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spk_0: the day everyone and thank you for participating in a conference call for discuss be as size but answer results for the third quarter ended september thirtieth two thousand twenty two ending us are bbs vice president and ceo mr gary kramer and the company's be a foe mr anthony harris following the remarks will open a call for your question before we go further please take note of the company safe harbor statement was a meeting of the private securities litigation reformat of ninety ninety five the statement to fight and for and regarding forward looking statements the companies are marked by today's conference call will include forward looking statements be statements along with other information presented that it's not reflect phoebe does not reflect historical fact our subject were a number of risks and uncertainties as a result may differ materially from those implied by the sword looking statements please refer to the company's written earnings release and to the company's quarterly and in a reports filed with the securities and exchange commission for more information about the risks and uncertainties that could cause actual results to differ i would like to remind everyone that this call be available for replace or december fourth two thousand and twenty starting at three pm eastern time this afternoon a webcast replay will also be available via the link provided and had a press release as well as available on the company's website at www that my be i dot com now i would like to call over to the president and chief executive officer of bts by mr dairy creamer surplus go ahead
spk_1: the seems you're performing around the country with our clients as we traverse this rapidly changing economic landscape together bringing the best to be aside market is a difference maker to our clients and we're experiencing better client retention lower than expected boy failure rate and better than expected revenue i want to again thank everyone in the bbs a size only many of them are listening to this call for their exceptional response to the crisis i would also like to thank all of our clients for interesting devious i your entrepreneurial spirit is adaptable resilience and refreshing regarding the company's financial strength or balance sheet is in an excellent position as our unrestricted cash investments grew a percent versus you to twenty anthony will go into more detail regarding our capital and use of capital and is prepared remarks but i would like to state that we are operating from a position of financial strength having a strong capital position affords us peace of mind to focus on the business and to continue to invest in future growth for the long term regarding the third quarter operations we exceeded our expectations in virtually every financial metric in the quarter or gross building decrease two point six percent over the prior year and is up ten percent sequentially over two to twenty to recap we navigated a challenging second quarter where our revenues were down forty percent in april and then down three percent in may and june we forecast is accused three would be a similar to may and june and we are pleased that we finish slightly better than forecast as previously discussed we do not have points and the most distressed industries such as airlines and cruises and we have low concentration in other industries such as retail restaurants gyms and salons are forecasting by industry was relatively in line with our actual results for the poor overall we are extremely fortunate that are market approach of working with all clients rather than focusing on industry verticals as help us avoid concentration risk regarding our clientele we added two hundred and fifty three new p o clients leave previously mentioned that we saw referral partners and business owners go into their bunkers and reaction decoded each month we're seeing more and more leave and the market is adapting to operating in a the world or sales conversion ratio continues to be consistent with precluded metrics or simply put there is just not as much business transacting or two three leagues were sequentially thirty percent better than que to two but still behind to three nineteen klein acquisition and ago that world is our number one priority we are not sitting idly by and waiting for the business to come to us we have various initiatives that i will speak to shortly about going and getting the business we experienced attrition of one hundred and thirty nine coins which was a better retention ratios and you to twenty and of two three of nineteen the shows that during a crisis like oh this our products was needed more than ever regarding klein attrition we lost three zero accounts receivable into the risk profile sized businesses sold fourteen businesses closed thirty six businesses closed due to go that and seventy three left the pricing competition or companies that moved away from the else
spk_2: source model
spk_1: this represents a build and a quarter of a hundred and fourteen net new clients or staffing business in slightly and with down sixteen percent in the quarter compared to being down twenty six for saying you too results vary by geography but in the aggregate for the quarter we have the borders but not the supply as the majority of individuals could earn more money on unemployment stimulus first working wages we're seeing this business picked up some and october as the stimulus has expired regarding our branch footprints at the end of september we had fifty nine total branches we continue to be mindful of operating efficiencies and consolidated the dalles oregon branch into the portland oregon branch this decision was made with the intention of continuing to grow revenue while serving our clients but doing so in a more cost efficient manner or mountain regions have been exceeding our expectations and we made additional investments opening to new branches albuquerque new mexico and glendale arizona
