BBSI - Earnings call transcript Q4 2020 | Barrett Business Services, Inc.

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Operator

Good afternoon, everyone, and thank you for participating in today's Conference Call to discuss BBSI's Financial Results for the Fourth Quarter and Full Year Ended December 31, 2020.

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

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. This regarding provides important statement forward-looking today's conference The company's remarks call include forward-looking will statements. during presented other fact, 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, April will XXXX, starting be would like through X:XX this to p.m. call Eastern tonight. provided the press available webcast well as website as company's in today's A also the will replay on release, www.bbsi.com. be at available link via

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

Gary Kramer

the our and the Thank proved economy. you. and and our the did the miss everyone, extremely business a afternoon, quickly I beat world to year. the clients work a Good our we for regulatory am thank proud call. year the be of XXXX challenging for that joining economic operations landscape. as assisted rapidly not remotely, working changing teams with throughout embraced performed and We you

than attribute I'd our to to profit in our with better we client and ultimately like led years, to failure we rate experienced better revenue retention our we've client was than best forecasted. and This Our expected. the was the being clients. rate gross do that work

BBSI financial myBBSI, of the state-of-the-art PEO of for strategic want their efforts. proud and an initiatives, insurance company stated, technology contributed again structure. in license, various Plainly exceptional portal on results. standing securing at including executed the BBSI our am derisking everyone long-term a thank actions also to I alternative the family I with everyone and nationwide our up We

the that fourth to the into outlook step metrics XXXX, to I I'd and some executive operations. the measure manage the for utilizes quarter Before discuss operations take team to like time and

we retention and First, growing. good by by maintaining our themselves clients, additional grow clients client adding

as clients employees, their businesses metric with Our gross key employees clients' more that is by refer closest working employees wage to more adding driver and employees, of hours with inflation. which the worksite we and grow Worksite by correlates billings. a are our

Going forward, average and reporting be we will and guidance on employee for employees growth. providing worksite worksite

longer regarding XXX billings. in take We as We this better decrease to look counts this be of will our reflect is why We or X,XXX finished the gross result clients information new billings clients, gross important of The purest to but client an worksite is for net example and year a year with the employees. decreased providing X% year employees of employees at worksite as no not to XXX,XXX started with XXX,XXX X%. XXXX. worksite The truly pandemic. the may the our retrospective a additional decrease translates

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

quarter from billings gross and benefited revenue prior greater-than-expected Our strong over payments worksite increased year from X.X% employee. per the and bonus

X.X% the quarter employees of during an Our sequentially. grew worksite average

new XXX we our PEO added new Regarding pipeline, clients. business

seeing saw and leads to COVID. we and that October go more month, more seeing we reaction mentioned into Each owners month busiest March. previously have -- their in was We and our are bunker referral partners were since business we

in shelter-in-place However, orders our December and California. resumed as saw the leads November retrace we in

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

in geography, over staffing QX. growth are business staffing seeing but and and pick Results vary aggregate, slightly rebounded the has our we up business staffing in sequentially by in forecasting Our XXXX. grew are

operational other updates. Regarding

the reduced in the communicating safety reduction took cycle. previously portfolio market been enacted We incentive various management, to actions workers' cost We navigate measures, that the the management. compensation steps have and and and we softness profitability initiated

Regarding the to we and profitability in out because risk and clients quarter the commensurate employees. the XXX to the adequate effort price to teams the management, work book, was the underwriting priced thoroughly was our or triaged worksite branches not not support price

the of Regarding competition sold, summarize model COVID, reduction to quarter, for to outsourced runoff client XXX closed, initiated or build XX for away unintentional to the clients. attrition, businesses due of companies accounts XX businesses a we clients, XXX and XXX To XXX for intentional that lost receivable, our pricing runoff profitability left due we X of XX due management. net XX XX moved including added from and

the However, X.X% stack finished quarter grew WSE with we started sequentially, our than stack average a stronger worksite what we and with. employee

branch had branches. our year-end, XX footprint, Regarding at total we

with revenue We grow continue mindful into decision efficiencies Dow's our the clients Salem, continuing of Washington, the and and but cost-effective in Portland, into consolidated the be Yakima, Lake made a while to manner. doing Oregon. The of to operating intention Moses in Albany so servicing was Oregon more

