Bgsf, Inc. · NYSE:BGSF
Bgsf — BG Staffing — Investor Presentation (February 2015)
35 slides from Bgsf's investor presentation, Feb 12, 2015
Slide 1: BG Staffing, Inc. Corporate Presentation
1 BG Staffing, Inc. Corporate Presentation February 12-13, 2015
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains forward-looking statements regarding the business, operations and prospects of BG Staffing and industry factors affecting it. These statements are identified by words such as “may,” “will,” “begin,” “look forward,” “expect,” “believe,” “intend,
Slide 3: Agenda
3 BG Staffing, Inc. Overview Operational Strategy Management Bios Business Segments How Have We Done US Industry Forecast Financial Information Investment Highlights Agenda
Slide 4: BG Staffing, Inc. Overview
i 4 le. oe BG STAFFING, INC. eran BG Staffing, Inc. Overview
Slide 5: National provider of temporary staffing services
5 National provider of temporary staffing services Since ‘09 management has led on-going growth & geographic/services diversification Acquired and successfully integrated several regional and national brands – set to achieve scalable growth Acquisition philosophy brings financial growth + un
Slide 6: Operational Strategy
6 Diversify operations: Different skill sets. Different geographies. Maintain centralized back office: Target costs between 2-2.5% of revenue. Grow profitable revenue: Organically. Acquisition-with strong management. Operational Strategy
Slide 7: Management Bios
7 L. ALLEN BAKER, Jr. - President and CEO since 2009. Baker joined the board of directors of BG Staffing in 2008 while serving as the Executive Vice President/CFO of a confections manufacturing company in Colorado. During his tenure at the confections manufacturing company, he led in the acquisition
Slide 8: U.S. Temporary Staffing Segment Categories
8 • Professional/Specialty – IT – Healthcare – Finance/Accounting – Engineering/Design – Legal – Clinical/Scientific – Marketing/Creative – Education/Library – Other • Commercial – Office Clerical – Industrial U.S. Temporary Staffing Segment Categories Source: Staffing Industry Analysts: U.S. Staffi
Slide 9: Light Industrial Primary Skills Offered
9 Forklift Drivers Pickers/Packers Production workers Light Assembly Light Manufacturing General Labor Light Industrial Primary Skills Offered
Slide 10: Light Industrial Geography
10 Light Industrial Geography Colorado Kansas New Mexico Arizona California Oklahoma Texas Missouri Louisiana Mississippi Alabama Georgia Florida South Carolina North Carolina Tennessee Kentucky Virginia West Virginia Michigan Ohio Indiana Illinois Iowa Wisconsin Minnesota Arkansas Nebraska Wyoming
Slide 11: Multifamily Primary Skills Offered
11 Manager Assistant Manager Leasing Agent Bilingual Leasing Agent Maintenance Supervisor Lead (HVAC) Assistant Maker Ready Grounds Keeper Porter Office Multifamily Primary Skills Offered
Slide 12: Multifamily Geography
12 Multifamily Geography Colorado Kansas New Mexico Arizona California Oklahoma Texas Missouri Louisiana Mississippi Alabama Georgia Florida South Carolina North Carolina Tennessee Kentucky Virginia West Virginia Michigan Ohio Indiana Illinois Iowa Wisconsin Minnesota Arkansas Nebraska Wyoming South
Slide 13: IT Staffing Primary Skills Offered
13 Many modules such as Sales & Distribution Supply Chain Materials Management Production Planning Business Warehouse Finance & Cost Accounting Human Capital Management Add ons such as Vistex, Qlickview, Workday Oracle Gold Partner Hyperion Oracle Business Intelligence Peop
Slide 14: IT Staffing Geography
14 IT Staffing Geography Colorado Kansas New Mexico Arizona California Oklahoma Texas Missouri Louisiana Mississippi Alabama Georgia Florida South Carolina North Carolina Tennessee Kentucky Virginia West Virginia Michigan Ohio Indiana Illinois Iowa Wisconsin Minnesota Arkansas Nebraska Wyoming South
Slide 15: Accretive Acquisitions
15 Accretive Acquisitions Include: 2010 – BG Staffing (Purchase Price: $3M; LTM COH $3.75M) Multifamily Staffing 2011 – Extrinsic (Purchase Price: $9.95M; LTM COH $2.21M) IT Staffing including SAP® and related SAP® add-ons. 2012 – American Partners (Purchase Price: $13.32M; LTM COH $3.65M) IT Staffi
Slide 16: Consolidated Revenue Trend
16 $35,044 $39,778 $50,120 $76,759 $151,678 $173,671 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 2009 2010 2011 2012 2013 LTM Consolidated Revenue Trend 13.5% 26.0% 53.2% 97.6% (000)’s 14.5% 2009 - 2013 CAGR 41.4%
Slide 17: Consolidated Adjusted EBITDA Trend
17 $1,507 $2,013 $3,014 $5,489 $10,829 $12,026 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2009 2010 2011 2012 2013 LTM Consolidated Adjusted EBITDA Trend 33.6% 49.7% 82.1% 97.3% 11.1% (000)’s 2009 - 2013 CAGR 62.7%
