BGSF, Inc. (NYSE: BGSF), a growing
provider of consulting, managed services, and professional
workforce solutions, today reported financial results for the first
fiscal quarter ended March 31, 2024.
Q1 2024 Highlights from Operations:
- Revenues were $68.8 million for 2024, compared to $75.3 million
for 2023.
- Gross profit was $23.4 million, from $26.8 million in
2023.
- Operating income was $0.4 million in 2024, up from an operating
loss of $20.7 million, which included a one-time non-cash
impairment of $22.5 million related to trade name intangible assets
from the branding to BGSF for all entities. The after-tax impact
was $16.9 million or $1.58 per diluted share, using the effective
tax rate.
- Net loss was $0.8 million, or $0.07 per diluted share, versus
net loss of $16.5 million, or $1.54 per diluted share in 2023,
primarily due to the trade name impairment.
- Adjusted EBITDA1 was $2.7 million (3.9% of revenues) in 2024
from $4.3 million (5.6% of revenues) in 2023.
- Adjusted EPS1 was $0.07 for 2024 compared with $0.16 for
2023.
Beth A. Garvey, Chair, President, and CEO, said, “Our first
quarter results aligned with expectations, and we are encouraged by
recent activity in higher-end consulting. The Professional division
has experienced meaningful progress each month this year with IT
consulting and other IT-related tool deployments, and we are
benefiting from BGSF’s enhanced Workday strategic partnership. In
addition, the Professional segment landed senior-level projects,
managed solutions, and permanent placements as we continue to
leverage important Horn Solutions relationships. We are utilizing
technology in the Property Management division to penetrate
existing markets. Although Property Management is facing industry
competition for the first time, we believe that our strategic
transition of the sales organization using stronger
results-oriented compensation plans, will drive meaningfully
improved sales performance starting in 2024.
“The current macro environment and economic cycle are different
than prior cycles, and we believe that our planned business
transformation positions us to begin to significantly grow our
business in high-value ERP selection, implementation, and project
consulting, as well as managed solutions, nearshore and offshore
accounting and software engineering, and project management of data
security and mobile. We are very excited to provide recognized and
highly differentiated offerings, expertise, and next-gen solutions
and services, and we are confident that our business is well
positioned to generate cash flow and create long-term value for
shareholders,” concluded Garvey.
1 Adjusted EBITDA and Adjusted EPS are
non-GAAP financial measures as defined and reconciled below.
Conference Call
BGSF will discuss its first quarter 2024 financial results
during a conference call and webcast at 9:00 a.m. ET on May 9,
2024. Interested participants may dial 1-844-481-3017 (Toll Free)
or 1-412-317-1882 (International). A replay of the call will be
available until May 16, 2024. To access the replay, please dial
1-877-344-7529 (Toll Free), or 1-412-317-0088 (International) and
enter access code 8216166. The live webcast and archived replay are
accessible from the investor relations section of the Company’s
website at https://investor.bgsf.com/events-and-presentations/default.aspx
About BGSF
BGSF provides consulting, managed services and professional
workforce solutions to a variety of industries through its various
divisions in IT, Finance & Accounting, Managed Solutions, and
Property Management. BGSF has integrated several regional and
national brands achieving scalable growth. The Company was ranked
by Staffing Industry Analysts as the 121st largest U.S. staffing
company and the 52nd largest IT staffing firm in 2023. The
Company’s disciplined acquisition philosophy, which builds value
through both financial growth and the retention of unique and
dedicated talent within BGSF’s family of companies, has resulted in
a seasoned management team with strong tenure and the ability to
offer exceptional service to our field talent and client partners
while building value for investors. For more information on the
Company and its services, please visit its website at
www.bgsf.com.
Forward-Looking Statements
The forward-looking statements in this press release are made
under the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
include, but are not limited to, statements regarding our future
financial performance and the expectations and objectives of our
board or management. The Company’s actual results could differ
materially from those indicated by the forward-looking statements
because of various other risks and uncertainties, including those
listed in Item 1A of the Company’s Annual Report on Form 10-K and
in the Company’s other filings and reports with the Securities and
Exchange Commission. All of the risks and uncertainties are beyond
the ability of the Company to control, and in many cases, the
Company cannot predict the risks and uncertainties that could cause
its actual results to differ materially from those indicated by the
forward-looking statements. When used in this press release, the
words “allows,” “believes,” “plans,” “expects,” “estimates,”
“should,” “would,” “may,” “might,” “forward,” “will,” “intends,”
“continue,” “outlook,” “temporarily,” “progressing,” "prospects,"
and “anticipates” and similar expressions as they relate to the
Company or its management are intended to identify forward-looking
statements. Except as required by law, the Company is not obligated
to publicly release any revisions to these forward-looking
statements to reflect the events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events.
