BGSF, Inc. (NYSE: BGSF), a growing provider of consulting,
managed services, and professional workforce solutions, today
reported financial results for the third fiscal quarter ended
September 29, 2024.
Q3 2024 Highlights (results include sequential comparisons to
Q2 2024):
- Revenues were $71.2 million for Q3, compared to $68.1 million
for Q2.
- Property Management segment revenues increased 15.9% from Q2,
driven by seasonal demand.
- Professional segment revenues declined 2.5% from Q2, due to a
decline in billed hours in the Finance & Accounting
division.
- Gross profit was $24.3 million, up from $23.6 million in Q2,
primarily due to higher sales in Property Management.
- Net loss was $0.8 million, or $0.07 per diluted share for Q3
and Q2.
- Adjusted EBITDA1 was $3.2 million (4.5% of revenues) in Q3 from
$2.6 million (3.8% of revenues) in Q2.
- Adjusted EPS1 was $0.10 for Q3 compared with $0.07 for Q2.
- Launched advanced lead generation technology, which generated
significantly better lead acquisition and conversion rates in the
quarter.
1 Adjusted EBITDA and Adjusted EPS are
non-GAAP financial measures as defined and reconciled below.
SUMMARY OF FINANCIAL RESULTS
(dollars in thousands)
(unaudited)
For the Thirteen Week Periods
Ended
September 29, 2024
October 1, 2023
June 30, 2024
Revenue:
Property Management
$
29,824
$
35,976
$
25,726
Professional
41,362
47,508
42,411
Total
$
71,186
$
83,484
$
68,137
Gross profit / Gross profit
percentage:
Property Management
$
10,696
35.9
%
$
14,197
39.5
%
$
9,596
37.3
%
Professional
13,633
33.0
%
15,782
33.2
%
14,034
33.1
%
Total
$
24,329
34.2
%
$
29,979
35.9
%
$
23,630
34.7
%
Operating income
$
470
$
5,267
$
81
Net (loss) Income
$
(804
)
$
2,640
$
(761
)
Net (loss) income per diluted share
$
(0.07
)
$
0.24
$
(0.07
)
Non-GAAP Financial Measures:
Adjusted EBITDA1
$
3,208
$
7,857
$
2,603
Adjusted EBITDA Margin (% of revenue)1
4.5
%
9.4
%
3.8
%
Adjusted EPS1
$
0.10
$
0.36
$
0.07
Beth A. Garvey, Chair, President, and CEO, said, “Although
economic uncertainties persist and the demand environment remains
choppy for the entire IT consulting and workforce industry, we are
pleased to report that our third quarter total revenues improved
sequentially by 4.5%. This sales progression was due to a seasonal
lift in Property Management, up 15.9%, compared to the second
quarter. In addition, the Professional segment stabilized late in
the quarter, down 2.5% for the quarter compared to the second
quarter. We continue to launch 2024 project wins expeditiously,
including the major IT transformation project related to a large
international client that we discussed last quarter. Our largest
category in Professional, IT consulting, maintained stable topline
revenues between second and third quarters, which is positive.
Finance & Accounting experienced lower project work in the
third quarter due to typical seasonality for calendar reporting
clients. Permanent placements stabilized with flat revenues between
second and third quarters. Conversely, Managed Solutions continued
to grow sequentially, which aligns with our strategic goals of
expanding our consulting efforts. We remain cautiously optimistic
at the pockets of revenue categories that stabilized this quarter
but continue to tightly manage costs and expenses.
“As part of our ongoing technology enhancements, I am pleased to
share that we have launched our advanced lead generation engine in
the third quarter, made possible by our earlier investment to
modernize our tech stack. BGSF’s technology platform leverages our
marketing automation to streamline better lead acquisition and
increase conversion rates across both our Professional and Property
Management divisions. We have other tech enhancements launching in
the fourth quarter to drive better efficiencies and believe these
initiatives demonstrate our commitment to BGSF’s digital
transformation to improve client engagement and deliver
cutting-edge workforce solutions.”
“The review of strategic alternatives work continues, and we
have no updates that we can share today. We look forward to
discussing in more detail in the future,” concluded Garvey.
