BGSF, Inc. Reports Full Year and Fourth Quarter 2023 Financial Results
- Full-year revenues increased by 4.9% to $313.2 million
- Operating cash flow reached $20.4 million
- New credit facility closed on March 12, 2024
- Gross profit rose by 8.0% to $111.8 million
- Adjusted EBITDA increased to $25.1 million, up 15.9% from the previous year
- CEO emphasized successful execution of long-term strategic plans and revenue growth
- None.
Insights
The reported full-year revenues of $313.2 million, representing a 4.9% increase, are indicative of BGSF, Inc.'s capacity to grow its top line. This growth, particularly in the Property Management and Professional segments, suggests resilience in the face of economic challenges. The organic growth in Property Management revenues, at 3.3%, is slightly below the Professional segment's growth, which includes contributions from the Arroyo Consulting acquisition. The acquisition strategy appears to be paying off, adding $14.8 million in new revenues, although there is a noted decline in the existing Professional business. This could signal potential issues in core operations that may need addressing.
The significant non-cash impairment charge of $22.5 million related to rebranding efforts is a one-time event that has heavily impacted net income figures. However, stakeholders should consider the long-term benefits of such a rebranding, which may enhance brand recognition and market positioning. The increase in gross profit margins by 100 basis points to 35.7% is a positive sign of improved operational efficiency or pricing power. Adjusted EBITDA's increase of 15.9% year over year is a robust indicator of the company's earnings before interest, taxes, depreciation and amortization, adjusted for one-off events, which provides a clearer picture of operational performance.
The growth in revenues and adjusted EBITDA, despite the reported net loss, suggests that BGSF's market strategy and service offerings are aligning well with client needs. The company's focus on building stronger relationships with world-class ERP technologies could be a strategic move to cement its position in a niche market, which is a positive signal for investors looking for specialized service providers. However, the decline in the existing Professional business segment raises questions about the competitiveness and potential saturation in the market that BGSF operates in. The market for consulting, managed services and professional workforce solutions is highly competitive and the company's ability to differentiate itself through its service offerings and client relationships will be crucial for its continued growth.
Despite the macroeconomic headwinds impacting corporations throughout North America, BGSF's ability to grow its revenue and generate $20.4 million of operating cash flow is commendable. This demonstrates the company's operational resilience and financial discipline. The new credit facility closed on March 12, 2024, with a maturity date of March 12, 2028, provides BGSF with financial flexibility. The facility's structure, which includes revolving credit and term loans, suggests a strategic approach to debt management that may support future growth initiatives or provide a buffer against economic downturns. The consistent quarterly cash dividends indicate confidence in the company's cash flow generation capabilities and a commitment to shareholder returns, which can be appealing to investors seeking income-generating investments.
Record Full Year Revenues of
Generated
New Credit Facility Closed March 12, 2024
Note: Fiscal 2023 financial results are on a 52-week year ended December 31, 2023, compared to Fiscal 2022 financial results on a 53-week year ended January 1, 2023.
Full Year 2023 Highlights from Continuing Operations2,3:
-
Revenues were
$313.2 million 4.9% from 2022. Property Management revenues grew organically by3.3% versus the prior year. Professional revenues grew by6.1% from prior year, with Arroyo Consulting acquisition contributing$14.8 million -
Gross profit was
$111.8 million 8.0% from 2022. Gross profit margins increased 100 basis points to35.7% . -
Operating loss in 2023 includes a non-cash impairment of
$22.5 million $17.5 million $1.63 -
Net loss from continuing operations was
$10.2 million $0.95 $11.3 million $1.07 -
Adjusted EBITDA1 from continuing operations was
$25.1 million 8.0% of revenues), up from$21.7 million 7.3% of revenues) in 2022, an increase of15.9% year over year. -
Adjusted EPS1 from continuing operations was
$1.19 $1.26
Fiscal 2023 Same Day Revenue(1), Same Day Gross Profit(1) and Same Day EBITDA(1) increased
Note: Fourth quarter 2023 financial results are on a 13-week period ended December 31, 2023, compared to fourth quarter 2022 financial results on a 14-week period ended January 1, 2023.
