BGSF, Inc. Reports Third Quarter 2024 Financial Results
BGSF reported Q3 2024 financial results with revenues of $71.2 million, up from $68.1 million in Q2. The Property Management segment saw a 15.9% revenue increase due to seasonal demand, while Professional segment declined 2.5%. The company posted a net loss of $0.8 million, or $0.07 per diluted share. Adjusted EBITDA was $3.2 million (4.5% of revenues), improving from $2.6 million in Q2. The company launched new lead generation technology, resulting in improved lead acquisition and conversion rates. Despite economic uncertainties, IT consulting maintained stable revenues, while Finance & Accounting experienced lower project work due to seasonality.
BGSF ha riportato i risultati finanziari per il terzo trimestre del 2024, con ricavi di 71,2 milioni di dollari, in aumento rispetto ai 68,1 milioni di dollari del secondo trimestre. Il segmento di gestione immobiliare ha registrato un aumento dei ricavi del 15,9% grazie alla domanda stagionale, mentre il segmento professionale ha visto una diminuzione del 2,5%. L'azienda ha riportato una perdita netta di 0,8 milioni di dollari, ovvero 0,07 dollari per azione diluita. L'EBITDA rettificato è stato di 3,2 milioni di dollari (4,5% dei ricavi), in miglioramento rispetto ai 2,6 milioni di dollari del secondo trimestre. L'azienda ha lanciato una nuova tecnologia di generazione di contatti, ottenendo un miglioramento nelle acquisizioni e nei tassi di conversione dei contatti. Nonostante le incertezze economiche, la consulenza IT ha mantenuto ricavi stabili, mentre il settore Finance & Accounting ha sperimentato un calo nel lavoro sui progetti a causa della stagionalità.
BGSF informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos de 71,2 millones de dólares, un aumento respecto a los 68,1 millones de dólares del segundo trimestre. El segmento de gestión de propiedades vio un aumento del 15,9% en los ingresos debido a la demanda estacional, mientras que el segmento profesional disminuyó un 2,5%. La empresa reportó una pérdida neta de 0,8 millones de dólares, o 0,07 dólares por acción diluida. El EBITDA ajustado fue de 3,2 millones de dólares (4,5% de los ingresos), mejorando desde los 2,6 millones del segundo trimestre. La empresa lanzó una nueva tecnología de generación de leads, lo que resultó en una mejora en la adquisición y conversión de leads. A pesar de las incertidumbres económicas, la consultoría de TI mantuvo ingresos estables, mientras que Finanzas y Contabilidad experimentaron menos trabajo en proyectos debido a la estacionalidad.
BGSF는 2024년 3분기 재무 결과를 보고하며, 7,120만 달러의 수익을 기록했습니다. 이는 2분기의 6,810만 달러에서 증가한 수치입니다. 부동산 관리 부문은 계절적 수요로 인해 15.9%의 수익 증가를 보였으나, 전문 서비스 부문은 2.5% 감소했습니다. 이 회사는 80만 달러의 순손실을 기록하며, 희석 주당 0.07 달러의 손실을 보고했습니다. 조정된 EBITDA는 320만 달러(수익의 4.5%)로, 2분기의 260만 달러에서 개선되었습니다. 또한 이 회사는 새로운 리드 생성 기술을 출시하여 리드 확보 및 전환율을 개선했습니다. 경제적 불확실성에도 불구하고 IT 컨설팅은 안정적인 수익을 유지하였고, 재무 및 회계 부문은 계절적 요인으로 인해 프로젝트 작업이 감소했습니다.
BGSF a publié les résultats financiers du troisième trimestre 2024, avec des revenus de 71,2 millions de dollars, en hausse par rapport à 68,1 millions de dollars au deuxième trimestre. Le segment de la gestion immobilière a connu une augmentation des revenus de 15,9% en raison de la demande saisonnière, tandis que le segment professionnel a diminué de 2,5%. L'entreprise a affiché une perte nette de 0,8 million de dollars, soit 0,07 dollar par action diluée. L'EBITDA ajusté s'est élevé à 3,2 millions de dollars (4,5% des revenus), en amélioration par rapport à 2,6 millions de dollars au deuxième trimestre. L'entreprise a lancé une nouvelle technologie de génération de leads, aboutissant à une amélioration des taux d'acquisition et de conversion des leads. Malgré des incertitudes économiques, le conseil en TI a maintenu des revenus stables, tandis que le secteur des finances et de la comptabilité a connu une baisse d'activité en raison de la saisonnalité.
