BBSI - Earnings call transcript Q3 2018 | Barrett Business Services, Inc.

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Operator

Good day, everyone and thank you for participating in today's conference call to discuss BBSI's financial results for the third quarter ending September 30, 2018.

Joining us today are BBSI's President and CEO, Mr. Michael Elich; and the company's CFO, Mr. Gary Kramer.

Following their remarks, we'll open the call for your questions.

please the of Securities meaning Act XXXX. further, harbor company's Litigation go of within statement of we take the note safe Reform Before the Private cautions statements. The regarding provides important statement forward-looking today's conference The company's remarks call include forward-looking will statements. during presented other facts, to of These number not uncertainties. and subject does information along reflect that statements, a risks with historical are Actual statements. results these by forward-looking may differ implied materially from those and the Exchange the actual company's for that with recent company's to quarterly to and filed uncertainties and refer about Please the results information release Securities Commission more and the reports annual earnings to risks differ. cause could I for everyone replay remind at that available X, December will XXXX, starting be would like through X:XX this to p.m. call ET this afternoon. link on release, well provided in A company's will the webcast replay today's as as the also available at via be www.barrettbusiness.com. website press available

I to like Gary Sir, over please Now go BBSI, the Chief turn call Mr. to Officer of Kramer. would ahead. the Financial

Gary Kramer

XXX X% X.X% lower QX $X.X by was sales X% $X.XX grew customer the in or from, than Diluted last 'XX $X.X QX Depending X.X% Thank per other compared be upon Ashley. of X% morning forecasted. California of share Net continued the company compared billings of strong Gross X% combined of quarter, you, points a everyone. revenue billion to record in the in dialing compared in all to growth billings we over to to million, Same QX a Gross third 'XX. PEO 'XX. where increased in about The In and the compared $XXX grew period. increased versus quarter geographies. the basis $X.XX, quarter. billings operations good year. gross was of good billion XX% of same you're to third was afternoon, in income to

year and rate the quarter. fastest Southern X.X% over total sales billings experienced prior a at XX% the of quarter California of our growth in gross customer the comprised same

the line the of continued is expectation was We tight continued record clients a quarter experiencing in quarter to and and hire labor Both quarter. Each with the is net XXX difficult gross to employers our in that client quarter. we've any business. this for runoff additions direct and result revenues BBSI net Staffing of base for with addition X% are gross in decreased increase to our market. a staffing our This we third the million. making it $XX XXX this effect in third our or trend of discussed are

orders fulfill and it from compromising clients, our challenging hiring demand the is have to our but We standards. orders without

prior we fee near-term the As revenue a will quarter. X.X% in staffing margin $XX.X of was gross million be our million remained to we or to continue headwind X% such, slight charge to $XX.X to or compared Gross growth. anticipate billings, The clients that year unchanged.

and a margin of billings states continued gross increase as of tax as of workers is PEO and is increasing payroll California, percentage However, expansion an to compensation have lower decrease. components This in mix ratios. outside many related where payroll business other gross

compares see restructured discussed, quarter. the results the of The this a we pass-through our a Chubb third valuation prior as of in actuarial the Also, as are to of to compensation of of in this the gross resulted does range reduce our billings of benefit Given revenue costs percentage expected reduction composition of XXXX. to shift gross starting affect previously estimated X.X% Workers' independent expense X.X%. branch we nature below liability X.X% pricing, was quarter the of profit. quarterly which our frictional our not this with arrangement X.X million. X.X% is of and our billings cost quarter, This year in in to

with line decrease in third trend trailing to continues compared a of X% frequency of month the quarter as frequency to expectations. claims quarter, of quarter XXXX. the and claims percentage we XX XXXX payroll of saw In X% to compensation compared third the relative workers' Our decrease

reducing the compensation strategy XXXX All and and branches now of in onboarding successfully claims and their how performing. was the been frequency for forms is part way with DNA has very are operationalized client manage our initiated Our we in, our retention. of workers' pleased portfolio