Q4 2023 Highlights from Continuing Operations2,3:
-
Revenues were
$73.6 million $77.3 million -
Gross profit was
$25.4 million $27.1 million -
Operating income was
$3.2 million $2.8 million -
Net income from continuing operations was
$1.0 million $0.11 $1.4 million $0.14 -
Adjusted EBITDA1 from continuing operations was
$5.5 million 7.5% of revenues), vs.$4.3 million 5.6% of revenues) in 2022, an increase of27.6% over prior year. -
Adjusted EPS1 from continuing operations was
$0.21 $0.19
Fourth quarter 2023 Same Day Revenue(1), Same Day Gross Profit(1) and Same Day EBITDA(1) increased
1Non-GAAP financial measure. See reconciliation below for details. |
22022 includes three weeks of operating results from the Horn Solutions acquisition. |
3 2023 includes 39 weeks of Arroyo Consulting and a full year of Horn Solutions. |
On March 12, 2024, our credit agreement was amended with BMO Bank, N.A., as administrative agent, and swing line lender, and BMO Capital Markets Corp., as sole lead arranger and sole book runner, with a maturity date of March 12, 2028. The revolving credit facility with an outstanding balance of approximately
Beth A. Garvey, Chair, President and CEO, said, “Fiscal 2023 was a significant year for BGSF. We successfully executed our long-term strategic plans through an accretive acquisition, rebranding all our businesses, and building stronger relationships with world-class ERP technologies. For the year, we grew revenues to
Conference Call
BGSF will discuss its fourth fiscal quarter and full year 2023 financial results during a conference call and webcast at 9:00 a.m. ET on March 14, 2024. Interested participants may dial 1-877-317-6789 (Toll Free) or 1-412-317-6789 (International). A replay of the call will be available until March 21, 2024. To access the replay, please dial 1-877-344-7529 (Toll Free), or 1-412-317-0088 (International) and enter access code 6349244. 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 (formally known as Real Estate which includes 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
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.
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) from continuing operations by reportable segment to consolidated results for the periods indicated.
CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) |
||||||||
|
|
|
|
December 31,
|
|
January 1,
|
||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
|
Accounts receivable (net of allowance for credit losses of |
|
$ |
56,776 |
|
$ |
66,285 |
|
|
Prepaid expenses |
|
|
2,963 |
|
|
2,418 |
|
|
Other current assets |
|
|
7,172 |
|
|
7,459 |
|
|
|
Total current assets |
|
|
66,911 |
|
|
76,162 |
Property and equipment, net |
|
|
1,217 |
|
|
2,081 |
||
Other assets |
|
|
|
|
||||
|
Deposits |
|
|
2,699 |
|
|
2,616 |
|
|
Other, net |
|
|
5,026 |
|
|
4,411 |
|
|
Deferred income taxes, net |
|
|
7,271 |
|
|
2,196 |
|
|
Right-of-use asset - operating leases |
|
|
5,435 |
|
|
4,462 |
|
|
Intangible assets, net |
|
|
30,370 |
|
|
47,552 |
|
|
Goodwill |
|
|
59,588 |
|
|
55,193 |
|
|
|
Total other assets |
|
|
110,389 |
|
|
116,430 |
|
Total assets |
|
$ |
178,517 |
|
$ |
194,673 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
|
Accounts payable |
|
$ |
95 |
|
$ |
587 |
|
|
Accrued payroll and expenses |
|
|
14,902 |
|
|
19,171 |
|
|
Line of credit (net of debt issuance costs of |
|
|
24,746 |
|
|
— |
|
|
Long-term debt, current portion |
|
|
34,000 |
|
|
4,000 |
|
|
Accrued interest |
|
|
438 |
|
|
273 |
|
|
Income taxes payable |
|
|
282 |
|
|
253 |
|
|
