edition: may 2020 · 2020-05-27 · 154 firms over $100m revenue. industry. 1 . u.s. bureau of...
TRANSCRIPT
Edition: May 2020
FORWARD LOOKING STATEMENTThis presentation contains forward-looking statements regarding the business, operations and prospects of BGSF and industry factors affecting it. Forward-looking statements may include, but are not limited to, statements with respect to our future financial or operating performance, future plans and objectives,competitive positioning, requirements for additional capital, government regulation of operations and the timing and possible outcome of litigation andregulatory matters. All statements, other than statements of historical fact, included or incorporated by reference in this presentation, including statementsthat address activities, events or developments that we, or our subsidiaries, expect or anticipate may occur in the future, are forward-looking statements.Often, but not always, forward-looking statements can be identified by use of forward-looking words such as “aim,” “potential,” “may,” “could,” “can,”“would,” “might,” “likely,” “will,” “expect,” “intend,” “plan,” “budget,” “scheduled,” “estimate,” “anticipate,” “believe,” “forecast,” “committed,” “future” or“continue” or the negative thereof or similar variations. Forward-looking statements are based on certain assumptions and analyses made by us, in light ofour experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriatein the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance thatthese expectations will prove to have been correct. You are cautioned not to put undue reliance on such forward-looking statements, which are not aguarantee of performance and are subject to a number of uncertainties and known and unknown risks, many of which are outside our control, which couldcause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors which could cause actualresults to differ materially from those expressed or implied by such forward-looking statements include, among other things, general business, economic,competitive, political and social uncertainties, the actual results of current operations, industry conditions, intellectual property and other proprietary rights,liabilities inherent in our industry, accidents, labor disputes, delays in obtaining regulatory approvals or financing and general market factors, includinginterest rates, equity markets, business competition, changes in government regulations. Additional risks and uncertainties include, but are not limited to,those listed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in theforward-looking statements, there may be other factors that cause results to differ from those anticipated. Forward-looking statements contained in thispresentation, or made by us, are as of the date of the presentation and we disclaim any obligation to update any forward-looking statements, whether as aresult of new information, future events, results or otherwise, except as required by applicable securities laws.
This presentation also contains information about BGSF’s Adjusted EBITDA, which is not a measure derived in accordance with GAAP and which excludescomponents that are important to understanding BGSF’s financial performance. The definition of Adjusted EBITDA is disclosed in BGSF’s Forms 10-K, 10-Qand 8-K filed with the Securities and Exchange Commission. Investors should recognize that this non-GAAP measure might not be comparable to similarlytitled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure ofperformance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