Conference Call
BGSF will discuss its third quarter 2024 financial results
during a conference call and webcast at 9:00 a.m. ET on November 7,
2024. Interested participants may dial 1-844-481-3017 (Toll Free)
or 1-412-317-1882 (International). A replay of the call will be
available until November 14, 2024. To access the replay, please
dial 1-877-344-7529 (Toll Free), or 1-412-317-0088 (International)
and enter access code 4519768. The live webcast and archived replay
are accessible from the investor relations section of the Company’s
website at https://investor.bgsf.com/events-and-presentations/default.aspx
About BGSF
BGSF provides consulting, managed services and professional
workforce solutions to a variety of industries through its various
divisions in IT, Finance & Accounting, Managed Solutions, and
Property Management. BGSF has integrated several regional and
national brands achieving scalable growth. The Company was ranked
by Staffing Industry Analysts as the 97th largest U.S. staffing
company and the 49th largest IT staffing firm in 2024. The
Company’s disciplined acquisition philosophy, which builds value
through both financial growth and the retention of unique and
dedicated talent within BGSF’s family of companies, has resulted in
a seasoned management team with strong tenure and the ability to
offer exceptional service to our field talent and client partners
while building value for investors. For more information on the
Company and its services, please visit its website at
www.bgsf.com.
Forward-Looking Statements
The forward-looking statements in this press release are made
under the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
include, but are not limited to, statements regarding our future
financial performance and the expectations and objectives of our
board or management. The Company’s actual results could differ
materially from those indicated by the forward-looking statements
because of various other risks and uncertainties, including, among
other things, risks relating to volatility and uncertainty in the
capital markets, availability of suitable third parties with which
to conduct any strategic transaction, whether the Company will be
able to pursue a strategic transaction, or whether any such
transaction, if pursued, will be completed successfully and on
attractive terms, or at all, the risks associated with undertaking
a review of strategic alternatives, including in respect of
relationships with stockholders, employees, customers, and
suppliers, as well as risks and uncertainties listed in Item 1A of
the Company’s Annual Report on Form 10-K and in the Company’s other
filings and reports with the Securities and Exchange Commission.
All of the risks and uncertainties are beyond the ability of the
Company to control, and in many cases, the Company cannot predict
the risks and uncertainties that could cause its actual results to
differ materially from those indicated by the forward-looking
statements. When used in this press release, the words “allows,”
“anticipates,” “believes,” “plans,” “expects,” “estimates,”
“should,” “would,” “may,” “might,” “forward,” “will,” “intends,”
“continue,” “outlook,” “temporarily,” “progressing,” "prospects,"
and “anticipates” and similar expressions as they relate to the
Company or its management are intended to identify forward-looking
statements. Except as required by law, the Company is not obligated
to publicly release any revisions to these forward-looking
statements to reflect the events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events.
UNAUDITED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
amounts)
September 29, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
262
$
—
Accounts receivable (net of allowance for
credit losses of $933 and $554, respectively)
46,074
56,776
Prepaid expenses
2,355
2,963
Other current assets
2,760
7,172
Total current assets
51,451
66,911
Property and equipment, net
1,204
1,217
Other assets
Deposits
2,092
2,699
Software as a service, net
4,592
5,026
Deferred income taxes, net
7,587
7,271
Right-of-use asset - operating leases,
net
5,065
5,435
Intangible assets, net
26,193
30,370
Goodwill
59,151
59,588
Total other assets
104,680
110,389
Total assets
$
157,335
$
178,517
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
221
$
95
Accrued payroll and expenses
15,361
14,902
Line of credit (net of debt issuance costs
of $128)
—
24,746
Long-term debt, current portion (net of
debt issuance costs of $27 and $0, respectively)
3,373
34,000
Accrued interest
286
438
Income taxes payable
172
282
Contingent consideration, current
portion
4,047
4,208
Convertible note
4,368
4,368
Lease liabilities, current portion
1,586
2,016
Total current liabilities
29,414
85,055
Line of credit (net of debt issuance costs
of $305)
7,381
—
Long-term debt, less current portion (net
of debt issuance costs of $220)
33,780
—
Contingent consideration, less current
portion
—
4,112
Lease liabilities, less current
portion
3,815
3,814
Total liabilities
74,390
92,981
Commitments and contingencies
Preferred stock, $0.01 par value per
share, 500,000 shares authorized, -0- shares issued and
outstanding
—
—
Common stock, $0.01 par value per share;
19,500,000 shares authorized 11,006,696 and 10,887,509 shares
issued and outstanding, respectively, net of 3,930 shares of
treasury stock, at cost, respectively.