Contingent consideration, current portion |
|
|
4,208 |
|
|
1,081 |
|
|
Convertible Note |
|
|
4,368 |
|
|
— |
|
|
Other current liabilities |
|
|
— |
|
|
1,000 |
|
|
Lease liabilities, current portion |
|
|
2,016 |
|
|
1,842 |
|
|
|
Total current liabilities |
|
|
85,055 |
|
|
28,207 |
Line of credit (net of debt issuance costs of |
|
|
— |
|
|
22,303 |
||
Long-term debt, less current portion |
|
|
— |
|
|
36,000 |
||
Contingent consideration, less current portion |
|
|
4,112 |
|
|
— |
||
Convertible note |
|
|
— |
|
|
4,368 |
||
Lease liabilities, less current portion |
|
|
3,814 |
|
|
3,049 |
||
Other long-term liabilities |
|
|
— |
|
|
10 |
||
|
|
Total liabilities |
|
|
92,981 |
|
|
93,937 |
Commitments and contingencies |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
— |
||
Common stock, |
|
|
52 |
|
|
70 |
||
Additional paid in capital |
|
|
68,551 |
|
|
67,003 |
||
Retained earnings |
|
|
16,933 |
|
|
33,663 |
||
|
|
Total stockholders’ equity |
|
|
85,536 |
|
|
100,736 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
178,517 |
|
$ |
194,673 |
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share amounts) |
|||||||||||||||||
|
|
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
|
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
|
|
|
(unaudited) |
|
|
|
|
||||||||||
Revenues |
|
$ |
73,567 |
|
|
$ |
77,283 |
|
|
$ |
313,167 |
|
|
$ |
298,422 |
|
|
Cost of services |
|
|
48,120 |
|
|
|
50,225 |
|
|
|
201,383 |
|
|
|
194,874 |
|
|
|
Gross profit |
|
|
25,447 |
|
|
|
27,058 |
|
|
|
111,784 |
|
|
|
103,548 |
|
Selling, general and administrative expenses |
|
|
20,175 |
|
|
|
23,210 |
|
|
|
88,650 |
|
|
|
83,211 |
|
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
22,545 |
|
|
|
— |
|
|
Depreciation and amortization |
|
|
2,045 |
|
|
|
1,087 |
|
|
|
7,774 |
|
|
|
4,054 |
|
|
|
Operating income (loss) |
|
|
3,227 |
|
|
|
2,761 |
|
|
|
(7,185 |
) |
|
|
16,283 |
|
Interest expense, net |
|
|
(1,601 |
) |
|
|
(644 |
) |
|
|
(5,976 |
) |
|
|
(1,363 |
) |
|
|
Income (loss) from continuing operations before income taxes |
|
|
1,626 |
|
|
|
2,117 |
|
|
|
(13,161 |
) |
|
|
14,920 |
|
Income tax benefit (expense) from continuing operations |
|
|
(627 |
) |
|
|
(699 |
) |
|
|
2,938 |
|
|
|
(3,659 |
) |
|
|
Income (loss) from continuing operations |
|
|
999 |
|
|
|
1,418 |
|
|
|
(10,223 |
) |
|
|
11,261 |
|
Income from discontinued operations: |
|
|
|
|
|
|
|
|
|||||||||
|
Income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,235 |
|
|
Gain on sale |
|
|
— |
|
|
|
409 |
|
|
|
— |
|
|
|
17,675 |
|
|
Income tax expense |
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
4,810 |
|
|
Net income (loss) |
|
$ |
999 |
|
|
$ |
1,732 |
|
|
$ |
(10,223 |
) |
|
$ |
25,361 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share - diluted |
|
|
|
|
|
|
|
|
|||||||||
|
Net (loss) income from continuing operations |
|
$ |
0.11 |
|
|
$ |
0.14 |
|
|
$ |
(0.95 |
) |
|
$ |
1.07 |
|
|
Net income from discontinued operations: |
|
|
|
|
|
|
|
|
||||||||
|
Income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.12 |
|
|
Gain on sale |
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
1.69 |
|
|
Income tax expense |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.46 |
) |
|
Net income (loss) per share - diluted |
|
$ |
0.11 |
|
|
$ |
0.16 |
|
|
$ |
(0.95 |
) |
|
$ |
2.42 |
|
BUSINESS SEGMENTS (dollars in thousands) |
|||||||||||||||||||||||||
|
|
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||||||||||
|
|
|
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||||||||||
|
|
|