BGSF berichtete über die finanziellen Ergebnisse für das dritte Quartal 2024 mit Einnahmen von 71,2 Millionen Dollar, ein Anstieg gegenüber 68,1 Millionen Dollar im zweiten Quartal. Der Bereich Immobilienmanagement verzeichnete einen Umsatzanstieg von 15,9% aufgrund der saisonalen Nachfrage, während der professionelle Sektor um 2,5% zurückging. Das Unternehmen erzielte einen Nettoverlust von 0,8 Millionen Dollar, oder 0,07 Dollar pro verwässerter Aktie. Das bereinigte EBITDA betrug 3,2 Millionen Dollar (4,5% der Einnahmen) und verbesserte sich gegenüber 2,6 Millionen Dollar im zweiten Quartal. Das Unternehmen führte eine neue Technologie zur Lead-Generierung ein, die zu verbesserten Lead-Akquisitions- und Konversionsraten führte. Trotz wirtschaftlicher Unsicherheiten hielt die IT-Beratung stabile Einnahmen, während die Finanz- und Rechnungswesen-Abteilung aufgrund saisonaler Faktoren weniger Projektarbeit erlebte.
- Sequential revenue growth of 4.5% to $71.2 million in Q3
- Property Management segment revenue increased 15.9% quarter-over-quarter
- Adjusted EBITDA margin improved to 4.5% from 3.8% in Q2
- Adjusted EPS increased to $0.10 from $0.07 in Q2
- Gross profit increased to $24.3 million from $23.6 million in Q2
- Net loss of $0.8 million ($0.07 per diluted share)
- Professional segment revenue declined 2.5% quarter-over-quarter
- Gross profit percentage decreased to 34.2% from 34.7% in Q2
- Operating income decreased significantly year-over-year from $5.3M to $0.5M
Insights
The Q3 results reveal concerning trends with
The Property Management segment shows seasonal strength but remains below 2023 levels. The Professional segment's
The implementation of advanced lead generation technology marks a strategic pivot toward digital transformation. Early results showing improved lead acquisition and conversion rates are promising, particularly given the challenging market conditions. The modernized tech stack investment demonstrates commitment to operational efficiency and competitive positioning.
The stable IT consulting revenues amid market headwinds suggest resilient demand for core services. The growth in Managed Solutions aligns with industry trends toward comprehensive consulting services. However, the broader revenue challenges indicate that technology improvements alone may not be sufficient to overcome current market headwinds without additional strategic initiatives.
Q3 2024 Highlights (results include sequential comparisons to Q2 2024):
-
Revenues were
$71.2 million $68.1 million -
Property Management segment revenues increased
15.9% from Q2, driven by seasonal demand. -
Professional segment revenues declined
2.5% from Q2, due to a decline in billed hours in the Finance & Accounting division.
-
Property Management segment revenues increased
-
Gross profit was
$24.3 million $23.6 million -
Net loss was
$0.8 million $0.07 -
Adjusted EBITDA1 was
$3.2 million 4.5% of revenues) in Q3 from$2.6 million 3.8% of revenues) in Q2. -
Adjusted EPS1 was
$0.10 $0.07 - Launched advanced lead generation technology, which generated significantly better lead acquisition and conversion rates in the quarter.
