Bgsf, Inc. · NYSE:BGSF
Bgsf — 36th Annual Roth Conference (March 2024)
29 slides from Bgsf's conference presentation, Mar 18, 2024
Slide 1: Investor Presentation
High-Value Workforce Solutions Provider of Consulting, Managed Services, Professional & IT Services and Property Management Investor Presentation March 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 are not limited to, statements regarding our future financial performance an
Slide 3: A Timeline and History of BGSF
A Timeline and History of BGSF Today Ranked as One of the Largest Workforce 2007 2019-2020 2022 Solutions Providers & Largest IT Solutions Firm Acquired Finance & Accounting, Infrastructure & Development Acquired Acquired Property Acquired IT Offshoring, Managed Services, Nearshoring Management Tale
Slide 4: BGSF at a Glance
BGSF at a Glance Headquartered in Ticker High-Value Workforce Solutions, Consulting, and Managed Services Two Specialized Segments Plano, Texas NYSE: BGSF $107M** $26.5M* Market Cap Adj. EBITDA $318M* ~6.1%** Revenue Dividend Yield 39% $318M* Business Segments: Annual Proforma Revenues 61% Professio
Slide 5: Compelling Investment Thesis
Compelling Investment Thesis Revenue Growth & Diversification Strategies Workforce solutions, specialized consulting services, further geographic expansion Large, Highly Fragmented Market Growing $217B addressable market with long-term secular tailwinds Differentiated Solutions Benefiting from Trans
Slide 6: Revenue Diversification Delivers High-Value Workforce Solutions
Revenue Diversification Delivers High-Value Workforce Solutions Percent of Total Revenue by Segment 100 26 40% % 2007 2017 2023 BGSF 47 Founded 27 % % 60% Light Industrial* Professional Property Management Two Distinct Segments Deliver Economic Moat By Differentiated Solutions, Capabilities, Growth
Slide 7: Two Strong Platforms Leveraging Higher Margin Mix
Two Strong Platforms Leveraging Higher Margin Mix Property Management Professional % of Revenues 40% 60% % of GP $'s 45% 55% Gross Margin % 39.8% 33.0% Fiscal 2023 Investor Presentation Your Future. Our Purpose. | bgsf.com 7
Slide 8: Professional
Professional Built Leading Practices IT Managed Finance & Consulting Solutions Accounting Implementation of Large Consultant Continued Education New Technology Pool Across White Papers, CPE Events, 2023 Named Workday Referral Multiple Verticals Partner, Oracle, SAP, Service Webinars Now, PeopleSoft,
Slide 9: Professional Division – Growing Global Presence
Professional Division – Growing Global Presence North South Asia America America Colombia MA RI NJ IL India MD NC TN AZ TX FL Argentina Alaska Mexico Dominican Republic CONSULTANT ENGAGEMENTS Hawaii BGSF LOCATIONS 47 States, District of Columbia, ~400 ~1,700 88% Client Canada, Mexico, Dominican Cons
Slide 10: Professional Cross-selling as Single-Source Provider
Professional Cross-selling as Single-Source Provider Project Management and Organizational Change Management Professional Search & Information Technology Operational 59.7% needs and filling Project Support Solutions gaps for excellence FINANCE & ADMINISTRATIVE ADVANCED ANALYTICS ACCOUNTING MARKETING
Slide 11: Property Management
Property Management For Growing Apartment and Luxury Communities Awarded 2023 Supplier Company of the Year by the National Apartment Association Best-in-class Placement 100% Organic Growth Solutions High Industry Differentiated Engagement Training & & Culture Upskilling Investor Presentation Your Fu
Slide 12: Property Management - Geographic & Territorial Expansion
Property Management - Geographic & Territorial Expansion WA 36 States District of Columbia OR & Canada MN Toronto, ON WI NY MA MI 64 markets PA RI NV NJ IL IN OH ~ 8,600 CA UT CO MD DC Properties Served KS MO KY VA NC ~ 3,100 AZ OK AR TN SC Paychecks per week GA MS AL 4.3 million 1 TX LA New apartme
Slide 13: Property Management Niche Solutions
Property Management Niche Solutions Ability to train for re- skilling and up-skilling workforce 40.3% Extensive talent pool mobilized to the right 70% 30% 30% of Revenue of Revenue resources supporting daily needs Maintenance Office SUPERVISOR MANAGER ASSISTANT ASSISTANT 70% MANAGER LEASING Supporti
Slide 14: Seasoned, Proven Leadership Team
