BGSF, Inc. (NYSE: BGSF), a leading
national provider of workforce solutions, today reported financial
results for its third quarter ended September 26, 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 November 22, 2021 to all
shareholders of record as of the close of business on November 15,
2021. This marks the 28th consecutive quarterly dividend and based
on yesterday’s closing price of the Company’s common stock, the
annualized yield is approximately 3.9%.
Q3 2021 Highlights:
- Revenues were $82.4 million, up 15.1% from 2020
- Gross profit was $24.7 million, an increase of 25.1% from 2020,
while gross margin increased 2.4% to 30.0% in 2021
- Net income was $4.6 million or $0.45 per diluted share, vs. net
income of $2.6 million or $0.25 per diluted share in 2020
- Adjusted EPS1 was $0.43, up from $0.35 in 2020
- Adjusted EBITDA1 was $7.0 million (8.5% of revenues), vs. $5.5
million (7.7% of revenues) in 2020
Nine Month 2021 Highlights:
- Revenues were $224.5 million, up 7.8% from 2020
- Gross profit was $65.3 million, an increase of 14.7% from 2020,
while gross margin increased 1.8% to 29.1% in 2021
- Net income was $8.8 million or $0.85 per diluted share, vs. net
loss of $0.8 million or negative $0.07 per diluted share in
2020
- Adjusted EPS1 was $0.92, up from $0.82 in 2020
- Adjusted EBITDA1 was $14.6 million (6.5% of revenues), vs.
$14.0 million (6.7% of revenues) in 2020
1Non-GAAP financial measure. See reconciliation at end for
details.
“Our third quarter results were exceptionally strong as we
achieved sequential and year-over-year growth across our key
financial measures. In fact, the third quarter is a continuation of
both top and bottom line sequential growth in each of our quarterly
results for the 2021 nine-month period,” said Beth A. Garvey,
President and CEO.
“We continue to see positive trends across our end markets with
Real Estate showing positive tailwinds from a market recovery and
pent-up demand. Professional segment benefited from an increase in
permanent placements and strong activity in IT Consulting. Light
Industrial continues to perform although results were essentially
flat compared to the strong third quarter 2020 comparison, given
the significant shift to online shopping activity during peak
pandemic levels.
“While we see improvements in the macro environment and a very
positive industry outlook for workforce solutions, the markets we
serve continue to face heightened labor shortages and wage
inflation, especially in our Real Estate and Light Industrial
segments. Overall, we remain focused on progressive improvement
throughout our organization as well as working with our client
partners on innovative ways to attract, secure and retain talent.
We are tracking well toward a solid finish to the year as we build
organic growth and continue to explore M&A opportunities.”
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 9:00 a.m. ET on November 4,
2021. A replay of the call will be available one hour after the
call ends through November 11, 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
10160573. 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
Thirty-nine Weeks Ended
September 26, 2021
September 27, 2020
September 26, 2021
September 27, 2020
(dollars in thousands)
Net income (loss)
$
4,644
$
2,566
$
8,798
$
(765)
Interest expense, net
431
360
1,026
1,245
Income tax expense (benefit)
1,121
723
1,921
(260)
Depreciation and amortization
1,191
1,271
2,941
4,130
Impairment losses
—
—
—
7,240
Gain on contingent consideration
(1,208)
(76)
(2,403)
(76)
Share-based compensation
424
245
886
631
Transaction fees
1
15
155
605
IT roadmap
375
401
1,306
1,292
Adjusted EBITDA
$
6,979
$
5,505
$
14,630
$
14,042
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
Thirty-nine Weeks Ended
September 26, 2021
September 27, 2020
September 26, 2021
September 27, 2020
Net income (loss) per diluted share
$
0.45
$
0.25
$
0.85
$
(0.07)
Acquisition amortization
0.06
0.10
0.17
0.31
Gain on contingent consideration
(0.12)
(0.01)
(0.23)
(0.01)
Impairment losses
—
—
—
0.70
Transaction fees
—
—
0.01
0.06
IT roadmap
0.04
0.04
0.13
0.13
Income tax (benefit) expense
adjustment
—
(0.03)
(0.01)
(0.30)
Adjusted EPS
$
0.43
$
0.35
$
0.92
$
0.82
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103006235/en/
Hala Elsherbini or Steven Hooser Three Part Advisors ir@bgsf.com
214.442.0016
BGSF (NYSE:BGSF)
Historical Stock Chart
From Jun 2024 to Jul 2024
BGSF (NYSE:BGSF)
Historical Stock Chart
From Jul 2023 to Jul 2024