spk_3: as discussed last quarter the folly of our products will be the same but how we approach these markets will vary slightly the new harry managers will approach their market focused on sales and pipeline development
spk_1: we will not commit to commercial real estate but will utilize alternative nice option to keep costs down support of these branches will be have the by adjacent markets were a corporate until they reach a critical mass and then we want us to local teams to support the business a brand stratification of the fifty nine total branches is as follows
spk_4: lansing mich who arranges with run race in excess of one hundred million
spk_1: twenty emerging branches running between thirty and one hundred million twenty branches we considered developing with one rates up to thirty nine our business units and photo the one hundred and fourteen regarding other operational updates er sj in a was down significantly in the quarter compared to prior year this is the result of the cost cutting costs deferrals and restructuring that took place throughout the year i am pleased to say that we no longer have any employees on furlough as our revenue increased our folks returned to grow and support our business next i'm going to write an update on our other initiatives and strategies
spk_3: in june we announced a successful launch of my be the osi for all new clients clients the back thus far has been overwhelmingly positive as they appreciate the ease
spk_1: simplicity and individualization of the system on his clients since june or on the new system and as of last week and we have converted eighty two percent of our existing clients we are on pace to be fully transitioned before the end of the year we are also pleased to announce that we are now able to offer p o services nationwide we have the systems licenses and operations in place and are starting to sell this value we were able to expand relationships with fifteen existing clients and successfully brought on eleven new clients that utilized this offering it is still early days we're we're optimistic that we will see more and larger opportunities as a result of this offering regarding larger opportunities we can package or new technology with the nationwide offering and we are asking for larger clients in the quarter or percentage of larger leads were up forty percent over two three of nine we know that we need to be adaptable and are not sitting back and waiting for the business to come to us we've been actively polling our client referral lever and almost ten percent of our ads in the quarter were frontline referrals in addition we mentioned previously that we formed a dedicated sales and marketing team the team has been working on various strategies and initiatives and i am pleased to announce that we'll have a new company website that will launch later this month that will better reflect the best of bbs i value proposition it has been designed with the intent to better tell our story but more importantly to attract additional business we have a long term marketing sales plan that hinges on our website refreshed and we will have more to discuss in the upcoming quarters when we go to market we are offering the best the bbs i we have various products and services consisting of strategic consulting human resources information technology insurance risk management retirement services stepping in recruiting when we meet with a potential clients they may join bb aside as the they're to point today but they will stay because we deliver our whole suite of products flawlessly people have any continue to be our product which has never been more relevant to the business owner than it is today packaging their knowledge and expertise with our new technology platform and the ability to transact nationally strategically physicians us to go after larger more tech savvy clients and increases our total available market down down to turn the all over anthony for is prepared remarks
spk_5: think gary and hello everyone
spk_1: our quarterly results were strong despite the continued economic impacts of eighteen pandemic that income for the quarter was eighteen point five million compared to twenty five million and two three nineteen with the reduction do the lower building volume lower favorable development on claims occurred in prior years and a decrease investment income partially offset by reductions and operating expenses in the period growth billings declined three percent to one point five billion p o growth billing declined to percent to one point four eight billion a staffing revenues decline sixteen percent to twenty eight point five million net revenues of two hundred and twenty seven point five million without eight percent from que three nineteen as gary mention these results were better the management expectations for the quarter o growth buildings growth by region versus the prior quarter red thought mountain states grew seventeen percent east coast grew six percent
spk_3: northern california in the pacific northwest were both flat and southern california declined by eight percent
spk_1: same customer sale for the period were down one point three percent from two three nineteen due to the ongoing economic downturn
spk_3: this decrease with in line with expectation and was attributable to a decrease in headcount partially offset by an increase in average cable rates over que three nineteen
