BBSI - Earnings call transcript Q3 2020 | Barrett Business Services, Inc.

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Operator

Good day, everyone. Thank you for participating in today's conference call to discuss BBSI's Financial Results for the Third Quarter Ended September 30, 2020.

Joining us today are BBSI's President and CEO, Mr. Gary Kramer; and the Company's CFO, Mr. Anthony Harris.

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

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

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

Gary Kramer

best BBSI would are clients, to this traverse all to to this difference a with country around to response client together. clients we market I business want of I the to for entrusting retention, experiencing revenue. are our rapidly also to crisis. listening Bringing as like teams is BBSI thank landscape Difficulty] of [Technical on performing better-than-expected client the thank again lower-than-expected we clients the are changing for and rate better their BBSI. and call, family, many of economic the maker everyone whom failure exceptional our our

entrepreneurial Your is refreshing. and resilient spirit adaptable,

growth strength, balance excellent position unrestricted more go capital X% of an Company's versus 'XX. mind as detail term. sheet operating capital I our financial to position are is will Anthony business strength. and continue to position that long QX a on the to grew investments future regarding the capital we from strong of the would of in into Regarding but financial like to state and of Having cash for affords use prepared his us a our focus our in invest remarks, in peace

the our third in operations, metric in virtually quarter. quarter expectations exceeded the we financial every Regarding

forecast. over decreased a finished recap, 'XX. second and that revenue then pleased X% the we and where Our May better behave in down May navigated X.X% to down our were over is quarter, XX% we prior up June. we sequentially slightly To that QX June, QX year, similar than in We gross forecasted are billings would and XX% challenging and and April

cruises, not retail, airlines and salons. gyms have do most restaurants, such other have we clients discussed, the industries such as as previously industries and As and in distressed in concentration low we

for rather concentration avoid approach of the Our than market with actual our has forecasting extremely us line helped was risk. our we clients, verticals, industry in industry by focusing with are that on relatively results Overall, fortunate working quarter. all

XXX we client new Regarding our count, PEO clients. added

to market bunkers go COVID previously into in and business have to leads, their owners operating month, we seeing are referral a and who is that mentioned solve more we world. COVID. the reaction and Each partners more adapting We and

transacting. to simply there as put, but consistent is much metrics, continues just ratio not be conversion pre-COVID business sales Our with

of QX sequentially were leads our behind in the Client number 'XX. one but than still world QX priority. Our acquisition XX% COVID is better QX,

waiting We us. and sitting to for come not to by business the are

speak going was that This the a QX 'XX ratio about than of various better our that We retention initiatives shows like will which than needed the have and of QX a attrition more to I ever. experienced of shortly clients, crisis COVID, getting of product and was XXX We 'XX. during business.

pricing client to Regarding businesses companies moved closed that due competition profile, outsourced attrition, away from COVID, receivable, due sold, accounts the three and clients. businesses quarter model. new net risk businesses This XX of XXX due XX we due the in a XX lost eight to closed. to left five to represents build or

was rebounded versus quarter, staffing XX% the working we the in by but earn unemployment orders, quarter down geography, the Results the wages. vary QX. money in on down compared the in of the XX% for have aggregate Our not stimulus slightly and as majority supply could more individuals business to being but

seeing are as expired. up We this in business has pick some the stimulus October

end the XX had total September, branches. of Regarding our footprint, we at branch

to operating while branch decision mindful revenue Dow's manner. cost-efficient more clients, to intention a the We so our This of made in into branch. of doing and be servicing the Oregon with continuing grow efficiencies Portland, the continue Oregon consolidated was but

and regions Mountain have new Glendale, Arizona. Albuquerque, two we Our made branches: exceeding investments New been additional and expectations, our opening Mexico

market-focused new approach be our approach markets area but vary slightly. As same, these sales will pipeline of product quarter, the The discussed last we how their development. on managers and the quality will will

and helped in lease to these commit business. will down. to estate, will support will of reach costs alternative or options they Support teams commercial be we to a keep will critical corporate the We until not local adjacent markets real branches invest utilize by but mass, then a

as and developing unit of is our branches up with in million, emerging rates branches with of million. XX million, total $XXX million to we rates XX Our XX XX teams run branches excess totaled branch $XX consider run between follows: business million, mature running $XX stratification the $XXX branches $XXX

