

)

 

 

-

 

 

 

-

 

 

 

(304

)

Share-based compensation expense

 

-

 

 

 

-

 

 

 

1,963

 

 

 

-

 

 

 

-

 

 

 

1,963

 

Company repurchases of common stock

 

(123

)

 

 

(1

)

 

 

(644

)

 

 

-

 

 

 

(9,500

)

 

 

(10,145

)

Cash dividends on common stock ($0.30 per share)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,013

)

 

 

(2,013

)

Unrealized loss on investments, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,028

)

 

 

-

 

 

 

(2,028

)

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

17,016

 

 

 

17,016

 

Balance, June 30, 2023

 

6,687

 

 

$

67

 

 

$

34,576

 

 

$

(25,970

)

 

$

169,296

 

 

$

177,969

 

Common stock issued on exercise of options,
   purchase of ESPP shares and vesting of
   restricted stock units

 

64

 

 

 

1

 

 

 

360

 

 

 

-

 

 

 

-

 

 

 

361

 

Common stock repurchased on vesting of
   restricted stock units

 

(18

)

 

 

-

 

 

 

(1,590

)

 

 

-

 

 

 

-

 

 

 

(1,590

)

Share-based compensation expense

 

-

 

 

 

-

 

 

 

2,136

 

 

 

-

 

 

 

-

 

 

 

2,136

 

Company repurchases of common stock

 

(115

)

 

 

(2

)

 

 

(635

)

 

 

 

 

 

(10,280

)

 

 

(10,917

)

Cash dividends on common stock ($0.30 per share)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,025

)

 

 

(2,025

)

Unrealized loss on investments, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,707

)

 

 

-

 

 

 

(3,707

)

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,219

 

 

 

18,219

 

Balance, September 30, 2023

 

6,618

 

 

$

66

 

 

$

34,847

 

 

$

(29,677

)

 

$

175,210

 

 

$

180,446

 

 

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 and Nine Months Ended September 30, 2022

(Unaudited)

(In Thousands)

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Comprehensive

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Income

 

 

Retained

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Loss)

 

 

Earnings

 

 

Total

 

Balance, December 31, 2021

 

7,415

 

 

$

74

 

 

$

29,054

 

 

$

1,079

 

 

$

178,323

 

 

$

208,530

 

Common stock issued on exercise of options,
   purchase of ESPP shares and vesting of
   restricted stock units and performance awards

 

18

 

 

 

-

 

 

 

411

 

 

 

-

 

 

 

-

 

 

 

411

 

Common stock repurchased on vesting of
   restricted stock units and performance
   awards

 

(4

)

 

 

-

 

 

 

(185

)

 

 

-

 

 

 

-

 

 

 

(185

)

Share-based compensation expense

 

-

 

 

 

-

 

 

 

1,830

 

 

 

-

 

 

 

-

 

 

 

1,830

 

Company repurchases of common stock

 

(115

)

 

 

(1

)

 

 

(484

)

 

 

-

 

 

 

(8,090

)

 

 

(8,575

)

Cash dividends on common stock ($0.30 per share)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,229

)

 

 

(2,229

)

Unrealized loss on investments, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

(14,358

)

 

 

-

 

 

 

(14,358

)

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

288

 

 

 

288

 

Balance, March 31, 2022

 

7,314

 

 

$

73

 

 

$

30,626

 

 

$

(13,279

)

 

$

168,292

 

 

$

185,712

 

Common stock issued on exercise of options
   and vesting of restricted stock units

 

12

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock repurchased on vesting of
   restricted stock units

 

(3

)

 

 

-

 

 

 

(258

)

 

 

-