(unaudited) |
|
|
|
|
|
|
||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Property Management |
|
$ |
29,624 |
|
40 |
% |
|
$ |
31,956 |
|
41 |
% |
|
$ |
125,077 |
|
40 |
% |
|
$ |
121,093 |
|
41 |
% |
|
Professional |
|
|
43,943 |
|
60 |
% |
|
|
45,327 |
|
59 |
% |
|
|
188,090 |
|
60 |
% |
|
|
177,329 |
|
59 |
% |
|
Total |
|
$ |
73,567 |
|
100 |
% |
|
$ |
77,283 |
|
100 |
% |
|
$ |
313,167 |
|
100 |
% |
|
$ |
298,422 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Property Management |
|
$ |
11,589 |
|
46 |
% |
|
$ |
12,602 |
|
47 |
% |
|
$ |
49,785 |
|
45 |
% |
|
$ |
47,695 |
|
46 |
% |
|
Professional |
|
|
13,858 |
|
54 |
% |
|
|
14,456 |
|
53 |
% |
|
|
61,999 |
|
55 |
% |
|
|
55,853 |
|
54 |
% |
|
Total |
|
$ |
25,447 |
|
100 |
% |
|
$ |
27,058 |
|
100 |
% |
|
$ |
111,784 |
|
100 |
% |
|
$ |
103,548 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Property Management |
|
$ |
5,479 |
|
|
|
$ |
4,803 |
|
|
|
$ |
23,155 |
|
|
|
$ |
19,803 |
|
|
||||
|
Professional -without impairment losses |
|
|
2,626 |
|
|
|
|
3,146 |
|
|
|
|
12,292 |
|
|
|
|
15,604 |
|
|
||||
|
Professional - impairment losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
(22,545 |
) |
|
|
|
— |
|
|
||||
|
Home office |
|
|
(4,878 |
) |
|
|
|
(5,188 |
) |
|
|
|
(20,087 |
) |
|
|
|
(19,124 |
) |
|
||||
|
Total |
|
$ |
3,227 |
|
|
|
$ |
2,761 |
|
|
|
$ |
(7,185 |
) |
|
|
$ |
16,283 |
|
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years ended December 31, 2023, January 1, 2023 and December 26, 2021 |
|||||||||||||||
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|||||||||
|
Net (loss) income |
|
$ |
(10,223 |
) |
|
$ |
25,361 |
|
|
$ |
14,109 |
|
||
|
|
(Income) from discontinued operations |
|
|
— |
|
|
|
(1,235 |
) |
|
|
(4,570 |
) |
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|||||||
|
|
Depreciation |
|
|
446 |
|
|
|
597 |
|
|
|
685 |
|
|
|
|
Amortization |
|
|
7,328 |
|
|
|
3,457 |
|
|
|
3,013 |
|
|
|
|
Gain on sale of discontinued operations |
|
|
— |
|
|
|
(17,675 |
) |
|
|
— |
|
|
|
|
Impairment losses |
|
|
22,545 |
|
|
|
— |
|
|
|
— |
|
|
|
|
CARES Act credit |
|
|
— |
|
|
|
— |
|
|
|
(2,368 |
) |
|
|
|
Loss on disposal of property and equipment |
|
|
17 |
|
|
|
6 |
|
|
|
8 |
|
|
|
|
Contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(2,403 |
) |
|
|
|
Amortization of debt issuance costs |
|
|
199 |
|
|
|
172 |
|
|
|
75 |
|
|
|
|
Interest expense on contingent consideration payable |
|
|
740 |
|
|
|
128 |
|
|
|
252 |
|
|
|
|
Provision for credit losses |
|
|
798 |
|
|
|
315 |
|
|
|
221 |
|
|
|
|
Share-based compensation |
|
|
1,029 |
|
|
|
1,085 |
|
|
|
1,058 |
|
|
|
|
Deferred income taxes, net of acquired deferred tax liability |
|
|
(5,075 |
) |
|
|
2,353 |
|
|
|
1,279 |
|
|
|
|
Net changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
|||||||
|
|
|
Accounts receivable |
|
|
12,163 |
|
|
|
(14,793 |
) |
|
|
(15,178 |
) |
|
|
|
Prepaid expenses and other current assets |
|
|
(2,159 |
) |
|
|
(866 |
) |
|
|
(200 |
) |
|
|
|
Deposits |
|
|
(83 |
) |
|
|
1,503 |
|
|
|
(126 |
) |
|
|
|
Other assets |
|
|
720 |
|
|
|
660 |
|
|
|
319 |
|
|
|
|
Accounts payable |
|
|
(492 |
) |
|
|
(228 |
) |
|
|
156 |
|
|
|
|
Accrued payroll and expenses |
|
|
(7,426 |
) |
|
|
1,633 |
|
|
|
5,730 |
|
|
|
|
Accrued interest |
|
|
165 |
|
|
|
171 |
|
|
|
24 |
|
|
|
|
Income taxes receivable and payable |
|
|
729 |
|
|
|
(1,202 |
) |
|
|
(560 |
) |
|
|
|
Other current liabilities |
|
|
(1,000 |
) |
|
|
(4,551 |
) |
|
|
19 |
|
|
|
|
Operating leases |
|
|
(35 |
) |
|
|
(127 |
) |
|
|
(107 |
) |
