Bgsf, Inc. · NYSE:BGSF
Bgsf — Investor Presentation (December 2022)
36 slides from Bgsf's investor presentation, Dec 20, 2022
Slide 1: Your Future. Our Purpose. A Workforce Solutions Provider
Your Future. Our Purpose. A Workforce Solutions Provider Investor Presentation December 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 2 The forward-looking statements in this presentation are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but
Slide 3: Delivering an Attractive Investment Thesis
* ProForma TTM Q3 2022 from continuing operations including Horn Solutions; See Appendix for reconciliation to GAAP and further details ** Last ten days average closing price as of December 15, 2022 Delivering an Attractive Investment Thesis $319M* Revenues 52-Week Range $10.40 - $15.04 Organic and
Slide 4: Horn Solutions – Transaction Highlights
Horn Solutions – Transaction Highlights Increased Scale in Attractive Market Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 4 Attractive Financial Characteristics Experienced Management Team • Increases depth in high-value consulting and managed services through market sh
Slide 5: Horn Solutions – Transaction Overview
Horn Solutions – Transaction Overview On December 12, 2022, BGSF acquired Horn Solutions, a Texas-based workforce solutions firm specializing in business consulting, managed services, and executive search. Horn, with offices in Houston, Dallas and Austin, Texas, is well- known for understanding busi
Slide 6: Leveraging Core Brands to Create Scale and Drive Market Share Gains
Professional IT Consulting Accounting/Finance, Legal, HR, and Administrative/Clerical Talent Cyber Security Infrastructure & Development Leveraging Core Brands to Create Scale and Drive Market Share Gains Real Estate Front Office and Maintenance Workers for Apartment Communities Commercial Real Esta
Slide 7: Strong Client and Talent Engagement
Strong Client and Talent Engagement 79% Client Retention ~12,000 People Placed to Work ~ 2,400 Clients Served ~38,000 Assignments ~3,600 Paychecks Per Week Your Future. Our Purpose. | bgsf.com 7 * Nine months Q3 2022, excludes Horn Solutions Investor Presentation | December 2022
Slide 8: Fragmented Industry Ripe for Consolidation
Fragmented Industry Ripe for Consolidation ~25,000 2 Staffing Firms 186 Firms Over $100M Revenue 3.7%1 Unemployment Rate As of November 2022 TRENDS 2 2.02% Temp Penetration Rate As of November 2022 ~16 million2 Remote Work & Technology Increase in Demand Temporary & Contract Skills Shortage Employee
Slide 9: Talent market tighter than ever
59.7% Your Future. Our Purpose. | bgsf.com 9 71% of Human capital and C-suite leaders plan to shift more work to contingent, project or contract* * 2022 Randstad Talent Trends Report The talent market is tighter than ever, and change is at an all-time high, BGSF is positioned as a leader Investor Pr
Slide 10: Largest Workforce Solutions Provider in Highly Fragmented Industry
94th** Largest Workforce Solutions Provider in Highly Fragmented Industry * Staffing Industry Analyst Sept 2022 ** Staffing Industry Analyst July 2022 *** Staffing Industry Analyst August 2022 49th*** Largest IT Solutions Firm Growing National Presence 46 States & DC Canada Expansion Professional in
Slide 11: Reshaping Our Organization for Growth, Higher Margins and Cross-Selling
Reshaping Our Organization for Growth, Higher Margins and Elevated Cross-Selling Opportunities Talent Acquisition Team Keenly focused on candidate sourcing Leadership Consolidation Specialized vertical focus across brands Real Estate Professional 11Your Future. Our Purpose. | bgsf.comInvestor Presen
