BGSF Go-to-Market Re-branding Project for
All Business Units Well Underway
BGSF, Inc. (NYSE: BGSF), a leading national provider of
consulting, managed services, and workforce solutions, today
reported financial results for its first quarter ended April 2,
2023.
Q1 2023 Highlights from Continuing Operations:
- Revenues were $75.3 million, up 9.9% from 2022.
- Gross profit was $26.8 million, up 14.3% from 2022. Gross
profit percent increased 140 basis points to 35.6% in 2023.
- Operating income (loss) includes a non-cash charge of $22.5
million ($16.9 million after-tax or $1.58 per diluted share)
related to the impairment of trade name intangible assets from the
re-branding to BGSF for all entities. Therefore, the other trade
names have no value.
- Net loss from continuing operations was $(16.5) million, or
$(1.54) per diluted share.
- Adjusted EBITDA1 from continuing operations was $4.3 million up
from $3.9 million in 2022.
- Adjusted EPS1 from continuing operations was $0.16 in 2023
compared to $0.23 in 2022, primarily due to increased debt,
associated with the Horn Solutions acquisition, and higher interest
rates.
Beth A. Garvey, Chair, President and CEO, said, “First quarter
results were within our expectations for both Professional and Real
Estate. Our Professional segment benefited from incremental
revenues from our Horn Solutions acquisition, and we are encouraged
by expanded cross-selling opportunities. Our recent strategic
acquisition of Arroyo Consulting will strengthen our go-to-market
cross-selling efforts providing our clients a cost effective
alternative offering nearshore and offshore IT resources.
“We remain cautiously optimistic and feel our specialized
offerings in both segments will put us in a position to manage the
current uncertain economic times, and allow us better resiliency.
Our rebranding efforts support the strength of our brand and allow
us to approach the market as one voice with a stronger and broader
BGSF platform."
Conference Call
BGSF will discuss its first fiscal quarter 2023 financial
results during a conference call and webcast at 9:00 a.m. ET on May
11, 2023. Interested participants may dial 1-833-470-1428 (U.S.
Toll Free) or 1-404-975-4839 (U.S. Callers) and provide access code
382695. A replay of the call will be available until May 18, 2023.
To access the replay, please dial 1-929-458-6194 (U.S. Callers),
1-866-813-9403 (U.S. Toll Free), or +44 204-525-0658 (all other
locations) and enter access code 467420. The live webcast and
archived replay are accessible at the investor relations section of
the Company’s website at www.bgsf.com.
About BGSF
BGSF provides consulting, managed services, and professional
workforce solutions to a variety of industries through its various
divisions in IT, Cyber, Finance & Accounting, Managed Services,
and Real Estate (apartment communities and commercial buildings).
BGSF has integrated several regional and national brands achieving
scalable growth. The Company was ranked by Staffing Industry
Analysts as the 94th largest U.S. staffing company and the 49th
largest IT staffing firm in 2022. 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.
BGSF, Inc. GAAP Financial Measures
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 (loss) income from
continuing operations by reportable segment to consolidated results
for the periods indicated.