restructuring throughout prior the cost year. compared is that result This employees any other Regarding quarter am the of pleased to and was place operational I we no that cost down our the significantly took deferrals on year. have to furlough. updates, say SG&A the longer in cutting,

our folks increased, to grow return our revenue As business. and support our

the Next, I'm going other as all individualization far simplicity positive the for ease, clients June, XX% our clients. overwhelmingly our mybbsi system. weekend, system. they of clients. we strategies. feedback And In last update we of existing has on the new been of on appreciate new provide to and thus are successful initiatives launch of the All Client announced June an have converted new as since and

fully on are be transitioned We before to end the year. pace of the

we offer to pleased also that now our able to are are announce We services PEO nationwide.

offering. this a and is expand to to existing that opportunities on operations were sell successfully and of and with able optimistic still are It result brought as starting we this XX value. place we days, We larger but licenses systems, the utilize have will that more We relationships XX early clients are and in offering. see new this clients

Regarding business sitting larger we clients. with are our to leads us. quarter, In opportunities, over we asking the and adaptable and for were for the need of new up and can We our offering, come not the XX% larger larger back to waiting technology nationwide percentage QX to package know that be 'XX. we are of

quarter from lever, referral client the our and in referrals. almost our client pulling actively been have were XX% ads of We

has that I announce will and importantly, on new am attract launch initiatives, The our addition, mentioned website best been we to the better month dedicated that various working company story, better we have that and sales previously formed and that pleased the designed to a In more It later we proposition. will value additional this being strategies but team a of will marketing tell team. with reflect is to BBSI business. intent

plan quarters. to have long-term the we We When have we go in our hinges market, are marketing a and offering upcoming that will website of and we on discuss the to best more BBSI. sales refresh,

their we consisting deliver with various services, have have consulting, strategic insurance, products staffing recruiting. technology, product, has join transact to continue positions after go risk increases clients business today, larger, will retirement We a strategically client, information we to new be point tech-savvy BBSI technology never more suite and more been to packaging platform our been People and our nationally, but products the pain and with certain and than owner flawlessly. to they today, and us market. knowledge and stay have whole because the it of ability When may services is human resources, because potential our they of our meet which a available they relevant management, expertise total

over to I'm Now his to prepared remarks. turn Anthony going the for call

Anthony Harris

Thanks, Gary, everyone. hello, and

a billion. development strong, were reduction compared with reductions the impacts X% volume, in lower partially revenues the Net income due in $X.X declined income, million. down results despite of of to on operating billings gross $XXX.X period. $XX Our $XX.X declined million incurred Gross years Net staffing the quarter investment COVID-XX the billing QX $XX.X prior and 'XX, favorable in was decrease million and economic for QX claims continued in offset PEO lower to to by expenses were quarterly from 'XX. to pandemic. revenues X% in billings XX% declined the X% million $X.XX billion, to

management's was to This the billings of as attributable down X.X% expected mentioned, quarter Pacific primarily Gary better the PEO worked X%, decline period offset with $X a east California year determined California Coast the were than X%. rates period year region As in 'XX economic prior year. Workers' were range reductions gross Same-customer attributable QX X.X% sales both these estimated This for partially third results declined decrease prior hours prior liabilities X.X% expectations expectations to decrease growth in is generally to payable for Average Southern by X.X%. was follows: this quarter. of grew our in States line which a average as were quarter, of versus gross Northwest of is and with the were expense compensation by Mountain were flat, below increase in by Northern billings XX%, grew million the and due headcount to actuarially consistent the in downturn. and ongoing the percent over 'XX. the QX from was an quarter.

frequency trailing Our quarter favorably. relative XX-month we payroll 'XX. frequency a of of overall compared workers' the third to saw to percentage trend continues In quarter, decreased of the as compensation claims claims XX%

defined previously is reported to legislation of is will outbreak therefore, most the regulations apply in tests whichever The and COVID-XX having presumption a XX-day continue we've in employees as that has to executive legislation that September increase new the order the monitor our have to compensation updates claims was in COVID-XX believe overall exposure that more response compensation claims than COVID-XX the California of occur significant and update employers through coverage that on minimal that COVID-XX An changes pandemic reported governor's may new the is or to costs. COVID-XX cases continue report that state impact program. only in must state the issued minimal materially four this will a the to coverage. We in QX. includes not in and had of expired. and And window. we to X% is California codified since COVID-XX legislation, terms way generally claims either restrictive positive with the This favorable to monitoring workforce, favorable more the COVID-XX quarter outbreak. workers' that within workers' passage We the from our The have of May, greater, and more