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

totaled business Our XXX. teams unit

completed reporting and initiatives to major and improved for we released the as strategies. enhancements. going milestone onboarding, of update upgraded build third as included an release This well myBBSI. other our other electronic I'm In the provide Next, on February, portal

proud build I am big market. of now brought our and I proud Our our product am of complete. that team to is it

slower myBBSI but invest to in in pace than We XXXX. will in a at continue enhancements

clients in successfully our we nationwide new package When nationwide XX that and expanded on with relationships X opportunities. technology clients pursue we are existing larger we our this utilized to with offering. quarter, Regarding brought new able offering, the offering, our

risk consultant We a to to managers, partner, a on a at to consultant cost-effective best teams structure new have payroll an teams more Regarding consisting allows our business when targeted in continue resource a risk been clients, a X-member of Historically, a partner, manner. safety provide includes Xx service a employees the $X a structured out which and more up a clients manager, X clients and analyst. payroll with of team payroll This In the X, team, to human BBSI were human XX% increases and team to tested management a with and greater able more model business return less than with QX. larger million modify resource a business business our business quarter of: from in analyst. Xx us we capacity. safety and with our payroll to added we and eye versus XXXX, management a

market, We efficiencies myBBSI, are we best into model applying plus grow working practices we gained remote the When new are BBSI. of with the go will to that and XXXX. offering we through we

today, stay a prepared but suite I'm they meet have whole and And products will retirement we have We recruiting. management, When risk our client, we of join his the services, to of now remarks. flawlessly. a point and they services strategic various deliver certain human Anthony going consisting products because staffing they BBSI may insurance, call turn potential technology, for pain over consulting, information with resources, because to

Anthony Harris

that than report COVID-XX year were Thanks, pleased impacts XXXX Gary. despite to stronger and of the Hello, results expected everyone. pandemic. QX economic our our both am I results continued full the

first. year full the at Looking

impact while presented the declined Our business X% The to with $X.X for consistently of pandemic and $X.XX. uncertainty proud of our most was COVID-XX had in diluted throughout but and customers billion small the year of significant by the operational the we EPS only resilience gross year, working were billings disruption impressed our them. teams

on region average were follows: incurred the Southern for income Northwest compared X% the year and to million million modest year year Mountain per to PEO QX grew growth to Northern increased WSE, development declined versus to Coast quarter gross QX primarily the gross Looking income. X% $X.XX the attributable 'XX quarter investment higher-than-expected was declined years favorable a did to Net fourth quarter The grew due by at including grew East billings prior prior revenues the Pacific primarily by states X%, in growth with was year-end. California million PEO increase our payroll billings but billings at in as in $XX.X numbers. California $X.X in bonuses decrease over X%, reduction prior grew X%. lower billion. claims higher PEO prior XX%, and QX. XX% $XX.X from experience gross sequential client Staffing over

than actuarially For economic range from a expected in QX paid. fourth the the market to at the decline due year year, with exception gross The regions. were attributable Workers' of greater is the customers other million positive Same-customer X.X% was is reduction to as growth in $X.X expense of of prior in all up X.X%. experienced bonuses our the the end increase sales compensation period in where percent of regions extent conditions the California, primarily Southern of determined billings affected for 'XX X.X% primarily a of to quarter. quarter, continued fourth low which to estimated liabilities X.X% and

had relative of fourth continues a quarter, trend percentage the compared claims costs. claims we've and materially exposure increase will reported, COVID-XX that claims overall workers' COVID-XX favorably. of compensation to quarter workers' overall previously trailing minimal claims minimal saw the In we to reported compensation claims believe frequency frequency Our We we our XXXX. XX% XX-month and to payroll of not as decrease continue

our We trend including charge implementing market, we the to workers' conditions the increased the or we believe and initiatives. workers' and several program. are including near broader that from California. its We've point, rates low management several responded to mentioned flat now competitive discussed strategies a effects XXXX. continue profitability continued increase cost portfolio that in is situation, have And and forces pressure However, or pressure quarters at compensation pricing cyclical particularly and to we in able reductions that workers' Gary on that earlier, These of potential on market rates put monitor now should for economic by our pricing overall, that has faced our have the compensation compensation clients.

