BGSF(US:BGSF)2025-03-12 22:55Financial Performance - Revenues for Q4 2024 were $64.4 million, a decrease of 9.9% from $71.2 million in Q3 2024[6] - Gross profit for Q4 was $21.5 million, down from $24.3 million in Q3, primarily due to lower sales in the Property Management segment[6] - The net loss for Q4 was $1.0 million, or $0.10 per diluted share, compared to a net loss of $0.8 million, or $0.07 per diluted share in Q3[6] - Adjusted EBITDA for Q4 was $1.4 million, representing 2.2% of revenues, down from $3.4 million, or 4.8% of revenues in Q3[6] - For the thirteen weeks ended December 29, 2024, total revenue was $64,411 thousand, a decrease of 6.5% compared to $73,567 thousand for the same period in 2023[16] - Gross profit for the fifty-two weeks ended December 29, 2024, was $54,494 thousand, down from $61,999 thousand in 2023, reflecting a decline of 12.1%[16] - The net loss for the year ended December 29, 2024, was $3,338 thousand, an improvement from a net loss of $10,223 thousand in 2023[18] - Adjusted EBITDA for the fifty-two weeks ended December 29, 2024, was $10,475 million, down from $25,858 million in the previous year, reflecting a significant decline[27] - The adjusted EBITDA margin for the thirteen weeks ended December 29, 2024, was 2.2%, compared to 7.8% for the same period in 2023[27] - The net loss per diluted share for the thirteen weeks ended December 29, 2024, was $(0.10), while the adjusted EPS was $(0.06) compared to $0.40 in the same period of 2023[29] Cost Management - The company implemented a cost restructuring plan in late 2024, with estimated annual savings between $7 million to $9 million[7] - The strategic alternatives review cost the company $88 million in the most recent quarter, while the cost restructuring plan accounted for $230 million[27] Assets and Liabilities - Total assets decreased to $150.1 million as of December 29, 2024, from $178.5 million as of December 31, 2023[13] - Total liabilities were $67.8 million as of December 29, 2024, down from $92.9 million as of December 31, 2023[13] Cash Flow and Expenditures - Cash provided by operating activities increased to $24,379 thousand in 2024, compared to $20,386 thousand in 2023, marking a growth of 14.7%[18] - The company reported a decrease in capital expenditures to $1,640 thousand in 2024 from $2,597 thousand in 2023, a reduction of 37%[20] - The total cash and cash equivalents at the end of 2024 were $353 thousand, compared to none at the end of 2023[20] - The company made net payments of $18,479 thousand on its line of credit in 2024, contrasting with a net borrowing of $2,312 thousand in 2023[20] Impairment and Expenses - The company experienced a significant impairment loss of $22,545 thousand in 2023, which was not present in 2024[18] - The company reported impairment losses of $22,545 million for the fifty-two weeks ended December 31, 2023[27] - Interest expense for the year was $4,475 thousand, slightly down from $4,668 thousand in the previous year[20] - The company incurred interest expense of $1,403 million for the thirteen weeks ended December 29, 2024, compared to $1,601 million in the same period last year[27] - Share-based compensation expenses increased to $201 million for the thirteen weeks ended December 29, 2024, from $184 million in the same period last year[27] Strategic Positioning - The company anticipates that the strategic review process will take 12 to 18 months from the original announcement in May 2024[7] - BGSF was ranked as the 97th largest U.S. staffing company and the 49th largest IT staffing firm in 2024[9] - The company generated $716 million in revenue from Software as a Service for the fifty-two weeks ended December 29, 2024, slightly down from $720 million in the previous year[27] - Transaction fees for the thirteen weeks ended December 29, 2024, were $7 million, a significant decrease from $72 million in the same period of 2023[27]