compensation carefully, rates However, situation COVID-XX the we contemplated for and reserves. have accrual our when continue uncertainty we monitor workers' selecting our to

have particularly last previously in price increasingly workers' discussed California, have for the We market has instituted years. most that competitive, decreases the carriers where two become insurance compensation over broader

traditional adjust primarily our insurance, price types While compete and marketing comprehensive attract new we and customers. we remain to strategies our on than is to offering continue and not do of pricing more competitive

decline exchange reduction liabilities adjustments better decrease to million scale competitors. allows to to be relative fees. is This our quarter allows less was position of incentive the back million a service attractive particularly see customers in corresponding XX%. safety costs pricing in BBSI safety to a in in of our in we was you SG&A with incentive the current One expected the gross and but year environment, This money quarter, made billing rates. prior our change to change pay compared the margin-neutral, lower program it will to $XX.X as and is for representing $XX.X upfront

to will volume previous earnings levels And in implemented spending, measures savings we response continue in increase described business continue to our we in were to calls, our grows. COVID-XX. As cautious cost modestly while be as SG&A

payments other in profit We a larger four. also employee of and variable quarters incentive and incur compensation, share three our including share

million income the year the the decrease $X.X to compared directly earned attributable with period. third environment million in and Our interest lower the the prior quarter is $X investment investment consistent in The rate to portfolios our for compared to in is year. expectations prior

average to book Our of X.X% yield primarily and manage X.X our average from our continue to investments investment conservatively at quality at average AA. duration has X.X% holdings, with variable year-end. to decreased an Due of rate

Turning to at XX. at balance XX sheet. of million June We million September the unrestricted $XXX $XXX to investments cash had compared

be the exception quarter We million Fargo credit financial source our the flexibility, that continue a Wells of our with to current debt-free as at economic corporate line additional given in we headquarters. on with end $X announced mortgage increased We of our QX uncertainty. of

due the on and And option a of to we to $XX the Our if credit at back to September million Fargo revert corresponding cash agreement with line investments and credit lower lower reductions. our our fee amount operations, line the wished. unrestricted general resilience which have available hand to XX, also we Wells to included elected provided

As increase, our balances Board cash management Directors allocation. investment our have approach capital diligent to remained of in the and

now We on capital COVID-XX sufficient validation weather will cash reserves, was we and reserve previously for that strategy. But of these to philosophy. unrestricted circumstances, level capital our pandemic investment the the has have This the above a a necessary working four we we execute of allocation and establishing philosophy discussed importance priorities. balances continue to and unforeseen believe have

take PEO in is available market well market. the addressable widely positioned and to advantage investments industry significant opportunities The underpenetrated, to First, us. is our to serve the BBSI our company of

enhancement We about and investment. an portal by products the in part growth are of our of of is our strategies. excited continuing type continued mybbsi example of important launch journey enhancing our evolving and The that

growth geographies previously has new openings. can through opportunities, inorganic we are that mentioned than more believe pursuing we Gary effectively we can launch strategic M&A branch we Second, where now greenfield into through

our are to continue aligned move potential as we consider It evaluate that we BBSI but actively product vision the who and people, standards family. bring before all targets we might forward. We maintaining are important high would into is

price the Third, our average we shares at stock approximately an the buyback of and XX,XXX during per window. repurchased reinstated Board trading $XX.XX program, share

continue we method reaffirmed at quarterly will an shareholders. share. Board We remain committed be preferred of to our returning buyer our stock which as to dividend, to per Fourth, of opportunistic just the a capital $X.XX

regularly We and evaluate to opportunities update and are responsive continue our to capital that ensure plans will to our we new environment arise. as they

for outlook to the year. Turning

year continue to rate X.X% gross favorable now previously, results $X.XX we full and approximately an the per prior up X.X% XX%. $X.X, gross expense earnings With of range our versus as expect we between percentage We X% billings compensation now share workers' effective and be expect a of outlook. QX, to and from expect tax diluted X.X% in to of

year. the remarks. I call back estimates these the of Gary in past closing orders remainder do widespread now our not will for forecast, economic to with significant shelter-in-place As deterioration the or include turn

