PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF), a growing provider of consulting, managed services, and professional workforce solutions, today reported financial results for its fiscal year and fourth fiscal quarter ended December 31, 2023. Note: Fiscal 2023 financial results are on a 52-week year ended December 31, 2023, compared to Fiscal 2022 financial results on a 53-week year ended January 1, 2023. Full Year 2023 Highlights from Continuing Operations2,3: Revenues were $313.2 million, up 4. ...

BGSF, Inc. Reports Full Year and Fourth Quarter 2023 Financial Results Record Full Year Revenues of $313.2 million, up 4.9% Generated $20.4 Million of Operating Cash Flow New Credit Facility Closed March 12, 2024 PLANO, Texas – (March 13, 2024) – BGSF, Inc. (NYSE: BGSF), a growing provider of consulting, managed services, and professional workforce solutions, today reported financial results for its fiscal year and fourth fiscal quarter ended December 31, 2023. Note: Fiscal 2023 financial results are on a 5 ...

PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF) (“BGSF”), a growing provider of consulting, managed services, and professional workforce solutions, announced that Beth Garvey has recently been recognized by the Staffing Industry Analysts (SIA) Staffing 100 North America list as one of North America’s most influential staffing leaders for 2024. John Barnett, Chief Financial Officer at BGSF, stated, "Beth Garvey's leadership has been pivotal in shaping BGSF's culture and impact, both within our organi ...

PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF) (“BGSF”), a growing provider of consulting, managed services, and professional workforce solutions, announced it has been named a Workday Partner. Workday (NASDAQ: WDAY) is a leading provider of enterprise cloud applications for finance and human resources. BGSF has consistently demonstrated its commitment to meeting customers' demands for Workday talent. Through a robust network of highly skilled consultants and an in-depth understanding of the Work ...

PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF), a leading national provider of workforce solutions, today announced that its Board of Directors has declared a quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on February 27, 2024, to all shareholders of record as of the close of business on February 20, 2024. This marks the 37th consecutive quarterly dividend and based on the yesterday's closing price of the Company’s common stock, the annualized yield is approxima ...

champc Introduction I'm constantly looking for undervalued microcap companies, and recently I came across BGSF (NYSE:BGSF). It’s a US consulting and staffing solutions firm which has been focusing on improving margins over the past few years, and the adjusted TTM EBITDA stands at $23.9 million. BGSF has a dividend yield of $6.3 million and the balance sheet looks strong, with net debt at $66 million on October 1. I’m putting BGSF on my watchlist and my rating on the stock is a speculative buy. Let’s rev ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 reached $83.5 million, reflecting a 6.3% increase from the prior-year quarter [8][23] - Adjusted EBITDA for Q3 was $7.9 million, or 9.4% of revenue, showing a slight increase from $7.5 million or 9.3% in Q2 [11][48] - Gross profit margins expanded to 35.9%, up from 35.7% in the prior-year quarter [28] Business Line Data and Key Metrics Changes - The Property Management segment grew revenues by 8.2% in Q3, building on a 34.1% growth in the same quarter last year, resulting in over 42% cumulative growth compared to 2021 [8][23] - The Professional segment's revenues increased by 5%, but organic sales declined by 20.6% compared to the prior-year quarter [27][23] - Professional segment gross margins improved to 33.2%, up 130 basis points due to acquired businesses and a shift away from low-margin IT placements [10] Market Data and Key Metrics Changes - The company is positioned well in a choppy demand environment due to economic uncertainties and high interest rates, with a diversified client base across end markets [6] - The National Apartment Association anticipates approximately 4.3 million new apartments to be built by 2035, which the company plans to leverage for growth [33] Company Strategy and Development Direction - The company aims to grow through both organic and inorganic revenues, focusing on higher value and specialized offerings in both segments [5] - Strategic investments in people, processes, and technology over the last three years have enhanced the company's stability and capabilities [6] - The company plans to continue focusing on strategic initiatives to expand its business and improve profitability [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's prospects, citing significant progress in strategic repositioning and a focus on higher value consulting and managed solutions [14][50] - The company expects the professional segment to stabilize in Q4, despite difficult comparisons, and anticipates normal seasonality in property management [16][52] Other Important Information - The company maintains a disciplined capital allocation strategy, focusing on growth investments, debt paydown, and consistent capital returns to shareholders [31] - The company is in the process of refinancing its credit facility with a group of committed banks [49] Q&A Session Summary Question: How large of a piece is that of the professional segment? - Management noted that the first two months of the quarter were slower, but activity picked up in September, leading to optimism for Q4 [40] Question: Could you give an update on the progress since acquiring Arroyo and Horn? - Management highlighted that the acquisitions have allowed for enhanced offerings and integration, which is expected to drive revenue growth [41][56] Question: What are the trends in wage rates and competition? - Management indicated that there were no significant changes in wage competition noted [46] Question: How many offices are currently open in the Property Management segment? - Management stated that they are operating in approximately 64 markets and are looking to expand further using a new sales force mapping tool [80][81] Question: What is the plan for opening new offices in the real estate division? - Management clarified that they do not have brick-and-mortar offices but focus on hiring salespeople to penetrate markets [94]