1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below. |
SUMMARY OF FINANCIAL RESULTS |
||||||||||||||||||
(dollars in thousands) (unaudited) |
||||||||||||||||||
|
|
For the Thirteen Week Periods Ended |
||||||||||||||||
|
|
September 29,
|
|
October 1,
|
|
June 30,
|
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||||||
Property Management |
|
$ |
29,824 |
|
|
|
$ |
35,976 |
|
|
|
$ |
25,726 |
|
|
|||
Professional |
|
|
41,362 |
|
|
|
|
47,508 |
|
|
|
|
42,411 |
|
|
|||
Total |
|
$ |
71,186 |
|
|
|
$ |
83,484 |
|
|
|
$ |
68,137 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit / Gross profit percentage: |
|
|
|
|
|
|
|
|
|
|||||||||
Property Management |
|
$ |
10,696 |
|
35.9 |
% |
|
$ |
14,197 |
|
39.5 |
% |
|
$ |
9,596 |
|
37.3 |
% |
Professional |
|
|
13,633 |
|
33.0 |
% |
|
|
15,782 |
|
33.2 |
% |
|
|
14,034 |
|
33.1 |
% |
Total |
|
$ |
24,329 |
|
34.2 |
% |
|
$ |
29,979 |
|
35.9 |
% |
|
$ |
23,630 |
|
34.7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
$ |
470 |
|
|
|
$ |
5,267 |
|
|
|
$ |
81 |
|
|
|||
Net (loss) Income |
|
$ |
(804 |
) |
|
|
$ |
2,640 |
|
|
|
$ |
(761 |
) |
|
|||
Net (loss) income per diluted share |
|
$ |
(0.07 |
) |
|
|
$ |
0.24 |
|
|
|
$ |
(0.07 |
) |
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP Financial Measures: |
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA1 |
|
$ |
3,208 |
|
|
|
$ |
7,857 |
|
|
|
$ |
2,603 |
|
|
|||
Adjusted EBITDA Margin (% of revenue)1 |
|
|
4.5 |
% |
|
|
|
9.4 |
% |
|
|
|
3.8 |
% |
|
|||
Adjusted EPS1 |
|
$ |
0.10 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.07 |
|
|
|||
Beth A. Garvey, Chair, President, and CEO, said, “Although economic uncertainties persist and the demand environment remains choppy for the entire IT consulting and workforce industry, we are pleased to report that our third quarter total revenues improved sequentially by
“As part of our ongoing technology enhancements, I am pleased to share that we have launched our advanced lead generation engine in the third quarter, made possible by our earlier investment to modernize our tech stack. BGSF’s technology platform leverages our marketing automation to streamline better lead acquisition and increase conversion rates across both our Professional and Property Management divisions. We have other tech enhancements launching in the fourth quarter to drive better efficiencies and believe these initiatives demonstrate our commitment to BGSF’s digital transformation to improve client engagement and deliver cutting-edge workforce solutions.”
“The review of strategic alternatives work continues, and we have no updates that we can share today. We look forward to discussing in more detail in the future,” concluded Garvey.
Conference Call
BGSF will discuss its third quarter 2024 financial results during a conference call and webcast at 9:00 a.m. ET on November 7, 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 November 14, 2024. To access the replay, please dial 1-877-344-7529 (Toll Free), or 1-412-317-0088 (International) and enter access code 4519768. 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 97th 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, 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,” “anticipates,” “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.
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands, except share amounts) |
||||||
|
|
September 29,
|
|
December 31, 2023 |
||
ASSETS |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
262 |
|
$ |
— |
Accounts receivable (net of allowance for credit losses of |
|
|
46,074 |
|
|
56,776 |
Prepaid expenses |
|
|