Gary Kramer

product In owner. more is been the business conclusion, strong and has our Thanks, relevant never Anthony. to

have expectations, We accordingly. raised of we to the unusual and events year decisively XXXX. earnings and our responded guide have QX our full swiftly exceeded

are things, and extremely on of working We right optimistic the the I'm future.

continue of of business advocate to We success first the owner. the think to for client and always the

questions. operator, for I'll Now, turn and over it

Operator

Moore the conducting question-and-answer session. question. will proceed Our Thank from be you. CJS first your now Please gentlemen, and with with we Instructions] question comes Ladies Chris Securities. [Operator

Chris Moore

make at Yes. just guidance the I that I'm to want sure correctly. looking

year-over-year. 'XX the is for down fiscal gross So guide X% billings

that would that to is down right? imply that billings Is gross closer So QX X%.

Anthony Harris

proportionately, Yes, approximately. Yes, right. that's

to closer X%. it have We

Chris Moore

Got you.

Anthony Harris

to QX, pay call business a, in And we that upon year. that owners bonuses. a this -- made thought adjustment bonuses right? is lot non-model for thing economy QX, we our we one going It's themselves less of just Chris, the based the it, -- And way be were

'XX. So for 'XX that's about down factored a bonuses little a much why number in we the decrease versus is because million $XX in

Chris Moore

Got it. That's helpful.

Anthony Harris

But give I on that or a there. can bit gut that's you of qualitative quantitative that a nothing one. feel There's little

Chris Moore

there. a in great are mean, Got of structure, guys you job I terms it. doing And cost the

in an that moving are Just if or a roughly structure terms as turn SG&A the cost forward? what 'XX for Or -- the example, get standpoint, SG&A improved trying to fiscal around, was lower would costs from there of to things Or to of little just 'XX, any likely picture be equivalent big 'XX? roughly revenue bit equivalent a kind there? sense thoughts

Anthony Harris

great it's No, a question.

said those cost significant QX, have until and in increased those in know, we QX. that and as were sustainable reductions, not some so So we as business pretty have the you grew

where look about mindful, lessons, cost we we've to we've can, We of at where and been lot efficiencies learned said, bring and important have how been strategic money, operating very Gary frankly. we as very back and spend a we

the SG&A up and to so continue But consistent is, very that to else continue we're So expect are we business QX back. as equal with from would question SG&A because where operations, your with volume, QX. in QX adding less were 'XX, scale will mindful to answer of for QX, saw all be you if to 'XX being trend would you to

Operator

you. Thank

Our question. with next Please Martin Capital proceed Jeff with Roth your from question Partners. comes

Jeff Martin

Understood you business different level, Sorry, to share is is that at the relative is seems guidance conservative I else a catch-up relative for number, like the anything there's some operationally very was quite the there is said $X.XX the QX. catch what implied in It to the but didn't branch running in exactly implied which what profit guide. QX? that

Anthony Harris

it's right? time out election everybody even there, yet. the won who for forecast so Jeff, to tough We know don't Yes. a

any -- we QX a So high the degree trying year-over-year confidence, of it, to you're in headwinds high we right? two when thought for sure 'XX. that that number number. of compare put there, we there's, number we QX, degree to there's of make out attainable, got have I'll and want So call And do for out a we we was confidence put your two a

is, it, The earnings. forecasting $X.XX reps we're on is, call to first be a differential headwind which down,

are the you The investment is, just way if yields working second the portfolio look at for the on income.

is investment versus share per $X.XX to going 'XX 'XX. $X.XX be Our down for to income

there. So headwinds two big

Gary Kramer

that, with is profitable some which so and basis bit And typically most on our QX. quite gets in caps there's QX cash profitable less reset that back one of reasons is couple that, of always the into. that QX is I'll a tax Jeff, for a of And couple a quarter. the accrued payroll fact

'XX you of the that QX If or not 'XX it's QX not to QX, 'XX that from look ratio off what we're at to it's far far off from 'XX, and actually forecasting. to -- QX

Jeff Martin

Right, right.

were any and Okay. particular of payroll And cost of specifically driving costs? then direct some in and there revenue, movement anything payroll taxes benefits in non-business-related the