Slide 18: Consolidated Revenue Mix
18 46% 34% 20% 2014 YTD Industrial IT Multifamily 44% 40% 16% 2013 YTD Industrial IT Multifamily Consolidated Revenue Mix
Slide 19: Consolidated COH Mix
19 34% 38% 28% 2014 YTD Industrial IT Multifamily 26% 46% 28% 2013 YTD Industrial IT Multifamily Consolidated COH Mix
Slide 20: 2014 YTD Multifamily Operations
20 Revenue is up 48.0%. $25,968 $17,548 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Revenue Current Last Contribution is up 26.2%. $3,308 $2,622 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 COH Current Last 2014 YTD Multifamily Operations (000)’s
Slide 21: 2014 YTD IT Staffing Operations
21 Revenue is up 2.9%. $44,054 $42,806 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Revenue Current Last COH is flat. $4,452 $4,458 $4,400 $4,500 COH Current Last 2014 YTD IT Staffing Operations (000)’s
Slide 22: 2014 YTD Light Industrial Operations
22 Revenue is up 25.9% primarily due to the acquisition of InStaff. $59,853 $47,258 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Revenue Current Last COH is up 50.9% due to the acquisition of InStaff. $3,919 $2,597 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 COH Cur
Slide 23: US Staffing Industry Forecast
23 US Staffing Industry Forecast
Slide 24: U.S. Staffing Industry Forecast – Market Size
24 $105.4 $112.6 $117.9 $124.4 $132.1 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2011 2012 2013 2014P 2015P U.S. Staffing Industry Forecast – Market Size ($B) Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast Update September 16, 2014 6% 6% 5% 7% 14%
Slide 25: U.S. Staffing Industry Forecast by Segment
25 $15.6 $59.2 $49.6 $17.1 $63.1 $51.9 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 Place & Search Professional/Specialty Commercial 2015P 2014P 2013 U. S. Staffing Industry Forecast ($B) 5% 2014 Growth 2015 Growth Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast Update September
Slide 26: Correlation of Economy and Staffing
26 “Growth in the staffing industry is strongly correlated with GDP growth,” according to research from Staffing Industry Analysts (October 30, 2014). Correlation of Economy and Staffing
Slide 27: Temp Penetration Rate
27 Dec 2014 Rate up to 2.14% 1.75% 1.80% 1.85% 1.90% 1.95% 2.00% 2.05% 2.10% 2.15% Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Temp Penetration Source: Staffing Industry Analysts: January 9, 2015
Slide 28: Temp Penetration Record
28 Another Record Since Record Keeping Began 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Temp Penetration (long-term) Source: Staffing Industry Analysts: January 9, 2015
Slide 29: General Unemployment Down to 5.6%
29 Dec 2014 General Unemployment Down to 5.6% Source: Staffing Industry Analysts: January 9, 2015 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Unemployment Rate
Slide 30: College Unemployment Down to 2.9%
30 Dec 2014 College Unemployment Down to 2.9% Source: Staffing Industry Analysts: January 9, 2015 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 College Unemployment Rate
Slide 31: Capitalization
31 Issued and Outstanding (diluted) 7.5 million Insider’s/Affiliate’s Ownership (approx.) 18% Approx. Float 5.4 million Market Capitalization (2/10/15) $ ~ 86 million Fiscal Year End December Capitalization - (12/28/14) $35 $39.7 $50 $76.7 $151 $174 $0 $50,000 $100,000 $150,000 $200,000 2009 2010 20
Slide 32: Summary Balance Sheet - 9/28/14
32 Current Assets Total current assets $ 28,767,446 Property and equipment, net $ 652,660 Other assets Deferred income taxes $ 7,481,407 Intangible assets, net $ 14,728,666 Total other assets $ 30,076,702 Total Assets $ 59,496,808 Current Liabilities Long-term debt, current portion $ 2,250,000 Accou
Slide 33: Summary Balance Sheet - 9/28/14 (equity)
33 Common stock, $0.01 par value per share, 5,608,145 shares issued and outstanding for 2014 $ 54,489 Additional paid in capital $ 2,090,947 Retained earnings $ 6,063,058 Total stockholders’ equity $ 8,208,494 Total liabilities and stockholders’ equity $ 59,496,808 Summary Balance Sheet - 9/28/14 (u
Slide 34: Investment Highlights
34 Experienced, successful management focused on continuing to execute proven business model -- organic growth + accretive niche acquisitions Targeting mostly private companies with EBITDA under $5 million Seek to increase $0.15 quarterly dividend Historic EBITDA CAGR over the past five year
Slide 35: Contacts
35 Contacts Investor Relations: Terri MacInnis, VP of IR Bibicoff + MacInnis, Inc. 818-379-8500 terri@bibimac.com Company: Michael Rutledge, CFO BG Staffing, Inc. 972-692-2422 mrutledge@bgstaffing.com