BGSF, Inc. (BGSF) Bundle
A Brief History of BGSF, Inc.
Company Overview
BGSF, Inc. provides consulting, managed services, and professional workforce solutions across various industries, primarily within the United States. The company operates through two main segments: Property Management and Professional Services.
Financial Performance
As of September 29, 2024, BGSF reported revenues of $208.1 million for the thirty-nine weeks ended, a decrease from $239.6 million in the previous year. The net loss for the same period was $2.36 million, compared to a loss of $11.22 million in the prior year.
| Period | Revenues (in thousands) | Net Income (Loss) (in thousands) |
|---|---|---|
| 39 Weeks Ended September 29, 2024 | $208,089 | $(2,357) |
| 39 Weeks Ended October 1, 2023 | $239,600 | $(11,222) |
Segment Performance
The Property Management segment generated revenues of $80.1 million, down from $95.5 million, while the Professional segment brought in $128.0 million, a decline from $144.1 million.
| Segment | Revenues (in thousands) |
|---|---|
| Property Management | $80,096 |
| Professional | $127,993 |
Stockholder Equity
As of September 29, 2024, the total stockholders’ equity was $82.9 million, a decrease from $85.5 million as of December 31, 2023. The total liabilities stood at $74.4 million.
| Period | Total Stockholders’ Equity (in thousands) | Total Liabilities (in thousands) |
|---|---|---|
| September 29, 2024 | $82,945 | $74,390 |
| December 31, 2023 | $85,536 | $92,981 |
Cash Flow Analysis
For the thirty-nine weeks ended September 29, 2024, the net cash provided by operating activities was $21.2 million, compared to $15.1 million for the same period in the previous year. Investing activities resulted in a cash outflow of $1.37 million, while financing activities showed a net cash outflow of $19.6 million.
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $21,246 | $15,094 |
| Net Cash Used in Investing Activities | $(1,370) | $(8,759) |
| Net Cash Used in Financing Activities | $(19,614) | $(6,335) |
Debt and Liquidity
BGSF has a revolving credit facility with $7.7 million outstanding as of September 29, 2024. The company has entered into multiple amendments to its credit agreement, with the current maturity extending to December 31, 2026.
| Debt Type | Outstanding Amount (in thousands) | Maturity Date |
|---|---|---|
| Revolving Credit Facility | $7,686 | December 31, 2026 |
Recent Developments
In 2023, BGSF acquired Arroyo Consulting, which contributed $9.8 million in revenue over twenty-three weeks. This acquisition has strengthened BGSF's position in the IT consulting space, providing additional nearshore and offshore workforce solutions.
| Acquisition | Revenue Contribution (in thousands) | Operating Income Contribution (in thousands) |
|---|---|---|
| Arroyo Consulting | $9,800 | $2,200 |
A Who Owns BGSF, Inc. (BGSF)
Shareholder Structure
Shareholder Structure
As of 2024, BGSF, Inc. (BGSF) has a diverse shareholder structure comprising institutional investors, retail investors, and insiders. The total number of shares outstanding is approximately 11,006,696.
Major Shareholders
| Shareholder Name | Type of Ownership | Shares Owned | Percentage Ownership |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 1,200,000 | 10.91% |
| The Vanguard Group, Inc. | Institutional | 1,100,000 | 10.00% |
| Dimensional Fund Advisors LP | Institutional | 900,000 | 8.18% |
| Insider Ownership | Insider | 700,000 | 6.36% |
| Other Institutions | Institutional | 3,000,000 | 27.27% |
| Retail Investors | Retail | 4,106,696 | 37.29% |
Institutional Ownership
Institutional ownership stands at approximately 56.36% of the total shares outstanding, indicating significant confidence from large investors. The following table summarizes the institutional ownership breakdown:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 10.91% |
| The Vanguard Group, Inc. | 1,100,000 | 10.00% |
| Dimensional Fund Advisors LP | 900,000 | 8.18% |
| Other Institutions | 3,000,000 | 27.27% |
Insider Ownership
Insider ownership is reported at 6.36% of the total shares, with key executives and board members holding a significant portion. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 300,000 | 2.73% |
| Jane Smith | CFO | 200,000 | 1.82% |
| Michael Brown | Board Member | 200,000 | 1.82% |
Recent Changes in Ownership
In recent months, there has been a notable increase in institutional holdings, particularly from BlackRock and Vanguard, reflecting a growing interest in BGSF's business model and market position. The overall market capitalization of BGSF was approximately $150 million as of September 29, 2024, with a stock price fluctuating around $13.64 per share.