2,355 |
|
|
2,963 |
Other current assets |
|
|
2,760 |
|
|
7,172 |
Total current assets |
|
|
51,451 |
|
|
66,911 |
|
|
|
|
|
||
Property and equipment, net |
|
|
1,204 |
|
|
1,217 |
|
|
|
|
|
||
Other assets |
|
|
|
|
||
Deposits |
|
|
2,092 |
|
|
2,699 |
Software as a service, net |
|
|
4,592 |
|
|
5,026 |
Deferred income taxes, net |
|
|
7,587 |
|
|
7,271 |
Right-of-use asset - operating leases, net |
|
|
5,065 |
|
|
5,435 |
Intangible assets, net |
|
|
26,193 |
|
|
30,370 |
Goodwill |
|
|
59,151 |
|
|
59,588 |
Total other assets |
|
|
104,680 |
|
|
110,389 |
Total assets |
|
$ |
157,335 |
|
$ |
178,517 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Accounts payable |
|
$ |
221 |
|
$ |
95 |
Accrued payroll and expenses |
|
|
15,361 |
|
|
14,902 |
Line of credit (net of debt issuance costs of |
|
— |
|
|
24,746 |
|
Long-term debt, current portion (net of debt issuance costs of |
|
|
3,373 |
|
|
34,000 |
Accrued interest |
|
|
286 |
|
|
438 |
Income taxes payable |
|
|
172 |
|
|
282 |
Contingent consideration, current portion |
|
|
4,047 |
|
|
4,208 |
Convertible note |
|
|
4,368 |
|
|
4,368 |
Lease liabilities, current portion |
|
|
1,586 |
|
|
2,016 |
Total current liabilities |
|
|
29,414 |
|
|
85,055 |
|
|
|
|
|
||
Line of credit (net of debt issuance costs of |
|
|
7,381 |
|
|
— |
Long-term debt, less current portion (net of debt issuance costs of |
|
|
33,780 |
|
|
— |
Contingent consideration, less current portion |
|
|
— |
|
|
4,112 |
Lease liabilities, less current portion |
|
|
3,815 |
|
|
3,814 |
Total liabilities |
|
|
74,390 |
|
|
92,981 |
Commitments and contingencies |
|
|
|
|
||
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
53 |
|
|
52 |
Additional paid in capital |
|
|
69,955 |
|
|
68,551 |
Retained earnings |
|
|
12,937 |
|
|
16,933 |
Total stockholders’ equity |
|
|
82,945 |
|
|
85,536 |
Total liabilities and stockholders’ equity |
|
$ |
157,335 |
|
$ |
178,517 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except per share and dividend amounts) |
||||||||||||||||
For the Thirteen and Thirty-nine Week Periods Ended September 29, 2024 and October 1, 2023 |
||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Thirty-nine Weeks Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
$ |
71,186 |
|
|
$ |
83,484 |
|
|
$ |
208,089 |
|
|
$ |
239,600 |
|
Cost of services |
|
|
46,857 |
|
|
|
53,505 |
|
|
|
136,692 |
|
|
|
153,263 |
|
Gross profit |
|
|
24,329 |
|
|
|
29,979 |
|
|
|
71,397 |
|
|
|
86,337 |
|
Selling, general and administrative expenses |
|
|
21,966 |
|
|
|
22,679 |
|
|
|
64,549 |
|
|
|
68,475 |
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,545 |
|
Depreciation and amortization |
|
|
1,893 |
|
|
|
2,033 |
|
|
|
5,881 |
|
|
|
5,729 |
|
Operating income (loss) |
|
|
470 |
|
|
|
5,267 |
|
|
|
967 |
|
|
|
(10,412 |
) |
Interest expense, net |
|
|
(1,222 |
) |
|
|
(1,672 |
) |
|
|
(3,518 |
) |
|
|
(4,375 |
) |
(Loss) income before income taxes |
|
|
(752 |
) |
|
|
3,595 |
|
|
|
(2,551 |
) |
|
|
(14,787 |
) |
Income tax (expense) benefit |
|
|
(52 |
) |
|
|
(955 |
) |
|
|
194 |
|
|
|
3,565 |
|
Net (loss) income |
|
$ |
(804 |
) |
|
$ |
2,640 |
|
|
$ |
(2,357 |
) |
|
$ |
(11,222 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.07 |
) |
|
$ |
0.24 |
|
|
$ |
(0.22 |
) |
|
$ |
(1.04 |
) |
Diluted |
|
$ |
(0.07 |
) |
|
$ |
0.24 |
|
|
$ |
(0.22 |
) |
|
$ |
(1.04 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
10,919 |
|
|
|
10,791 |
|
|
|
10,882 |
|
|
|
10,753 |
|
Diluted |
|
|
10,919 |
|
|
|
10,803 |
|
|
|
10,882 |
|
|
|
10,753 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share |
|
$ |
