BGSF, Inc. (NYSE: BGSF), a leading national provider of
workforce solutions, today reported financial results for its
second quarter ended June 27, 2021.
The Company further announced that its Board of Directors has
declared a quarterly cash dividend of $0.12 per share of common
stock. The dividend is payable on August 23, 2021 to all
shareholders of record as of the close of business on August 16,
2021. This marks the 27th consecutive quarterly dividend and based
on yesterday’s closing price of the Company’s common stock, the
annualized yield is approximately 4.1%.
Q2 2021 Highlights:
- Revenues were $74.4 million, up 18.8% from 2020
- Gross profit was $21.8 million, an increase of 28.9% from 2020,
while gross margin increased 2.3% to 29.3% in 2021
- Net income was $3.4 million or $0.33 per diluted share, vs. net
loss of $4.8 million or negative $0.47 per diluted share in
2020
- Adjusted EPS1 was $0.33, up from $0.16 in 2020
- Adjusted EBITDA1 was $4.8 million (6.4% of revenues), vs. $3.3
million (5.2% of revenues) in 2020
Six Month 2021 Highlights:
- Revenues were $142.1 million, up 4.0% from 2020
- Gross profit was $40.6 million, an increase of 9.2% from 2020,
while gross margin increased 1.4% to 28.6% in 2021
- Net income was $4.2 million or $0.40 per diluted share, vs. net
loss of $3.3 million or negative $0.32 per diluted share in
2020
- Adjusted EPS1 was $0.49, down from $0.51 in 2020
- Adjusted EBITDA1 was $7.7 million (5.4% of revenues), vs. $8.5
million (6.2% of revenues) in 2020
“I am very pleased with our second quarter and our overall first
half 2021 results, which generally improved both sequentially and
on a year-over-year basis. Our operational restructuring executed
last year combined with our continuous improvement strategy are
driving improved financial results. Industry outlook remains strong
for each of our segments, and as we continue to progress coming out
of the Covid-19 pandemic, we remain optimistic about our ability to
deliver growth and profitability for the reminder of the year,”
said Beth A. Garvey, President and CEO.
“Operationally, the Real Estate segment is beginning to recover.
Our teams have returned to the office on a hybrid basis and are
executing several market relaunches and focusing on capturing
pent-up demand. I expect this process to be positive overall but
anticipate some lumpiness as we phase in new markets and manage
through the labor environment during the remainder of the year. Our
Professional segment performed well with the IT Consulting brands
largely leading the way. The acquisition of Momentum Solutionz
earlier this year has brought benefits as new client introductions
have taken place, and we are executing on new service opportunities
and building a strong pipeline through cross-selling and strategic
customer engagements. Light Industrial continued to show strong
growth and demand remains high although we are still managing
through industry-wide labor shortages. As always, we remain
actively focused on pursuing new and innovative ways to attract and
retain talent as the demand outlook recovers across our business
segments. Lastly, the M&A landscape has started to slow as
valuations continue to increase, but we expect to see a resurgence
in activity in the second half of the year.”
Conference Call
Interested participants may dial 833-316-0561 (U.S. callers),
412-317-5735 (international callers) or 866-605-3852 (Canada
callers) and ask for the BGSF call at 4:30 p.m. ET on August 5,
2021. A replay of the call will be available one hour after the
call ends through August 12, 2021. To access the replay, please
dial 877-344-7529 (U.S. callers), 412-317-0088 (international
callers), or 855-669-9658 (Canada callers) and reference PIN Number
10158602. The live webcast and archived replay are accessible at
the investor relations section of the Company's website at
www.bgsf.com.
About BGSF
With its home office 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 70th largest U.S. staffing
company and the 50th largest IT staffing firm in the 2020 updates.
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 (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.
BGSF, Inc.
Non-GAAP Financial Measures
The financial results of BGSF, 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 (loss), 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 (loss), net income (loss) per diluted
share, operating income (loss), 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 impairment
losses, the gain on contingent consideration and share-based
compensation expense that management does not consider in assessing
our on-going operating performance.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
Thirteen Weeks Ended
Twenty-six Weeks Ended
June 27, 2021
June 28, 2020
June 27, 2021
June 28, 2020
(dollars in thousands)
Net income (loss)
$
3,443
$
(4,829)
$
4,155
$
(3,330)
Interest expense, net
219
430
595
886
Income tax expense (benefit)
657
(1,685)
800
(983)
Depreciation and amortization
891
1,444
1,750
2,859
Impairment losses
—
7,240
—
7,240
Gain on contingent consideration
(1,195)
—
(1,195)
—
Share-based compensation
225
193
461
386
Transaction fees
19
48
155
590
IT roadmap
508
432
931
891
Adjusted EBITDA
$
4,767
$
3,273
$
7,652
$
8,539
We define “Adjusted EPS” as diluted earnings per share
eliminating amortization expense of intangible assets from
acquisitions, contingent consideration gains, 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 27, 2021
June 28, 2020
June 27, 2021
June 28, 2020
Net income (loss) per diluted share
$
0.33
$
(0.47)
$
0.40
$
(0.32)
Acquisition amortization
0.06
0.11
0.12
0.22
Gain on contingent consideration
(0.11)
—
(0.11)
—
Impairment losses
—
0.70
—
0.70
Transaction fees
—
—
0.01
0.06
IT roadmap
0.05
0.04
0.09
0.09
Income tax (benefit) expense
adjustment
—
(0.22)
(0.02)
(0.24)
Adjusted EPS
$
0.33
$
0.16
$
0.49
$
0.51
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210805005205/en/
Hala Elsherbini or Steven Hooser Three Part Advisors ir@bgsf.com
214.442.0016
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