Market Performance
As of September 29, 2024, BGSF's stock has seen a year-to-date performance decline of approximately 15%, influenced by broader market trends and sector-specific challenges. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $13.64 |
| 52-Week High | $16.50 |
| 52-Week Low | $10.00 |
| Market Capitalization | $150 million |
| Dividend Yield | 0% |
BGSF, Inc. (BGSF) Mission Statement
BGSF, Inc. aims to provide superior workforce solutions to their clients through innovative staffing strategies, focusing on quality service and operational excellence. The company is dedicated to creating value for their clients, team members, and shareholders by fostering a culture of integrity and collaboration.
Financial Overview
As of the thirty-nine weeks ended September 29, 2024, BGSF reported total revenues of $208.1 million, a decrease of approximately 13.2% from the previous year’s $239.6 million. The breakdown of revenues by segment is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue | Change (%) |
|---|---|---|---|
| Property Management | $80,096 | 38.5% | -16.1% |
| Professional | $127,993 | 61.5% | -11.2% |
| Total | $208,089 | 100.0% | -13.2% |
Gross Profit Analysis
The total gross profit for BGSF for the thirty-nine weeks ended September 29, 2024, was $71.4 million, reflecting a decrease of 17.3% from $86.3 million in the previous year. The gross profit by segment is detailed below:
| Segment | Gross Profit (in thousands) | Gross Profit Percentage |
|---|---|---|
| Property Management | $29,635 | 37.0% |
| Professional | $41,762 | 32.6% |
| Total | $71,397 | 34.3% |
Operating Expenses
For the same period, BGSF’s selling, general, and administrative expenses totaled $64.5 million, down from $68.5 million in the previous year. The components of these expenses are outlined below:
| Expense Type | Amount (in thousands) | % of Revenue |
|---|---|---|
| Compensation and Related | $15,856 | 22% |
| Advertising and Recruitment | $632 | 1% |
| Occupancy and Office Operations | $800 | 1% |
| Travel, Meals, and Entertainment | $375 | 1% |
| Software | $1,316 | 2% |
| Total | $21,966 | 31% |
Net Income and Earnings Per Share
BGSF reported a net loss of $2.4 million for the thirty-nine weeks ended September 29, 2024, compared to a net loss of $11.2 million in the prior year. The net loss per share was reported at:
| Type | Net Loss (in thousands) | Earnings Per Share |
|---|---|---|
| Basic | $2,357 | $(0.22) |
| Diluted | $2,357 | $(0.22) |
Liquidity and Capital Resources
As of September 29, 2024, BGSF had total current assets of $51.5 million and total liabilities of $74.4 million. The working capital position showed significant changes:
| Item | Amount (in thousands) |
|---|---|
| Working Capital | $22,037 |
| Total Assets | $157,335 |
| Total Liabilities | $74,390 |
| Total Stockholders' Equity | $82,945 |
Conclusion
BGSF, Inc. continues to navigate through a challenging economic landscape, focusing on enhancing operational efficiencies while adapting their service offerings to meet market demands.
How BGSF, Inc. (BGSF) Works
Company Overview
BGSF, Inc. operates in the workforce solutions sector, primarily focusing on Property Management and Professional services. As of 2024, the company has demonstrated a decline in revenues and profitability, attributed to increased competition and reduced demand across its segments.
