Barrett Business Services Inc. (NASDAQ: BBSI), a provider of staffing and PEO services, reported revenue fell 4.9% year over year in the fourth quarter.
The Vancouver, Washington-based firm reported PEO fee revenue fell 3.7% while staffing revenue fell 12.7%.
President and CEO Gary Kramer said the company performed better than expected despite a challenging year. “While business volume and earnings were impacted by the pandemic, I am extremely proud of the work that our teams performed throughout the year.”
| (US$ thousands) | Q4 2020 | Q4 2019 | % change |
| PEO service fee revenue | $204,268 | $212,033 | -3.7% |
| Staffing services revenue | $28,908 | $33,119 | -12.7% |
| Total revenue | $233,176 | $245,152 | -4.9% |
| Gross margin | $50,979 | $54,023 | -5.6% |
| Gross margin percentage | 21.9% | 22.0% | |
| Net income | $7,151 | $11,714 | -39.0% |
The average number of PEO worksite employees at Barrett Business Services fell 6% in the fourth quarter.
Full-year results
| (US$ thousands) | 2020 | 2019 | % change |
| PEO service fees revenue | $777,430 | $819,873 | -5.2% |
| Staffing services revenue | $103,394 | $122,438 | -15.6% |
| Total revenue | $880,824 | $942,311 | -6.5% |
| Gross margin | $182,907 | $208,253 | -12.2% |
| Gross margin percentage | 20.8% | 22.1% | |
| Net income | $33,765 | $48,292 | -30.1% |
Share price and market cap
Shares in Barrett Business Services were down 4.81% to $70.92 as of 1:17 p.m. Eastern time; they had a new 52-week high today when they reached at $77.74, according to FT.com. The company had a market cap of $569.7 million.