SEC we with versus line of growth growth for diligent in a the and year-over-year our costs taken be We and mindful has settlement, basis, strict is focus reduce about future. SG&A severity, investing quarter X% wrap frictional a in in the our million provision best-in-class X.X% reduce QX people, 'XX income the SG&A On million. QX business or rate is below the X.X% against have SG&A portfolio steps of program for while million in year-to-date taxes in quarter XX.X spend or compared 'XX plan why redundancy range. gross and third frequency, quarter. by in versus QX growth billings, our attention minimize XX.X in and third resulted which one-time balancing 'XX, X.X processes many after adjusting prior with our The procedures. is and the coming the was and grew is in of continue our slower to year rate for a in expense the to the This was change. to

Tax million the expect resulting line credit in except no as our our full corporate to Jobs Act. to XX% the had under X/XX/XX on year the of We We of from effective Washington. debt tax and Vancouver, continue headquarters rate of X.X mortgage borrowings free continue Cut for approximately passage and we a be of

workers' our trusts. funded the and program accounts compensation of we fronted trust established with called Chubb part insurance Chubb, As

quality XXXX decreased portfolio crediting and earn and made The to rates a At restrictions and asset rising balance XXX sheet, June investment yield has XX, X.XX shifted were of decision X/XX/XXXX, due the matching cash of at XX/XX/XX. in the million the restricted portfolio September curve was annual On investment negotiated the summary, and basis AA, yield duration for in We At average three the we cash on the at a in of target of basis that a high and asset of spread with over included trusts. term. is Chubb in month from flattening X.XX an trusts the We greater portfolio. at where rate points points than the in liquid for and income of our XXX the at quality asset and trust the quarter. X/XX/XX, earned of was will stay Chubb XXX one slightly a points. investment record million September XXXX. years the million the from in guidelines had trusts In returned X/XX/XX the XX, are In XXX This that and XX, we million basis highly investment had balance years strategy liability with $XXX net vehicle book to near investment. the class The we to $X.X At $XX quarter, XX was portfolio. no will the banks security eligible treasury. income duration balance our X% we million cash shorter diversification.

are seeing consistent across geographies. We all client build

gross resulted third for operations record client Our in pipeline quarter strong and both remained a net addition. and and

Our result taken. have steps and direct and actions of the workers' we various compensation portfolio a was developing is favorably

our continue which expect share The SEC to of earnings for rate reflects full effective tax one-time assume XXXX, Regarding to forecast we the year diluted settlement. outlook, continues per the XX%. an $X.XX, of

rolling XX-month the next continue billings increase approximately to to period expect gross for for X% XX% also We XXXX. fiscal year and

our the and comment outlook call the the I Now, turn remainder as CEO the Mike? further President third who would as to for of Mike quarter year. like to Elich, recently well BBSI, of over the completed on operational will

Michael Elich

thank Thank taking on you, time the to and you be Gary. call. Hello for

through again, earnings time we top I reinforced of the While softer with for remains all-team This and spent In seeing of our historical in in operational confidence the vision organization. support have business levels, than to good growth the very meetings the value process, doing we the we're and work and the our The once alignment the quarter, our the and remains organization reviews strong are maturity feel fundamentals market. clients. continued support proposition in record quarter. line of we about

in disciplines to due left they may what referral XX of channels XXX XXX We partners, new and due lack for accounts sold, provide referral to results. to XX with spending our closed XX a saw means overtime and businesses to moving or attrition to These clients, our XXX time X softer XX outsourced from their seeing challenges of working we X and approximate levels. spend of model. In understanding strengthening solid progression, added in understand we the the tier broadening the owners, how profile, be marketplace. than of represents we clients. Additionally, due receivable, remains face. particularly competition businesses offering time California, may sales, for net clients. continue risk experienced evolve to an with new Same-customer We PEO owners pricing business business quarter historical quarter, in address This away Southern build

time quarter, However, XX%. again, took And growth they were better be understand In clients, to we most experience pull seeing. existing outside cautiously speaking of of the XXX our what with California, we to once may clients in to excess continue optimistic.

