Bgsf, Inc. · NYSE:BGSF
Bgsf — BG Staffing — Taglich Brothers Small Cap Equity Conference 2014
45 slides from Bgsf's conference presentation, May 6, 2014
Slide 1: Taglich Brothers Small Cap Equity Conference May 6, 2014
Company Confidential 1 1 As of Mar 2014 Taglich Brothers Small Cap Equity Conference May 6, 2014
Slide 2: Forward-Looking Statements
Company Confidential 2 2 As of Mar 2014 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,” “l
Slide 3: Agenda
Company Confidential 3 3 As of Mar 2014 ▪ Staffing Industry Outlook ▪ Healthcare Reform Update ▪ 2014 Operating Results ▪ Diversification Strategy Agenda
Slide 4: Global Staffing Industry Size
Company Confidential 4 4 As of Mar 2014 Global Staffing Industry Size
Slide 5: Staffing Market Size by 2012 Revenue
Company Confidential 5 5 As of Mar 2014 30% 14% 9% 7% 6% 4% 5% 25% N America Japan UK France Germany Netherlands Australia Rest of World Staffing Market Size by 2012 Revenue Source: Staffing Industry Analysts: August 27, 2013 • 7countries made up ¾ of global staffing industry revenue in 2012 . • The
Slide 6: Global Staffing by Type of Service
Company Confidential 6 6 As of Mar 2014 82% 11% 7% Temps Place & Search Other • Temporary Staffing makes up 82% of the Global Staffing market. • Place & Search – Direct Hire – Retained Search – Temp - to - Hire • Other – PEO Net Revenue – Outplacement Global Staffing by Type of Service Source: Staff
Slide 7: US Staffing Industry Forecast
Company Confidential 7 7 As of Mar 2014 US Staffing Industry Forecast
Slide 8: U.S. Staffing Industry Forecast – Market Size ($B)
Company Confidential 8 8 As of Mar 2014 $105.4 $112.6 $119.1 $127.0 $135.9 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2011 2012 2013 2014P 2015P U.S. Staffing Industry Forecast – Market Size ($B) Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast Update April 8, 2014 7
Slide 9: U.S. Staffing Industry Forecast by Segment
Company Confidential 9 9 As of Mar 2014 $16.2 $60.2 $50.6 0 10 20 30 40 50 60 70 Place & Search Professional/Specialty Commercial 2014P 2013P 2012 2011 U. S. Staffing Industry Forecast ($ B ) Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast Update April 8, 2014 6% 7 % 10% Growth
Slide 10: U.S. Temporary Staffing Segment Categories
Company Confidential 10 10 As of Mar 2014 • 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:
Slide 11: U.S. Temporary Staffing Industry Forecast ($B)
Company Confidential 11 11 As of Mar 2014 $2.3 $1.9 $1.1 $2.2 $1.0 $8.3 $6.8 $10.3 $26.4 $31.3 $19.3 $- $10.0 $20.0 $30.0 $40.0 Other Education/Library Marketing/Creative Clinical/Scientific Legal Engineering/Design Finance/Accounting Healthcare IT Staffing Industrial Office/Clerical 2014P 2013P 201
Slide 12: U.S. Temp Penetration Rate
Company Confidential 12 12 As of Mar 2014 1.85% 1.84% 1.85% 1.86% 1.87% 1.88% 1.88% 1.86% 1.87% 1.88% 1.89% 1.89% 1.90% 1.91% 1.92% 1.94% 1.95% 1.95% 1.96% 1.97% 1.97% 2.00% 2.02% 2.02% 2.03% 1.75% 1.80% 1.85% 1.90% 1.95% 2.00% 2.05% Feb-2012 May-2012 Aug-2012 Nov-2012 Feb-2013 May-2013 Aug-2013 Nov
Slide 13: U.S. Temp Penetration Rate
Company Confidential 13 13 As of Mar 2014 U.S. Temp Penetration Rate 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% • Doubled since 1990. • Volume Based Metric (number of jobs as opposed to revenue). • T hus, more reflective of Commercial Staffing. • Estimate: roughly 80% of U.S. Temporary Workers fall into th
Slide 14: Affordable Care Act Update
Company Confidential 14 14 As of Mar 2014 Affordable Care Act Update
