Good day everyone and thank you for participating in today's conference call to discuss BBSI's Financial Results for the Second Quarter Ended June 30, 2017. Joining us today are BBSI's President and CEO, Mr. Michael Elich; and company's CFO, Mr. Gary Kramer. Following their remarks, we'll open up the call for your questions. Before we go further, please take a note of the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The statement provides important cautions regarding forward-looking statements. The company remarks during today's conference call will include forward-looking statements. These statements along with other information presented that does not reflect historical facts 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 the risks and uncertainties that could cause actual results to differ. I would like to remind everyone that this call will be available for replay through September 09, 2017, starting at 3 P.M. Eastern 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.barrettbusiness.com. Now, I would like to turn the call over to Chief Financial Officer of BBSI, Mr. Gary Kramer. Sir, you may begin.

Thank you, Ashley. Depending upon where you are dialing in from good morning or afternoon everyone. The operations of the company were strong in the second quarter. Net revenue of $225.6 million increased 11% from Q2 '16. Gross revenue of $1.3 billion grew 14% over the same period. Diluted income per share was $1.47 compared to $1.16 in Q2 '16. In the quarter, PEO gross revenue increased 14% to $1.26 billion compared to the second quarter last year. Contributing to this growth was a record addition of 350 gross PEO clients. This further validates our value proposition as we are seeing an increasing and consistent client add throughout the year. Same customer sales accounted for 7.6% of total PEO revenue growth. Same customer sales rebounded in the quarter from the lows of the prior two quarters but is still below historical averages [in less than a model] [ph]. As mentioned over the last two quarters, the labor market has tightened the levels where our employers cannot easily hire to fulfill their needs. Staffing revenue in the second quarter increased 1% to 37.9 million and is in line with our strategy given the current market environment. Workers compensation expense as a percentage of gross revenues increased due to an unfavorable change in the estimate of prior year’s liability of 2.4 million. Claim development on prior years was slightly higher than expected and resulted in a slightly higher selection by our outside independent actuary. Although we are required to have an expert independent actuarial valuation performed annually, we have chosen to have one completed quarterly and we book to that result. This process provides greater overall confidence in the adequacy of our reserves but it may also lead to more volatility by quarter. In the second quarter, the resulting workers compensation expense…

Hello and thank you for taking time to be on the call. As Gary mentioned despite slight headwinds we had a good quarter. The foundation of the business remains strong as we continue to invest in future growth. The organization has well aligned our pipelines are consistent and we’re seeing our value proposition mature in all markets. Looking at the quarter, we added 350 new PEO client which is a record. We experienced attrition of 81 clients four, due to accounts receivable; five for lack of tier progression, eight were cancelled due to risk profile, 24 businesses sold or closed and 40 left due to pricing, competition or companies that have moved away from the outsourced model. This represents an approximate build in the quarter of 269 net new clients. Same customer sales of 7.6% was an improvement over the last quarter but continues to be lower than our historical average. Our strategy as always been to add width to our client base. We recognize that while we cannot control the size of our client companies, we can control how many clients we work with. This is demonstrated by consistent ads on the quarter and ongoing retention north of 90%. Related to pipeline, we continue to evolve our ability to scale from a model based on individual market contribution to a systemic approach for developing referral channels. As a result, today we see developments in new referral channels in all markets which supports strong pipeline growth. In the first half of 2017, we saw contribution to pipeline from a significantly larger base of referral partners. Because of this, we are seeing consistent contribution to new business from all markets. Our ability to expand pipeline and consistently add to our client base is in all market gives me confidence in the…

Thanks. I would like to talk about the Chubb Trust investments. You mentioned that at the end of the quarter 96% was invested. How much was invested on average for the quarter and really what I am trying to understand is when we look at the third quarter what’s the incremental dollars that will be invested for the Q3 in comparison to Q2?

Hey Bill, it’s Gary Kramer. If you take the 203-basis point and apply that to the balance, that’s a good number for the go forward since we are close invest it at the end of the quarter. It’s not as easy to invest all that capital at once, it’s not like going to the grocery store and buying milk and eggs, it takes a little bit of time to get it deployed. So really by the end of the quarter it’s when we were fully invested. So, if you take that 203 basis points and roll that forward, that’s good for your model. And then with the growth of the Trust, it's going grow somewhere in the 25 a quarter range, 25 million a quarter is what we see the incremental growth of the value of the Trust being.

Thank you. And then let me circle back to the second quarter. How much was invested on average in the second quarter because to your point this wasn’t something that you are able to do immediately at the beginning of the quarter?

I don’t have it by month. I mean we were really targeting to have it completely invested by the end of the quarter and we hit that goal. But it was not an equal amount by quarter so really if you just think it for the end of the month and use your 203 basis points to model forward that’s a good number.

And then I would like to circle back Mike to the question or the topic of referral development. We can talk in more detail about that and how you came to the point of building that referral pipeline and what you see or believe the implications could be over the next one to three years please?

Well one of the things that we started to recognize all the way, as much as is year and a half ago, two years ago was that as we were going to market on an individual basis that we were creating a little bit of a cross current for ourselves in overall markets then as we were trying to mature into new branches, new locations, that cross current actually was creating headwinds and there was never an intent to do that and so one of the things that we discovered also is we were able to bring our referral channels and principals to those groups to bring us new business and give them a clear view as to who we are and what we’re about and I would like to say that when an owner of one of our referral channels sits down with us, we’re trying to -- we help them to see their business through -- our business through their own eyes as they run their business. And as we do that, the visibility of the consulting and the facilitating model that we bring to our client makes a lot more sense and continues the migration of our value proposition. So, if we started that a year and a half two years ago, we began to really test it probably a year ago even though we were kind of dabbling with it year and a half ago. In the last six months, we’re still in a lot of R&D, we’re still having a lot of meetings that we’re testing differently as we go about as that we go about is that we’ve probably run through about 150 groups or principles of individual. So, as you think of the one to many approach, I’ve got one principle of referral…

And then this process is somewhat new and from a formal perspective I know you’ve worked with referrals sources in the past, but now as you’re formalizing it, not now, and I realize it is counter to how your press release is with [ph] but this potentially accelerates your rate of growth over a longer time period?

I think the first real goal is to create sustainability in the consistency of our ability to add new clients. When you’re -- for supporting 5,000 clients today and we have our build of 350 to be able to support a growth rate out three or four, five years from now when we’re supporting north of 10,000 clients. You have to be adding more to support the growth rate of the large numbers. So, your pipeline obviously are going to have to be wider. But I think what we’re really going to see more importantly is when a consistency of pipeline is coming through which we are already recognizing to that there is a level of integrity in that pipeline that allows us to achieve a higher yield if we choose. But more importantly when it comes to just underwriting and the selection of our clients we will be able to be more particular as we allocate our capacity of our organization back to supporting those clients.

[Operator Instructions]. And as there are no further questions, I would like to turn the conference back over Michael Elich for any additional or closing remarks.

Thank you for joining us for the call. We look forward to speaking with you as the year progresses and moving into ‘18. I really do feel very good about where we are at as a company. This week in particular we have a group of new hires that have been on board more than 90 days but less than six months and are building in. I am very excited about the talent that we are hiring today. I am excited about the quality of companies that are coming on board. I am excited about the conversations that we are having with clients which is leading to a very strong retention level. And we have discipline of running the company for the future we are going to continue to maintain an integrity about how we are bringing clients on and how we are supporting them and how we are continuing to mature that value proposition. So, thank you and stay tuned. Look forward to speaking with you in late October, early November. Thank you.

And that concludes today's presentation. We thank you all for your participation and you may now disconnect.