BGSF(US:BGSF)2021-08-05 13:15Revenue Performance - Revenues for the thirteen weeks ended June 27, 2021, were $74.392 million, an increase of approximately $11.786 million (18.8%) compared to $62.606 million for the same period in 2020[141]. - Total revenues increased to $142.1 million, a 3.3% increase from $136.7 million in the previous year[158]. - Real Estate segment revenues increased by approximately $9.4 million (80.1%), driven by a 63.5% increase in billed hours and a 10.2% increase in average bill rate[144]. - Professional segment revenues decreased by approximately $0.4 million (1.3%), primarily due to a 4.1% decrease in billed hours and a 1.1% decrease in average bill rate[145]. - Light Industrial segment revenues increased by approximately $2.8 million (19.9%), attributed to an 11.2% increase in billed hours and a 7.8% increase in average bill rate[146]. - Real Estate revenues increased approximately $8.0 million (25.2%) primarily due to recovery effects from the COVID-19 pandemic, with a 14.4% increase in billed and a 9.8% increase in average bill rate[159]. - Professional revenues decreased approximately $5.7 million (7.8%) due to a 11.7% decrease in billed hours, partially offset by contributions from acquisitions[160]. - Light Industrial revenues increased approximately $3.1 million (9.7%) primarily due to increased demand in the logistics market, with an 8.3% increase in average bill rate[161]. Profitability - Gross profit for the thirteen weeks ended June 27, 2021, was $21.783 million, representing a 28.9% increase compared to $16.905 million for the same period in 2020[149]. - The overall gross profit margin improved to 29.3% from 27.0%, primarily due to higher gross profits in the Professional segment and increased contributions from the Real Estate segment[149]. - Operating income for the thirteen weeks ended June 27, 2021, was $4.318 million, compared to a loss of $6.085 million for the same period in 2020[141]. - Net income for the thirteen weeks ended June 27, 2021, was $3.443 million, compared to a net loss of $4.829 million for the same period in 2020[141]. - Real Estate gross profit increased approximately $3.4 million (76.6%) due to increased revenue and an 8.8% increase in average spread[150]. - Professional gross profit increased approximately $1.0 million (9.3%) primarily from an increase in permanent placements and the 2021 Momentum acquisition, despite a 1.3% decrease in average spread[151]. - Light Industrial gross profit increased approximately $0.5 million (24.4%) in line with increased revenue and an 11.5% increase in average spread[152]. - Adjusted EBITDA for the thirteen weeks ended June 27, 2021, was $4.8 million, compared to $3.3 million for the same period in 2020, representing a 45.5% increase[177]. - Net income for the thirteen weeks ended June 27, 2021, was $3.4 million, a significant improvement from a net loss of $4.8 million in the same period of 2020[177]. - Operating income for the trailing twelve months ended June 27, 2021, was $12.5 million, compared to a loss of $3.4 million for the trailing twelve months ended June 28, 2020[177]. Expenses and Financial Management - Selling, general and administrative expenses increased approximately $3.5 million (24.2%) primarily due to additional compensation from increased revenues[153]. - Depreciation and amortization charges decreased approximately $0.6 million (38.3%) primarily due to changes in the Professional segment[155]. - Interest expense, net decreased approximately $0.3 million (32.8%) primarily due to lower average balance on the Revolving Facility and increased interest income[170]. Cash Flow and Capital Management - Cash provided by operating activities for Fiscal 2021 was $1.7 million, a decrease of $13.4 million compared to $15.1 million in Fiscal 2020[185]. - Cash used in investing activities in Fiscal 2021 included $3.8 million for the Momentum acquisition and $1.1 million for capital expenditures[187]. - The company borrowed $6.1 million on its Revolving Facility in Fiscal 2021 to meet increased working capital needs and fund the Momentum acquisition[189]. - Working capital as of June 27, 2021, was $23.3 million, a decrease from $25.4 million as of December 27, 2020[183]. - The company has a Revolving Facility with a maximum borrowing capacity of $35 million, maturing on July 16, 2024[191]. - The company is subject to a maximum Leverage Ratio and a minimum Fixed Charge Coverage Ratio as per its Credit Agreement[192]. - The company is monitoring liquidity closely, particularly payments from client partners, amid ongoing uncertainty related to COVID-19[181]. Operational Impact of COVID-19 - The company continues to monitor the impact of COVID-19 on its operations and has implemented cost containment measures to mitigate financial impacts[135]. - The company operates across 42 states and D.C., with a focus on expanding its workforce solutions in the Real Estate, Professional, and Light Industrial segments[130].