the quarter year flat structural in response associated savings efficiencies COVID-XX, from expenses. the planned the with operating Looking $XX implemented the including SG&A myBBSI offset maintenance cost was from at of at effectively to Cost million. increases portal. prior in the in quarter,

efficiency over XX% strategies, approximately $XX million cost plan savings year the lower For down were including employee finished than and our beginning changes with several million approximately were the We the lower business year implemented and we at management our $XX than team year, as XXXX of to for model. headcount the prior year. costs original SG&A

half the below a branch While including on pre maintaining of operating and to in remain well XXXX portal increase due to XXXX new operation XXXX efficiency, part investment versus in operations year the and a strategies, only trends in full costs structure. slightly amortization myBBSI COVID our of and SG&A our openings. year our focus will expenses planned from levels growth cost below plan our XXXX expected still Overall, are in and continued

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

Our average to with quality continue to holdings, December duration at of investment book an our average and conservatively managed X.X at be has investments X.X% from our primarily of decreased average to X.X% variable Due yield rate XXXX. AA.

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

headquarters. debt-free our We corporate end except continue at $X quarter to our for mortgage million be on

operations and invested We proud decisions. a in new of of are our improve in sales delivering to significant remain for which resulted But execute our enhancements focused we and and tough scenarios, myBBSI we uncertainty and always our value, the some as year. to on we customers and opened on our We our marketing variety strategy initiatives, for and results new portal wide faced continued branches. continue planned

year, our $X We capital and quarterly $X of stock last shareholders million form call. million to of in in includes an the repurchased $X since stock of also in additional million of which dividends returned the repurchase the

as some refreshed year on the metrics key an that on Gary worksite the drivers outlook we this business With the we will or about report we we most full focus providing the and emphasis the to externally. of the including, team, that information Turning new are WSEs. carefully said, as employees being wanted management a our have to useful ensure think With in mind, and on, that year. for first of

and outlook report and each year. now will with an period, We WSEs for WSEs expected in discuss provide our in growth the average average we'll upcoming

sales recast our As customers. we WSEs as will primary refocus to from formerly volume, existing also same-customer we described a measure be growth on what WSEs as of was business in

a is key as of Another measure our billings. of gross margin percent business gross

an we also for a quarterly discussing year. now expected the in of In outlook percent results addition upcoming to will gross billings provide as of these margin margin gross terms,

our We will tax the also continue expected upcoming rate to give year. for effective

and XXXX, WSEs the reflect performance. ahead our between will we to to ongoing when norms, In updates and to overall that industry year allow We expected modeling total expect X% and of Lastly, business information the to will more ranges billings with useful X% average monitoring full better discussing increase forward-looking uncertainties X%. metrics. of increase now align we between better and provide gross X% believe will and provide these and

be to X.X% XX% percent X.X%, margin gross annual expect We range as XX%. and between a and and expect our effective rate gross billing we tax between to of

resilient. Our business been has

strategies economic now underway. call And the ahead. for I optimistic turn are new Gary we about remain we period although back in the closing uncertainty, remarks. a will of We year to have

Gary Kramer

a Thanks, company conclusion, XXXX the and Anthony. to expectations. year In managed exceed was challenging

Our product is has strong business more been and relevant owner. to never the

on the and things working the optimistic extremely are of I right future. am We

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

like to call the turn over the operator questions. to I'd Now for

Operator

our And CJS first Moore from [Operator Securities. Instructions] question Chris comes with

