BGSF, Inc. Announces Review of Strategic Alternatives and Suspension of Quarterly Cash Dividend

Rhea-AI Summary

BGSF, Inc. (NYSE: BGSF) has announced a review of strategic alternatives and the suspension of its quarterly cash dividend until the review is complete. The company aims to maximize shareholder value amidst market valuation challenges. Houlihan Lokey has been engaged as financial advisors for this evaluation. However, the outcome of the review remains uncertain, and the company will refrain from further comments until deemed necessary.

Positive

• None.

Negative

• The suspension of the quarterly cash dividend may impact investor confidence and shareholder returns in the short term.

• The need to evaluate strategic alternatives due to market valuation challenges can imply underlying issues affecting the company's performance.

PLANO, Texas--(BUSINESS WIRE)-- BGSF, Inc. (NYSE: BGSF), a national provider of consulting, managed services, and workforce solutions, today announced that its Board of Directors has initiated a process to evaluate potential strategic alternatives and has engaged Houlihan Lokey as its financial advisors in this endeavor to maximize shareholder value, and the Company has also suspended its quarterly cash dividend until this strategic review is complete.

“Given the continued dislocation of BGSF’s public market valuation, the Board and I believe evaluating strategic alternatives and suspending the cash dividend are prudent measures as we continue to look for ways to maximize value for our shareholders,” said Beth Garvey, Chair, President, and Chief Executive Officer.

There are no assurances of the timing or outcome of this review or that this review will result in a merger, divestiture, sale, or other transaction, and the Company will not comment further until it determines that disclosure is appropriate or required.

About BGSF

BGSF provides consulting, managed services and workforce solutions to a variety of industries through its various divisions in IT, Finance & Accounting, Managed Solutions, and Property Management (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 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, among other things, risks relating to volatility and uncertainty in the capital markets, availability of suitable third parties with which to conduct any strategic transaction, whether the Company will be able to pursue a strategic transaction, or whether any such transaction, if pursued, will be completed successfully and on attractive terms, or at all, the risks associated with undertaking a review of strategic alternatives, including in respect of relationships with stockholders, employees, customers, and suppliers, as well as risks and uncertainties 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508348941/en/

Steven Hooser or Sandy Martin

Three Part Advisors

ir@bgstaffing.com 214.872.2710 or 214.616.2207

Source: BGSF, Inc.

FAQ

What did BGSF, Inc. announce?

BGSF, Inc. announced a review of strategic alternatives and the suspension of its quarterly cash dividend.

Who has been engaged as financial advisors for the evaluation process?

Houlihan Lokey has been engaged as the financial advisor for the strategic alternatives review.

Why did BGSF, Inc. suspend its quarterly cash dividend?

BGSF, Inc. suspended its quarterly cash dividend to focus on the strategic review process and maximize shareholder value.

What did Beth Garvey, Chair, President, and CEO of BGSF, Inc. mention regarding the strategic review?

Beth Garvey stated that evaluating strategic alternatives and suspending the cash dividend are prudent measures to enhance shareholder value amidst market challenges.