X of skilled and runway growth. to to labor that limitation the heard the opportunities is continues but there be also number We expansion, shortage for

seeing referral result to also is we In BBSI. a spoke the grow, uncertainty client which not is understanding heard to and of adds the customer general is continue quarter, we general, but to of are see optimism, they a pipeline, we also talent the we business sales. strong this issues. believe are We to related believe and variety recommending why that softness expressed find we there same need our in owners macro partners a to to, in able Related

measure on contributors, continued scale client build markets a we evolve we growth, stratification, model product based new developing our a markets to have individual channels a to field structure, This increase for Related which growth, organization scale are brand organizational as indicate seeing systemic support branch's We use XX adds. of $XXX future in all new with by referral leverage. into continued strong to the a support rates we to offering. we ability million. continue Related approach run on basis. to invest channels referral ability of to evidenced development branches of in is excess support market from Today, to growth new national to to pipeline in our and a

have $XX regularly million. emerging reinvest teams support branches back We XX capacity grow. million as $XXX into to to they these running We from

strategy, scale. they developing to teams these our branches having while we of product XXXX, In million. to locations consider In the than integrity business on teams we track growth end run X with of invest XX to we additional we Finally, and are conjunction pipeline have year. we more housed end of XXX At anticipate consistency business X of add $XX the as with up of branches rates physical XX in support physical locations. maintaining by the long-term

softness we to is we in also invest Although continue we we'll long-term as and to are experiencing some our this -- in temporary infrastructure strategy, see markets, appropriate.

are us execute the allows of spent on of to to my long our a We Looking business strength of field and Having organization's the ability great to nimble. our bringing term. value in the predictability teams confidence of during the forward, deal maturity business the the from fundamentals the time stay the in and third structure the focused leadership, quarter, the that comes over remain strong.

I'll point executing We open are we are it for we is foundation questions. leave to you. focus our need where where know energy our at plan. a to that, strong, With and our Thank we

Operator

of Thank you. our will from now Moore Chris take We CJS Instructions] Securities. [Operator question first

Chris Moore

we Maybe growth. with client the start could

it it been specific California. that's was Is of a it area? accelerating So bit. kind outside of looks that roughly concentrated Looks like of had X/X any like in coming

Gary Kramer

I say …. you when Chris, So, want to just Are growth, qualify this.

Chris Moore

Net new yes. clients,

Gary Kramer

we're what versus California, growing getting unit but is of of added consistent what's count in far what California. as pretty -- we're our well. So, our growth versus bigger outside adding revenue as historically It's we have outside California as growth

So, I basis, non-California. unit and count probably would between getting a about we're say, on XX-XX California

Chris Moore

clients smaller that towards trend consistent? the And it. is still California, outside Got

Gary Kramer

cheaper right. is outside California, I it workers less, really the that because the clients other revenue that hasn't it's in state payroll historically in their market, Yeah, less, regarding of taxes are California. a changed. pass-throughs mean are that's is every of and comp, function The than

So, runs that's why lower lower we states. see those out and payroll revenue of

Chris Moore

rolling guidance because turned the here looking Got will so the think, size, the get that smaller the my And client growth, was kind little target it. a of XX-month QX guess for at I it bit of in sounds -- easier, I or you're comp when and 'XX. corner point started the I'm like

how kind to you into of growth? little that a can talk that rolling So bit factors the and

Gary Kramer

a Chris, quarter, we Yes, the an look appear of But at when the extra good in that we'll bit when there about shift because get the about started that of fourth from for last quarter have we year, started smaller we one-day -- larger it accounts 'XX. talked quarter into remainder a pop. so little when a QX question, to has accounts pop business of think revenue to day, we in late fourth a

as going far to really going a consistent. -- just on anymore, to a it's So get into the a client the and comp we're size, into client QX compare softer what staying now we're is as QX, because get shifting size isn't going looking at we're

Michael Elich

would be we're comps -- in I is from might there that to that be areas against Yes, same going up equally, we'll the watching, see headwind those going But whatever only outlier we say I too. customer think lower we'll sales. be

on seem kind So of would made that. we've a turn it that

Chris Moore

Got it.

me over Chubb to a switch for second. Let

trust does So the investment new the is the temporarily Chubb is by impacted trust Chubb that at agreement? all -- income,