Revenue Growth - Property Management revenues increased by approximately $2.8 million, representing an 8.2% growth, primarily due to higher billing rates[11] - Gross profit for the Property Management segment rose by approximately $0.7 million, or 4.8%, despite a decline in permanent placement business[12] - Professional revenues increased by approximately $12.1 million, or 9.2%, with Horn Solutions and Arroyo Consulting contributing a combined total of $28.9 million[15] Expenses and Financial Position - Interest expense, net increased by approximately $3.7 million, primarily due to higher debt balances related to acquisitions and rising interest rates[16] - Selling, general and administrative expenses increased by $2.3 million, with selling expenses accounting for approximately 78% of this increase[13] Cash Flow and Working Capital - Cash provided by operating activities was $15.1 million, compared to a cash usage of $5.6 million in the prior year[20] - The company reported a working capital deficit of $14.6 million as of October 1, 2023, compared to a positive working capital of $48.0 million on January 1, 2023[20] - The company is focused on opening new markets and believes cash generated from operations will meet working capital needs for at least the next twelve months[19] Financing and Borrowing - The Revolving Facility allows borrowing up to $35.0 million, with a term loan commitment of up to $30.0 million, which has been fully funded and repaid[23] Operational Adjustments - The company has implemented a pricing model adjustment to mitigate the impacts of inflation on its operations[30]

Financial Data and Key Metrics Changes - Total revenues for Q2 2023 were reported at $81 million, reflecting a 9% increase year-over-year, with adjusted EBITDA rising almost 39% to $7.5 million, resulting in an adjusted EBITDA margin of 9.3% [8][21][30] - Adjusted earnings per diluted share increased by 8.8% to $0.37, despite an additional $1.4 million in interest expense from recent acquisitions [32][33] - Gross profit margins expanded by 280 basis points to 36.6% compared to the prior year, with the Professional segment gross profit margins growing 340 basis points to 34% [30][31] Business Line Data and Key Metrics Changes - The Professional segment saw a 12.7% increase due to the acquisitions of Horn Solutions and Arroyo Consulting, while the core Professional business experienced year-over-year declines in demand for consulting and staff augmentation [9][16] - The property management segment grew by 3.6% in Q2 compared to the prior year, with a sequential growth of 9.4% from Q1 to Q2 [48][49] Market Data and Key Metrics Changes - Companies are reducing discretionary spending and delaying project timelines, leading to elongated hiring cycles in the contract side [10][16] - The property management division is experiencing regional differences in rental pricing and occupancy rates, with a trend back to normal seasonality on apartment turnovers [44][52] Company Strategy and Development Direction - The company is focused on transforming into a high-value specialized professional consulting company, having divested its lower-margin light industrial business [11][12] - Strategic initiatives for 2023 include rebranding, process improvement, and shared services to enhance operational efficiency and customer engagement [36][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for the remainder of 2023, benefiting from recent acquisitions and strategic investments [13][28] - The company anticipates continued demand for ERP implementations and support, despite economic uncertainties [53] Other Important Information - The Property Management Division received the 2023 National Apartment Association Excellence Award for Supplier Companies of the Year, highlighting the company's commitment to high-value staffing services [54] Q&A Session Summary Question: How did the permanent placement in the quarter track relative to the last quarter or the last 12 months? - Management noted a decline of 20% to 30% in permanent placements due to economic uncertainty, with companies delaying hiring [43] Question: Can you provide more detail on contract delays in the professional segment? - Management confirmed visibility into delayed projects, with clients being cautious but not canceling contracts [64] Question: What are the expansion plans for the real estate segment? - Management highlighted the implementation of new technology for territory mapping to enhance sales focus and efficiency [66] Question: Are there any wage pressures in the segments? - Management indicated that wage inflation pressures have stabilized compared to the previous year [83] Question: Will there be more transaction costs related to acquisitions? - Management expects minimal transaction costs moving forward, with ongoing legal complexities related to the Arroyo acquisition [84]

You can identify these and other forward-looking statements by the use of words such as "aim," "potential," "may," "could," "can," "would," "might," "likely," "will," "expect," "intend," "plan," "predict," "ongoing," "project," "budget," "scheduled," "estimate," "anticipate," "believe," "forecast," "committed," "future" or "continue" or the negative thereof or similar variations. Where You Can Find Other Information The accompanying notes are an integral part of these unaudited consolidated financial statem ...