# EDGAR Filing Document

**Accession Number:** 0000902791
**File Stem:** 0000950170-25-104005
**Filing Date:** 2025-8
**Character Count:** 22377
**Document Hash:** e61873410b3813a2a3d932ed0ae7d16c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-104005.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0000950170-25-104005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BARRETT BUSINESS SERVICES INC
- **CENTRAL INDEX KEY:** 0000902791
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-HELP SUPPLY SERVICES [7363]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 520812977
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-21886
- **FILM NUMBER:** 251189572

**BUSINESS ADDRESS:**
- **STREET 1:** 8100 NE PARKWAY DRIVE
- **STREET 2:** SUITE 200
- **CITY:** VANCOUVER
- **STATE:** WA
- **ZIP:** 98662
- **BUSINESS PHONE:** (800) 494-5669

**MAIL ADDRESS:**
- **STREET 1:** 8100 NE PARKWAY DRIVE
- **STREET 2:** SUITE 200
- **CITY:** VANCOUVER
- **STATE:** WA
- **ZIP:** 98662

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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## **FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** August 06, 2025<br>

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BARRETT BUSINESS SERVICES, INC.

**(Exact name of Registrant as Specified in Its Charter)**

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---

| | | |
|:---|:---|:---|
| Maryland | 0-21886 | 52-0812977 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 8100 NE Parkway Drive<br>Suite 200 |  |  |
| Vancouver**,** Washington |  | 98662 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** (360) 828-0700<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, par value $0.01 per share | BBSI | The Nasdaq Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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## **Item 2.02. Results of Operations and Financial Condition.** 
On August 6, 2025, Barrett Business Services, Inc. (the "Company"), issued a news release announcing its financial results for the second quarter ended June 30, 2025. The release also provides management's expectations for certain key performance metrics for 2025. A copy of the news release is furnished as Exhibit 99.1 to this report and incorporated by reference.

## **Item 7.01. Regulation FD Disclosure.** 
On August 6, 2025, the Company announced that its Board of Directors has declared a regular quarterly cash dividend of $0.08 per share. The dividend is payable on September 5, 2025 to all stockholders of record as of August 22, 2025.

The Company also announced that the Board has authorized the repurchase of up to $100,000,000 of the Company's common stock over a two-year period beginning August 4, 2025. The new repurchase program replaces the program approved in July 2023, under which a total of 1,919,334 shares of common stock have been purchased. Purchases under the new program will be made in the open market, including in block trades. Subject to the requirements of applicable federal securities laws, the timing and volume of purchases will be in the discretion of BBSI's management, except to the extent that the Company elects to enter into one or more Rule 10b5-1 trading plans.

## **Item 9.01. Financial Statements and Exhibits.** 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

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| | |
|:---|:---|
| <u>Exhibit No</u>. | <u>Description</u> |
| 99.1 | [<u>News Release dated August 6, 2025</u>](bbsi-ex99_1.htm)\* |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

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\* Furnished herewith

## **SIGNATURES** 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | BARRETT BUSINESS SERVICES, INC.Registrant | BARRETT BUSINESS SERVICES, INC.Registrant |
| <br>Dated: August 6, 2025 | By:  | /s/ Anthony J. Harris |
|  |  | Anthony J. Harris<br>Executive Vice President and Chief Financial Officer and Treasurer |

---

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## Exhibit 99.1

# **EXHIBIT 99.1**![img69943567_0.jpg](img69943567_0.jpg)

**BBSI Reports Strong Second Quarter 2025 Financial Results**

- Revenues and Gross Billings up 10% to $307.7 Million and $2.23 Billion -

- Announces New $100 Million Stock Repurchase Program -

**VANCOUVER, Washington, August 6, 2025 –** Barrett Business Services, Inc. ("BBSI" or the "Company") (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the second quarter ended June 30, 2025.

## **Second Quarter 2025 Financial Summary vs. Year-Ago Quarter** 
&nbsp;&nbsp;&nbsp;&nbsp;•Revenues up 10% to $307.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;•Gross billings up 10% to $2.23 billion.

&nbsp;&nbsp;&nbsp;&nbsp;•Average worksite employees ("WSEs") up 8%.

&nbsp;&nbsp;&nbsp;&nbsp;•Net income of $18.5 million, or $0.70 per diluted share, compared to net income of $16.7 million, or $0.62 per diluted share.

"BBSI sustained its positive momentum, delivering another strong quarter of net new client growth," said Gary Kramer, President and CEO of BBSI. "This controllable growth, combined with continued strong client retention and sustained momentum in BBSI Benefits, demonstrates the strength of our model and the value we deliver to our clients. While existing-customer hiring was modest in the quarter, reflecting a more cautious macroeconomic environment, our ability to drive growth through client additions highlights the resilience of our business and the demand for our differentiated service offering. We remain focused on execution and are confident in our ability to deliver long-term, sustainable growth."