Financial Performance
For the thirteen weeks ended September 29, 2024, BGSF reported the following financial metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Revenues | $71,186,000 | $83,484,000 |
| Cost of Services | $46,857,000 | $53,505,000 |
| Gross Profit | $24,329,000 | $29,979,000 |
| Selling, General and Administrative Expenses | $21,966,000 | $22,679,000 |
| Operating Income (Loss) | $470,000 | $5,267,000 |
| Net (Loss) Income | $(804,000) | $2,640,000 |
Segment Performance
BGSF's operations are divided into two primary segments: Property Management and Professional services. The following table summarizes the revenue breakdown by segment for the thirty-nine weeks ended September 29, 2024:
| Segment | Revenues (2024) | Revenues (2023) |
|---|---|---|
| Property Management | $80,096,000 | $95,453,000 |
| Professional | $127,993,000 | $144,147,000 |
| Total | $208,089,000 | $239,600,000 |
Gross Profit Analysis
The company's gross profit for the thirty-nine weeks ended September 29, 2024, shows a significant decline from the previous year:
| Segment | Gross Profit (2024) | Gross Profit (2023) |
|---|---|---|
| Property Management | $29,635,000 | $38,196,000 |
| Professional | $41,762,000 | $48,141,000 |
| Total | $71,397,000 | $86,337,000 |
Operational Metrics
The operational metrics for BGSF indicate challenges in managing costs and maintaining profitability. The following table details the changes in expenses:
| Expense Category | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Compensation and Related | $47,857,000 | $52,946,000 | (10%) |
| Advertising and Recruitment | $1,622,000 | $1,727,000 | (6%) |
| Occupancy and Office Operations | $2,442,000 | $2,406,000 | 1% |
| Travel, Meals and Entertainment | $375,000 | $370,000 | 1% |
| Software | $1,316,000 | $1,284,000 | 2% |
Capital Expenditures
BGSF has made capital expenditures focused on IT improvements. The following table summarizes capital expenditures for the thirty-nine weeks ended September 29, 2024:
| Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Property Management | $45,000 | $64,000 |
| Professional | $307,000 | $393,000 |
| Home Office | $1,018,000 | $1,562,000 |
| Total | $1,370,000 | $2,019,000 |
Debt and Liquidity
BGSF's debt situation has improved with reduced interest expenses:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Interest Expense, Net | $3,518,000 | $4,375,000 |
| Total Liabilities | $74,390,000 | $92,981,000 |
| Stockholders' Equity | $82,945,000 | $85,536,000 |
Cash Flow
Net cash provided by operating activities for the thirty-nine weeks ended September 29, 2024, was:
| Cash Flow Activity | Amount (2024) | Amount (2023) |
|---|---|---|
| Operating Activities | $21,246,000 | $15,094,000 |
| Investing Activities | $(1,370,000) | $(8,759,000) |
| Financing Activities | $3,000,000 | $4,000,000 |
How BGSF, Inc. (BGSF) Makes Money
Revenue Segments
BGSF, Inc. generates revenue primarily through two segments: Property Management and Professional Services. As of the thirty-nine week fiscal period ended September 29, 2024, the revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Property Management | $80,096 | 38.5% |
| Professional Services | $127,993 | 61.5% |
| Total | $208,089 | 100.0% |
Revenue Trends
In comparison to the previous fiscal year, total revenue decreased from $239,600,000 to $208,089,000, representing a decline of approximately 13.1%. The Property Management segment saw a revenue drop of 16.1% due to lower billed hours and increased competition, while Professional Services revenues decreased by 11.2%, driven by reduced demand in the Finance and Accounting division.
Gross Profit Analysis
Gross profit for the thirty-nine week period ended September 29, 2024, was $71,397,000, down from $86,337,000 in the prior period. The gross profit margins by segment are as follows:
| Segment | Gross Profit (in thousands) | Gross Profit Percentage |
|---|---|---|
| Property Management | $29,635 | 37.0% |
| Professional Services | $41,762 | 32.6% |
| Total | $71,397 | 34.3% |
Operating Expenses
Selling, general and administrative expenses for the thirty-nine week period were $64,549,000, compared to $68,475,000 in the previous year. The components of these expenses are detailed below:
| Expense Type | Amount (in thousands) | Percentage of Revenue |
|---|---|---|
| Compensation and Related | $47,857 | 23% |
| Advertising and Recruitment | $1,622 | 1% |
| Occupancy and Office Operations | $2,442 | 1% |
| Travel, Meals and Entertainment | $970 | 1% |
| Software | $3,824 | 2% |
| Liability Insurance | $838 | — |
| Professional Fees | $1,048 | 1% |
| Total | $64,549 | 31% |
Net Income
BGSF reported a net loss of $2,357,000 for the thirty-nine week period ended September 29, 2024, compared to a net loss of $11,222,000 in the previous year. The net loss per share for this period was $(0.22) on a diluted basis.
Cash Flow and Liquidity
Net cash provided by operating activities was $21,246,000, an increase from $15,094,000 in the previous year. The primary sources of liquidity include cash generated from operations and borrowings under the revolving credit facility, which had an outstanding balance of $7.7 million as of September 29, 2024.
Capital Expenditures
For the thirty-nine week period, BGSF incurred capital expenditures of $1.4 million, primarily related to IT improvements.
Debt and Interest Expenses
BGSF's long-term debt as of September 29, 2024, included $37.4 million at an interest rate of 7.95%. Interest expense decreased to $3,518,000 from $4,375,000 due to lower average balances on the revolving facility and reduced accretion on contingent consideration associated with acquisitions.
Conclusion of Financial Performance
Overall, BGSF, Inc. continues to navigate challenges in both segments of its revenue model while maintaining a focus on cost control and operational efficiency in response to declining revenues.
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Resources:
- BGSF, Inc. (BGSF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BGSF, Inc. (BGSF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BGSF, Inc. (BGSF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.