Gary Kramer

those, Nothing, I noteworthy for quarter. that guess, a it'll it's abnormal or -- be reporting. pure I'd for significant say we're

Jeff Martin

Okay. to driving terms And are to of if as is quarter there now And that? up? so, you behind was progression those -- and what's the us, notice move then business in October as note starting any pick new of through leads, you

Gary Kramer

the in And I staying been we Yes. right? about owner, knew business now, They went front weren't right, business of about owner back more worried the mean, about the So this shop quarters were referral is think of about on the a about partner -- the you that doing the in business. their anything of for shop, end. bunker, back we've worried and worried right? of their they're if the this they talking that couple instead

their support of it you our products. if think helps So scale and product,

thinking weren't they the on for at us time. So necessarily

up to far we XX% QX, 'XX. compared of behind were leads QX we our XX% our for about QX. -- But leads to XX% we as So were still as

the by get and to comes ratios, a So conversion there, we're not and we and the waiting it. as we're our -- bushes beating idly It's are volume for it's just out business really owner, business sitting and go pre-COVID. it. We're the as high meet issue, when with in trying

a sell how to world. virtual know in COVID it's know sell a a we It's to a We not volume sales in issue, issue. how world. So

is We're average get -- good. better getting as many plate But getting month appearances. seeing as not So that it's just our batting by. we're goes been every

Jeff Martin

there by trends -- Northern underperformance market? identify Northwest, region, performing then certainly Or And California concentration is any any that's okay, going PEO driving Southern industry? question. well, California of Okay. by Is you very and doing is but Mountain the it last Pacific specific other on it can North there growth to kind there?

Gary Kramer

mean, down look I in it the industry. we no everything Yes. we're way by there's Southern between common everything I'll There's is at no And commonality, why it by geography. say, seeing at -- look Cal. We

are And we We in other more are employees sales and it's than down seeing geography be slower the in Northern just a than sales same-customer the really that issue, Cal Southern same-customer Cal. have. Southern it's in worksite any Cal

Operator

Thank you.

next comes with Vincent Barrington Colicchio Please from Our with your Research. proceed question question.

Vincent Colicchio

cited success referrals. had out? clients for Yes. using Gary, changes there you increased Have that drawing any are that implemented you

Gary Kramer

mean, our want hitting right? our other make in sales want than they everybody to target, so and they So teams I sure to a a sales goal they're No. for get has it. compensated and company grow growth,

benefit client do So it's as step a you're saying, else did really anybody working great the have from back, things, that would you our and these all with services? just we hey, and taking

Vincent Colicchio

-- impact overall will your package pricing comp workers' you talked as go-to-market? about that Anthony talked And changes then pricing. about to you some your How

Gary Kramer

think right, rate XX%. So or right, incentive, per you're $X.XX, if safety say, you of is payroll

get that to on For XX% back going safety say incentive, we're XX%.

one it client to We XX charge call So have would points. point. the

doing incentive. what to they now XX only we're safety reducing charge it So no is get points and we're

have of rates get there up then the us would -- reduced zero up before It's they number us us during the it's works, gross one. in competitive, then for a would And It's the competitive. now it the two, pay -- we to pass-through. they us reduction idea the out. owner, it the they safety the competitive they netting pay be But way number idea time there to cost in for -- the at allows rate, is, business been more us. it we're to and So and is end. just And incentive marketplace the it reduce back through, the pass just

it pay their their it less helps circumstances, flow during these in. times flow and cash cash of helps So especially extenuating to

Vincent Colicchio

business staffing good a The had quarter.

talent. to expect You down? Having drop that, Or the staffing said for we secure back are should thoughts mentioned it's hard your period? there to sequential

Gary Kramer

think to to tied stimulus be is. it's I going what very package the

it's So by for going less be if government, I most be you're stimulus. is affected out, going I to is stimulus. figured and be be pressure on to if that better the think be going going bipartisan think a that's one there's And to staffing, I to going the think the but stimulus, to specifically

Vincent Colicchio

for last Well, me. Okay. one one

good quarters? can You consolidation. think you see do any had more is you just there may that curious, a of Were branch that coming in we amount

Gary Kramer

you a Nashville, can the when and in, run service with go importantly, done that right? Pittsburgh, and market. quarter we're them right as quickly And we at recruiting not there idea to now, well. go to to removing there in right? able converting kind and we're talent of learned and the get math there saw quickly, very operations, is their good looking Atlanta, doing in it's some we're that possible and business. train More get growth, in we those, the them the the just organic actively bring the we are the They've branches craft want Mountain of opened So but out And cost we're Memphis, sell doing they're for as And States, out two equation, business. they're

more playing offense we're at this we than defense So are point.

