Barrett Business Services Inc. (NASDAQ:BBSI) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 12:00 pm ET
Good day, everyone and thank you for participating in today's conference call to discuss BBSI's Financial Results for the Third Quarter Ended September 30, 2019.
Joining us today are BBSIs President and CEO, Mr. Michael Elich and the Company's CFO, Mr. Gary Kramer. Following their remarks, we'll open the call up for questions.
Before we go further, please take note of the Company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The Company provides important cautions regarding forward looking statements. The Company's remarks during today's conference call will include forward-looking statements. These statements, along with other information presented that does not reflect historical fact are subject to matter of risks and uncertainties.
Actual results may differ materially from those implied by those forward-looking statements. Please refer to the Company's recent earnings release and to the Company's quarterly and annual reports filed with the Securities and Exchange Commission for more information about the risks and uncertainties that could cause results, excuse me, that could cause actual results to differ.
I'd like to remind everyone that this call will be available for replay through December 6, 2019 starting at 3:00 PM Eastern Time this afternoon. A webcast replay will also be available via the link provided in today's press release as well as available on the company's website at www.mybbsi.com.
Now I'd like to turn the call over to the Chief Financial Officer of BBSI, Mr. Gary Kramer. Sir, please go ahead.
Thank you, Michelle. Depending upon where you're dialing in from, good morning or good afternoon, everyone. We had a very strong quarter that resulted in record earnings. Diluted income per share for the quarter increased 30% to $3.24 compared to $2.50 in Q3 of '18.
Gross billings of $1.55 billion grew 7% over the same period. PEO gross billings increased 8% to $1.52 billion compared to the third quarter last year. The third quarter of 2019 had one more work day when compared to the third quarter of 2018. When adjusting for the one-day difference, our gross billings increased approximately 6% over the prior year period.
Gross billings grew by 5% in California, versus 15% in all other combined geographies. Same customer sales were 5.7% compared to 4.7% in Q3 of '18. However, adjusting for the one-day difference, same customer sales would have been approximately 4.3% which was lower than Q3 of '18 and lower than our internal plan.
We continue to increase our client base with the gross addition of 386 clients or 217 net of runoff in the quarter. The 386 gross additions are a record number in any third quarter in our history.
Net revenue of $248 million reflects a slight increase compared to $247.3 million in Q3 of '18 and reflected weaker staffing revenue, which decreased 17% to $33.8 million compared to Q3 of '18.
The decrease in staffing revenue is a direct result of the continued tight labor market, and we anticipate that staffing will remain a slight headwind