Seasoned, Proven Leadership Team …Where Culture Matters Proven Leadership with extensive strategic direction and implementation to advance the business forward Beth Garvey John Barnett Chair, President & CEO Chief Financial Officer Chris Loope Eric Peters Kelly Brown Chief Strategy Officer President
Slide 15: ESG Inspired and Purpose Driven Culture
ESG Inspired and Purpose Driven Culture Fostering Diversity, Equity and Inclusion VIIBE Council – Voices, Inspiring, Inclusion, Belonging, Equity Pillars of Excellence Focused on diversity education, training and engagement Enhanced Governance & Board Diversity Current 43% female representation Empl
Slide 16: Financials
Financials 16
Slide 17: 2023 Financial Highlights
2023 Financial Highlights 7.1% 35.7% 8.0% Y/Y Revenue Gross Profit Adjusted EBITDA Growth1 Margin Margin 6.1% 2.5x Current Dividend Debt to Yield2 Proforma (Annualized) EBITDA3 1 On a same day basis, adjusting 2022 results by 5 extra working days. 2023 was a 52-week fiscal year and 2022 was a 53-wee
Slide 18: Strong Post-Covid Growth Profile
Strong Post-Covid Growth Profile Revenue Adjusted EBITDA ($ in millions) – Gross Margin % ($ in millions) – Adjusted EBITDA Margin % $30 $350 $298.4 $313.2 $318.2 $25.1 $26.5 $300 $25 $21.7 $239.0 $250 $207.1 $20 $15.0 $200 $15 $12.2 $150 $10 $100 $5 $50 $0 $0 Gross Profit % 31.9% 33.9% 34.7% 35.7%
Slide 19: Leveraging Growth and Pricing ($ in Millions)
Leveraging Growth and Pricing ($ in Millions) Revenue* Operating Income* $200 $188.1 $25 $23.2 $177.3 $180 $19.8 $20 $45.2 $160 $6.1 $147.0 $14.7 $138.4 $15.6 $16.2 $39.4 $140 $5.1 $15 $121.1 $125.1 $12.3 $4.3 $33.2 $120 $3.4 $9.7 $10.3 $92.0 $10 $100 $3.4 $24.8 $7.5 $80 $68.8 $5 $60 $40 $0 Growth %
Slide 20: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities Debt Paydown Targeted leverage ratio below 2x Cloud migration and upgrade of enterprise Investments to Support apps complete; focused on system Organic Growth enhancements to drive growth and operating efficiencies New acquisitions deferred for now. Strategi
Slide 21: Strategic Acquisitions Since December 2022
Strategic Acquisitions Since December 2022 Horn Solutions Arroyo Consulting (Purchase price $42.7M) (Purchase price $16.5M at max earnout) Increased depth in high-value Nearshore & offshore IT and software Increased Scale in finance and accounting consulting development resources primarily in Attrac
Slide 22: Compelling Investment Thesis
Compelling Investment Thesis Revenue Growth & Diversification Strategies Workforce solutions, specialized consulting services, further geographic expansion Large, Highly Fragmented Market Growing $217B addressable market with long-term secular tailwinds Differentiated Solutions Benefiting from Trans
Slide 23: Appendix
Appendix Your Future. Our Purpose. | bgsf.com 23
Slide 24: People Matter at BGSF
People Matter at BGSF 2023 AWARDS 2022 AWARDS 2023 Best Place for Working Parents 2022 Best Place for Working Parents SIA Best Staffing Firms to Work For 2022 D CEO Innovation in Talent Workforce Finalist SIA #121 Staffing Firms List 2023 Top 10 Staffing Companies to Work for in 2022, SIA #52 IT Sta
Slide 25: Presentation of Non-GAAP Measures
Presentation of Non-GAAP Measures The financial results of BGSF are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission. To help the readers understand the Company's financial perfo
Slide 26: Non-GAAP Reconciliation BGSF Trailing Four Quarter Proforma Results
Non-GAAP Reconciliation BGSF Trailing Four Quarter Proforma Results (Including Arroyo Consulting) (1) (2) ($ in Millions) BGSF Arroyo Proforma Revenue $ 313.2 $ 5.0 $ 318.2 Gross Profit $ 111.8 $ 1.9 $ 113.7 Gross Profit Margin 35.7% 38.8% 35.7% Adjusted EBITDA $ 25.1 $ 1.3 $ 26.5 Adjusted EBITDA Ma
Slide 27: Reconciliation of Net Income to Adjusted EBITDA
BGSF Reconciliation of Net Income from continuing operations to Adjusted EBITDA ($ in 000s) Investor Presentation Your Future. Our Purpose. | bgsf.com 26
Slide 28: Reconciliation of Adjusted EPS from Continuing Operations
Reconciliation of Adjusted EPS from Continuing Operations Includes three weeks of Horn Solutions Investor Presentation Your Future. Our Purpose. | bgsf.com 28
Slide 29: Historical Acquisitions/Divestitures
Historical Acquisitions/Divestitures ACQUISITIONS: April 2023 Arroyo Consulting December 2022 Horn Solutions February 2021 Momentum Solutionz February 2020 EdgeRock Technology Partners December 2019 L.J. Kushner & Associates September 2017 Smart Resources and Accountable Search April 2017 Zycron Oct