|
|
|
Other long-term liabilities |
|
|
— |
|
|
|
(64 |
) |
|
|
(78 |
) |
|
|
Net cash provided by (used in) continuing operating activities |
|
|
20,386 |
|
|
|
(3,300 |
) |
|
|
1,358 |
|
|
|
|
Net cash (used in) provided by discontinued operating activities |
|
|
— |
|
|
|
(3,822 |
) |
|
|
5,305 |
|
|
|
|
Net cash provided by (used in) operating activities |
|
|
20,386 |
|
|
|
(7,122 |
) |
|
|
6,663 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash flows from investing activities |
|
|
|
|
|
|
|||||||||
|
Businesses acquired, net of cash acquired |
|
|
(6,917 |
) |
|
|
(33,940 |
) |
|
|
(3,791 |
) |
||
|
Businesses sold |
|
|
— |
|
|
|
30,722 |
|
|
|
— |
|
||
|
Capital expenditures |
|
|
(2,597 |
) |
|
|
(5,680 |
) |
|
|
(3,204 |
) |
||
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
||
|
|
Net cash used in continuing investing activities |
|
|
(9,514 |
) |
|
|
(8,898 |
) |
|
|
(6,990 |
) |
|
|
|
Net cash used in discontinued investing activities |
|
|
— |
|
|
|
(26 |
) |
|
|
(34 |
) |
|
|
|
Net cash used in investing activities |
|
|
(9,514 |
) |
|
|
(8,924 |
) |
|
|
(7,024 |
) |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (in thousands) Years ended December 31, 2023, January 1, 2023 and December 26, 2021 |
|||||||||||||||
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from financing activities |
|
|
|
|
|
|
|||||||||
|
Net borrowings under line of credit |
|
|
2,312 |
|
|
|
9,781 |
|
|
|
6,804 |
|
||
|
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
40,000 |
|
|
|
— |
|
||
|
Principal payments on long-term debt |
|
|
(6,000 |
) |
|
|
(26,863 |
) |
|
|
(2,063 |
) |
||
|
Payments of dividends |
|
|
(6,507 |
) |
|
|
(6,290 |
) |
|
|
(4,567 |
) |
||
|
Issuance of ESPP shares |
|
|
512 |
|
|
|
653 |
|
|
|
340 |
|
||
|
Issuance of shares under the 2013 Long-Term Incentive Plan and Form S-3 registration statement costs, net of exercises |
|
|
(10 |
) |
|
|
(1 |
) |
|
|
(41 |
) |
||
|
Contingent consideration paid |
|
|
(1,110 |
) |
|
|
(1,110 |
) |
|
|
— |
|
||
|
Debt issuance costs |
|
|
(69 |
) |
|
|
(236 |
) |
|
|
— |
|
||
|
|
Net cash (used in) provided by continuing financing activities |
|
|
(10,872 |
) |
|
|
15,934 |
|
|
|
473 |
|
|
Net change in cash and cash equivalents |
|
|
— |
|
|
|
(112 |
) |
|
|
112 |
|
|||
Cash and cash equivalents, beginning of year |
|
|
— |
|
|
|
112 |
|
|
|
— |
|
|||
Cash and cash equivalents, end of year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
112 |
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information: |
|
|
|
|
|
|
|||||||||
|
Cash paid for interest, net |
|
$ |
4,668 |
|
|
$ |
641 |
|
|
$ |
879 |
|
||
|
Cash paid for taxes, net of refunds |
|
$ |
1,378 |
|
|
$ |
7,562 |
|
|
$ |
3,676 |
|
||
NON-GAAP FINANCIAL MEASURES
The financial results of BGSF, Inc. are prepared in conformity with accounting principles generally accepted in
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 operations, balance sheet or statement of cash flows of a company. Adjusted EBITDA, Same Day EBITDA, Adjusted EPS, Same Day Adjusted EPS, Same Day Revenue, and Same Day Gross Profit 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, revenue, gross profit, 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, Same Day EBITDA, Adjusted EPS, Same Day Adjusted EPS, Same Day Revenue, and Same Day Gross Profit are useful performance measures and are used by us to facilitate comparisons 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 share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance. We define “Same Day EBITDA” as Adjusted EBITDA on a fifty-two week fiscal year. We define “Same Day Revenue” and “Same Day Gross Profit” as revenue and gross profit on a fifty-two week fiscal year. 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 INCOME FROM CONTINUING OPERATIONS TO ADJUSTED AND SAME DAY EBITDA (dollars in thousands) |