spk_1: average hours worked in the period were generally consistent with the prayer workers' compensation expense of the percent of gross dealing with three point four percent this quarter which is below are expected range of three point eight four point oh percent this decline is primarily attributable to actuarially determined reduction the prior year estimated liability of three million dollars in the third quarter our overall workers' compensation claims frequency continues to favorably and the quarter with that frayling twelve month relative frequency of planes as a percentage of payroll decrease fifteen percent compared to the third quarter of nineteen
spk_5: we continue to monitor the impact that the coven eighteen pandemic may have on a workers' compensation program
spk_1: this includes monitoring updates the state regulations and response to cope in eighteen and changes to the presumption of coverage the only a significant update report this quarter is the passage of legislation in california in september that codified covered nineteen coverage and a that is generally more restrictive and therefore more favorable than the governor's executive order that was issued in may and it's and expired the new legislation will apply to most employers in the states that have a covert nineteen outbreak an outbreak is defined as having positive covered nineteen tests from either for employees or four percent of the workforce whichever is greater and the cases must occur within a fourteen day window we reported previously that we've had minimal covert nineteen claims exposure and minimal risk planes reported through que to and with the more favorable terms of the new californian legislation to continue to believe that covered making claims will not materially increase our overall workers' compensation caught however we continue to monitor the situation carefully and we have contemplated killed in eighteen and certainty when selecting are cool rate for our workers competition reserves we've discussed previously that the broader market for workers' compensation insurance has become increasingly competitive particularly in california where most carriers have instituted price decreases of the last two years while we do not compete primarily on price and are offering is more comprehensive than traditional insurance we continue to adjust our pricing and marketing strategies to remain competitive and attract new types of customers one of the adjustments we made was to scale back our safety instead of program
spk_3: in exchange for lower service fees this change is particularly attractive and the current environment as allows customers customers to pay less money up front and allows bbs i to better position our pricing relative to competitors
spk_1: this change expected to be margin neutral but you will see our safety and sin of cause and liabilities decrease with a corresponding reduction in growth billing rate as seen a in the quarter with thirty five point six million compared to forty one point four million in the prior your order representing a decline of fourteen percent as the described our previous earnings call cost saving measures were implemented in response to cope with nineteen and while we continue to be cautious than are spending as the
spk_3: in a levels will continue to increase modestly as business volume growth
spk_1: we also incur a larger share of our variable employee compensation putting profit share another incentive payments and quarters three and four or investment portfolios and one point seven million in the third quarter compared to three million in a prayer the decreased investment income is directly attributable to the lower interest rate environment compared to the prayer and it's consistent with our expectations for the period our investments continue to manage conservatively with an average duration of one point six average quality of investment double a due primarily to our variable rate holding our average book guild has decreased to one point five percent from two point three percent a year and to turn into the balance sheet we had one hundred and forty eight million dollars unrestricted cash investment that september thirtieth compared to one hundred and thirty million at june thirtieth continue to be debt free a quarter and with the exception of our four million dollar mortgage on our corporate headquarters
spk_3: we now think you one that we increased our line of credit with wells fargo as a source of additional financial flexibility given the current economic uncertainty
spk_1: our agreement with wells fargo provided the option to revert to a lower credit line amount if we wished and due to the available unrestricted cash investments on hand and the general resilience of our operation we have elected to lower our credit went back to thirty three million as september thirtieth which also included corresponding see reduction
spk_3: as our cash investment balances increase management and the board of directors have remained diligent in our approach to capital allocation
spk_1: we have discussed previously the importance of establishing a working capital reserves sufficient to whether unforeseen circumstances and the coven eighteen pandemic with a validation of that strategy
spk_3: but we believe we now have unrestricted cash investment bounces above the level necessary for these reserves and we will continue to execute on our capital allocation philosophy
spk_1: this philosophy of for priority first our investments and our company to take advantage of the significant market opportunities available to us
spk_3: the pdl industry is widely under penetrated and be besides well positioned to serve the addressable market
