Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's financial results for the Q1 ended March 31, 2024. Joining us today are BBSI's President and CEO, Mr. Gary Kramer, and the company's CFO, Mr. Anthony Harris. Following the remarks, we will open the call 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. This statement 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 a number of risks and uncertainties. Actual results may differ materially from those implied by these 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 risks and uncertainties that could cause actual results to differ from those expressed or implied by the forward-looking statements. I would like to remind everybody that this call will be available for replay through June 1, 2024, starting at 8:00 P.M. Eastern Time tonight. 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.bbsi.com. Now, I would like to turn the call over to the President and Chief Executive Officer of BBSI, Mr. Gary Kramer. Please go ahead, sir. Thank you. Good afternoon, everyone, and thank you for joining the call. I am pleased to report that we had a strong start of the year, and our financial results are in line with our full-year projections. We continued to execute our short and long-term objectives, and we added a record amount of worksite employees for our Q1. Moving to our financial results and worksite employee status: during the quarter, our gross billings increased 7% over the prior year quarter and was in line with our expectations. We continued to execute on our various strategies to increase the top of the sales funnel, and we are seeing positive results. We added 11% more WSEs from new client adds than the prior year quarter. Our client retention continues to trend better than pre-pandemic levels. I'd like to attribute that to the work we do with our clients and the value our teams provide. The result of all these efforts, or what I refer to as controllable growth, is that we added approximately 3,100 worksite employees year-over-year from net new clients. We mentioned previously that we began to see our clients' workforce stabilize in Q3 and Q4. We are pleased to report that our clients began to hire modestly in the Q1 as we were forecasting. To summarize, for the quarter, we grew our worksite employees by 3.1% as we sold and retained more business and experienced a benefit from our clients' moderate net hiring. Moving to our staffing operations: our staffing business declined by 12% over the prior year quarter and was within our expected range. We continue to execute on our strategy to recruit for our PEO clients and place 79 applicants in the quarter. We are also experiencing macroeconomic factors, including supply and demand imbalances, which vary by geography. As we look to the remainder of the year, we will be going against softer comparables starting in Q2, and we are forecasting our staffing business to stabilize. Moving to the field operational updates: we are very pleased with our entrance into new markets with our asset-light model. We have 15 total new market development managers in various stages of their development. They are doing well and largely achieving their goals of adding and servicing new clients and new referral partners. In two of the markets, we have hired additional folks to support our clients and are in the process of moving into a traditional brick-and-mortar BBSI branch. We continue to see positive results from our investments in new markets and are actively recruiting additional new market development managers. Regarding our product updates: we continue to execute on the sale and service of BBSI Benefits, our new health insurance offering. We had a successful year-end selling season, and I am pleased to report that through March, we have approximately 280 clients on our various plans with more than 7,000 total participants. We continue to invest and evolve our business product offering. Earlier in the month, we announced that we entered into a strategic multi-year partnership with Kaiser Permanente for programs effective 7/1/2024 and greater. Kaiser is renowned for its excellence in healthcare services and offers one of the most complete and competitive HMO products in the marketplace. This offering folds into our workers' comp and health insurance framework, where we take no underwriting risk. The addition of Kaiser will further round out our product offering for blue and gray collar clients. We will be offering a national PPO side by side with the Kaiser HMO, and we are receiving positive feedback from our clients and referral partners. We believe that this is going to give us a lift for 2024, but more importantly, being accelerant to growth as we look out to 2025 and beyond. We are pleased with the results of BBSI Benefits, and this product will be accretive to earnings in 2024. We are bullish on this product and will now reap the benefit of leverage through scale. Next, I would like to shift to our view of the remainder of the year. We have consecutive quarters of great momentum. We met our worksite employee expectations. We continue to be optimistic about the road ahead. We have consistently achieved strong controllable growth by focusing on the needs of our clients and by adding new clients. We have more product