Gary Kramer

will at now thing And we'll be account. only go structured, trust new we is trust assets it the have we have separate right. still a that -- will assets invested. in effective for at into XX/XX/XX. aggregate, The look it trust we account look portfolio, those The program when No. we that a the But -- call have account the

-- manage going rising second how look with the between curve out the It was in try we And there. long, It put It's was one, So late the we then really had assets. curve into to wasn't we with as sense sense didn't the and to at portfolio. it short say, because shift those make make I'll rates. one how long. didn't interest flat it's money put to quarter that increase

we from entering So more separate try shift money to the term. into was and the new say, was to I'll it even only agreement, shift, keep a made, short

money to yield interest we today, short-term, classified at get good So when then -- leave reinvest we we are who you'll next short-term. when restricted get reinvestment to the a depending you as cash, a that there balance rate. release would later a on see out that on after getting idea in moves, that build the in to in three those stabilize then rates and Q good able that it's have we talk not a the and we be And four account cash and further that's but is return the assets higher out to, cash

Chris Moore

of the With a feel with the matter of sounds clients be kind starting all said to agreement, just QX new trust turns right? of that and it then to will the rolling respect then new are over X one -- you there, so some the Chubb of -- as in year that impact it's new this clients, part contract by July in you agreements have you

Gary Kramer

Yes.

for So programs after new structure the that X/X/XX. is call incept

better get in structure, we So because in as for we call is we're 'XX, renewal. you're a the but then and will what we lower the start true little 'XX fourth when compensation pickup benefit billings runoff think guide give 'XX. the where as seeing expense pickup it then a as 'XX, for the old as get workers' we of when this the to into see when we the we getting of guide into really the the get for far percentage what give that be we have, quarter we of new and And out is then now a and into And will see and increase entering that cost quarter gross we'll beyond.

Operator

now Jeff Roth will Please ahead. go Partners. We Martin our question take from of Capital next

Jeff Martin

do horizon anything of see market? rate. can terms qualitative in back California chasing the you rates there allow the know market competitive to in on the you Is be I on throttled of that nature? any workers' you competitive in kind And update little of more and might give a that bit compensation you've terms

So there any if be update there that'd is helpful.

Gary Kramer

quarter, you had can year this Jeff, million. see prior X.X a in we as in redundancy our liabilities of

claims priced and our better So at. actuarial developing our originally is than we it

favorable. that are our look, plus favorable, the We're flexibility that is a things So the look this, when the things that to say, allows good of with at seeing Chubb agreement pricing. lot that the book side, potentially good And happening are happening we some in we happening good is there. on us things restructuring then market have

Michael Elich

Yes, Jeff, put We've in ourselves I'd state here. a energy lot a and to good spot time of too. taken

we're want So we that very not are going to that but for position to give to good add capture we'd that and easy, to any lose say business able not in too portfolio our to good be up a I price. would

Jeff Martin

And then in concentrated Was be it explicitly that that color some that came there too? California, helpful million geographically back, $X.X was California? would

Gary Kramer

for you was exposure, states, of So XX% revenue all think California way our about that than when our other our but revenue our comp, to is to into due California compared we revenue the number. get is our California, when actual workers' higher liability is

as actually So in our what's as revenues the versus total California far for we're XX-percentile non-California.

the all years. take states. look study, And then actuarial upon all at action we So all we for we years, will do it when based

not and is, you're favorable California, do it's of So off we when for what move there number, just seeing California. in states but really yes, all the

Jeff Martin

of traditional in this industry. renewal upcoming And speak to then this the the could that's part that's year period you

normal factors into any curious there's tight terms if than other of could market in if labor you renewals, Just that the any a other anticipate factors? play with was year anything come or

Michael Elich

insurance. care, for business Jeff, season. we XX little this your a October the to been we I year have business at the in at at but our able XX/XX the is bring We renewal shift have not do weeks your How Actually, around because we've actually, do there, XX/XX X, exposure XX/XX, time in book July as health the anymore pre-stratified XX/XX, not have frame look not built X. it's spikes value mean, tied still your we around your us. concentration all point, almost across we when really to beyond doesn't we

