BGSF(US:BGSF)2024-08-07 21:00Financial Performance - Q2 2024 revenues were $68.1 million, a slight decrease of 1.0% from Q1 2024's $68.8 million[3] - Adjusted EBITDA for Q2 2024 was $2.6 million, representing 3.8% of revenues, down from 4.0% in Q1 2024[3] - Net loss for Q2 2024 was $0.8 million, or $0.07 per diluted share, consistent with Q1 2024[3] - Revenues for the thirteen weeks ended June 30, 2024, were $68,137, a decrease of 15.0% compared to $80,800 for the same period in 2023[12] - Gross profit for the twenty-six weeks ended June 30, 2024, was $47,068, down 16.4% from $56,358 in 2023[12] - Operating income for the thirteen weeks ended June 30, 2024, was $81, compared to $5,050 in the same period of 2023, indicating a significant decline[12] - Net loss for the twenty-six weeks ended June 30, 2024, was $(1,553), an improvement from a net loss of $(13,862) in 2023[12] - Adjusted EBITDA for the thirteen weeks ended June 30, 2024, was $2.6 million, with an adjusted EBITDA margin of 3.8%[18] - Net loss income per diluted share for the thirteen weeks ended June 30, 2024, was $(0.07), compared to $0.24 for the same period in the previous year[19] - The company reported an operating income of $81,000 for the thirteen weeks ended June 30, 2024, compared to $5.05 million for the same period last year[18] - Total interest expense, net, was $1.06 million for the thirteen weeks ended June 30, 2024, down from $1.5 million in the prior year[18] - Adjusted EPS for the thirteen weeks ended June 30, 2024, was $0.07, down from $0.37 in the same period last year[19] - The company reported a net loss income of $(1.55) million for the twenty-six weeks ended June 30, 2024, compared to $(13.86) million for the same period last year[18] Segment Performance - Property Management segment revenues increased by 4.8% from Q1 2024, while Professional segment revenues declined by 4.1%[3] - Property Management segment revenue for the thirteen weeks ended June 30, 2024, was $25,726, representing 38% of total revenue[13] - Professional segment revenue for the same period was $42,411, accounting for 62% of total revenue[13] Strategic Initiatives - The company anticipates a strong revenue ramp-up in the Professional division starting in Q3 2024[6] - New contract wins in Q2 2024 outpaced contract ends by approximately 25%[5] - The company has been recognized in Staffing Industry Analysts' 2024 U.S. rankings, placing in the top 50 for U.S. IT staffing firms[7] - The company reduced headcount and lowered fixed costs in the first half of 2024 to align with revenues and strategic growth plans[4] - The company is evaluating strategic alternatives to maximize shareholder value, with no updates available at this time[6] - The company is reviewing strategic alternatives, incurring $280,000 in related costs for the thirteen weeks ended June 30, 2024[18] Cash Flow and Assets - Total assets as of June 30, 2024, were $159.8 million, down from $178.5 million a year earlier[11] - The company reported cash flows from operating activities of $14,717 for the twenty-six weeks ended June 30, 2024, compared to $12,549 in 2023[14] - The company had capital expenditures of $(995) for the twenty-six weeks ended June 30, 2024, down from $(1,490) in 2023[14] - Cash and cash equivalents at the end of the period were $226, indicating a stable liquidity position[14] Impairment and Costs - The company incurred impairment losses of $22.5 million for the thirteen weeks ended July 2, 2023[18] - Share-based compensation increased to $236,000 for the thirteen weeks ended June 30, 2024, compared to $75,000 for the same period last year[18] - Transaction fees for the thirteen weeks ended June 30, 2024, were $25,000, significantly lower than $435,000 in the prior year[18]