## **Second Quarter 2025 Financial Results** 
Revenues in the second quarter of 2025 increased 10% to $307.7 million compared to $279.7 million in the second quarter of 2024.

Total gross billings in the second quarter of 2025 increased 10% to $2.23 billion compared to $2.03 billion in the same year-ago quarter (see "Key Performance Metrics" below). The increase was driven by growth in professional employer ("PEO") services, primarily resulting from increased WSEs from net new clients, as well as modest client hiring and higher average billings per WSE per day.

Workers' compensation expense as a percent of gross billings was 2.1% in the second quarter of 2025 and benefited from lower workers' compensation costs, including favorable prior year liability and premium adjustments of $8.8 million. This compares to 2.5% in the second quarter of 2024, which included favorable prior year liability and premium adjustments of $8.9 million.

Net income for the second quarter of 2025 was $18.5 million, or $0.70 per diluted share, compared to net income of $16.7 million, or $0.62 per diluted share, in the year-ago quarter.

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## **Liquidity** 
As of June 30, 2025, unrestricted cash and investments were $90.4 million compared to $99.1 million as of March 31, 2025. BBSI remained debt free at quarter end.

## **Capital Allocation** 
Continuing under the Company's stock repurchase program established in July 2023, BBSI repurchased $8.0 million of stock in the second quarter, comprising 197,200 shares at an average price of $40.80.

On August 4, 2025, the Board of Directors authorized the repurchase of up to $100 million of the Company's common stock over a two-year period beginning August 4th. The new repurchase program replaces the program approved in July 2023.

The Company paid $2.0 million of dividends in the quarter, and BBSI's board of directors confirmed its next regular quarterly cash dividend at $0.08 per share. The cash dividend will be paid on September 5, 2025, to all stockholders of record as of August 22, 2025.

Through a combination of stock repurchases and dividends, year-to-date capital returned to shareholders totaled more than $21 million.

## **Outlook** 
BBSI expects the following for 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gross billings growth of 9% to 10% (previously 7% to 9%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Growth in the average number of WSEs of 6% to 8% (previously 4% to 6%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gross margin as a percent of gross billings of 2.9% to 3.05% (previously 2.85% to 3.10%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Effective annual tax rate to remain at 26% to 27%.

## **Conference Call** 
BBSI will conduct a conference call on Wednesday, August 6, 2025, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the second quarter ended June 30, 2025.

BBSI's CEO Gary Kramer and CFO Anthony Harris will host the conference call, followed by a question and answer period.

Date: Wednesday, August 6, 2025<br>Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)<br>Toll-free dial-in number: 1-800-717-1738<br>International dial-in number: 1-646-307-1865<br>Conference ID: 94609

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay <u>here</u> and via the Investors section of the BBSI website at <u>ir.bbsi.com</u>.

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A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through September 6, 2025.

Toll-free replay number: 1-844-512-2921<br>International replay number: 1-412-317-6671<br>Replay ID: 1194609

## **Key Performance Metrics** 
We report PEO revenues net of direct payroll costs because we are not the primary obligor for wage payments to our clients' employees. However, management believes that gross billings and wages are useful in understanding the volume of our business activity and serve as important performance metrics in managing our operations, including the preparation of internal operating forecasts and establishing executive compensation performance goals. We therefore present for purposes of analysis gross billings and wage information for the three and six months ended June 30, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| (in thousands) | 2025 | 2024 | 2025 | 2024 |
| Gross billings | $2234472 | $2029036 | $4323141 | $3936584 |
| PEO and staffing wages | $1939966 | $1764182 | $3749434 | $3420626 |

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In monitoring and evaluating the performance of our operations, management also reviews the following ratios, which represent selected amounts as a percentage of gross billings. Management believes these ratios are useful in understanding the efficiency and profitability of our service offerings.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | Percentage of Gross Billings | Percentage of Gross Billings | Percentage of Gross Billings | Percentage of Gross Billings |
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| PEO and staffing wages | 86.8% | 86.9% | 86.7% | 86.9% |
| Payroll taxes and benefits | 7.8% | 7.3% | 8.3% | 7.9% |
| Workers' compensation | 2.1% | 2.5% | 2.3% | 2.5% |
| Gross margin | 3.3% | 3.3% | 2.7% | 2.7% |

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We refer to employees of our PEO clients as WSEs. Management reviews average and ending WSE growth to monitor and evaluate the performance of our operations. Average WSEs are calculated by dividing the number of unique individuals paid in each month by the number of months in the period. Ending WSEs represents the number of unique individuals paid in the last month of the period.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, |
|  | 2025 | Year-over-year% Growth | 2024 | Year-over-year% Growth |
| Average WSEs | 138969 | 8.0% | 128734 | 3.7% |
| Ending WSEs | 140671 | 8.2% | 130046 | 2.1% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
|  | 2025 | Year-over-year % Growth | 2024 | Year-over-year % Growth |
| Average WSEs | 135714 | 7.8% | 125892 | 3.4% |
| Ending WSEs | 140671 | 8.2% | 130046 | 2.1% |

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## **About BBSI** 
BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The Company's integrated platform is built upon expertise in payroll processing, employee benefits, workers' compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI's partnerships help businesses of all sizes improve the efficiency of their operations. The company works with more than 8,100 PEO clients in all 50 states. For more information, please visit <u>www.bbsi.com</u>.

