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Page 1: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

Edition: May 2020

Page 2: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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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Page 3: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

~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

*

*

Page 4: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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Page 5: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

Page 6: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

PEOPLE PLACED TO WORK

>28,000

>6,800PAYCHECKS A WEEK

92%CLIENT RETENTION

>9,000CLIENTS SERVED

UNIQUE ASSIGNMENTS>75,000

6

Page 7: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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Page 8: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

8

Accounting/Finance, Legal, HR,and Administrative/Clerical Talent

REAL ESTATEPROFESSIONAL

Page 9: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

9

Page 10: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

MAINTENANCE70%OF REVENUE

SUPERVISOR

ASSISTANT

LEAD (HVAC)

MAKE READY (HANDYMAN)

ENGINEERS

GROUNDSKEEPER

PORTER 30%OF REVENUE

OFFICELEASING AGENT

BILINGUAL AGENT

MANAGER

ASSISTANT MANAGER

10

Page 11: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

11

2020New Locations• Cleveland• New Jersey• Orange County• Baltimore

Page 12: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

Page 13: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

13

Page 14: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

14

Page 15: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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)

15

Page 16: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

Page 17: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

Primary Skills OfferedLogistics/Warehouse

Call Center Operations

Forklift Drivers

Pickers/Packers

Light Assembly

Production Workers

Light Manufacturing

General Labor

17

Page 18: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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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Page 19: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

$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

19

DEBT $ 47m*

ENTERPRISEVALUE $153m*

Page 20: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

$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

20

*

Page 21: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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)

Page 22: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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

Page 23: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

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 %

23

Q1 2020

Page 24: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

$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%

24

REVENUE

Page 25: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

Technology & Innovation

Cross Sell Acquisitions

Build Value Organic Growth

25

ACQ

UIS

ITIO

N C

RITE

RIA

Page 26: Edition: May 2020 · 2020-05-27 · 154 Firms Over $100M Revenue. INDUSTRY. 1 . U.S. BUREAU OF LABOR STATISTICS. 2 . STAFFING INDUSTRY ANALYSTS (SIA) & AMERICAN STAFFING ASSOC. April

Thank you for your continued support and interest in BGSF.

www.bgstaffing.com

Investor RelationsTerri MacInnis, VP of IRBibicoff + MacInnis, Inc.

[email protected]