And -- any real don't -- so we is because just our diversified to don't see be are anticipate calendar. business there, should diversified the throughout there change we our throughout contracts -- move

Operator

our take Vogel Sidoti now next from will of We question Company. Josh &

JoshVogel

I guess, other could those building is then discuss the markup versus earlier it you states, and of about versus off teens? low-to-mid average around pricing, in California the questions just one still XX%

Gary Kramer

to have talking So -- there the or payroll we is I comp when have to fee when and this well? for specifically want as question we you workers parse included say we tax where our are markup, for in say, do and

JoshVogel

Both would great. be

Gary Kramer

the the all for all are right, I'll talk talk of really facets comp about Those pass-through's, components pass-through's, than two other So I'll states. and about and taxes. payroll workers' higher

about specifically, slightly California half and payroll our outside taxes workers' California So prices are the higher books. for in comp, is of

we smaller California of a of our comfortable is California. non-California. sophisticated learning of defer that state as say as craft that going that's call is just the do higher and the money, they opposed business. stage branch, charge, and then typically far the the just California charge in less be we we the in little are fee the markups developing asking size for to as charge the teams which has for -- There with So that And organization, and call the our really our an really be is will maturity fee a and how and a the margin. they employer what That typically to just why to drastically little in to is expensive an it

JoshVogel

and to the personnel? know people Can voluntarily. that within market even organization, seeing lots even is if jobs of we So you seeing within also and talk your own what you're tight your their client losing you're base labor key any leaving

Michael Elich

First of all, organizationally, we're very stable.

I eventually today, to for the is developing overall people, talent more that hours we think then where base, at months how worked I watch the as doing people, if when our was last it a they they new an hours as challenge opportunities at from certain one the months to go overall bringing to hire are due hiring a say, works in worked, to opportunity year, get customers internally, -- number, In there seen where I are then after months to try fill go and standpoint, lot found they improved. well of wages. hours actually hours in just last and more rate to better with are has job stability market actually have brand the organization. point X recruiting has to our that as expand those attrition to that, new is, think new re-mature out call when or have a as worked headcount things our is the After they they that jobs also in recruiting a I to fill we trend that to that's we taking or XX we've of us by you improved to they they client -- I X hire increase as it hire this that the the we're to first. looking met and expand then market, want people more the improvement we time reputation during and talent recruit, actually turnover in a From to the we market. X look but we're cycle and say I'd on it's think bring board, the But how

to has that an one seen a a bit trends up average I XX that that stabilized, be trend if of from close week. So weeks, back It's probably seeing average. hours probably look the that move. we over piece to little is the might hours worked around are on XX That's that hours last XX one XX we've

we seen The had a of inflation. wage for was not any other that quite while kind piece

We a And towards bit paying are least are to the in what of flat. be uptick in a that. to you've trend people still seeing a a at opportunity. then -- headcount more quarter clients capture little still slight moving detail increase little or Gary, our seems on rather

Gary Kramer

So we Southern just Southern sale, -- and we other geographies. at growing talk when the slower really look outlier And same than we sales we only on customer the about same is growth is customer see right Cal. basis a now Cal

Some of in And in customer our of is wage sales. leading the same Of customers same that the for geographies for are look far our X.X% really that about wages. we and how Mountain when sales far as X.X%, increase inflation growing, popping geographies as quarter. are at customer was as all -- our then as was States XX%

customer hiring employees, far which seeing more people an is really we're paid in a with wage I'll the what seeing past now, as was hiring in labor in But clients say, increase sales, driving an and inflation. decrease in scarcity shift because the market, really a same we're worksite now increase in as people. in what we saw the here more, So is, is getting which tipping

JoshVogel

more, know actually I there That the if I my may. client margin environments seeing staffing conversions. this, usually inflation questions you you just to seeing of challenges do see Are had next one there, that staffing in you're business, overall is like base. but the more and about I guess, profile the perm of that that wage In helping obviously, within the covered couple I are, division? temp the

Gary Kramer

we we but think is, branches. branch XX PEO Staffing are -- -- does have offering, staffing our the branch those staffing. Every every way is about not

the branches. and For probably in location leave that in -- the they're decision if see make our they're it have to that it. about demand to that area of really we market our XX% in that there it up in to marketplace manager order of in, And for we is about staffing,