spk_1: we're excited about continuing our journey of growth in part by enhancing our products in a building or strategy the launch and continued enhancement of the my be as i portal is an important example of that type of investment decades gary as previously mentioned that we are now pursuing strategic in or yannick growth opportunities are we believe we can launch into new geography is more effectively through emanate and we can do greenfield branch opening we continue to actively evaluate potential targets that are maintaining high standard as we consider who we might bring into the dbs i family it is important that our people product fish and are all a line before we would move forward third the board reinstated our stock buyback program and we repurchased approximately fifty seven thousand shares that an average price of fifty three dollars and sixty one cents per share during the trading window we will continue to be an opportunistic buyer of our stock as a preferred method of returning capital shareholders fourth we remain committed to our quarterly dividend which the board just reaffirmed that three cents per share we will continue to evaluate an update our capital plans regularly to ensure that we are response to our environment and new opportunities as they arise
spk_3: turns out outlook for the year
spk_1: with the favorable results of que three we now expect full you're deluded earnings per share to be four dollars and ten cents up from three dollars and seventy cents an hour prior outlook we now expect bros workers' compensation expense as a percentage of gross filling terrains between three point seven and three point nine percent vs three point eight and four percent previously and we continue to expect an effective tax rate of approximately twenty one percent as with our path forecast these estimates do not include significant economic deterioration or widespread shelter in place orders and remainder of the year i will now from the call back to gary for closing remarks
spk_6: by anthony
spk_1: in conclusion our product is strong and and it's never been more relevant to the business owner we've responded swiftly and decisively to the unusual events of twenty twenty two three exceeded our expectations and we have raised our for your earnings guide accordingly we're working on the right things and i'm extremely optimistic of the future can you to always think of the client first and advocate for the success of the business owner
spk_3: now operator alternate over for questions
spk_0: thank you sorry ladies and gentlemen we will not be conducting the question and answer session if you would like to ask a question please press star one on your telephone keypad a confirmation number indicate that your line asthma my question que you may press start to if you would like to move your question from the kill for participants users bigger equipment and may be necessary to pick up your hands before pressing the starkey our first question comes from chris more with city as securities please proceed with your question
spk_7: a good more guys
spk_8: thanks for taking a few good morning
spk_7: he just want to make sure that that i'm looking at the the guns correctly so that the goes billings guide for fiscal twenty is down three percent year over year so that would imply that the to forgo spellings is down closer to six percent that right
spk_1: yeah that approximately yep proportionately that's right we have it closer to five catch a predator it is one one thing for to were right it's in for we a lot of our business owners pay themselves bonuses and we made a yale called a normal adjusted that we thought based upon the way the economy is that bonuses were going to be less this year so that's where that's why the numbers down at a little mosque as we be factored in about a twenty million dollar decrease in bonuses for for twenty years ninety
spk_9: god it is helpful
spk_1: but that the at at the little bit of a gut feel there there's no there's nothing that i can give you a quantitative baltic well
spk_10: got it
spk_7: and in terms of of the class structure me guess you're doing a great job they're just trying to get a sense in terms of you know what as as things turn around you know or their costs that that dumb and others across structure improve moving forward or for example from from an ad in a standpoint if if fiscal twenty one revenue was
spk_8: you know roughly equivalent in a team with the as una be roughly clinton to they are likely you know little bit lower than he can a big picture thoughts her
spk_1: no it's a great question who has a very significant cost reductions you know and you to and we said that those were in not sustainable the business grew into those have increased and que three the we have been very mindful is gary said look at operating efficiencies or he can and we learned a lot of important lessons and have been very strategic bout how we bring caught back and where we spend money frankly so he answered your question is though as today will continue to scale up with operation as he saw from qt
spk_11: three that trend would pity for kids with que por
spk_3: by his business volume of the over and twenty one were consistent with my p you would expect as you need to be less because we are in very mindful of were reading back
spk_10: got it i appreciate that
spk_7: i will jump back and kill it appreciate guess
spk_0: i think your next question comes from just martin with last capital partners please city with your question
spk_12: as for that regard sorry i didn't quite catch exactly what she said relative to the a implied guidance for queue for seems like seventy five cents the is a very conservative number of which is implied guide understood that is are some catch up in the
spk_13: profit share branch level but or is there anything else that is at different relative to what the businesses was running operationally into two three
spk_14: yeah had a just so is