to sell, more folks selling it, and more referral partners recommending BBSI. Overall, our view of the economy has materialized dislocation in the economy, growth in 2024. Your phone is cutting out on us. Thank you, Gary. Can you hear me now? Yes. Okay. Shall I continue? Yes, go ahead. Okay. Thank you. We're right at the transition. I know. Maybe that's a good time. A little intermission. Thank you and hello, everyone. I'm pleased to report that we finished Q1 with strong results, consistent with our plan, and with continued positive momentum in our sales pipeline. Gross billings increased 7% to $1.9 billion in Q1 2024 versus $1.8 billion in the prior year quarter. PEO gross billings increased 7% in the quarter to $1.89 billion, while staffing revenues declined 12% to $20 million in the quarter. Our PEO worksite employees grew by 3.1% versus the year-ago quarter, which is the result of strong controllable growth from net new PEO clients as well as modest hiring within our existing customer base. Looking at trends in client hiring more closely, we saw moderate positive hiring in every region except for the Northwest region. The Northwest continues to be most impacted by declines in the construction sector, while all other regions are now seeing modest increases in construction hiring on a year-over-year basis. The pace of hiring remains broadly slower than historical trends across all regions, but it is in line with our expectations. Looking at hours worked, overtime hours per employee have remained stable, and for the Q2 in a row, total overtime hours worked were higher than the prior year quarter. Wage rates continue to increase, and average billing per WSE increased 3.5% in the quarter. Looking at PEO gross billings growth by region versus the prior year Q1, East Coast grew by 17%, Mountain States and Southern California both grew by 7%, Northern California grew by 4%, and the Pacific Northwest declined by 6%. Turning to margin and profitability, our workers' compensation program continues to perform well and benefit from favorable claim frequency trends and favorable claim development. This strong performance has once again resulted in favorable adjustments for prior year claims. In Q1 2024, we recognized favorable prior year liability and premium adjustments of $3 million compared to favorable adjustments of $1.1 million in the Q1 of 2023. As a reminder, our client workers' compensation exposure is now primarily covered by our fully insured program with no retained liability by BBSI. Payroll taxes are typically highest in Q1 as wage caps reset, and this year has seen modestly higher effective client unemployment tax rates than recent years. These higher rates are reflected in our billing rates over the course of the year, and our gross margin rate remains in line with expectations both for the quarter and the year. Our overall profitability has continued to benefit from operating cost management. For Q1, SG&A expense increased by approximately 3%, growing slower than our billings growth rate and providing ongoing operating leverage. Moving to investment income, our investment portfolios earned $3.2 million in the Q1, up $0.9 million from the prior year. Our investments continue to be managed conservatively, with average quality of AA and average book yield of 2.9%. Net loss for the Q1 was $0.1 million or $0.02 per diluted share compared to net income of $0.8 million or $0.12 per diluted share in the year-ago quarter. The decrease is primarily attributable to an increase in payroll taxes, partially offset by decreased workers' compensation expense and the increase in investment income. Our balance sheet remains strong, with $124 million of unrestricted cash investments at March 31st and no debt. We continue our approach to capital allocation, making investments back into the company through product enhancement and geographic expansion and distributing excess capital to our shareholders through our dividend and stock buyback plan. Continuing under the board's July 2023 repurchase program, BBSI repurchased $7 million of shares in the Q1 at an average price of $120 per share, with $52 million remaining available under the program at quarter end. The company also paid $2 million in dividends in the quarter and reaffirmed its dividend for the following quarter. The board also announced their intent to execute a four-for-one stock split, pending approval by shareholders of a related increase in the number of authorized shares. Executing this stock split is intended to increase our float, benefiting liquidity and trading efficiency for our shareholders, and speaks to our optimism about the long-term value of our company and our trajectory. The effective date of the split is expected to be in June, pending the results of the shareholder vote. Looking to our outlook for the full year, our results for Q1 are in line with our plan, and our expectations for 2024 remain consistent with our prior outlook. We continue to expect gross billings to increase between 6% and 8% for the year. We expect average WSEs to increase between 4% and 5%. We expect gross margin as a percent of gross billings to be between 2.95% and 3.15%, and we expect our effective annual tax rate to be between 26% and 27%. I will now turn the call back to the