In seeing open manager same the So are to the in on profitability. they with most PEO area the we to to it that, try think have we they been leave space. where focus for staffing, we can seeing make that trends the general,

supply, staffing able some no And operations there only not and to the orders. demand, just about of there are that have fill is not it's they it's workers. the We where supply that is XX% there's

So we're really a have for a the demand just supply market make their the don't try It's leave we a little it's when there. book, then and give we recruiting a for a not from workers. big branch manager we staunch But our for to bit is do But focus of are that to piece they of fee is get pie. there And best decisions and fill We of the a But attention convert. seeing temp that to on -- do to a not seeing company. piece do perm. staffing it. small to the and area conversion it it's local tight

Operator

Bill now will take We Instructions] Tieton from [Operator Dezellem question our Capital. next of

Bill Dezellem

frictional time that Chubb be the your it's the of historic workers' because should range new X.X% -- -- we to to reduce over a comp relationship, cost? Chubb new in down pardon comp be start with and To relationships your that coming reduction Let's of degree in thinking the to the costs. frictional X.X% me X.X% should not Chubb -- change workers' what

Gary Kramer

full going mean, going to I since the just of we and to comp to is we're until that the this that, will the billing down. a and we do pennies. it give then And guide give going to it's still we're Bill, answer. to answer because down. workers' get and in only P&L, to asked for still rolling the full twice we been going dollars. gross come the when question We're come one the out did I'm we're guide -- there quarter a how week year, for the I do is wait February of in, it's percentage as early have range going expect for this I for didn't our for We into laughing, give program get new

yet just be haven't yet. haven't -- we So guide range range what will given that -- we for that how will

Bill Dezellem

a it costs? those reduction directionally to lead But will in

Gary Kramer

Directionally, Yes. if out range. it's in to going it's highest 'XX, this you QX to -- And going still because given shape down. haven't be that about program. just going to -- we're is the We quarter, will rolling come we how old the think be then

higher So which be higher QX be will than QX. will than QX,

be to So the is migrating going throughout range down 'XX.

Bill Dezellem

path. And let this me on continue kind of

of $X.X Given benefit total picture, does the P&L this million into enter that back this or into the in please? redundancy had the you how that thinking quarter, brought

Gary Kramer

We that X.X lot the it react are When we focus not of bringing was number number think down. really and and we of to slowly. the we laser that whole down, attention we look bring at still organization react effort a will will million quickly,

were is a optimistic Our would the shareholders put more conservative company this position in an never say, bias I of in past. than on be, the to we to where is a basis. going if And number

Bill Dezellem

are more have conservative in X.X your may than years, statement indicate doing million itself pulled redundancy past us in, the that you does maybe there more would to but you So that? cautious even of that even be

Gary Kramer

the say to the you predictable way. With be. claim ages, more is With actuarial, claims it need going time. I'll another a longer the outcome

give to have order and make just of changes changes confidence. So these this as And little you ton try better credibility. to order we a possible. efficient, to made the predictable in wait, a time take And them as the better longer in your

Bill Dezellem

when is a you And credibility? that definition of XXXX get time

Gary Kramer

the world, is. the line. the thing outcome where the predictable fine ages, actuarial it of longer confident in in world, ages, And more Think claims and a the The your the it it is. it as better same longer

Michael Elich

truly mean but the data. say, add would trust I establish Yes, show I normal to that that change had -- had too, a we we the us believed is, the to created new it's and before up four Bill, years everything modeling way, to taken now in it's was, we disruption was going enough we working it could back and ago, to since starting

for of directionally the and in to that comp, to where our that last years [indiscernible]. able things tailwind I give over become way we the let When us our with us that out, think the age be data new is a better. clients a performing everything that's we mature done confidence were let workers' going approach so the that we we go are clients, branches before that And bit and -- a thought to trend we're and still of have we've several would way

workers' for is that's be to And an I people the and California is frequency when better. about comp Our And better. And a When workers' this, operationalized I we the working industry way we then tailwinds of humming that think the favorable our we that here are -- seeing that, we've last of byproduct reform controllable. that is are in the I and to better. it's when as we received then is then going piece about think handle claims, economy some of that comp it is actually well. do like that. much much is the When think have all is

our So as and macro on we've got side, we've some side on a lot done the tailwinds well.

