BGSF(US:BGSF)2023-11-08 16:00Revenue 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]