## **Forward-Looking Statements** 
Statements in this release about future events and financial outlook are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could affect future results include: economic conditions in the Company's service areas and the potential effects of changing governmental policies, including those related to immigration and tariffs; natural disasters; the effects of inflation on our operating expenses and those of our clients; the availability of certain fully insured medical and other health and welfare benefits to qualifying worksite employees; the effect of changes in the Company's mix of services on gross margin; the Company's ability to attract and retain clients and to achieve revenue growth; the availability of financing or other sources of capital; the Company's relationship with its primary bank lender; the potential for material deviations from expected future workers' compensation claims experience; changes in the workers' compensation regulatory environment in the Company's primary markets; PEO client benefits costs, particularly with regard to health insurance benefits; litigation costs; security breaches or failures in the Company's information technology systems; the collectability of accounts receivable; changes in executive management; changes in effective payroll tax rates and federal and state income tax rates; the carrying value of deferred income tax assets and goodwill; the outcome of tax audits; the effect of changing interest rates and conditions in the global capital markets on the Company's investment portfolio; and the potential for and effect of acquisitions, among others. Other important factors that may affect the Company's prospects are described in the Company's 2024 Annual Report on Form 10-K and in subsequent reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements are less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.

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**Barrett Business Services, Inc.**

## **Condensed Consolidated Balance Sheets** 
(Unaudited)

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| | | |
|:---|:---|:---|
|  | June 30, | December 31, |
| (in thousands) | 2025 | 2024 |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $26348 | $55367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments | 64097 | 66492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 264175 | 234533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable |  | 2662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 25769 | 18698 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and investments | 91042 | 97690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 471431 | 475442 |
| Property, equipment and software, net | 61695 | 56781 |
| Operating lease right-of-use assets | 24343 | 20329 |
| Restricted cash and investments | 99701 | 134454 |
| Goodwill | 47820 | 47820 |
| Other assets | 6076 | 6205 |
| Deferred income taxes | 2562 | 4477 |
| Total assets | $713628 | $745508 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $4933 | $6787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and related benefits | 239444 | 215648 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payroll taxes payable | 41026 | 49685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 324 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 6682 | 6231 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current premium payable | 39805 | 31134 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 11066 | 10330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Workers' compensation claims liabilities | 35368 | 39081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 378648 | 358896 |
| Long-term workers' compensation claims liabilities | 78534 | 89365 |
| Long-term premium payable |  | 49840 |
| Long-term operating lease liabilities | 18828 | 15215 |
| Customer deposits and other long-term liabilities | 11801 | 10788 |
| Stockholders' equity | 225817 | 221404 |
| Total liabilities and stockholders' equity | $713628 | $745508 |

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**Barrett Business Services, Inc.**

## **Consolidated Statements of Operations** 
(Unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
|  | June 30, | June 30, | June 30, | June 30, |
| (in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional employer services | $290170 | $259887 | $565096 | $506076 |
| &nbsp;&nbsp;&nbsp;&nbsp;Staffing services | 17487 | 19764 | 35127 | 39357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 307657 | 279651 | 600223 | 545433 |
| Cost of revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct payroll costs | 13165 | 14693 | 26471 | 29410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payroll taxes and benefits | 173277 | 148810 | 360283 | 310705 |
| &nbsp;&nbsp;&nbsp;&nbsp;Workers' compensation | 47956 | 48251 | 97586 | 97854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 234398 | 211754 | 484340 | 437969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 73259 | 67897 | 115883 | 107464 |
| Selling, general and administrative expenses | 48188 | 45577 | 93026 | 87991 |
| Depreciation and amortization | 2038 | 1912 | 3996 | 3764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 23033 | 20408 | 18861 | 15709 |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income, net | 2300 | 3069 | 4920 | 6343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (44) | (44) | (88) | (88) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 41 | 27 | 99 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 2297 | 3052 | 4931 | 6348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 25330 | 23460 | 23792 | 22057 |
| Provision for income taxes | 6876 | 6759 | 6359 | 5492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $18454 | $16701 | $17433 | $16565 |
| Basic income per common share | $0.72 | $0.64 | $0.68 | $0.63 |
| Weighted average number of basic common shares outstanding | 25592 | 26067 | 25700 | 26174 |
| Diluted income per common share | $0.70 | $0.62 | $0.66 | $0.62 |
| Weighted average number of diluted common shares outstanding | 26215 | 26765 | 26309 | 26794 |

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**Investor Relations:** 

Gateway Group, Inc.

Cody Slach

Tel 1-949-574-3860

BBSI@gateway-grp.com

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