53
52
Additional paid in capital
69,955
68,551
Retained earnings
12,937
16,933
Total stockholders’ equity
82,945
85,536
Total liabilities and stockholders’
equity
$
157,335
$
178,517
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
and dividend amounts)
For the Thirteen and Thirty-nine
Week Periods Ended September 29, 2024 and October 1, 2023
Thirteen Weeks Ended
Thirty-nine Weeks Ended
2024
2023
2024
2023
Revenues
$
71,186
$
83,484
$
208,089
$
239,600
Cost of services
46,857
53,505
136,692
153,263
Gross profit
24,329
29,979
71,397
86,337
Selling, general and administrative
expenses
21,966
22,679
64,549
68,475
Impairment losses
—
—
—
22,545
Depreciation and amortization
1,893
2,033
5,881
5,729
Operating income (loss)
470
5,267
967
(10,412
)
Interest expense, net
(1,222
)
(1,672
)
(3,518
)
(4,375
)
(Loss) income before income taxes
(752
)
3,595
(2,551
)
(14,787
)
Income tax (expense) benefit
(52
)
(955
)
194
3,565
Net (loss) income
$
(804
)
$
2,640
$
(2,357
)
$
(11,222
)
Net (loss) income per share:
Basic
$
(0.07
)
$
0.24
$
(0.22
)
$
(1.04
)
Diluted
$
(0.07
)
$
0.24
$
(0.22
)
$
(1.04
)
Weighted-average shares outstanding:
Basic
10,919
10,791
10,882
10,753
Diluted
10,919
10,803
10,882
10,753
Cash dividends declared per common
share
$
—
$
0.15
$
0.15
$
0.45
BUSINESS SEGMENTS
(dollars in thousands)
(unaudited)
Thirteen Weeks Ended
Thirty-nine Weeks Ended
September 29, 2024
October 1, 2023
September 29, 2024
October 1, 2023
Revenue:
Property Management
$
29,824
42
%
$
35,976
43
%
$
80,096
38
%
$
95,453
40
%
Professional
41,362
58
47,508
57
127,993
62
144,147
60
Total
$
71,186
100
%
$
83,484
100
%
$
208,089
100
%
$
239,600
100
%
Gross profit:
Property Management
10,696
44
%
$
14,197
47
%
29,635
42
%
$
38,196
44
%
Professional
13,633
56
15,782
53
41,762
58
48,141
56
Total
$
24,329
100
%
$
29,979
100
%
$
71,397
100
%
$
86,337
100
%
Operating income (loss):
Property Management
$
4,175
$
7,212
$
10,780
$
17,676
Professional -without impairment
losses
1,474
3,253
4,704
9,666
Professional - impairment losses
—
—
—
(22,545
)
Home office
(5,179
)
(5,198
)
(14,517
)
(15,209
)
Total
$
470
$
5,267
$
967
$
(10,412
)
UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
For the Thirty-nine Week Periods
Ended September 29, 2024 and October 1, 2023
2024
2023
Cash flows from operating activities
Net loss
$
(2,357
)
$
(11,222
)
Adjustments to reconcile net loss to net
cash provided by activities:
Depreciation
271
343
Amortization
5,610
5,386
Impairment losses
—
22,545
Loss on disposal of property and
equipment
12
—
Amortization of debt issuance costs
129
145
Interest (income) expense on contingent
consideration payable
(23
)
468
Provision for credit losses
1,670
658
Share-based compensation
788
844
Deferred income taxes, net of acquired
deferred tax liability
(316
)
(5,092
)
Net changes in operating assets and
liabilities, net of effects of acquisitions:
Accounts receivable
9,033
1,795
Prepaid expenses
609
313
Other current assets
4,868
3,179
Deposits
607
(84
)
Software as a service
537
543
Accounts payable
126
(337
)
Accrued payroll and expenses
459
(4,251
)
Other current liabilities
—
(1,000
)
Accrued interest
(152
)
23
Income taxes receivable and payable
(566
)
938
Operating leases
(59
)
(100
)
Net cash provided by operating
activities
21,246
15,094
Cash flows from investing activities
Businesses acquired, net of cash
received
—
(6,740
)
Capital expenditures
(1,370
)
(2,019
)
Net cash used in investing activities
(1,370
)
(8,759
)
Cash flows from financing activities
Net (payments) borrowings under line of
credit
(17,188
)
4,282
Proceeds from issuance of long-term
debt
4,250
—
Principal payments on long-term debt
(850
)
(5,000
)
Payments of dividends
(1,639
)
(4,874
)
Issuance of ESPP shares
355
412
Issuance of shares under the 2013
Long-Term Incentive Plan, net of exercises
262
19
Contingent consideration paid
(4,250
)
(1,110
)
Payments of debt issuance costs
(554
)
(64
)
Net cash used in financing activities
(19,614
)
(6,335
)
Net change in cash and cash
equivalents
262
—
Cash and cash equivalents, beginning of
period
—
—
Cash and cash equivalents, end of
period
$
262
$
—
Supplemental cash flow information:
Cash paid for interest, net
$
3,419
$
3,573
Cash paid for taxes, net of refunds
$
666
$
569
NON-GAAP FINANCIAL MEASURES
The financial results of BGSF, Inc. are prepared in conformity
with accounting principles generally accepted in the United States
of America (“GAAP”) and the rules of the U.S. Securities and
Exchange Commission. To help the readers understand the Company's
financial performance, the Company supplements its GAAP financial
results with Adjusted EBITDA and Adjusted EPS.