Results of Operations
Thirteen Weeks Ended
April 2, 2023
March 27, 2022
(dollars in thousands)
Revenues
$
75,316
$
68,542
Cost of services
48,532
45,111
Gross profit
26,784
23,431
Selling, general and administrative
expenses
23,212
19,717
Impairment losses
22,545
—
Depreciation and amortization
1,757
899
Operating (loss) income
(20,730
)
2,815
Interest expense, net
(1,200
)
(273
)
(Loss) income from continuing operations
before income taxes
(21,930
)
2,542
Income tax benefit (expense) from
continuing operations
5,464
(534
)
(Loss) income from continuing
operations
(16,466
)
2,008
Income from discontinued operations:
Income
—
1,235
Gain on sale
—
17,273
Income tax expense
—
(4,716
)
Net (loss) income
$
(16,466
)
$
15,800
Net (loss) income per share - diluted
Net (loss) income from continuing
operations
$
(1.54
)
$
0.19
Net income from discontinued
operations:
Income
—
0.11
Gain on sale
—
1.66
Income tax expense
—
(0.45
)
Net (loss) income per share - diluted
$
(1.54
)
$
1.51
Business Segments
Thirteen Weeks Ended
April 2, 2023
March 27, 2022
(dollars in thousands)
Revenue:
Real Estate
$
28,405
38
%
$
25,916
38
%
Professional
46,911
62
%
42,626
62
%
Total
$
75,316
100
%
$
68,542
100
%
Gross profit:
Real Estate
$
11,347
42
%
$
9,971
43
%
Professional
15,437
58
%
13,460
57
%
Total
$
26,784
100
%
$
23,431
100
%
Operating (loss) income:
Real Estate
$
4,690
$
4,035
Professional - without impairment
losses
2,627
3,470
Professional - impairment losses
(22,545
)
—
Home office
(5,502
)
(4,690
)
Total
$
(20,730
)
$
2,815
The following tables have been derived from our unaudited
consolidated financial statements and summarize key components of
our balance sheets and statements of cash flows for the periods
indicated.
Condensed Balance
Sheets
April 2, 2023
January 1, 2023
Assets
(dollars in thousands)
Current assets
$
72,381
$
76,162
Property and equipment, net
1,249
2,081
Intangible assets, net
23,410
47,552
Goodwill
55,635
55,193
Other
19,206
13,685
Total assets
$
171,881
$
194,673
Liabilities and stockholders'
equity
Long-term debt, current portion
$
4,000
$
4,000
Other current
20,986
24,208
Line of credit
21,697
22,302
Long-term debt, less current portion
39,368
40,368
Other long-term
2,672
3,059
Total liabilities
88,723
93,937
Total stockholders' equity
83,158
100,736
Total liabilities and stockholders'
equity
$
171,881
$
194,673
Working Capital
April 2, 2023
January 1, 2023
(dollars in thousands)
Working capital
$
47,395
$
47,954
Working capital ratio
2.90
2.70
Condensed Statements of Cash
Flows
Thirteen Weeks Ended
April 2, 2023
March 27, 2022
(dollars in thousands)
Net cash provided by (used in) continuing
operations:
Operating activities
$
3,939
$
(1,060
)
Investing activities
(745
)
28,262
Financing activities
(3,124
)
(27,963
)
Net change cash provided by discontinued
operations
—
649
Net change in cash and cash
equivalents
$
70
$
(112
)
BGSF, Inc. 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 contingent consideration
gains and share-based compensation expense, as well as certain
specific events that management does not consider in assessing our
on-going operating performance.
Reconciliation of (Loss)
Income from Continuing Operations to Adjusted EBITDA
Thirteen Weeks Ended
April 2, 2023
March 27, 2022
(dollars in thousands)
(Loss) income from continuing
operations
$
(16,466
)
$
2,008
Income tax (benefit) expense from
continuing operations
(5,464
)
534
Interest expense, net
1,200
273
Operating (loss) income
(20,730
)
2,815
Depreciation and amortization
1,757
899
Impairment losses
22,545
—
Share-based compensation
361
211
Transaction fees
319
—
Adjusted EBITDA from continuing
operations
$
4,252
$
3,925
Adjusted EBITDA Margin (% of revenue)
5.6
%
5.7
%
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 contingent consideration gains, 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 Adjusted
EPS
Thirteen Weeks Ended
April 2, 2023
March 27, 2022
Net (loss) income from continuing
operations per diluted share
$
(1.54
)
$
0.19
Acquisition amortization
0.13
0.05
Impairment losses
2.10
—
Transaction fees
0.03
—
Income tax expense adjustment
(0.56
)
(0.01
)
Adjusted EPS from continuing
operations
$
0.16
$
0.23
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510006045/en/
Steven Hooser or Sandy Martin Three Part Advisors
ir@bgstaffing.com 214.872.2710 or 214.616.2207
BGSF (NYSE:BGSF)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
BGSF (NYSE:BGSF)
Gráfica de Acción Histórica
De May 2023 a May 2024