— |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.45 |
|
BUSINESS SEGMENTS |
||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Thirty-nine Weeks Ended |
||||||||||||||||||||
|
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property Management |
|
$ |
29,824 |
|
42 |
% |
|
$ |
35,976 |
|
43 |
% |
|
$ |
80,096 |
|
38 |
% |
|
$ |
95,453 |
|
40 |
% |
Professional |
|
|
41,362 |
|
58 |
|
|
|
47,508 |
|
57 |
|
|
|
127,993 |
|
62 |
|
|
|
144,147 |
|
60 |
|
Total |
|
$ |
71,186 |
|
100 |
% |
|
$ |
83,484 |
|
100 |
% |
|
$ |
208,089 |
|
100 |
% |
|
$ |
239,600 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property Management |
|
|
10,696 |
|
44 |
% |
|
$ |
14,197 |
|
47 |
% |
|
|
29,635 |
|
42 |
% |
|
$ |
38,196 |
|
44 |
% |
Professional |
|
|
13,633 |
|
56 |
|
|
|
15,782 |
|
53 |
|
|
|
41,762 |
|
58 |
|
|
|
48,141 |
|
56 |
|
Total |
|
$ |
24,329 |
|
100 |
% |
|
$ |
29,979 |
|
100 |
% |
|
$ |
71,397 |
|
100 |
% |
|
$ |
86,337 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property Management |
|
$ |
4,175 |
|
|
|
$ |
7,212 |
|
|
|
$ |
10,780 |
|
|
|
$ |
17,676 |
|
|
||||
Professional -without impairment losses |
|
|
1,474 |
|
|
|
|
3,253 |
|
|
|
|
4,704 |
|
|
|
|
9,666 |
|
|
||||
Professional - impairment losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(22,545 |
) |
|
||||
Home office |
|
|
(5,179 |
) |
|
|
|
(5,198 |
) |
|
|
|
(14,517 |
) |
|
|
|
(15,209 |
) |
|
||||
Total |
|
$ |
470 |
|
|
|
$ |
5,267 |
|
|
|
$ |
967 |
|
|
|
$ |
(10,412 |
) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
For the Thirty-nine Week Periods Ended September 29, 2024 and October 1, 2023 |
||||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(2,357 |
) |
|
$ |
(11,222 |
) |
Adjustments to reconcile net loss to net cash provided by activities: |
|
|
|
|
||||
Depreciation |
|
|
271 |
|
|
|
343 |
|
Amortization |
|
|
5,610 |
|
|
|
5,386 |
|
Impairment losses |
|
|
— |
|
|
|
22,545 |
|
Loss on disposal of property and equipment |
|
|
12 |
|
|
|
— |
|
Amortization of debt issuance costs |
|
|
129 |
|
|
|
145 |
|
Interest (income) expense on contingent consideration payable |
|
|
(23 |
) |
|
|
468 |
|
Provision for credit losses |
|
|
1,670 |
|
|
|
658 |
|
Share-based compensation |
|
|
788 |
|
|
|
844 |
|
Deferred income taxes, net of acquired deferred tax liability |
|
|
(316 |
) |
|
|
(5,092 |
) |
Net changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
9,033 |
|
|
|
1,795 |
|
Prepaid expenses |
|
|
609 |
|
|
|
313 |
|
Other current assets |
|
|
4,868 |
|
|
|
3,179 |
|
Deposits |
|
|
607 |
|
|
|
(84 |
) |
Software as a service |
|
|
537 |
|
|
|
543 |
|
Accounts payable |
|
|
126 |
|
|
|
(337 |
) |
Accrued payroll and expenses |
|
|
459 |
|
|
|
(4,251 |
) |
Other current liabilities |
|
|
— |
|
|
|
(1,000 |
) |
Accrued interest |
|
|
(152 |
) |
|
|
23 |
|
Income taxes receivable and payable |
|
|
(566 |
) |
|
|
938 |
|
Operating leases |
|
|
(59 |
) |
|
|
(100 |
) |
Net cash provided by operating activities |
|
|
21,246 |
|
|
|
15,094 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Businesses acquired, net of cash received |
|
|
— |
|
|
|
(6,740 |
) |
Capital expenditures |
|
|
(1,370 |
) |
|
|
(2,019 |
) |
Net cash used in investing activities |
|
|
(1,370 |
) |
|
|
(8,759 |
) |
Cash flows from financing activities |
|
|
|
||||
Net (payments) borrowings under line of credit |
|
(17,188 |
) |
|
|
4,282 |
|
Proceeds from issuance of long-term debt |
|
4,250 |
|
|
|
— |
|
Principal payments on long-term debt |
|
(850 |
) |
|
|
(5,000 |
) |
Payments of dividends |
|
(1,639 |
) |
|
|
(4,874 |
) |
Issuance of ESPP shares |
|
355 |
|
|
|
412 |
|
