Revenue during the quarter grew 9.96 percent to $210 million from $190.97 million in the previous year period. Gross margin for the quarter contracted 46 basis points over the previous year period to 4.98 percent. Operating margin for the quarter stood at negative 8.14 percent as compared to a negative 6.42 percent for the previous year period.

Operating loss for the quarter was $17.10 million, compared with an operating loss of $12.27 million in the previous year period.

"While our client build remained strong, many of our markets continued to face severe weather in the first quarter," said Michael Elich, president and chief executive officer of BBSI. "Additionally, we experienced a slowdown in hiring due to a tightening labor market that presented challenges for our clients. Both factors contributed to soft contributions from same-customer sales of 3.7%. “Despite these headwinds, the fundamentals of our business remain strong, our value proposition in the market is maturing, and we are seeing consistent new business pipelines. We increased gross revenues by 13% and the organization added 225 net new clients, all while maintaining our better-than-90% retention rate. As we move further into 2017, I’m confident that our organization is focused on perpetuating our relationships, our value proposition and, ultimately, our brand."

For financial year 2017, Barrett Business Services, Inc. expects adjusted revenue to grow at 16 percent. The company forecasts diluted earnings per share to be $3.65.