operator for questions. Thank you. If you would like to ask a question, please press * one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press * two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Jeff Martin with Roth Capital Partners. Please proceed. Thanks. Good afternoon, guys. How are you? Good. Hey, Jeff. Good. I guess let's dive in by starting with the gross billings growth. Obviously, guidance has reiterated both 4%-5% WSE growth. That implies pretty low wage inflation and pretty modest net hiring, I would assume. I'm just curious if you could elaborate on those items. Yeah, I think you're correct. I think we went into this expecting really flat. Last year, we saw net negative client hiring. This year, we're expecting modest growth. We've seen that modest growth. We've messaged that to the extent that there is upside in economic activity, particularly in the construction sector, that would be a benefit to our billing side. Yeah, I would say the lion's share of our revenue growth is going to come from our controllable growth this year, right? So we've got a good track record over the last couple of years of adding and retaining business, and that's really going to carry us forward in 2024. And then if the economy picks up and our clients start to hire again, then that's just a tailwind that's not really baked into our forecast. Yep. Then if I recall correctly, at the end of Q4, you had 275 clients on the healthcare plan. We just ended a renewal period for 1-1 renewal. Now we're at 280. Is there something I'm missing here? I would think you'd see a pretty significant step up from Q4 to Q1 in terms of clients on the healthcare plan. So good question. When I gave those stats last earnings call, I gave them as of end of January. So I was trying to show the investment community how successful we were for the 1Q. So really, all we're taking credit for now in this roll forward is February and March, which I think is a small amount of clients because they're not real big healthcare months. Got it. Okay. And then in terms of the July 1st kickoff with Kaiser, just curious what kind of initial expectations we should expect? I don't want to tell you what I expect because I expect too much. So I will temper this some. 7-1s are launched for the program. We started to market and sell it in April. It's still early, right? So we're four weeks into the selling season for 7-1. We've quoted 60+ some deals so far. We've got more in the queue to quote. We've got about 10 that we've closed so far for 7-1. But I would say that this is specifically in the geographies we're in, right? Because if you look at California and you look at Oregon, they're two pretty heavy Kaiser states. And then the interesting part about Kaiser is I feel like folks are born into it and they're raised into it, and then when they become adults, they want to have it as well because it's what they know and what they trust. They've really built a good brand, and we're just pleased that we can put the BBSI brand next to the Kaiser brand, plus with a national partner for the PPO. We think it really rounds out the offering in those states. Seven-ones are second-biggest season, but really, this is, I'll say, learning the craft and the dance with Kaiser so that when we get to the one-one for 2025, we can be successful and set ourselves up for a good 2025. Great. And then just one more, if I could, and then I'll circle back around. But in terms of the Kaiser offering, am I understanding correctly it's HMO only? And curious if it doesn't include PPO, why it doesn't have that option? We have a very competitive PPO on our national partner. So really, when we put the product offering out there, the clients have the opportunity to buy the PPO on our national or if they would like the HMO on Kaiser. Kaiser predominantly sells. In this small business space, the lion's share is predominantly the HMO. Got it. Thank you. Our next question is from Chris Moore with CJS Securities. Please proceed. Hey. Good evening, guys. Thanks for taking a couple of questions. Maybe I'll just start with the benefits where Jeff left off. I just want to make sure that I understand the enrollment process. So it's July 1st with Kaiser. There'll be ongoing enrollment during 2024, but there's a bias towards starting on January 1st. Just trying to understand how that works. Yeah. The lion's share for health insurance I said lion's share three times already, but the lion's share for health insurance is effective one-one. And part of the reason for that is it ties into the HSA accounts. Where you don't have HSA, it's less beholden to a one-one effective date. But one-one is the biggest effective date. Seven-one is the second-largest effective date. And then it kind of smatters in from there by month. I mean, we add clients every month, but a large portion of them will be seven-one and one-one. Got it. Maybe we can talk a little bit more about the asset-light model. It sounds like within the 2015, there's potentially two kind of traditional BBSI branches that are beginning to form. Is that right? And roughly, where is that geographically? Yeah. So first, we've got a good client base there, and we're covering the cost of the program. So we make additional investments. And the first investment we