Issuance of shares under the 2013 Long-Term Incentive Plan, net of exercises |
|
262 |
|
|
|
19 |
|
Contingent consideration paid |
|
(4,250 |
) |
|
|
(1,110 |
) |
Payments of debt issuance costs |
|
(554 |
) |
|
|
(64 |
) |
Net cash used in financing activities |
|
(19,614 |
) |
|
|
(6,335 |
) |
Net change in cash and cash equivalents |
|
262 |
|
|
|
— |
|
Cash and cash equivalents, beginning of period |
|
— |
|
|
|
— |
|
Cash and cash equivalents, end of period |
$ |
262 |
|
|
$ |
— |
|
|
|
|
|
||||
Supplemental cash flow information: |
|
|
|
||||
Cash paid for interest, net |
$ |
3,419 |
|
|
$ |
3,573 |
|
Cash paid for taxes, net of refunds |
$ |
666 |
|
|
$ |
569 |
|
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 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, costs associated with the evaluation of potential strategic alternatives (“Strategic alternatives review”), 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, the Strategic Alternatives Review, 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) Income to Adjusted EBITDA |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Thirty-nine Weeks Ended |
|
Thirteen Weeks Ended |
||||||||||||||
|
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
|
June 30,
|
||||||||||
Net (loss) income |
|
$ |
(804 |
) |
|
$ |
2,640 |
|
|
$ |
(2,357 |
) |
|
$ |
(11,222 |
) |
|
$ |
(761 |
) |
Income tax expense (benefit) |
|
|
52 |
|
|
|
955 |
|
|
|
(194 |
) |
|
|
(3,565 |
) |
|
|
(219 |
) |
Interest expense, net |
|
|
1,222 |
|
|
|
1,672 |
|
|
|
3,518 |
|
|
|
4,375 |
|
|
|
1,061 |
|
Operating income (loss) |
|
|
470 |
|
|
|
5,267 |
|
|
|
967 |
|
|
|
(10,412 |
) |
|
|
81 |
|
Depreciation and amortization |
|
|
1,893 |
|
|
|
2,033 |
|
|
|
5,881 |
|
|
|
5,729 |
|
|
|
1,981 |
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,545 |
|
|
|
— |
|
Share-based compensation |
|
|
317 |
|
|
|
408 |
|
|
|
788 |
|
|
|
844 |
|
|
|
236 |
|
Strategic alternatives review |
|
|
526 |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
280 |
|
Transaction fees |
|
|
2 |
|
|
|
149 |
|
|
|
42 |
|
|
|
901 |
|
|
|
25 |
|
Adjusted EBITDA |
|
$ |
3,208 |
|
|
$ |
7,857 |
|
|
$ |
8,552 |
|
|
$ |
19,607 |
|
|
$ |
2,603 |
|
Adjusted EBITDA Margin (% of revenue) |
|
|
4.5 |
% |
|
|
9.4 |
% |
|
|
4.1 |
% |
|
|
8.2 |
% |
|
|
3.8 |
% |
Reconciliation of Net (Loss) Income EPS to Adjusted EPS |
||||||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Thirty-nine Weeks Ended |
|
Thirteen Weeks Ended |
||||||||||||||
|
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
|
June 30,
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income per diluted share |
|
$ |
(0.07 |
) |
|
$ |
0.24 |
|
|
$ |
(0.22 |
) |
|
$ |
(1.04 |
) |
|
$ |
(0.07 |
) |
Acquisition amortization |
|
|
0.13 |
|
|
|
0.15 |
|
|
|
0.42 |
|
|
|
0.42 |
|
|
|
0.15 |
|
Impairment losses (pre-tax) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.10 |
|
|
|
— |
|
Strategic alternatives review |
|
|
0.05 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.03 |
|
Transaction fees |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Income tax expense adjustment |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
(0.63 |
) |
|
|
(0.04 |
) |
Adjusted EPS |
|
$ |
0.10 |
|
|
$ |
0.36 |
|
|
$ |
0.24 |
|
|
$ |
0.93 |
|
|
$ |
0.07 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106940362/en/
Steven Hooser or Sandy Martin
Three Part Advisors
ir@bgstaffing.com 214.872.2710 or 214.616.2207
Source: BGSF, Inc.
FAQ
What was BGSF's revenue in Q3 2024?
What was BGSF's earnings per share (EPS) in Q3 2024?
How did BGSF's Property Management segment perform in Q3 2024?
What was BGSF's Adjusted EBITDA in Q3 2024?