Operator

you. Thank

Please Our Vogel Company. question. with & next question Sidoti with Josh comes your from proceed

Josh Vogel

the you mentioned eliminate are you back, off program. of Anthony, to together? plan build about want the questions just I going to it incentive earlier guys it but all scale one to safety you ultimately

Anthony Harris

we decentralized partners, make valuable might there We them. that, that trade-off but will by and clients economic And a very sense. is down structure, certain are certain to it scale sales there have the default, referral

to not a that be to allowed do going not it's anymore. wholesale. We're So

kind XXX% are guidance of We but to a going be the giving to the not it's field, general reduction.

Josh Vogel

to billings that just reduction on line? is, it gross the is confirm dollar-for-dollar And the Okay. whatever

Anthony Harris

Correct.

Gary Kramer

Yes.

do bit a of because for it's zero we pass-through, but the we're little margin the as through. is on So billings this path a reducing effect gross the just headwind

Josh Vogel

just want handle a to model. Okay, better okay. in I get the on bit a little leverage the of

talked what level maybe you you about think on the X% can to line. at include SG&A mix billings of business that operating and when staffing, the You gross efficiency margin? But do you get a

Anthony Harris

at that in leverage that we and our if down. look sense level we it's good I pay reverse don't QX tell to as the decreased ratio our we had. not Obviously, know in gross the leverage much cost could. for I'm that you EBITDA QX, I question. our consistent but look decrease 'XX, number specific which there, significant 'XX, have to 'XX And is honestly, can to margin went ratio Well, you volumes I the our have a we volume QX going is given But over we responded pretty you're cut -- that do in out attention impressive that leverage. -- as had as

we that sure future progressed, make and we're to in we at sure we looking ourselves setting to make weren't and growth, As want costs hindering our up the back long-term for put success. we

seen leverage points. but decrease couple we only percentage our So slightly, full of a have year

The is levels. well. leverage we So think is are and sustainable a we're at idea holding investing good, we that the pretty wisely,

pre-COVID, non-COVID, you want return to normalized start So kind see benefits and of growth beyond look we 'XX to patterns. into post-COVID, we as going leverage it, to however at should

Josh Vogel

any on it's situation right. But with just is COVID. know in -- All We And one November, what's that happening be last would in commentary the especially a great. any year share of commentary sort into and playing one. we're know current you see earlier share the can fluid can still here political on? you sitting outlook front. environment, I Just don't how XXXX, there or heading the given out, you

Gary Kramer

that mean, out even and mean, venture to where the and When going we I happen? do business get between vaccine, know everybody you where stack, we're to for sitting right? it happen? is we between that of it a 'XX on this our sit election We're to going year. all it. comes into shelter-in-place to there. before is growth from to unknowns guide number I our apprehensive the to where to are client -- to out need 'XX. that's stimulus? So we the that in But Yes. little there's you It's we everything down at a Are know know another we to we now, a the we going between going -- going growth ending How right, think is for time, stack if -- of put Josh, all because of our is there, COVID return just just giving

Operator

[Operator Instructions] Tieton Bill your Management. question proceed question. Capital with Dezellem comes with Please next from Our

William Dezellem

questions. a group And have I of

First of all, let's start with staffing.

You October. mentioned in July, didn't rebound a or that stimulus do ran out of that August the you a end rebound And closer on be see it that you September? why have whether given have the to earlier, seen you perspective

Gary Kramer

to rate savings other still little more gainful still if majority. geographies, that savings we bit you go obtain fill. the they the at mean, for right? back have had certain saw look can in geographies, we you had, their they Yes. on we're was before a orders the in, geography than just it and we It folks And lived employment. was rate in which on the I -- -- if a depends pickup So just

start first between had out the of we and August, you had started in checks back some week there. just upon decrease the when work. to we on -- when bit XXX, had when stimulus branches July couldn't and their fill, that lag a they a little because -- wanted have to to savings we that XXX started to bodies We stop get orders we depending branch, any to that the had given the had to didn't people do the So

in So and now a for -- is that number September watching was month better staffing. that that's into we're decreasing October September it than October.