make is typically, it's been so far we hire HR professionals locally, and then we also then build out a true branch, a BBSI brick and mortar, as we call it. So in two of the markets, we've hired additional folks locally to support our clients, and we're in the process now of tenant improvements and moving into Dallas and Chicago. Gotcha. Very helpful. Maybe just the last one for me. Maybe talk about the cadence of earnings Q2 and Q4. I think in the past, it's often been Q2 and Q4 kind of in that same range and Q3 a little bit higher. Is that the way we should be looking at it now? Is there anything kind of different at this stage? Yeah, similar pattern. Our operations peak seasonally in Q3, and that's when we see our highest profits. Usually, Q2 and Q4 would be similar, a little weighting more towards the back half of the year just because we look at our trending. But yeah, that's right. Q1, we always have very low margins because of the payroll taxes, as I mentioned. Got it. All right. I will leave it there. I appreciate it, guys. Thanks. Our next question is from Vincent Colicchio with Barrington Research. Please proceed. Yes, Gary. I'll let you finish your comment. You were cut off. All I heard was the economy. I suppose you were going to discuss your thoughts on the economy versus last quarter. I guess I had my Freudian slip moment there. But the way we're looking at the economy, there was no material change in Q1 versus Q4. And when we're looking ahead, we're saying if the economy trades the way it behaves the way it is now, we still anticipate greater billings growth in 2024 than in 2023, which is obviously reflected in our higher guide for 2024 than what we realized for 2023. A follow-up on the asset-light model. Of the remaining programs that are not moving to an office and if I heard you right, two are moving to an office, right? Do you expect any of them to also move to that next stage this year? I mean, ultimately, we expect all of them to graduate to a BBSI branch. It's just a question of when. And that has to do with what their profitability and sell-through rate is. I'll speak to that next quarter. Maybe I'll lay out a better projection for how we think the end of 2024 and 2025 is going to go for fiscal branch building. I think you said last quarter you would add three more asset light markets. Is that accurate? It's an evolving number because we hire two and one doesn't make it type of thing. So really, it's a fluid number where we hire everybody. We have a good compensation package. We train folks. We give them immersion training. We go into the market and help them. And ultimately, we try to make sure that they're successful. But it's a tough job, and there's some that are successful, and we've had a few that haven't been. But when they're not, we backfill and start again. So sometimes it's three steps forward, one step back. Last question. As you roll out this healthcare product, are you getting better at adding large clients? What does that progression look like? If you don't mind, ask me that next quarter when I actually have this when we have 7/1 under our belt. Right now, I'm still looking ahead, and most of the folks don't make their buying decision for 7/1 until May or middle of May. So we have a lot of folks that we've presented to that we think we have a chance to win, but ultimately, they haven't given us the order yet. When we get to next quarter, we'll have a true tally of what our 7/1 results were. Okay. Thank you. As a reminder, just star one on your telephone keypad if you would like to ask a question. Our next question is a follow-up from Jeff Martin with Roth Capital Partners. Please proceed. Thank you. I wanted to ask about payroll taxes. I know state unemployment rates had remained low for an unusually sizable period of time, and it appears that states are catching up to that now. I'm looking at gross margin down about 25 basis points year-over-year. You did comment that it was in line with your internal budget expectations. But just curious, with strong pricing that you're experiencing, this would imply that you get more of a trampoline effect in the later part of the year when you hit the SUTA caps. Just curious if you could comment on that? Yeah, you're spot on there. So higher payroll tax really across every region for us and our clients. Just the trend you had said that was. And we've seen payroll tax rates coming down with this strong economy the last couple of years. And even after COVID, a lot of states put policies in place to really abate a lot of the effects of the COVID layoffs, right? But now with the turn, we are seeing higher rates. We do bake that into our pricing, but as you noted, that'll flow through over the course of the year. So we'll be somewhat of a trampoline effect, as you noted, a little lower margin than usual this quarter, and that'll rebound over the next three quarters. Great. Thanks for clarifying. At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Kramer for closing remarks. Thank everybody for dialing in. I would like to thank all of the BBSI professionals for their hard work. We had a great quarter and a great start of the year, and just thank you, everybody. Thank you. This will conclude today's conference. You may disconnect your lines at this.