Barrett Business Services, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance. The company, headquartered in Vancouver, Washington, offers business management solutions, including professional employer services, staffing and recruiting services, and on-site management services, primarily catering to small and mid-sized companies in the United States.
In the 10-K report, under Item 7 * Management's Discussion and Analysis, Barrett Business Services, Inc. highlighted the significant fluctuations in its quarterly operating results, with losses or minimal income typically experienced in the first quarter of each year. The company attributed these fluctuations to factors such as seasonality, wage limits on statutory payroll taxes, claims experience for workers’ compensation, demand for its services, and competition. Notably, the company's revenue levels tend to be higher in the third quarter due to increased business activity in certain industries, while they may be reduced in the fourth quarter due to holiday-shortened schedules.
Regarding liquidity and capital resources, the company reported a decrease in its cash balance by $32.5 million for the twelve months ended December 31, 2023, primarily due to the purchase of investments and restricted investments, decreased workers' compensation claim liabilities, and repurchases of common stock. Net cash provided by operating activities in 2023 amounted to $67.2 million, compared to $27.8 million in 2022, primarily due to increased premium payable, net income, and increased accrued payroll, payroll taxes, and related benefits.
Barrett Business Services, Inc. also disclosed its net cash used in investing activities, totaling $55.2 million in 2023, compared to net cash provided of $61.2 million in 2022. This was primarily attributed to the purchase of investments and restricted investments, as well as the purchase of property, equipment, and software. Additionally, the company reported net cash used in financing activities of $44.6 million in 2023, primarily consisting of repurchases of common stock and dividend payments.
Furthermore, the company detailed its contractual obligations as of December 31, 2023, amounting to $24.3 million, with payments due in various periods over the coming years. This includes operating leases and additional operating leases that have not yet commenced, as well as remaining balances on short-term operating leases.
Following these announcements, the company's shares moved -2.0%, and are now trading at a price of $119.6. For more information, read the company's full 10-K submission here.
