PLANO, Texas, Aug. 7, 2019 /PRNewswire/ -- BG Staffing, Inc.
(NYSE American: BGSF), a growing national provider of professional
temporary staffing services, today reported record financial
results for its second quarter and six months ended June 30,
2019.
Quarter Two 2019
Results
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
%
Change
|
|
|
(amounts in
thousands, except per-share amounts)
|
Revenues
|
|
$
|
73,858
|
|
|
$
|
70,945
|
|
|
$
|
2,913
|
|
|
4.1
|
%
|
Gross
profit
|
|
$
|
20,863
|
|
|
$
|
19,192
|
|
|
$
|
1,671
|
|
|
8.7
|
%
|
Gross profit
percentage
|
|
28.2
|
%
|
|
27.1
|
%
|
|
1.1
|
%
|
|
4.1
|
%
|
Net income
|
|
$
|
3,802
|
|
|
$
|
5,170
|
|
|
$
|
(1,368)
|
|
|
(26.5)
|
%
|
Net income per
diluted share
|
|
$
|
0.37
|
|
|
$
|
0.54
|
|
|
$
|
(0.17)
|
|
|
(31.5)
|
%
|
Weighted average
diluted shares
|
|
10,362
|
|
|
9,539
|
|
|
823
|
|
|
8.6
|
%
|
Adjusted EPS
(1)
|
|
$
|
0.44
|
|
|
$
|
0.46
|
|
|
$
|
(0.02)
|
|
|
(4.3)
|
%
|
Adjusted EBITDA
(1)
|
|
$
|
6,848
|
|
|
$
|
6,979
|
|
|
$
|
(131)
|
|
|
(1.9)
|
%
|
Adjusted EBITDA
percentage (2)
|
|
9.3
|
%
|
|
9.8
|
%
|
|
(0.5)
|
%
|
|
(5.1)
|
%
|
|
Six-Month Ended 2019
Results
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
%
Change
|
|
|
(amounts in
thousands, except per-share amounts)
|
Revenues
|
|
$
|
142,634
|
|
|
$
|
137,801
|
|
|
$
|
4,833
|
|
|
3.5
|
%
|
Gross
profit
|
|
$
|
39,302
|
|
|
$
|
36,502
|
|
|
$
|
2,800
|
|
|
7.7
|
%
|
Gross profit
percentage
|
|
27.6
|
%
|
|
26.5
|
%
|
|
1.1
|
%
|
|
4.2
|
%
|
Net income
|
|
$
|
6,298
|
|
|
$
|
7,635
|
|
|
$
|
(1,337)
|
|
|
(17.5)
|
%
|
Net income per
diluted share
|
|
$
|
0.61
|
|
|
$
|
0.82
|
|
|
$
|
(0.21)
|
|
|
(25.6)
|
%
|
Weighted average
diluted shares
|
|
10,380
|
|
|
9,301
|
|
|
1,079
|
|
|
11.6
|
%
|
Adjusted EPS
(1)
|
|
$
|
0.75
|
|
|
$
|
0.83
|
|
|
$
|
(0.08)
|
|
|
(9.6)
|
%
|
Adjusted EBITDA
(1)
|
|
$
|
12,008
|
|
|
$
|
12,446
|
|
|
$
|
(438)
|
|
|
(3.5)
|
%
|
Adjusted EBITDA
percentage (2)
|
|
8.4
|
%
|
|
9.0
|
%
|
|
(0.6)
|
%
|
|
(6.7)
|
%
|
Beth A. Garvey, President and
CEO, stated, "We are pleased with our solid operating performance
during the second quarter and six months just ended. Our growth has
been driven by persistent tight labor markets resulting in
heightened demand for our professional staffing services. We are
making operational and strategic progress and continue to invest in
technology in every stage of our delivery model, as this remains
core to everything we do today and in the future."
Garvey added, "Comparative net income and earnings per share
were impacted due to the Q2 2018 recognition of a contingent
consideration gain and the positive tax impact of the option
cancellation agreement."
(1)
|
Non-GAAP financial
measure. See reconciliation at end for details.
|
(2)
|
Adjusted EBITDA as a
percentage of revenue.
|
Conference Call
The Participant Dial-In Number for the
conference call is 1-631-891-4304. Participants should dial in to
the call at least five minutes before 1:30pm
PT (4:30pm ET) on
August 7, 2019. The call can also be accessed "live" online at
http://public.viavid.com/index.php?id=135060. A replay of the
recorded call will be available for 90 days on the Company's
website (http://bgstaffing.investorroom.com/). You can also listen
to a replay of the call by dialing 1-844-512-2921 (international
participants dial 1-412-317-6671) starting August 7, 2019, at
7:30pm ET through August 14,
2019 at 11:59 pm ET. Please use PIN
Number 10007091.
