BG Staffing, Inc. (NYSE: BGSF), a growing national provider of
workforce solutions, today announced that its Board of Directors
has declared a quarterly cash dividend of $0.05 per share of common
stock and the Company reported financial results for its second
quarter and six months ended June 28, 2020.
The dividend is payable on August 25, 2020 to all shareholders
of record as of the close of business on August 18, 2020. This is
the 23rd consecutive quarterly dividend BGSF has paid to holders of
common stock. Based on yesterday’s closing price of the Company’s
common stock, the annualized yield is approximately 2%.
Second Quarter 2020 Highlights:
- Revenues were $62.6 million, down 15.2% from 2019
- Gross Profit was $16.9 million, down 19.0% from 2019, while
Gross Profit percentage decreased 1.2% to 27.0% in 2020
- Selling expenses remained flat with 2019, due to the addition
of our acquisitions in late 2019 and early 2020
- Net loss was $4.8 million ($(0.47) per diluted share), which
included the impact of an impairment loss on intangible assets of
$5.4 mm, net of tax, down from $3.8 million ($0.37 per diluted
share) in 2019
- Adjusted EPS1 was $0.16, down from $0.44 in 2019
- Adjusted EBITDA1 was $3.3 million (5.2% of revenues), down from
$6.9 million (9.3% of revenues) in 2019
- Availability of $24.6 million under our senior secured
revolving credit facility at June 28, 2020
- Days Sales Outstanding of 51 days vs. 50 days at the end of Q1
2020
Six Month 2020 Highlights:
- Revenues were $136.7 million, down 4.2% from 2019
- Gross Profit was $37.2 million, down 5.4% from 2019, while
Gross Profit percentage decreased 0.4% to 27.2% in 2020
- Selling expenses increased 6.9% over 2019, due to the addition
of our acquisitions in late 2019 and early 2020
- Net loss was $3.3 million ($(0.32) per diluted share), which
included the impact of an impairment loss on intangible assets of
$5.4 mm, net of tax, down from $6.3 million ($0.61 per diluted
share) in 2019
- Adjusted EPS1 was $0.51, down from $0.76 in 2019
- Adjusted EBITDA1 was $8.5 million (6.2% of revenues), down from
$12.0 million (8.4% of revenues) in 2019
1Non-GAAP financial measure. See reconciliation at end for
details.
Beth A. Garvey, President and CEO, stated, “As anticipated, our
second-quarter results were significantly affected by the COVID-19
pandemic. We are encouraged by recent week-on-week sequential
growth in our business segments and are cautiously optimistic about
third quarter activity.
“The ongoing responsiveness and flexibility of our team makes me
proud as they continue to operate in the evolving new normal while
always providing first class service to our customers. We remain
vigilant and responsive as we navigate through the challenges of
these unprecedented times,” Garvey concluded.
Dan Hollenbach, Chief Financial Officer, said, “We continue to
monitor expenses and have extended our IT Roadmap project delays.
In April, the first month of Q2, overall revenues declined 26% from
pre-COVID-19 levels. June showed meaningful improvement as we were
down 13% from the same base. June showed significant increases in
both the Real Estate and Light Industrial segments over April.
“That said, the impact from the outbreak on our operational and
financial performance moving forward will depend on continuing
developments, duration and spread of the outbreak, its impact on
our client partners, and the range of governmental and community
reactions to the pandemic. These events remain uncertain and cannot
be fully predicted at this time,” Hollenbach added.
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 5, 2020. The
call can also be accessed "live" online at
http://public.viavid.com/index.php?id=140580. A replay of the
recorded call will be available for 90 days on the Company's
website
(http://investor.bgstaffing.com/events-and-presentations/events-calendar/default.aspx).
A replay of the call is available by dialing 1-844-512-2921
(international participants dial 1-412-317-6671) starting August 5,
2020, at 7:30pm ET through August 12, 2020 at 11:59 pm ET. Please
use PIN Number 10010206.
About BGSF
Headquartered in Plano, Texas, BGSF provides workforce solutions
to a variety of industries through its various divisions in IT,
Cyber, Finance & Accounting, Creative, Real Estate (apartment
communities and commercial buildings), and Light Industrial. BGSF
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 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.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. Forward-looking statements may
include, but are not limited to, statements regarding our future
financial performance (including any general or specific numerical
guidance with respect thereto), the expectations and objectives of
our board or management, the impact of the COVID-19 pandemic,
including but not limited to the impact of the COVID-19 pandemic on
our business, prospects, results of operations, or financial
condition or on our vendors or client partners, and our intention
or ability to pay future cash dividends. 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,” “estimates,” “should,” “would,” “may,” “might,”
“forward,” “will,” “intends,” “continue,” “outlook,” “temporarily,”
“progressing,” 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.
Source: BG Staffing, Inc.
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 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 other non-capital information technology project expenses
(“IT roadmap”) and certain non-cash expenses such as share-based
compensation expense that management does not consider in assessing
our on-going operating performance.
Reconciliation of Net (Loss)
Income to Adjusted EBITDA
Thirteen Weeks Ended
Twenty-six Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(dollars in thousands)
Net (loss) income
$
(4,830
)
$
3,802
$
(3,331
)
$
6,298
Interest expense, net
430
496
886
849
Income tax (benefit) expense
(1,685
)
1,123
(983
)
1,860
Depreciation and amortization
1,444
1,204
2,859
2,436
Impairment losses
7,240
—
7,240
—
Share-based compensation
193
187
386
507
Transaction fees
48
36
590
58
IT roadmap
432
28
891
28
Adjusted EBITDA
$
3,272
$
6,876
$
8,538
$
12,036
We define “Adjusted EPS” as diluted earnings per share
eliminating amortization expense of intangible assets from
acquisitions, contingent consideration gains or losses, and certain
specific events, such as transaction fees and the IT roadmap, and
certain non-cash expenses, 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
Twenty-six Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
Net (loss) income per diluted share
$
(0.47
)
$
0.37
$
(0.32
)
$
0.61
Acquisition amortization
0.11
0.09
0.22
0.18
Impairment losses
0.70
—
0.70
—
Transaction fees
—
—
0.06
0.01
IT roadmap
0.04
—
0.09
—
Income tax (benefit) expense
adjustment
(0.22
)
(0.02
)
(0.24
)
(0.04
)
Adjusted EPS
$
0.16
$
0.44
$
0.51
$
0.76
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805005371/en/
Terri MacInnis, VP of Investor Relations Bibicoff + MacInnis,
Inc. 818.379.8500 terri@bibimac.com
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