Chris Moore

Maybe growth. billings we gross the could start with

Can the low the a and puts bit talk X%. between Just end? about is and maybe X% you high guidance to takes the little

Gary Kramer

Yes.

hey, Just Kramer. Chris, -- it's

that but range. out we to is that attainable. attainable very general, it's and say I'm layup felt a with environment to think in it's an challenge, put is forecasting Just comfortable we something trying we this think in we a wanted not there

to QX. And is If then going you QX, try in right kind the business QX QX there curve, then out then be our numbers flow we you adds. economy macro that be than think if half assumption the be is with far QX X% will the business starting it the hardest of QX to to comfortable of the general, think just to feel is about quarter growth. the year, shape anticipate of we in lower will X%. going in, pick was third less is compare. our biggest it's And where that as that, say, the and that -- as behaves up be our But like those more than trend, going to back of now. of for

Chris Moore

Got you.

bit of SG&A terms haven't going So be fiscal had just is this below to in little 'XX. a I to -- a put so chance in.

growth X% does So the at X.X%, the and at at midpoint say, margin of where roughly, that gross EPS? range, us billings get gross

Gary Kramer

We gave you all the numbers.

You do the math. got to

Chris Moore

Fair the gross that WSE payroll growth the is the make versus enough. I growth sure WSEs? billings, the just understand delta the To at

Anthony Harris

correct. that's Yes,

Chris Moore

team? X just for little It's each one talk approach, a on within is so Last Okay. me that X-team to just can bit you the further? there's resource -- people human

Gary Kramer

a payroll. us good on both which new we're to risk What the efficiencies Yes. picked is that able thing and our is the there portal, with up do technology we helps

are risk more one if do working efficiently. where some from the how HR HR to is of side, BBSI strong -- And our things that we've props there jobs On value remotely of learned our think we the and and consulting. about

the that return what get of up almost an dollars, business on management So a we unit on more return. the Xx kind to from Xx amount HR business clients it is up the which able it us think gets that about we're load support is to dollars double return to to to do with management is the way of like

of payroll. with service less management more So with the we but to clients BBSI best are able

Operator

Partners. Jeff our question from Martin And with ROTH is Capital next

Jeff Martin

to to currently. see your over you X-year of sense year view on to some the terms longer wanted recover at generating over year? get intermediate to necessarily while growth your sales back get this of a want larger initiatives, of additional to terms you referrals, Are will sense generation, in then point primary paring go client after not And And a one a of those you kind I we given inhibitors a or and approach in direct of along also gradually growth take of trudge period. some of here if the term lead on kind that's but from with accounts? them shift Gary, hold this

Gary Kramer

sorry. Yes,

I you think like said -- Jeff. but there, I X there's I have questions XX in

me previous we've X go the let can same that done where right? and So in those business. still our service plans, with that's that consolidated grow growth the quarter, we in So quarters and we idea branches branches

to management adjacent But that less adding for and while more are branches In branches. XX business we able cost service grow being, the other investing. minutes branch, from have still one the and than say, Anthony's includes we them those that of are we're Some us SG&A, numbers under I'll team the conscious. additional

So then that we'll 'XX. that in add or then to their grow is an support either start happens we business. of in servicing person anywhere which adjacent to market, to they're to we're back be we've it'll model market adopted that branches, they we'll X corporate. is those hire branches And XXXX, be to and from that to the at And locally X the when when in similar going book, start out open selling business and a that

are in continuing branches, to we So invest in new invest new business units.

business get all. that, more that things. We're at working changed to on then we coming to if something for But our as that and We're until our are successful get it's back know come going that to going ready and business and lead we've sitting little hasn't a that us. And But to the the are we share not that COVID plans it well. it's on operational the we've initiatives as we we I'm 'XX. have us. baked that it. on waiting as in being far recognize I got we're in gen, mindful to that's know And throughout And So for and to not challenging laurels into to adopt strategies we for go organization. we plan working