spk_1: it is a tough time to forecast for everybody out there right we don't even know who won the election year so we we put out a number that we thought was attainable it's sony any number we put out there we wanna make sure that we got a high degree of confidence me of i'd agree to a high degree confidence in the number in the as if there's two when you're trying to do your year over year compare for to for there's there's no apology to headwinds for que four of twenty the first head when is it were forecasting reps to be down which is now call it twenty five cents differential on earnings the second is if you look it's just the way the yields are working on the portfolio for investment income our best and incomes gonna be down in l seventeen to twenty cents per share for for twenty years nineteen so he has to too young to be headwinds there and and a couple that care with the fact that you for typically is play that less properly que three two three is always or most profitable quarter is a couple reasons for that one of which is the the payroll tax pass reset on a cash business is for from like it's a crude back in the key for if you look at the ratio of nineteen to twenty protects the not that far off or nineteen two three to you for from twenty to thirty four thought that far off from work for camping
spk_15: i okay
spk_13: and then was what are the anything in particular driving any movement and some of the yeah non business related cost of about know specifically payroll taxes and the efforts and drew up a will cost
spk_1: nothing i guess abnormal are significant that were to be know where the reporting that i say for those it's it's a it's a pure quarter
spk_12: okay and then and in terms of new business leads was there any progression to to of note as you move to the quarter and as october's now behind that they are you starting to notice those pick up and sell it was driving her
spk_1: yeah i mean this is we've been talking about this for a couple quarters now right that we knew we knew that the the business owner and the referral partner one in their bunker right and if you think about the business owner they are they're more worried about the front of their shop instead of the back of the shop right so they were worried about staying in business they weren't worried about the anything on the back and so if you think of our product it it helps support the scale their products that they weren't thinking on on that a fairly for for us at the time so yeah we choose three we were up thirty percent as far as our leads compare the queue to but we were still about fifteen to twenty percent behind our leads for two three of ninety so it's it's really a volume issue and were are not fit nicely by and when fort wayne for were out there be in the bushes try to get it it's just you know we're when the business comes in and we go me with a business owner are conversion ratios are as high as as prieto that so we know how to sell in a cozy world without a cell in a virtual world it's not a sales issue with that it's a volume issues or batting averages good for does not get in as many plate appearances but we're seeing that good it's good it's been getting better as every month goes by
spk_13: okay
spk_12: and unlike like question the of pl hurt by region a mountain certainly performing very well known in california in northwest to and doing okay but there is a ticket a southern california market is it thought can confrontation by by industry ways
spk_1: that they can can you identify any any other trends going on there that driving the end of the unfair yeah there's no i mean we look it look at everything by industry will get everything by geography and there's there's no there's no common commonality i'll say between you know why we're seeing it down the way it is in southern cal yeah where we are seeing the same customer sales in southern cal be slower than northern cal and it's really a same customer sales issue and it's it's just the
spk_13: the worksite employees in southern cal are down more than any other geography that we have
spk_0: okay thanks to my question
spk_7: guess
spk_1: i you are next question comes from federal colicchio with parents and research institute with your question the gary it's i aren't ya increase the success of using their clients for referrals have you ever worry changes there that are joined that up now i mean other than in our our our teams want to grow and they get compensated for growth ryan so ill everybody everybody our company has a sales go on a sales targets are they want to make sure they're hit
spk_16: so it's really it's really just taken a step back and as you're working with the client and saying hey you know we did all these great thing you have anybody else that would benefit from our services
spk_1: and then that he talked about that i'm anthony talk about some changes your workers copper pricing i'll run impact your overall pricing packages or market so if if if you think of safety in santa rosa year failure rate per payroll is ten cents or ten percent i'm from say the incentive say we're going to get back ten percent on that ever since about one point we would have to charge the cli eleven points so what we're doing now is we're reducing it's only charge ten points and they get no safe incentive so before we would grow sit up in the rate and now we're just netting it out and the idea there is you know rates have been competitive that allows us to be competitive it's it's zero cost of such has reduced reduction of a pass through
spk_17: but the idea there is you know it's it's more competitive us in the marketplace to reduce the path through number one in a number two for the business owner in the way the safety incentive work since they would they pay us up you know they pay us during the time and then they get back at the end so it helps their cash flow and the especially go