Slide 15: Patient Protection and Affordable Care Act
Company Confidential 15 15 As of Mar 2014 • Requires US citizens to have health insurance. • Requires employers to pay penalties, if they fail to provide health insurance to their employees. • Creates state - based Exchanges where individuals and small businesses can purchase coverage. • Provides su
Slide 16: Definitions
Company Confidential 16 16 As of Mar 2014 • Large Employer – 2015 Have greater than 99 Full Time Employees. – 2016 Have greater than 50 Full Time Employees • Full Time employees generally = employees working 30 (or more) hours/week (average 130 hours/month). • Part Time employees generally = employe
Slide 17: Employer Mandate
Company Confidential 17 17 As of Mar 2014 Employer Mandate MEC coverage offered to (2015 70% - 2016 95%) of Full Time employees. Affordability Test 9.5% of Employee’s Family Income Minimum Value Test Plan Covers 60% of Plan Costs $3,000/Year for each FT employee w ho receives a credit or subsidy fro
Slide 18: Healthcare Reform Evaluation
Company Confidential 18 18 As of Mar 2014 ▪ We intend to fully comply with the law. ▪ Administrative cost concerns ▪ COBRA, etc. ▪ Minimum participation concerns. ▪ Continuing to Evaluate. Healthcare Reform Evaluation
Slide 19: Contribution to Overhead (COH) definition
Company Confidential 19 19 As of Mar 2014 BG Staffing, Inc. Contribution to Overhead (“COH”) is a non - GAAP measure that is derived by subtracting selling expenses from gross profit. Selling expenses are a subcomponent of Selling, General and Administrative costs as disclosed in our financial state
Slide 20: Consolidated Revenue Trend
Company Confidential 20 20 As of Mar 2014 $35,044 $39,778 $50,120 $76,759 $151,678 $165,935 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2009 2010 2011 2012 2013 LTM Consolidated Revenue Trend 13.5% 26.0% 53.2% 97.6% (000)’s 9.4% 2009 - 2013 CAGR 41.4%
Slide 21: Consolidated Revenue Mix
Company Confidential 21 21 As of Mar 2014 51% 25% 24% 2012 Industrial IT Multifamily 47% 37% 16% 2013 Industrial IT Multifamily Consolidated Revenue Mix
Slide 22: Consolidated Adjusted EBITDA Trend
Company Confidential 22 22 As of Mar 2014 $1,507 $2,013 $3,014 $5,489 $10,829 $11,568 $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% 6.8% (000)’s 2009 - 2013 CAGR 62.7%
Slide 23: Consolidated COH Mix
Company Confidential 23 23 As of Mar 2014 34% 32% 34% 2012 Industrial IT Multifamily 34% 43% 23% 2013 Industrial IT Multifamily Consolidated COH Mix
Slide 24: 2014 Operations & Diversification Strategy
Company Confidential 24 24 As of Mar 2014 2014 Operations & Diversification Strategy
Slide 25: 2014 Q1 Consolidated Operations
Company Confidential 25 25 As of Mar 2014 Revenue is up 57.3%, primarily due to the acquisition of InStaff. $39.0 $24.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Revenue Current Last Adjusted EBITDA is up 50.0%. Historically, Q1 is our lowest quarter. $2.1 $1.4 $0.0 $0.5 $1.0 $1.5 $2
Slide 26: Consolidated Revenue Mix
Company Confidential 26 26 As of Mar 2014 33% 50% 17% 2013 Q1 Industrial IT Multifamily 48% 36% 16% 2014 Q1 Industrial IT Multifamily Consolidated Revenue Mix
Slide 27: Consolidated COH Mix
Company Confidential 27 27 As of Mar 2014 11% 63% 26% 2013 Q1 Industrial IT Multifamily 38% 43% 19% 2014 Q1 Industrial IT Multifamily Consolidated COH Mix
Slide 28: 2014 Q1 Consolidated