Jeff Martin

was And a or round number to relative clients a a applying for if round if curious first they're seeing of you're of, loans, you Okay. of if get have second PPP significant the sense round. second then

Anthony Harris

data mostly and the difficult that that advantage in similar expansion It's on to FCRA. good that right? of yes, employee But as So as time, the get retention taking are to our is, the the relief for of participating clients the well that, as it's last us well of other tax extension credits answer as the was anecdotal. included,

are business, boon those for So our small clients. all including

we're and an so And having impact. are they grateful those, for

Jeff Martin

for then you gave profit benefit guidance assumption And going next embedded But billings. Okay. additional that I workers' that gross what for is in know a as guidance, X.X% to the gross kind Or range compensation? in expected year? quarter percentage of third for Is the gross there of for within forthcoming? X.X% you profit to stay that is that

Anthony Harris

gross percent, metric, favorable positive which we of more But when guide obviously in time give predictable transparency. results, program and that the comp be And has trend seen we've program trends that steady at workers' a workers' was uncertainty, the pretty important comp. number. become by to So comp the introduced that margin range our we workers' is more to we a is wanted influenced think, really, able some the experiencing as

change. trend continue. giving seen the there workers' year. positive to a comp would that those not expect specific range no But evidence guide We're We we've is line this for

Jeff Martin

in would book, across final blended your was your on Okay. XXXX? Just basis directionally in experience -- that helpful. Overall What's XXXX? be a And then what question. expectation pricing the what's

Gary Kramer

management, couple about for years mentioning second we've a react in things the reducing through workers' the comp In been and done in market, the safety cycle, quarter, softness We've the management. portfolio incentive. right, accordingly that softness as we and as talked navigate to Yes. of the far profitability

once be efficient comp where as when like 'XX. cycle, everything interest But were. the is on it's are as much like looking I to idea to to at when X/X and basic feels look need as low be I turning. look landed as side. to the able rates the possible not kind up for get as we to and It that program like It when feels mean So we're we're going bottom. feels we're into we going at not they because -- to get we have rate else we if it flat as it's you at out workers' as on charge be we're 'XX -- of that able can't the close

we're to starting when we So there pushing charge to jump the we're but out that on turns. and not see feel we going obviously competitors -- it, more, market our bandwagon

Operator

with And our Sidoti from Company. next & question is Vogel Josh

Josh Vogel

You had of about in management, Or year? of more see clients the to you that Are talking in should with out were profitability early the that? we part done quarter. XXX priced this you and expect at least

Gary Kramer

good shed general, about That, question, may up Josh. We in profit. make subtraction it. in -- is dollars, them but we We we for revenue how through some addition think

we that risk it price when try cycle certain in underwriters of strategy, workers' with and be branches market XX/XX, with works 'XX. to with year. was back throughout moves. is And in business. happening the about of right? work And how to accounts for was -- our quarter this to our saw started the for how back quarter saw little we we think a So the market those second We scrub mentality this because to year-end where need that enacted making soft in will enacted So X/X for comp, more that

in money. we'll subside we money, and see it'll coming think our So always QX of QX, and through little want like then -- beyond. some through, our want DNA we clients to to or to QX, make still I and after we make -- them mean to think it's part I we we and that going would get in see a more we're I want

it's that. going I our But as part see of a to to we -- move big continue we're you'll don't do think -- in to as had we QX. DNA So

Josh Vogel

next the bit business little or have portal? But about about new pandemic X seen opportunities the since I was you in big portal this rollout completed success that here the the you question months it's think February. quantifiable of were the because Great. pipeline build-out when a any been and said to know the driven in of makes we murky, but you

Gary Kramer

Good business Yes. about Josh. teams we're we're goals opportunities. externally, of internally, that's are the our That's we're talking based and question, part why not about And size. talking even how is their right? when has say, sales WSEs And upon metrics, sales on WSEs, I'll seeing team, larger client our now what

In larger that had landed clients that for. we in us. So that in correlation provide we QX payroll. look more my in QX, up those closed IT to opportunities XX% large $X the we QX solutions being with million for said opportunities. that's over to able accounts were more why, And in large has over strong I us we And remarks, QX, a come

Josh Vogel

I appreciate that.