spk_16: or in these times have you know extenuating circumstances is it helps their cash flow to pay less in thanks for that
spk_1: yet the staffing business at a good quarter imagine de yah it's hard to secure talents having said that god should we expect that into the to drop back down or are you thought there for the scratch occurred i i think it's going to be very tie to what the stimulus packages
spk_18: so you know if you're if you're figuring out of it's gonna be of a bipartisan
spk_16: government ah i think the pressures going to be on stimulus and i think there's going to be less stimulus and i think that's gonna be better for staffing
spk_1: but at that one specifically is going to be the most affected by the stimulus while we're my or for me how good amount of branch for salvation army was just curious as or a more that you think you can do our that we may see i'm coming quarters much more importantly the award warmer deal knows it's just kind of remove some cost out of the equation but are able to sell in service the business oh yeah when he saw on the quarter that we we opened two branches in the mountain states
spk_16: and they're doing very well they learn the craft quickly in they're out there convert business
spk_0: ah and we're not done with organic growth rates so right now we're actively recruiting in
spk_19: pittsburgh memphis nashville is lana right in the idea there's were were looking for good talent that can go run their operations and we want to bring him in train them as quickly as possible and get him out there to go get the market so ill we're we're playing more often than we are deep as at this point
spk_20: by score thank you
spk_13: thank you your next question comes from josh follow with that in company please proceed with your question
spk_21: banks are good morning guys
spk_1: i'm on to build up
spk_3: one of the other questions that safe incentive program or as you mentioned you guys plan to scale it back but are you gonna whoop
spk_1: ultimately eliminated altogether
spk_13: we will scale it down by default but we have a decentralized cells structure and there are certain refer a partner certain client is that is very valuable to them and the economic trade off their my makes sense so it's not going to be a wholesale
spk_1: no we're not allowed to do that anymore we are giving kind of in general guidance to the field that it's are going to be one hundred percent reduction
spk_22: okay and just to confirm that what whatever the reduction is is a dollar for dollar i was going blind
spk_13: correct yeah so it's a of them out
spk_1: a little bit ahead when for gross billingses as we do this because we're reducing the pass through but the zero effect on margin as the bathroom of that i just want to get a little bit a better handle on and the leverage in the model and thought that efficiency of the sc ne line but maybe you know what level of bros billings in business next when you step into think that you can get to ah a one percent operate part
spk_23: what's good question up i don't know that i have the that specific number the or to look for their but i can you that we do pay attention to leverage obviously as our volumes have decreased in twenty
spk_1: are you know he we had reversed leverage in the sense that are are a bit doctor gross margin level or isherwood down but we responded and cut down that much costs as because and honestly be look at that ratio and cute too our leverage pretty consistent you to twenty over to to nineteen which is impressive given that the significant volume decreases we had as it progressed we've put back in car to make sure we are hindering our future growth limit for the we're looking at the long term setting ourselves up for success that we have seen our full your leverage decrease
spk_24: slightly
spk_13: it's only a couple percentage points so to leverage is holding pretty well the ideas that we are investing wisely and we think we're at good sustainable as seen a levels so we should see leverage benefits going into twenty one and beyond as we start to return to kind of non coded post co they recovered have going to look at it highest growth patterns
spk_1: all right and and and just one last night and i was sitting here in november and to fluid situation with with kobe mr oh no out what's happening in on the political front but is there any commentary or outlook that you can share heading into twenty twenty one given the current environment in a high you see the year playing at especially earlier i understand it or commentary showed the great yeah i mean there's some at the were were sit now and and you know that our business all comes down to our stacker as a week before we even venture into giving a guide for twenty one
spk_19: we need to know where are ending client stack is for the year but maybe if you think of everything that's out there josh right between the election between coded and shelter in place between the vaccine is going to and wanted to have and how the remaining gonna get it are we going to another stimulus
spk_0: i'm it's for where we sit at this time we we know that we're gonna return to growth and twenty one we were just a little apprehensive to put a number on that growth just because of all of the or nose out there
spk_25: yeah makes sense our back yard stick my passion thank you as a reminder ladies and gentlemen as he would like to ask a question at this time please pass star one on your telephone keypad
spk_13: our next question comes from bell does alum with titan capital management a specific your question
