BBSI expands business management solutions to Idaho

VANCOUVER, Wash. - Barrett Business Services, Inc. (NASDAQ: NASDAQ:BBSI), a provider of business management solutions and professional employer organization services in the U.S., has announced the opening of a new branch in Pocatello, Idaho. This move is part of the company's ongoing effort to extend its reach and provide localized support to business owners.

Gerald Blotz, BBSI's Chief Operating Officer, expressed enthusiasm about the company's ability to bring its suite of services, including staffing, recruiting, HR, payroll, and safety solutions, closer to clients in the Pocatello and Chubbuck area. According to Blotz, the expansion reflects BBSI's commitment to unlocking the full potential of businesses across the nation.

The Pocatello branch, located at 1832 Wayfarer Street, Suite B, is the fourth BBSI location in Idaho. Jeremy Hix, an Idaho native with leadership experience in BBSI's Idaho Falls and Twin Falls branches, will manage the new Pocatello branch. Hix's familiarity with the region and expertise in assisting business owners is expected to be an asset to the company's growth in the area.

With the addition of the Pocatello branch, BBSI now operates 70 physical branches throughout the United States. The company emphasizes the importance of personalized, locally supported solutions to meet the diverse needs of its clients.

BBSI offers an integrated platform of services, including payroll processing, employee benefits, workers' compensation coverage, risk management, and HR administration. The company serves over 7,500 clients across various industries and is licensed to operate in all 50 states.

In other recent news, Barrett Business Services, Inc. (BBSI) announced a four-for-one stock split, a move aimed at enhancing trading efficiency and expanding investor accessibility. The company declared that shareholders on record as of June 14, 2024, will receive three additional shares for each share held, with distribution set for June 21, 2024. Post-split trading on NASDAQ is expected to commence on June 24, 2024, and the number of outstanding shares will increase from approximately 6.5 million to roughly 26 million.

In addition to this significant development, BBSI reported robust Q1 results, with a 7% increase in gross billings and a notable addition of worksite employees. Despite a 12% decline in the staffing business, the firm maintains a positive outlook for future stabilization. The company's partnership with Kaiser Permanente and the introduction of new Market Development Managers have expanded their market presence.

BBSI's forecast for the year includes continued growth in gross billings, worksite employees, and gross margin, while maintaining an effective annual tax rate. BBSI Benefits, the company's health insurance offering, now serves approximately 280 clients and over 7,000 participants. Moreover, BBSI is also planning for gross billings to grow by 6% to 8% for the remainder of the year. These are the recent developments in the company's ongoing efforts to enhance its business operations.

InvestingPro Insights

In light of Barrett Business Services, Inc.'s (NASDAQ: BBSI) expansion with a new branch in Pocatello, Idaho, a closer look at the company's financial data reveals some compelling insights. BBSI's market capitalization stands strong at approximately $908.29 million, reflecting investor confidence in the company's business model and growth strategies. Additionally, the company's Price-to-Earnings (P/E) ratio is currently at 18.57, indicating the market's valuation of its profitability relative to its share price.

Investors should note that BBSI has a robust financial foundation, as evidenced by its ability to maintain dividend payments for an impressive 19 consecutive years. This consistency in rewarding shareholders is a testament to the company's financial health and commitment to returning value. Furthermore, BBSI's revenue growth over the last twelve months, as of Q2 2024, was 2.85%, demonstrating a steady increase in its business activities and services provided to clients.

For those looking to delve deeper into BBSI's financials and future outlook, it's worth noting that there are additional InvestingPro Tips available. For instance, analysts have recently revised their earnings expectations downwards for the upcoming period, which could be a factor for potential investors to consider. Despite this, BBSI is predicted to remain profitable this year, and it holds more cash than debt on its balance sheet, which is a strong indicator of financial stability.

For readers interested in exploring further insights and tips, including information on stock volatility and the company's high return over the last year, InvestingPro offers a wealth of additional analysis. There are currently 9 more InvestingPro Tips available that can provide a more comprehensive understanding of BBSI's financial position and future prospects. Visit https://www.investing.com/pro/BBSI for an in-depth analysis and to access these valuable tips.

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