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~20,000 Staffing Firms
17MTemporary & Contact Employees Hired Annually
3.1MTemporary & Contract Employees Employed Weekly
Unemployment Rate
$119.4BEST. Annual Sales for FY 2020 21% Y/Y decrease from est. 2019
TRENDS: Remote Work & Technology
Temp Penetration Rate As of April 2020
154 Firms Over $100M Revenue
INDUSTRY
1 U.S. BUREAU OF LABOR STATISTICS2 STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April 2020
2
2
2
2
1
3
Skills Shortage & Unemployment
85%of Temporary Workers Have Healthcare Benefits
4.4% in March, rising to 14.7% in April
1.56% 1
* Staffing Industry Analysts estimates a decline in 2020 projected revenues
between 10% and 45% 2 2
*
*
4
2007Founding of BGSF
2010 – 2017Completed Nine
Acquisitions
2017 – 2018Organically grew
TWO NEW BRANDS
2019 – 2020Completed Two
Acquisitions
3 DIVISIONSReal EstateProfessional
Light Industrial88 LOCATIONS
SERVING 40 STATES & DC
5
PEOPLE PLACED TO WORK
>28,000
>6,800PAYCHECKS A WEEK
92%CLIENT RETENTION
>9,000CLIENTS SERVED
UNIQUE ASSIGNMENTS>75,000
6
7
Workforce and Onsite Management Solutions for Warehousing, Manufacturing, and Call Centers
Commercial Real Estate Staffing
Front Office and Maintenance Workersfor Apartment Communities
IT Workforce Solutions, BI, Cyber SecurityEnterprise Performance Management and
Full Project Management
Creative, Digital and Marketing Talent LIGHT INDUSTRIAL
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Accounting/Finance, Legal, HR,and Administrative/Clerical Talent
REAL ESTATEPROFESSIONAL
REAL ESTATEFRONT OFFICE & MAINTENANCE TEMPORARY WORKERS
APARTMENT COMMUNITIES
COMMERCIAL REAL ESTATE
HIGH INDUSTRY INVOLVEMENT
100%ORGANIC
GROWTH
Only Public Staffing
Company in Real Estate
6NEW LOCATIONS
IN 2020
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MAINTENANCE70%OF REVENUE
SUPERVISOR
ASSISTANT
LEAD (HVAC)
MAKE READY (HANDYMAN)
ENGINEERS
GROUNDSKEEPER
PORTER 30%OF REVENUE
OFFICELEASING AGENT
BILINGUAL AGENT
MANAGER
ASSISTANT MANAGER
10
MD
ID
CO (1) KS (1)
AZ (2)OK (2)
TX (11)
MO (1)
LA(1)
GA(3)
FL (6)
SC(3)
NC (3)TN (2)VA (2)
MI (1)
OH (2)IN (1)
IL (2)
WI(1)
MN(1)
UT (1)NV (1)
WA (1)
PA (2)
MA (1)
BG MULTIFAMILY BRANCHES
53CLIENTS SERVED
>8,000BG TALENTBRANCHES
8JOBS PLACED
>51,000STATES SERVICING
29
BG MULTIFAMILY STATES
BG TALENT & BG MULTIFAMILY STATES
CA (1)
OR (1)
AL(1)
DC (1)
2019New Locations• Birmingham • Northern VA • San Diego • Tucson• Pittsburgh• Portland• South Florida
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2020New Locations• Cleveland• New Jersey• Orange County• Baltimore
PROFESSIONALINFORMATION TECHNOLOGY, FINANCE & ACCOUNTING AND CREATIVE
9BG BRANDS
NATIONAL PRACTICE
IT
21%LARGEST SEGMENT OF PROFESSIONAL
RESOURCES
IMPLEMENTATION OF NEW
TECHNOLOGYWorkday, Salesforce,
AI, Cyber Security, OneStream
CONTINUED EDUCATION WHITE PAPERS,
CPE EVENTS, WEBINARS
LARGE CONSULTANT POOL ACROSS
MULTIPLE VERTICALSIN DATABASE
FINANCE & ACCOUNTING
6%OF STAFFING MARKET
1 SIA, April 2020
1
1
12
Information Technology SolutionsProfessional Search & Project SupportAdvanced Analytics, EPM/CPM, Oracle ERP and HCM Staffing
Solutions, Full Project Teams and Outsourcing; Specializing in SAP
and Workday, Cyber Security
Accounting & Finance, HR, Engineering, Legal, Administrative,
Marketing, Creative and Digital Talent