Company Confidential 28 28 As of Mar 2014 (000’s) 2014A 2013A O(U)LY Revenue $39,038 $24,781 $14,257 Cost of Services $31,326 $19,912 $11,414 Gross Profit $7,712 $4,869 $2,843 19.8% 19.6% 0.2% SG&A $5,588 $3,484 $2,104 EBITDA $2,124 $1,385 $739 5.4% 5.6% - 0.2% Depr & Amort $1,349 $1,054 $295 Manage
Slide 29: 2014 Q1 Multifamily Operations
Company Confidential 29 29 As of Mar 2014 Revenue is up 53.2% primarily due to the nationwide expansion efforts. $6,310 $4,120 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Revenue Current Last COH is up 21.6% as a result of increased revenue. $635 $522 $0 $100 $200 $300 $400 $500 $600 $700 CO
Slide 30: 2014 Q1 Multifamily Operations
Company Confidential 30 30 As of Mar 2014 Texas Offices +20.9% $4,155 $3,436 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Revenue Current Last Offices Outside Texas +215.1% $2,155 $684 $0 $500 $1,000 $1,500 $2,000 $2,500 Revenue Current Last 2014 Q1 Multifamily Operations (000)’s
Slide 31: Multifamily Primary Skills
Company Confidential 31 31 As of Mar 2014 • Manager • Assistant Manager • Leasing Agent • Bilingual Leasing Agent Maintenance • Supervisor • Lead (HVAC) • Assistant • Maker Ready • Grounds Keeper • Porter Office Multifamily Primary Skills
Slide 32: Multifamily Geography
Company Confidential 32 32 As of Mar 2014 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 Mi
Slide 33: Multifamily Geography
Company Confidential 33 33 As of Mar 2014 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 Mi
Slide 34: Multifamily Geography
Company Confidential 34 34 As of Mar 2014 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 Mi
Slide 35: Multifamily Geography
Company Confidential 35 35 As of Mar 2014 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 Mi
Slide 36: Multifamily Geography
Company Confidential 36 36 As of Mar 2014 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 Mi
Slide 37: 2014 Q1 IT Staffing Operations
Company Confidential 37 37 As of Mar 2014 Revenue is up 14.3% as the result of adding customers. $ 14,173 $12,399 $11,500 $12,000 $12,500 $13,000 $13,500 $14,000 $14,500 Revenue Current Last COH is up 10.6%%. $1,387 $1,254 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 COH Current Last 2014 Q1 IT Staffin
Slide 38: IT Staffing Primary Skills
Company Confidential 38 38 As of Mar 2014 • 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 • Hyper
Slide 39: IT Staffing Geography
Company Confidential 39 39 As of Mar 2014 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 Mi
Slide 40: IT Staffing Geography
Company Confidential 40 40 As of Mar 2014 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 Mi
Slide 41: 2014 Q1 Light Industrial Operations
Company Confidential 41 41 As of Mar 2014 Revenue is up primarily due to the acquisition of InStaff. $18,555 $8,262 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Revenue Current Last COH increased due to InStaff & improving margins in the Midwest. $1,229 $227 $0 $200
Slide 42: Light Industrial Primary Skills
Company Confidential 42 42 As of Mar 2014 • Forklift Drivers • Pickers/Packers • Production workers • Light Assembly • Light Manufacturing • General Labor Light Industrial Primary Skills
Slide 43: Light Industrial Geography
Company Confidential 43 43 As of Mar 2014 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 Wiscons
Slide 44: Light Industrial Geography
Company Confidential 44 44 As of Mar 2014 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 Wiscons
Slide 45: Questions?
Company Confidential 45 45 As of Mar 2014 Questions?
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