Barrett stock climbs despite $8M Q1 loss

Barrett Business Services Inc. posted an $8 million quarterly loss on Wednesday, but investors didn’t seem to mind, sending the Vancouver company’s stock price up $3.35 to end the day at $42.18.

The company, which provides human resources services to U.S. clients, continued to grow revenues in the first quarter of 2016 even as officials tackled restatements, investigations, legal issues and a near delisting of the company’s stock.

“We have learned many lessons over the past 18 months that have made us a stronger organization today,” president and CEO Michael Elich said during an investor call Wednesday morning, the first such call of the year. “I have never been more confident in the business’ ability to move forward.”

Barrett saw its net revenues hit $191 million in the first quarter of 2016, up 15 percent compared with first quarter 2015. The net loss, which represents $1.11 per diluted share, was attributed to accounting and legal costs as well as a “seasonally higher burden of employment taxes in first quarter,” said interim Chief Financial Officer Tom Carley.

First-quarter 2015 saw a $5.8 million loss, though the company posted a $25.5 million profit on the full year.

Barrett filed its 2015 yearly report late, and restated its 2013 and 2014 financials as part of the fallout over workers compensation reserve issues, investigations, audits and “unsupported journal entries” that led to the former CFO’s firing this year.

Elich said the search for a permanent new finance chief, now 90 days on, has narrowed to a few candidates.

The firm has faced possible delisting action from Nasdaq this spring over delayed filings, though if Barrett files its first-quarter report by June 30, it will be up to date with its filings.

Barrett, traded as BBSI, has seen its stock price range from $53 to $22.55 in the past 12 months.