Slide 12: Divestiture Changed Our Revenue Mix Driving Higher Margins
Divestiture Changed Our Revenue Mix Driving Higher Margins Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 12 40% 60% 26% 47% 27%* 100% Real EstateProfessionalLight Industrial* 2007* 2017 2022 Percent of Total Revenue by Segment BGSF Founded * Discontinued operations Exclu
Slide 13: Two Strong Platforms Leveraging Higher Margin Mix
Two Strong Platforms Leveraging Higher Margin Mix 39.4% 46% 40% 31.4% 54% 60% Gross Margin % % of GP $'s % of Revenues Real Estate Professional YTD Q3 2022, excludes Horn Solutions Your Future. Our Purpose. | bgsf.com 13Investor Presentation | December 2022
Slide 14: Real Estate
Real Estate Optimizing Margins through Pricing Efficiencies Best-in-class Placement Solutions 100% Organic Growth High Industry Engagement Only Public Staffing Company in Real Estate APARTMENT COMMUNITIES COMMERCIAL REAL ESTATE 14Your Future. Our Purpose. | bgsf.comInvestor Presentation | December 2
Slide 15: Real Estate Revenue Mix
Real Estate Revenue Mix Driving Niche in Maintenance and Leasing Solutions 70% 30%70% of Revenue Maintenance SUPERVISOR ASSISTANT LEAD (HVAC) MAKE READY (HANDYMAN) ENGINEERS GROUNDSKEEPER PORTER 30% of Revenue Office MANAGER ASSISTANT MANAGER LEASING AGENT BILINGUAL AGENT 40.3% Your Future. Our Purp
Slide 16: Real Estate Division – Strategic Geographic Expansion
Real Estate Division – Strategic Geographic Expansion NY KY AR AL CO KS AZ OK TX MO LA GA FL SC NC TN VA MI OH IL WI MN UT NV WA PA MA NJ MD 37 States & D.C. ~38,000 Unique Assignments Your Future. Our Purpose. | bgsf.com 16 * ~ 1,900 * Management Companies OR CA 74% * Client Retention MS RI Toronto
Slide 17: Professional
Professional Leading Brand Portfolio with National Practice Large Consultant Pool Across Multiple Verticals Implementation of New Technology Workday, Salesforce, AI, Cyber Security, OneStream Continued Education White Papers, CPE Events, Webinars IT FINANCE & ACCOUNTING Strategically focused on high
Slide 18: Professional Division – Building Cross-Selling Opportunities
Professional Division – Building Cross-Selling Opportunities as a Single-Source Provider Professional Search & Project Support FINANCE & ACCOUNTING HR ENGINEERING LEGAL ADMINISTRATIVE MARKETING CREATIVE & DIGITAL TALENT Information Technology Solutions ADVANCED ANALYTICS EPM/CPM ORACLE ERP AND HCM S
Slide 19: Professional Division – Growing North American Presence
Professional Division – Growing North American Presence CLIENT STATES LOCATION AND CLIENT STATES 47 States, D.C. & Canada 82%* Client Retention ~500* Clients ~1,700* Consultant Engagements Your Future. Our Purpose. | bgsf.com 19 AZ TX FL NC TN IL MA NJ MD RI * Nine months Q3 2022, excludes Horn Solu
Slide 20: Financial Highlights
Financial Highlights Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 34.6%1 Gross Profit 7.9% Adj EBITDA 210bp YoY Increase 29% 5 Revenue growth YoY 1.2x3 Debt / TTM EBITDA 3.6x 2 Dividend Cover 1 YTD Q3 2022 continuing operations 2 Adjusted Total TTM EBITDA from continuin
Slide 21: Strong Post Covid Growth Profile
Strong Post Covid Growth Profile $207.1 $239.0 $218.7 $288.8 $171.3 $221.1 31.9% 33.9% 33.6% 34.6% 33.1% 34.6%$0 $50 $100 $150 $200 $250 $300 $350 2020 2021 TTM Q3 21 TTM Q3 22 YTD Q3 21 YTD Q3 22 $12.2 21Your Future. Our Purpose. | bgsf.comInvestor Presentation | November 2022 $15.0 $16.1 $22.5 $9.