So client large of your payroll. of annual in is north $X definition million a

that exiting your So year falls client percent of under what the base definition?

Gary Kramer

perspective. perspective just I management, on we we making at it on and insurance an at to money X were then looked money what don't looked not our at we were making We we not what it -- ways. have But WSE from as what general, profitability looked a when margin from that. in

for what of smaller price you what that's saw smalls. grow the because of the worksite a if losing more quarter, pricing I are the we which lot we employees added was in But sensitive. accounts, amount were stat QX lost, a look what at fair versus still we raising for gave of we our we had and in the So on --

Josh Vogel

right. job And got done I All a ask, a tremendous cash. obviously, hoard you've Great. to up building of

internally been business on the You've portal, teams. investing

plan just that -- this underpenetrated You what's back But place. client you want number, base fit. in you've deployment clients]? curious I'm good yes, where have dividend on have capital been the [for buying year? happy in markets there's the good of to potential And about amount and what's stock, talked culture acquisitions cash and a for just books a you a

Anthony Harris

Yes.

has as as that priority it, So there's comfortable financial but of number, we've a IT. it We're not disclosed is we look art. on somewhat excess kind And some and moat, safety science to is could and frankly, some the also that through haven't we through net it area that feel that. first said But relative. we be cash, walked to Gary still called that maintaining and we disclosed I but with. continued have M&A, we philosophy what last that are exploring targets the at look we capital be in which is we X have that And the to investing through potential through strategic, it's number is And there our still is and mean business. quarter, enhancements table. opportunities going

fully will expect evolve -- systems portal our in the we developing and system year myBBSI and continue enhance -- other and we other initiatives. to to So we're

take marketing Gary initiatives of that said some will sales these some and So money. well as

the Beyond buying committed to and back that, we're stock obviously dividend.

progresses, can update we currently, to but year the our in philosophy. the that's to plan we're see we As sticking how that, continue

Gary Kramer

we've acquisition last an acquisitions Yes, Josh. active not the rather And market been acquisition do is do for my the I'd on couple X then view And than in the acquisition. the for quarters. side, last of wrong probably the quarters, on

meticulous So BBSI bring umbrella. the we about companies under thoughtful and that in be we will

of a and into going you when to of you looking, are to acquisitions, it. school come but the do lot rush kiss from got we're not We frogs I

Josh Vogel

That's certainly a good strategy.

the be but back office there's to today Just further everyone more this your enterprise well platform? PEO or how looking a all done handle the in and large But last prepared clearly, is to what trickling one, potentially capabilities you on, And digitization you continue when as we that revolution functions, platform are looks about the to to to on get Anthony. and platform alluded the And their beyond the space. cloud to and the portal? it add SMB And admin seeing rollouts -- and going PEO and organically? of down think facilitate the are to your would internally it little bit,

Gary Kramer

product we position it portal not whether Yes. building is plug We're revenue, we our an question, excellent flexibility to the available in because our business we to Good get stickiness whatever through we clients, put with Whether want we want ourselves in of now whether we margin, get make right? to widget the Josh. -- to whatever ready we to, have we out the get way to myBBSI get weren't have now -- just promote that in the -- okay, we're what now. But up, our, the or And literally opportunity weeks stage that we it, offering. is to think add the that it. to next that myBBSI ago we is to in else until where didn't last enhance did at, roll stood call we X.X can completed, about the looking we

nothing on things working ready have we're We disclose to we're that yet. but

Operator

And Barrington our next is question Research. of Colicchio Vincent from

Vincent Colicchio

any Yes. curious any in that's other market. market been Is Gary, there to discipline or better brought Or just place? has the industry consolidation comp to a changes? simply workers' it pricing

Gary Kramer

seen to there's workers' of we decreases are to comp profit, that been to they people function When going year-over-year flock profitable down. flock a a has prices 'XX. go in it's And it, subside we've No, think line. it. price When

Vincent Colicchio

Okay.

on revenue quarterly look on read if missed good does a gave it sequentially? said that I How You outlook. you QX.