||||||||||||||||
|
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
Income (loss) from continuing operations |
|
$ |
999 |
|
|
$ |
1,417 |
|
|
$ |
(10,223 |
) |
|
$ |
11,261 |
|
Income tax expense (benefit) from continuing operations |
|
|
626 |
|
|
|
699 |
|
|
|
(2,938 |
) |
|
|
3,659 |
|
Interest expense, net |
|
|
1,601 |
|
|
|
644 |
|
|
|
5,976 |
|
|
|
1,363 |
|
Operating income (loss) |
|
|
3,226 |
|
|
|
2,760 |
|
|
|
(7,185 |
) |
|
|
16,283 |
|
Depreciation and amortization |
|
|
2,045 |
|
|
|
1,087 |
|
|
|
7,774 |
|
|
|
4,054 |
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
22,545 |
|
|
|
— |
|
Share-based compensation |
|
|
184 |
|
|
|
220 |
|
|
|
1,029 |
|
|
|
1,085 |
|
Transaction fees |
|
|
73 |
|
|
|
265 |
|
|
|
974 |
|
|
|
271 |
|
Adjusted EBITDA from continuing operations |
|
|
5,528 |
|
|
|
4,332 |
|
|
|
25,137 |
|
|
|
21,693 |
|
Adjusted EBITDA Margin (% of revenue) |
|
|
7.5 |
% |
|
|
5.6 |
% |
|
|
8.0 |
% |
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA from continuing operations |
|
$ |
5,528 |
|
|
$ |
4,332 |
|
|
$ |
25,137 |
|
|
$ |
21,693 |
|
Same day adjustment |
|
|
— |
|
|
|
(332 |
) |
|
|
— |
|
|
|
(410 |
) |
Same Day EBITDA from continuing operations |
|
$ |
5,528 |
|
|
$ |
4,000 |
|
|
$ |
25,137 |
|
|
$ |
21,283 |
|
RECONCILIATION OF ADJUSTED EPS AND SAME DAY ADJUSTED EPS |
||||||||||||||||
|
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations per diluted share |
|
$ |
0.11 |
|
|
$ |
0.14 |
|
|
$ |
(0.95 |
) |
|
$ |
1.07 |
|
Acquisition amortization |
|
|
0.15 |
|
|
|
0.05 |
|
|
|
0.57 |
|
|
|
0.22 |
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
2.09 |
|
|
|
— |
|
Transaction fees |
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.09 |
|
|
|
0.03 |
|
Income tax expense adjustment |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
|
|
(0.61 |
) |
|
|
(0.06 |
) |
Adjusted EPS from continuing operations |
|
$ |
0.21 |
|
|
$ |
0.19 |
|
|
$ |
1.19 |
|
|
$ |
1.26 |
|
Same day adjustment |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.03 |
) |
Same Day Adjusted EPS from continuing operations |
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
$ |
1.19 |
|
|
$ |
1.23 |
|
RECONCILIATION OF SAME DAY REVENUES AND SAME DAY GROSS PROFIT (dollars in thousands) |
|||||||||
|
January 1, 2023 |
||||||||
|
|
|
Revenues |
|
Gross Profit |
||||
Fourteen Weeks (65 revenue days) - GAAP |
$ |
77,283 |
|
|
$ |
27,058 |
|
||
Five Days |
|
(5,916 |
) |
|
|
(2,068 |
) |
||
Thirteen Weeks (60 revenue days) - Same Day |
$ |
71,367 |
|
|
$ |
24,990 |
|
||
|
|
|
|
||||||
Fifty-three Weeks (254 revenue days) - GAAP |
$ |
298,422 |
|
|
$ |
103,548 |
|
||
Five Days |
|
(5,916 |
) |
|
|
(2,068 |
) |
||
Fifty-two Weeks (249 revenue days) - Same Day |
$ |
292,506 |
|
|
$ |
101,480 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313226666/en/
Steven Hooser or Sandy Martin
Three Part Advisors
ir@bgstaffing.com 214.872.2710 or 214.616.2207
Source: BGSF, Inc.
FAQ
What were BGSF's full-year revenues for 2023?
What was the operating cash flow for BGSF in 2023?
When was the new credit facility closed by BGSF?
What was the gross profit for BGSF in 2023?
How much did BGSF's Adjusted EBITDA increase by in 2023?
What did the CEO of BGSF highlight in the PR?