A non-GAAP financial measure is a numerical measure of a
company's financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in the statement
of income, balance sheet or statement of cash flows of a company.
Adjusted EBITDA and Adjusted EPS are not measurements of financial
performance under GAAP and should not be considered as alternatives
to net income, net income per diluted share, operating income, or
any other performance measure derived in accordance with GAAP, or
as alternatives to cash flow from operating activities or measures
of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS
are useful performance measures and are used by us to facilitate a
comparison of our operating performance on a consistent basis from
period-to-period and to provide for a more complete understanding
of factors and trends affecting our business than measures under
GAAP can provide alone. In addition, the financial covenants in our
credit agreement are based on EBITDA as defined in the credit
agreement.
We define “Adjusted EBITDA" as earnings before interest expense,
income taxes, depreciation and amortization expense, costs
associated with the evaluation of potential strategic alternatives
(“Strategic alternatives review”), transaction fees, and certain
non-cash expenses such as impairment losses and share-based
compensation expense, as well as certain specific events that
management does not consider in assessing our on-going operating
performance.
We define “Adjusted EPS” as diluted earnings per share
eliminating amortization expense of intangible assets from
acquisitions, the Strategic Alternatives Review, transaction fees,
and certain non-cash expenses such as impairment losses, as well as
certain specific events that management does not consider in
assessing our on-going operating performance, net of the respective
income tax effect.
Reconciliation of Net (Loss)
Income to Adjusted EBITDA
(dollars in thousands)
Thirteen Weeks Ended
Thirty-nine Weeks Ended
Thirteen Weeks Ended
September 29, 2024
October 1, 2023
September 29, 2024
October 1, 2023
June 30, 2024
Net (loss) income
$
(804
)
$
2,640
$
(2,357
)
$
(11,222
)
$
(761
)
Income tax expense (benefit)
52
955
(194
)
(3,565
)
(219
)
Interest expense, net
1,222
1,672
3,518
4,375
1,061
Operating income (loss)
470
5,267
967
(10,412
)
81
Depreciation and amortization
1,893
2,033
5,881
5,729
1,981
Impairment losses
—
—
—
22,545
—
Share-based compensation
317
408
788
844
236
Strategic alternatives review
526
—
874
—
280
Transaction fees
2
149
42
901
25
Adjusted EBITDA
$
3,208
$
7,857
$
8,552
$
19,607
$
2,603
Adjusted EBITDA Margin
(% of revenue)
4.5
%
9.4
%
4.1
%
8.2
%
3.8
%
Reconciliation of Net (Loss)
Income EPS to Adjusted EPS
Thirteen Weeks Ended
Thirty-nine Weeks Ended
Thirteen Weeks Ended
September 29, 2024
October 1, 2023
September 29, 2024
October 1, 2023
June 30, 2024
Net (loss) income per diluted share
$
(0.07
)
$
0.24
$
(0.22
)
$
(1.04
)
$
(0.07
)
Acquisition amortization
0.13
0.15
0.42
0.42
0.15
Impairment losses (pre-tax)
—
—
—
2.10
—
Strategic alternatives review
0.05
—
0.08
—
0.03
Transaction fees
—
0.01
—
0.08
—
Income tax expense adjustment
(0.01
)
(0.04
)
(0.04
)
(0.63
)
(0.04
)
Adjusted EPS
$
0.10
$
0.36
$
0.24
$
0.93
$
0.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106940362/en/
Steven Hooser or Sandy Martin Three Part Advisors
ir@bgstaffing.com 214.872.2710 or 214.616.2207
BGSF (NYSE:BGSF)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
BGSF (NYSE:BGSF)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