William Dezellem

people multiple those orders, looking or of you an And order for they're order have XXX body an that one equal clarification, -- or XXX does say can for? each when could

Gary Kramer

one you placement. to is and too, on That a want placement think slow most is the and you staffing right? lot than of qualify, some we too, recruiting the body. of Typically because just So that pay people, business, one of a fee, one, do like that. time placement saw just more and then fees, hiring. do order weren't fees our We And hire you just money down Bill, to uncertainty the go we during

couldn't fill temporary little little was orders, it and to bit temporary they people hiring bit permanently do So and seeing and a the back. of we're come we the then orders weren't a of wanted temporary

the seen far full-time haven't come piece. our employments We back as as yet recruiting

William Dezellem

quarter, are Great. at to this rates on know expecting in you relative what on cash? your income portfolio And reinvestment your about $X.X you and million the your what quarters, then investment go-forward given growth

Anthony Harris

income to and indicated be we QX guidelines broad gave will we income we down delta say investment $X we go It the income for fairly pretty not will our be that's between there. widen QX QX. out down. But So that increase investment little interest thought And in turning our the to interest go some in a year, much year-over-year going I billion will accurate. so significant would because down income 'XX, call, a in when it's in had is 'XX.

between and But it's -- of So that income QX 'XX QX steady. our also the 'XX. interest fairly held attributes delta has for some

trend that see to that continue. would in the is QX, QX. expect can And say decreases QX, it You I trend gradually we

William Dezellem

you have... And do

Gary Kramer

little reinvesting bit going due are term. maturing, of portfolio going and -- rate. be to longer where coming of And to assets those a be situation the you're out we've too, going invested half we're and call it, then have to a Bill, lower at a into, about is it's function, of a

So going it's not the the unfortunately, to savers, in money saver. when reinvestment a going be We only it it's for in also lower. green -- the rates new business, X, go punishes we're and to coming

William Dezellem

on that cash represents behind you a the you're and Understood. when at And rounding the on the point think unrestricted have -- balance saver I'm you thinking call earlier your look I'm million, And know you than prioritization. $XXX I And us of about the your of and I is thinking cash four XX% priorities. in referenced sheet. about Talk since that more explanation an Anthony, you're cap. about that just to market the the that? philosophically items that how

talk that market cash. given us, Would just please? is So you your with of cap XX% that in through

Anthony Harris

was weather -- my Yes. going like to pre-COVID. that be should cash I accumulating storms, that were back We say, level of and intentional to about remarks cash, earlier, I said, we able level of a to or

want So back deploy being that around Company. buying around how proactive that. financial again We start we mode now we we need cash we have than spoke. in we did and last respect, since do very the more We that stock are

shares, we our XX,XXX opportunistic an addition quarters to our of an going in dividend. stock in bought buyer we to ongoing So future commitment back forward have be and

where is is as like at and and we that, planting acquisition targets shareholders, We to financed look where entirely high-return And now strategically. perhaps cash well. that more a strategically our our also key a we we of in advantageous as continue in a look some modeling, invest expectation feel [Technical going new CEO that with or at would branch. geographies That can Difficulty] per largely for acquiring than be

And be that. the cautious, diligent market up. that ratio want good go So I but of with being are cap, that's ran that, that, focus about our we a to the of and post-COVID, much mindful company. excited relatively expect and we of market the to and continue We will future think With that a function continue to we as we respect pricing that. to are we're

Operator

turn our for call concludes would to question-and-answer this like time, session. remarks. Kramer now to this Mr. back At the you. closing I Thank over

Gary Kramer

Jessie. you, Thank

Company business the through of to we behind is to, the right strength the in the believe and strong that again, back good a wanted people, is position just product these are small Company really say I and that resilient strong So to owner the the and right the And get have and growth, resilient, is business times. we I us.

So we'll talk you. and to between holidays, we're optimistic have you we'll next about the to future. I the anybody now but don't good year. if and talk holiday, a Thank know

Operator

for may time. thank and This concludes this webcast. you at disconnect participation, We your you your today's teleconference and lines

Barrett Business Services (BBSI) 4 Nov 202020 Q3 Earnings call transcript