Slide 22: Leveraging Growth and Pricing
Leveraging Growth and Pricing $4.3 $6.1 $3.4 $0 $2 $3 $4 $5 $6 $3.4 $5.1 Operating Income* 2021 2022 2021 2022 ProfessionalReal Estate $24.8 $33.2 $39.4 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 in millions in millions Real Estate Revenue 34% Revenue* Professional Revenue 15% Real Estate Operating Incom
Slide 23: Segment Breakdown
Segment Breakdown Strong sequential results (in millions) Investor Presentation | November 2022 ProfessionalReal Estate Revenue $24.8 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $27.4 $25.9 $39.4 $40.3 $42.6 $44.1 $30.0 3Q21 4Q21 1Q21 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 $33.2 $45.3 Excludes PF impact of Ho
Slide 24: Margin Enhancement Levers
Margin Enhancement Levers Investor Presentation | November 2022 Your Future. Our Purpose. | bgsf.com 24 Mix shift Acquisitions Systems and operational improvements Cross-selling
Slide 25: Capital Allocation Strategy Aligned to Strategic Growth
Capital Allocation Strategy Aligned to Strategic Growth Sustainable Dividend Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 25 Investments to Support Organic Growth Strategic Acquisitions Capital Allocation Priorities Drivers • Revenue growth through market share expansio
Slide 26: Empowered, Vibrant and Purpose-Driven Culture
Empowered, Vibrant and Purpose-Driven Culture Fostering Diversity, Equity and Inclusion VIIBE Council – Voices Inspiring Inclusion, Belonging and Equity Pillars of Excellence Focused on diversity education, training and engagement Enhanced Governance & Board Diversity Current 28.5% female representa
Slide 27: Thank you.
Thank you. www.bgsf.com For More Information Please contact IR@bgsf.com.
Slide 28: Appendix
Appendix Your Future. Our Purpose. | bgsf.com 28
Slide 29: Presentation of Non-GAAP Measures
Presentation of Non-GAAP Measures Your Future. Our Purpose. | bgsf.com 29 The financial results of BGSF 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
Slide 30: Horn Solutions Revenue & Non-GAAP Reconciliation
Horn Solutions Revenue & Non-GAAP Reconciliation Reconciliationof Horn Solutions NetIncome to Adjusted EBITDA BGSF Proforma Summary of Operations Investor Presentation | December 2022 Excludes any transaction adjustments and potential synergies BGSF Proforma Leverage Ratio from Continuing Operations
Slide 31: Reconciliation of Net Income to Adjusted EBITDA
BGSF Reconciliation of Net Income from continuing operations to Adjusted EBITDA Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 31 Excludes impact of Horn Solutions
Slide 32: Reconciliation of Adjusted EPS from Continuing Operations
Reconciliation of Adjusted EPS from Continuing Operations Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 32 Excludes impact of Horn Solutions
Slide 33: Historical Operations of InStaff
Historical Operations of InStaff Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 33 (000's) 12 wks* Fiscal Fiscal Fiscal Fiscal 2022 2021 2020 2019 2018 Revenue $ 16,465 $ 71,292 $ 70,765 $ 74,549 $ 80,689 Gross Profit $ 2,321 $ 10,344 $ 10,181 $ 10,855 $ 12,075 Gross Prof
Slide 34: Achievements & Awards
ACHIEVEMENTS & AWARDS 2022 Awards •2022 Best Place forWorking Parents •2022 DCEO Innovation inTalentWorkforce Finalist •Top 10 Staffing Companies toWork for in 2022, World Staffing Summit •2022 Dallas Business Journal Ranked #7Top Staffing Agency Individuals: •Beth Garvey •SIA’s Staffing 100 North A
Slide 35: Historical Acquisitions/Divestitures
Historical Acquisitions/Divestitures Investor Presentation | December 2022 Your Future. Our Purpose. | bgsf.com 35 ACQUISITIONS: December 2022 Horn Solutions February 2021 Momentum Solutionz February 2020 EdgeRock Technology December 2019 L.J. Kushner & Associates September 2017 Smart Resources and
Slide 36: Executive Leadership
Executive Leadership Beth Garvey – Chair, President & CEO Beth Garvey began serving as President and Chief Executive Officer of the Company in October 2018. Ms. Garvey previously served as Chief Operating Officer of the Company from August 2016 and joined the Company through the Company’s acquisitio