BGSF(US:BGSF)2025-05-07 20:35Revenue Performance - Revenues for the thirteen weeks ended March 30, 2025, were $63.234 million, a decrease of approximately $5.531 million (8.0%) compared to $68.765 million for the same period in 2024[116] - Property Management segment revenues decreased by approximately $3.6 million (14.9%) to $20.883 million, primarily due to reduced billed hours and increased competition[116] - Professional segment revenues decreased by $1.8 million (4.2%) to $42.351 million, mainly due to delays in client projects and reduced field talent usage[117] Profitability - Total gross profit decreased by approximately $2.5 million (10.7%) to $20.921 million, with gross profit margin declining to 33.1% from 34.1%[120] - Operating income for the thirteen weeks ended March 30, 2025, was $339 thousand, compared to $415 thousand for the same period in 2024[116] - Net loss for the period was $722 thousand, a slight improvement from a net loss of $792 thousand in the prior year[116] - Adjusted EBITDA for the same period was $2,372,000, with an adjusted EBITDA margin of 3.8%, compared to $2,918,000 and 4.2% in 2024[131] Expenses and Cost Management - Selling, general, and administrative expenses decreased by $2.1 million (10.0%) to $18.911 million, attributed to cost control measures implemented in December 2024[123] - Interest expense decreased by $0.1 million (7.2%) to $1.146 million, primarily due to a lower average balance on the Revolving Facility[125] Cash Flow and Working Capital - Cash provided by operating activities decreased to $1,064,000 in Fiscal 2025 from $7,381,000 in Fiscal 2024, primarily due to decreased receipts on accounts receivable[137] - Working capital increased to $21,449,000 as of March 30, 2025, up from $19,427,000 as of December 29, 2024[135] Financing and Strategic Initiatives - The company announced a cost restructuring plan in December 2024 as part of its strategic alternatives review to maximize shareholder value[111] - The company is actively engaging in a strategic alternatives review process and evaluating equity and debt financing opportunities[146] - The company anticipates potential non-compliance with financial covenants in the upcoming fiscal quarters, which could trigger prepayment obligations[146] Capital Expenditures and Debt - Capital expenditures remained flat in Fiscal 2025, following $0.5 million in Fiscal 2024 primarily for IT improvements[138] - The company borrowed $1.6 million on its Revolving Facility for increased operating needs in Fiscal 2025, while paying down $1.0 million on the Term Loan[139] - The company has a Revolving Facility maturing on December 31, 2026, with an aggregate borrowing capacity of up to $40 million[141] Financial Exposure - The company experienced a maximum financial exposure of $0.1 million from a standby letter of credit arrangement related to the EdgeRock acquisition[147]