Gary Kramer

of we -- 'XX. QX of toughest QX, compare was in QX because X% or grew to going we be thought 'XX our

we toughest had have strong our And that, be good in we're so to that a it a season We for QX WSE that that good year-end our feel was but the be a we from a as our had selling have very we as good years]. what we seeing year, X we is X/X. far up. the here to growth or far We've feel thought stack base being quarter we growth So call get our strong will [going And -- compare. stack. to the going lowest for grow stack positive

Vincent Colicchio

new in competitors? -- what you any are how more to compares your Okay. terms automated feedback And it curious, the with hearing portal of

Gary Kramer

where years light it's we us, For from were.

payroll Before, had we a engine.

Now a we platform. have

things great hearing freedom, adaptable user-friendly from because the our flexibility we're use, clients So a system, of the it's and to of a more it, perform. the lot of ease much

industries. then there look technology would great when pound what the we clients. pound, put hearing And our every things what side. where we -- to system bake-off, versus at we we So I'd has think right? from us we competitor's up -- in the the our has. know technology on know our do we system for look, I We industry anybody the we're are with And And

Operator

is Capital And Instructions]. Bill Management. [Operator question with next our from Dezellem Tieton

Bill Dezellem

to trying you of A what's I'm back happening questions. but I'm with sure couple this, into not wages. if covered

a that average So in billings does imply you With up had employees. up that decline X% X%, was X%? compensation on

Gary Kramer

employees, saw our go low-wage up Not picking let their which but WSE. faced which we wage clients you're they tough the at what is the when was point, X% average times per driving was that our

Bill Dezellem

question Okay. was think That's very to helpful. next And into it the leads actually trying I through.

were point, really those let savings versus versus them So X cost to measures that profitability differentiate is where How to or trying savings restrictions. And laid furloughed leading to to they off? employee improve count between much buckets go, again, down being is, otherwise as restrictions COVID I'm cost your of X%. COVID

Gary Kramer

It's been the are saw the that. to QX, were payrolls, in We've COVID this are don't in tell If whole then there, time, got it be normalcy. that can we We We fortunate. the we the you started that I'd saying and hip we're payrolls. people not But restrictions don't We QX, run heavily aren't heaviest rebound. -- In to you industries affected. and we if it QX very the we right? shooting we that [apply]. we -- when receive on gave from

very So fortunate base. with client our we were

very are resilient. clients Our

March very taken is if you and strong, the me -- have asked on that in would been we product X% we're X. have for would have if the year, I Our would under down

up pleased we're very the year. for we with where So ended

Bill Dezellem

can a there relative And improve that of there it's that you situation revenue to decline? in region then Great. like terms you down finally, California, are have only since Southern the is anything the where you seeing levers you feel

Gary Kramer

revenue clients from shrinking Southern Cal. The mainly COVID effects Southern is decline Cal in and of the in in our from

Mountain to not back, thing, the get. out Cal held think to going how pop they're up Our States will get if much that depending and the whole economy is trend the resiliently Southern right? other that we think Southern So get the region, -- any that, biggest pretty Cal going of we upward upon say, through comes

looking the So at when to us for going to -- we're in Cal. normalcy, we're economy nice gets back have a Southern tailwind

Operator

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

Gary Kramer

year, through Once wanted for I to work everybody, again, thank BBSI thank the want employees their all hard challenging all and get and XXXX. to just I

very future. know things. working relevance. the we and We We the our the we're on product, has that about know that right that know optimistic are product the we right have We

excited are about the we future here. So

with that, you and everybody to going let we're it for thank So joining. go,

Barrett Business Services (BBSI) 4 Mar 212020 Q4 Earnings call transcript