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PRO
FESS
ION
AL
CR
OSS
SEL
LIN
G
Continuing development of new systems and technologies for both IT and F&A (Hyperion, Workday, Salesforce) will continue to drive the
need for technical and functional resources
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BRANCHES15
TX (3)
STATES
10STATES SERVED
42CLIENTS IN 2019
534
CLIENT STATES
BRANCHES & CLIENT STATES
IL (2)
NC (1)
MD (1)
RI (1)
CONSULTANTS PLACED
3,800CLIENT RETENTION
92%
AZ (1)
FL (1)
MA (1)
NJ (1)
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Onsite Locations
“E” COMMERCEINCREASE
CLERICAL CHAT CUSTOMER SERVICE
AGENTS
ADVANCED MFG.AUTOMATION
ROBOTICSLOGISTICS
15ONSITE
LOCATIONS
C O M M E R C I A L S T A F F I N G ~ D I S T R I B U T I O N , L O G I S T I C S , C A L L C E N T E R S
LIGHT INDUSTRIAL16
Primary Skills OfferedLogistics/Warehouse
Call Center Operations
Forklift Drivers
Pickers/Packers
Light Assembly
Production Workers
Light Manufacturing
General Labor
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JOBS PLACED
20,000ON-SITE LOCATIONS
15CLIENT RETENTION
98%CLIENTS IN 2019
183STATES SERVICING
6BRANCHES
12
TX (8)
NM**
TN*
MS(2)
IL (1)
WI (2)
2 ON-SITES
5 ON-SITES4 ON-SITES
1 ON-SITE
1 ON-SITE
2 ON-SITES
* Managed out of MS offices** Managed out of El Paso, TX offices
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$106m
$ 5.69$22.38
MARKET CAP
SHARES OUT10.31m (primary)
10.38m (diluted)
*
*
*
*
1
*
$10.29x52-WEEK
RANGE
* As of May 26xx,20201 Treasury stock method – Qtr. Ended March. 29, 2020
Source: Public filings
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DEBT $ 47m*
ENTERPRISEVALUE $153m*
$0.05TEMP. REDUCED
QUARTERLY DIVIDEND
DEBT/ PF TTM EBITDA1.64x
1.9%TEMP. DIVIDEND
YIELD(ANNUALIZED)
13.9TEMP. DIVIDEND
COVER
2
*
3
Russell 2000
BGSFNSYE Listed
3
* As of May 26,20202 Adjusted PF TTM EBITDA for the Qtr. Ended March 29, 2020/Annual Dividend
3 As of and for the TTM Qtr. Ended March 29, 2020Source: Public filings
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*
ADJUSTED EBITDA
5-YR CAGR:
8.2%
$19.4 $22.6
$24.7 $27.1 $26.6
$5.2 $5.3
8.9% 8.9% 9.1% 9.4% 9.0% 7.5% 7.1%$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2015 2016 2017* 2018 2019 Q1 19 Q1 20
$217.5 $253.9
$272.6 $286.9 $294.3
$68.8 $74.1
22.0% 23.7% 25.1% 26.7% 27.4% 26.8% 27.4%
2015 2016 2017* 2018 2019 Q1 19 Q1 20ADJUSTED EBITDA MARGIN %
REVENUEGROSS MARGIN %
5-YR CAGR:
7.9%
21
Source: Public Filings* 2017 was a 53 week fiscal year
($ in millions)
2015
Real Estate
ProfessionalLight
Industrial
Real Estate Professional Light Industrial
20%40%
40% 2020
Real Estate
ProfessionalLight Industrial
Real Estate Professional Light Industrial
27%
49%24%
1 Fiscal Year2 Fiscal Qtr.
1
2
% of Total Revenue 22
14.3%
12.5%
23.9%
27.8%
49.9%
49.1%
38.1%
37.6%
27.0%
Light Industrial Professional Real Estate
% of Revenues
% of GP $’s
Gross Profit %
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Q1 2020
$19,007 $17,596
$30,594 $36,344
$19,176 $20,028
$1,203 $1,097
$1,834
$1,840
$2,820 $3,039
8.8% 7.8%
0.3%
2019 2020 2019 2020 2019 2020
OPERATING INCOME
LIGHT INDUSTRIAL7.4%
PROFESSIONAL18.8%
REAL ESTATE4.4%
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REVENUE
Technology & Innovation
Cross Sell Acquisitions
Build Value Organic Growth
25
ACQ
UIS
ITIO
N C
RITE
RIA
Thank you for your continued support and interest in BGSF.
www.bgstaffing.com
Investor RelationsTerri MacInnis, VP of IRBibicoff + MacInnis, Inc.