Source: BGSF, Inc.
GAAP FINANCIAL MEASURES
Portions of the following tables have been
derived from our unaudited consolidated financial statements and
summarize key components of our statements of operations for the
periods indicated, as well as a reconciliation of revenue and
operating income (loss) by reportable segment to consolidated
results for the periods indicated.
UNAUDITED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
amounts)
March 31, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
50
$
—
Accounts receivable (net of allowance for
credit losses of $761 and $554, respectively)
52,418
56,776
Prepaid expenses
2,502
2,963
Other current assets
6,650
7,172
Total current assets
61,620
66,911
Property and equipment, net
1,255
1,217
Other assets
Deposits
2,106
2,699
Software as a service, net
4,902
5,026
Deferred income taxes, net
7,397
7,271
Right-of-use asset - operating leases,
net
4,929
5,435
Intangible assets, net
29,192
30,370
Goodwill
59,151
59,588
Total other assets
107,677
110,389
Total assets
$
170,552
$
178,517
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
224
$
95
Accrued payroll and expenses
14,879
14,902
Line of credit (net of debt issuance costs
of $128)
—
24,746
Long-term debt, current portion (net of
debt issuance costs of $31 and $0, respectively)
3,369
34,000
Accrued interest
220
438
Income taxes payable
325
282
Contingent consideration, current
portion
4,229
4,208
Convertible note
4,368
4,368
Lease liabilities, current portion
1,871
2,016
Total current liabilities
29,485
85,055
Line of credit (net of debt issuance costs
of $333)
19,667
—
Long-term debt, less current portion (net
of debt issuance costs of $253)
30,347
—
Contingent consideration, less current
portion
4,046
4,112
Lease liabilities, less current
portion
3,454
3,814
Total liabilities
86,999
92,981
Commitments and contingencies
Preferred stock, $0.01 par value per
share, 500,000 shares authorized, -0- shares issued and
outstanding
—
—
Common stock, $0.01 par value per share;
19,500,000 shares authorized 10,928,763 and 10,887,509 shares
issued and outstanding, respectively, net of treasury stock, at
cost, and 3,930 shares, respectively.
52
52
Additional paid in capital
68,999
68,551
Retained earnings
14,502
16,933
Total stockholders’ equity
83,553
85,536
Total liabilities and stockholders’
equity
$
170,552
178,517
UNAUDITED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands, except per share
and dividend amounts)
Thirteen Weeks Ended
March 31, 2024
April 2, 2023
Revenues
$
68,765
$
75,316
Cost of services
45,327
48,532
Gross profit
23,438
26,784
Selling, general and administrative
expenses
21,016
23,212
Impairment losses
—
22,545
Depreciation and amortization
2,007
1,757
Operating income (loss)
415
(20,730
)
Interest expense, net
(1,235
)
(1,200
)
Loss before income taxes
(820
)
(21,930
)
Income tax benefit
28
5,464
Net loss
$
(792
)
$
(16,466
)
Net loss per share:
Basic
$
(0.07
)
$
(1.54
)
Diluted
$
(0.07
)
$
(1.54
)
Weighted-average shares outstanding:
Basic
10,831
10,712
Diluted
10,831
10,712
Cash dividends declared per common
share
$
0.15
$
0.15
BUSINESS SEGMENTS
(dollars in thousands)
(unaudited)
Thirteen Weeks Ended
March 31, 2024
April 2, 2023
Revenue:
Property Management
$
24,547
36
%
$
28,405
38
%
Professional
44,218
64
%
46,911
62
%
Total
$
68,765
100
%
$
75,316
100
%
Gross profit:
Property Management
$
9,343
40
%
$
11,347
42
%
Professional
14,095
60
%
15,437
58
%
Total
$
23,438
100
%
$
26,784
100
%
Operating income (loss):
Property Management
$
3,402
$
4,690
Professional -without impairment
losses
1,673
2,627
Professional - impairment losses
—
(22,545
)
Home office
(4,660
)
(5,502
)
Total
$
415
$
(20,730
)
UNAUDITED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(in thousands)
March 31, 2024
April 2, 2023
Cash flows from operating activities
Net loss
$
(792
)
$
(16,466
)
Adjustments to reconcile net loss to net
cash provided by activities:
Depreciation
94
127
Amortization
1,913
1,630
Impairment losses
—
22,545
Loss on disposal of property and
equipment
8
—
Amortization of debt issuance costs
49
46
Interest expense on contingent
consideration payable
(45
)
22
Provision for credit losses
625
79
Share-based compensation
235
361
Deferred income taxes, net of acquired
deferred tax liability
(127
)
(5,193
)
Net changes in operating assets and
liabilities, net of effects of acquisitions:
Accounts receivable
3,733
3,666
Prepaid expenses
462
(784
)
Other current assets
513
1,247
Deposits
593
—
Software as a service
180
180
Accounts payable
129
(36
)
Accrued payroll and expenses
(24
)
(3,014
)
Accrued interest
(218
)
(103
)
Income taxes receivable and payable
52
(310
)
Operating leases
1
(58
)
Net cash provided by operating
activities
7,381
3,939
Cash flows from investing activities
Capital expenditures
(494
)
(745
)
Net cash used in investing activities
(494
)
(745
)
Cash flows from financing activities
Net payments under line of credit
(4,874
)
(646
)
Principal payments on long-term debt
—
(1,000
)
Payments of dividends
(1,639
)
(1,618
)
Issuance of ESPP shares
112
145
Issuance of shares under the 2013
Long-Term Incentive Plan, net of exercises
102
—
Debt issuance costs
(538
)
(5
)
Net cash used in financing activities
(6,837
)
(3,124
)
Net change in cash and cash
equivalents
50
70
Cash and cash equivalents, beginning of
period
—
—
Cash and cash equivalents, end of
period
$
50
$
70
Supplemental cash flow information:
Cash paid for interest, net
$
1,400
$
1,183
Cash paid for taxes, net of refunds
$
40
$
34
NON-GAAP FINANCIAL MEASURES
The financial results of BGSF, Inc. are
prepared in conformity with accounting principles generally
accepted in the United States of America (“GAAP”) and the rules of
the U.S. Securities and Exchange Commission. To help the readers
understand the Company's financial performance, the Company
supplements its GAAP financial results with Adjusted EBITDA and
Adjusted EPS.
A non-GAAP financial measure is a
numerical measure of a company's financial performance that
excludes or includes amounts so as to be different than the most
directly comparable measure calculated and presented in accordance
with GAAP in the statement of income, balance sheet or statement of
cash flows of a company. Adjusted EBITDA and Adjusted EPS are not
measurements of financial performance under GAAP and should not be
considered as alternatives to net income, net income per diluted
share, operating income, or any other performance measure derived
in accordance with GAAP, or as alternatives to cash flow from
operating activities or measures of our liquidity. We believe that
Adjusted EBITDA and Adjusted EPS are useful performance measures
and are used by us to facilitate a comparison of our operating
performance on a consistent basis from period-to-period and to
provide for a more complete understanding of factors and trends
affecting our business than measures under GAAP can provide alone.
In addition, the financial covenants in our credit agreement are
based on EBITDA as defined in the credit agreement.
We define “Adjusted EBITDA" as earnings
before interest expense, income taxes, depreciation and
amortization expense, transaction fees and certain non-cash
expenses such as impairment losses and share-based compensation
expense, as well as certain specific events that management does
not consider in assessing our on-going operating performance.
We define “Adjusted EPS” as diluted
earnings per share eliminating amortization expense of intangible
assets from acquisitions, transaction fees, and certain non-cash
expenses such as impairment losses, as well as certain specific
events that management does not consider in assessing our on-going
operating performance, net of the respective income tax effect.
Reconciliation of Net Loss to
Adjusted EBITDA
(dollars in thousands)
Thirteen Weeks Ended
March 31, 2024
April 2, 2023
Net loss
$
(792
)
$
(16,466
)
Income tax benefit
(28
)
(5,464
)
Interest expense, net
1,235
1,200
Operating income (loss)
415
(20,730
)
Depreciation and amortization
2,007
1,757
Impairment losses
—
22,545
Share-based compensation
235
361
Transaction fees
16
319
Adjusted EBITDA
$
2,673
$
4,252
Adjusted EBITDA Margin (% of revenue)
3.9
%
5.6
%
Reconciliation of Net Loss EPS
to Adjusted EPS
Thirteen Weeks Ended
March 31, 2024
April 2, 2023
Net loss per diluted share
$
(0.07
)
$
(1.54
)
Acquisition amortization
0.15
0.13
Impairment losses (pre-tax)
—
2.10
Transaction fees
—
0.03
Income tax expense adjustment
(0.01
)
(0.56
)
Adjusted EPS
$
0.07
$
0.16
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508202319/en/
Steven Hooser or Sandy Martin Three Part Advisors
ir@bgstaffing.com 214.872.2710 or 214.616.2207
BGSF (NYSE:BGSF)
過去 株価チャート
から 5 2024 まで 6 2024
BGSF (NYSE:BGSF)
過去 株価チャート
から 6 2023 まで 6 2024