spk_1: thank you i have a group or questions first of all analysts start with staffing it eventually you'd have seen a rebound in october and given it the stimulus ran out closer to the end of july or you kind of perspective on why you didn't see that rebound earlier whether it be august or september yeah i mean if you will it depends on the geography were and right the just and yeah there in geography we saw pick ups or other geography is which was the majority was still the we still had more orders that we can still and if you just look at the savings rate the folks had they lived on their savings rate for little bit before they had to before they had to go back and obtain gainful employment so if you yell a little bit of a lag between when the know when the stimulus checked started to start first when they're saving started to decrease the when they had to start to get back out there and yet we in in july and august in a we
spk_25: we add me as depending upon the brash we had some branches that ill add three four hundred orders and on on any given week that we couldn't fill
spk_1: just just because we didn't add the bodies and and the people that wanted to do the work so that's that number is decreasing now are watching and in september and october october as of better month of september for seven and for clarification does and order equal one body or and an order at when you say two or three hundred orders each of those could have multiple people that they're looking for typically one orders one body thank you then that go on that one to just just just the qualify to write or staffing is more than just just placement we do a lot of of
spk_26: yelp placement fees
spk_25: and the placements he's right there you go any higher the money we pay like a recruiting face when to think of it that way
spk_13: that business we saw slow down the most just because people during that time concerned you aren't hiring so it was a little bit of a little bit of people aren't hiring permanently and then they wanted to do temporary we couldn't fill the temporary orders were seen the temporary orders come back we have
spk_1: seeing the full time employment come back yet as far as our recruiting peace thanks gary
spk_3: at at and then relative to your investment income at one point seven million this quarter were are you expecting on go forward quarter given what you know that your reinvestment
spk_27: right on your portfolio and and or growth in the cash
spk_1: the we indicated in our q one call and get some broad guidelines to with an investment and would be down for in for the year and that's turning out to be fairly accurate i will say the delta between year over year and that's been income is going to widen into for and that's not so much because our an interesting couple go down it will go down a little twenty bucks to for faint keen we had a pretty significant increase in and and interest income there so that also tributes for some of the delta between two for maintaining to for twenty a by it's it's our interest income is held fairly steady it you can see that the trend is it gradually decreases
spk_13: in two to three key for and i would say we expect that from to continue
spk_25: and do you have built a little a little bit of a function to of we've you know about half of the portfolio is of that it out and the all it longer term and you're going to have a situation where those assets are going to be common do and maturing and ever going to be reinvesting at a lower rate so it's not only the green money coming in for the new business it's also going to be the reinvestment on a little lower gail we unfortunately when when rates go to zero it punishes savers and were saver understood and i think an exclamation point is behind the you're a safer when you look at the hundred fifty million and around and of cash that you have on the unrestricted cash and the valley she had since that represents about thirty percent of your market yeah
spk_28: talk to us about your just how you are thinking about that and i anthony i know that you earlier and the yeah
spk_1: and in a call reference the year of the for items and a priority i'm thinking more philosophically than than prioritization so just given that that thirty percent of your market cap is in cash
spk_3: would would be a taxi that with displaced
spk_29: yeah that we
spk_1: go back to my remarks earlier he were intentional about accumulating that level of cash why should say a level of cash to be able to weather storm forget said and that was pre cold it
spk_11: so we do want that financial mode around the company we now have
spk_5: more cash than we need in that respect
spk_1: and we are being very proactive around how we deploy that we did start buying back stock again since we last spoke about back fifty seven thousand shares and we have an ongoing limit to be an opportunistic barber stock going forward in future quarters in addition to our dividend we also container with working the strategically and as we looked at acquisition targets and key geography or we feel like going in acquiring a video is more strategically advantageous and planting a new branch that is per hour modeling a high return for shareholders and our expectations now that that would be financed largely or perhaps entirely and things issue with so that cash as well so we are mindful that we want to be cautious
spk_30: but we are being diligent with that with respect to our market cap
spk_0: and then the ratio of that i think that's as much a function of
spk_1: you know that of the market pricing bob relatively your post covered and we continue to focus on one a good company and or said about the future and expected that with to to go up thank you both
spk_3: thank you at this time discomfort or question and answer session i would now like ten a call back over to the supreme famer for closing remarks
spk_0: thank you jesse saugus wanted again say it did the company strong and and the businesses resilient and the small business owner is resilience through these times and
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