About BG Staffing, Inc.
Headquartered in Plano, Texas, BG Staffing provides staffing
services to a variety of industries through its various divisions.
BG Staffing is primarily a professional temporary staffing platform
that has integrated several regional and national brands achieving
scalable growth. The Company was ranked by Staffing Industry
Analysts as the 64th largest U.S. staffing company in
the 2019 update and the 45th largest IT staffing firm in
2018. The Company's disciplined acquisition philosophy, which
builds value through both financial growth and the retention of
unique and dedicated talent within BG Staffing's portfolio 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.bgstaffing.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.
The Company's actual results could differ materially from those
indicated by the forward-looking statements because of various
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 "believes,"
"plans," "expects," "will," "intends," "continue," "outlook," 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.
CONTACT:
Terri
MacInnis, VP of Investor Relations
Bibicoff + MacInnis, Inc.
818.379.8500 terri@bibimac.com
BG Staffing, Inc.
Non-GAAP Financial Measures
The financial results of BG Staffing, 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 a
measurement of financial performance under GAAP and should not be
considered as an alternative to net income, net income per diluted
share, operating income, or any other performance measure derived
in accordance with GAAP, or as an alternative to cash flow from
operating activities or measure 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 adjusted EBITDA as defined in the credit
agreement.
We define "Adjusted EBITDA" as earnings before interest expense,
income taxes, depreciation and amortization expense, non-cash
items, and certain items that management does not consider in
assessing our on-going operating performance.
Reconciliation of
Net Income to Adjusted EBITDA
|
|
|
|
Thirteen Weeks
Ended
|
|
Twenty-six Weeks
Ended
|
|
|
June 30,
2019
|
|
July 1,
2018
|
|
June 30,
2019
|
|
July 1,
2018
|
|
|
(dollars in thousands)
|
Net income
|
|
$
|
3,802
|
|
|
$
|
5,170
|
|
|
$
|
6,298
|
|
|
$
|
7,635
|
|
Interest expense,
net
|
|
496
|
|
|
742
|
|
|
849
|
|
|
1,613
|
|
Income tax
expense
|
|
1,123
|
|
|
665
|
|
|
1,860
|
|
|
1,364
|
|
Depreciation and
amortization
|
|
1,204
|
|
|
1,258
|
|
|
2,436
|
|
|
2,554
|
|
Contingent
consideration
|
|
—
|
|
|
(1,172)
|
|
|
—
|
|
|
(1,172)
|
|
Share-based
compensation
|
|
187
|
|
|
48
|
|
|
507
|
|
|
115
|
|
Transaction
fees
|
|
36
|
|
|
268
|
|
|
58
|
|
|
337
|
|
Adjusted
EBITDA
|
|
$
|
6,848
|
|
|
$
|
6,979
|
|
|
$
|
12,008
|
|
|
$
|
12,446
|
|
We define "Adjusted EPS" as diluted earnings per share
eliminating amortization expense of intangible assets from
acquisitions, contingent consideration gains or losses, and certain
non-recurring events, net of the respective income tax effect.
Reconciliation of
Adjusted EPS
|
|
|
|
Thirteen Weeks
Ended
|
|
Twenty-six Weeks
Ended
|
|
|
June 30,
2019
|
|
July 1,
2018
|
|
June 30,
2019
|
|
July 1,
2018
|
|
|
|
|
|
|
|
|
|
Net income per
diluted share
|
|
$
|
0.37
|
|
|
$
|
0.54
|
|
|
$
|
0.61
|
|
|
$
|
0.82
|
|
Acquisition
amortization
|
|
0.09
|
|
|
0.11
|
|
|
0.18
|
|
|
0.23
|
|
Contingent
consideration
|
|
—
|
|
|
(0.12)
|
|
|
—
|
|
|
(0.13)
|
|
Option cancellation
agreement, tax effect
|
|
—
|
|
|
(0.07)
|
|
|
—
|
|
|
(0.07)
|
|
Income tax expense
adjustment
|
|
(0.02)
|
|
|
—
|
|
|
(0.04)
|
|
|
(0.02)
|
|
Adjusted
EPS
|
|
$
|
0.44
|
|
|
$
|
0.46
|
|
|
$
|
0.75
|
|
|
$
|
0.83
|
|
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SOURCE BG Staffing, Inc.