BillDezellem

go-forward you to a holding inflation hours but that and up, about see reliable, make really the the predictable done so I was wage picking commentary steady. worked as and what Thank basis? this the implications as the you've work it to not past. more am you phenomenon curious, in about all for your Talk scary as on both before relative

Michael Elich

Well, yes.

has but worked hours would of have much mean, the where little -- on really bit added, that to inflation we there, say have hours as we I X new headcount uptick new So actually so down in an been the but we X. uptick months, as -- running a up would wage that probably drive saw hours ultimately last offset will which some last I capture and more the headcount worked by basically seen new headcount. not and then be ticked

our demand pent-up wage some more is So really not added build simply our by seeing but in it's than headcount retention that's there's because you're seen we've any to clients. towards inflation, client related probably where -- still at uptick level, where it

Gary Kramer

nation I'll reports trends X.X%, and that the we're the at as say much a with, say, that now. is little just for wage the pretty would what seeing inflation macro as I trading consistent Yes, macro far above we're

and at the X.X%, in wage worked. had differences X.X% is for sales. as seeing And a our points to the we've which same that's inflation X.X% the addition hours worksite it it XXX basis about then the customer so going call of that we're then total So employees, our is there delta be about an the

for So wage is to the the economy the in short in going that we just to from this in are unemployment we're term we're think sub we at X.X%, environment that the be growth inflationary future from now. cycle have the a and where inflation, going

Michael Elich

have creates that opportunity I that chase lot discipline the I the bubble. in in -- that and small is really of see positive and is business usually we this chasing community a not there's know The all the what they're

clients so risk just risk, businesses take we and face. at of that on calculated cycles portfolio, will us it capture positive see which being in do And be to economic to long-term, better here to as going kind to that that our opportunity run tomorrow for roll do they chase back me is the least serves the be that aren't be going as able they our as may they of businesses to better headwinds any in through, well is

Bill Dezellem

step question, back prefer queue. I I And unrelated would in or may helpful you That's ask one

Michael Elich

No, you're good.

Bill Dezellem

over the if to country, there. jump could Where the East your region please? at accelerated relative of with an rate Let's that are hitting of operations and we to Coast growth you

Michael Elich

as times of felt had when in couple Coast, growth of year, see last have have might in on that, the there recognize I East being month, bit with weeks spent but our bit a we quite we -- to this little I the that pretty teams. just last the headwind I last the a growth, we would year say Coast strong East

very Our teams strong. are

one retooling branch. branch We another out we're there now, right more are adding

of I to and think 'XX pipeline all just -- our going of I is so referral And see know is I build, look opportunity pretty I channel time rate strengthening and the lot there. and a strong bench our for them

Gary Kramer

in good about branch in think of a putting which the saw Allentown later. kind little sooner Philadelphia, made growth We than us

up [indiscernible] of go pulled up we're out So getting and to Philly, Allentown. getting we're pulled

now opening the person branch. in won't sake got an make product for to end Allentown. and we And to our a the think going - office good open we our have their actively we an a we make So, sure got mentality about that's going that we we're office, when to of -- people of at branch, day, the lot run builder that right to recruiting sure growth, and of we go the the it's so build got person to not are have

Michael Elich

And I would just out. finish that

Our And we leadership there have of and very a very teams strong back watch. there. are now It's to in bench our mature they're owning fun kind right it.

Operator

question-and-answer to This to I turn over back concludes Elich call session. would now our for remarks. like the Mr. closing

Michael Elich

Again, we're right our continue thank at, We're that visit really execute Feel Thank going. With the to on on to we'll next you. so in to where call. quarter, you you to the to are you things direction on February. talk taking be to going the time things and for plan. leave good work about

Operator

you participation. call. today's your This Thank for concludes

You may now disconnect.

Barrett Business Services (BBSI) 10 Nov 182018 Q3 Earnings call transcript