Bgsf, Inc. · NYSE:BGSF

Bgsf — BG Staffing — Taglich Bros. Annual Investment Conference May 2018

25 slides from Bgsf's conference presentation, May 1, 2018

  1. Slide 1: BG Staffing, Inc. Taglich Bros. Annual Investment Conference May 2018

    1 BG Staffing, Inc. Taglich Bros. Annual Investment Conference May 2018 (NYSE American: BGSF)

  2. Slide 2: Forward-looking statements

    2 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,” “anticipate,” “should,” “

  3. Slide 3: Company Key Statistics and Market Statistics

    3 * As of April 23, 2018 1 Treasury stock method – Quarter Ended April 1, 2018 2 Adjusted TTM EBITDA for the Period Ended April 1, 2018/Annual Dividend Source: Public filings 3 Market Cap + Debt 4 As of and for the Period Ended April 1, 2018 Company Key Statistics Market Statistics Share Price* $19.

  4. Slide 4: Seasoned Leadership Team

    4 L. Allen Baker, Jr. Dan Hollenbach Beth Garvey Adam Tibbets President & CEO CFO COO VP of Administration Year Joined BGSF 20081 2015 2013 2009 Years of Experience 40+ 35+ 30+ 25+ Prior Experience • EVP & CFO, Impact Confections • EVP & CFO, PDS Technical Services • Controller, Core Laboratories •

  5. Slide 5: Strong Growth Profile

    5 Strong Growth Profile Revenue Adjusted EBITDA ($ in millions) 19.2% 20.0% 22.0% 23.7% 25.1% 24.1% 25.9% Gross Margin % Adjusted EBITDA Margin % 6.6% 6.7% 8.2% 8.9% 9.0% 7.3% 8.1% Source: Annual Report on Form 10-K for fiscal 2017 Quarterly Report on Form 10-Q for Q1 2018 Fiscal Years Ended Decembe

  6. Slide 6: Significant Events

    6 2010 2013 October 2014 Listed on NYSE American February 2015 Acquired Donovan & Watkins for $12.0 million 2007 October 2007 Acquired by Taglich Private Equity (undisclosed price) 2015 2012 2011 2014 May 2010 Acquired BG Personnel for $3.0 million December 2010 Acquired JNA Staffing (undisclosed pr

  7. Slide 7: Three Segments

    7 Segment Brands % of Revenues1 Gross Profit %1 % of Gross Profit $’s 1 Multifamily (apartments) 27.0% 38.1% 39.7% Professional 46.5% 25.3% 45.5% Commercial 26.5% 14.4% 14.8% Three Segments 1 Thirteen Weeks Ended April 1, 2018

  8. Slide 8: Growing Higher Margin Segments

    8 Growing Higher Margin Segments 2013 YTD Q1 2018 Commercial 47.2% Professional 37.1% Multifamily 15.7% Commercial 26.5% Professional 46.5% Multifamily 27.0% % of Total Revenue

  9. Slide 9: Multifamily (Apartments)

    9 Primary Skills Offered Multifamily Revenue Office: (approximately 1/3 of multifamily revenue)  Manager  Assistant Manager  Leasing Agent  Bilingual Leasing Agent Maintenance: (approximately 2/3 of multifamily revenue)  Supervisor  Lead (HVAC)  Assistant  Make Ready (Handyman)  Groundskeep

  10. Slide 10: Multifamily Branch Locations: 43 branches across 23 states

    10 Colorado (1) Kansas (1) New Mexico Arizona (1) California Oklahoma (1) Texas (9) Missouri (1) Louisiana (1) Mississippi Alabama Georgia (2) Florida (4) South Carolina (3) North Carolina (3) Tennessee (2) Kentucky Virginia (2) West Virginia Michigan (1) Ohio (2) Indiana (1) Illinois (2) Iowa Wisco

  11. Slide 11: Professional

    11 Finance & Accounting  Controllers, Accountants & Clerks to Managers Information Technology  SAP ® , Vistex ® , Workday ® , Hyperion ® , PeopleSoft ® , Oracle BI ®  Application Development  Web, Mobile, Client Server, Cloud, Legacy Mainframe  System & Network Services  Project Management, Ne

  12. Slide 12: Professional: 10 branches across 6 states

    12 Colorado Kansas New Mexico Arizona California Oklahoma Texas (2) Missouri Louisiana Mississippi Alabama Georgia Florida South Carolina North Carolina (1) Tennessee (3) Kentucky Virginia West Virginia Michigan Ohio Indiana Illinois (2) Iowa Wisconsin Minnesota Arkansas Nebraska Wyoming South Dakot

  13. Slide 13: Commercial

    13 Primary Skills Offered Commercial Revenue  Logistics/Warehouse  Call Center Operations  Forklift Drivers  Pickers/Packers  Production Workers  Light Assembly  Light Manufacturing  General Labor Commercial Operating Income Commercial ($ in 000’s) 23.7% Increase $17,731 1.0% Decrease

  14. Slide 14: Commercial: 12 branches across 6 states

    14 Colorado Kansas New Mexico ** Arizona California Oklahoma Texas (7) Missouri Louisiana Mississippi (2) Alabama Georgia Florida South Carolina North Carolina Tennessee * Kentucky Virginia West Virginia Michigan Ohio Indiana Illinois (1) Iowa Wisconsin (2) Minnesota Arkansas Nebraska Wyoming South

  15. Slide 15: Build Value / Grow Revenue / Grow Margins

    15 Build Value / Grow Revenue / Grow Margins Continue to diversify revenue and grow higher margin segments  Industry – skill sets offered  Geography Continue to maintain centralized back office  Target G & A costs between 2.0 – 2.5% of revenue Continue to generate profitable revenue growth  Orga

  16. Slide 16: Acquisition Criteria

    16 Selectively pursue U.S. acquisitions accretive to value and to earnings - based on the following:  Gross margins equal to or greater than the mid 20’s  EBITDA in the $5 million range  New skill set offerings  New geographic regions  Cross-selling opportunities  Staff/personnel culture fit A

  17. Slide 17: Dividend History and Adjusted TTM EBITDA Reconciliation

    17 Board of Directors anticipates maintaining its quarterly dividend program (established Q4 ’14) and management is optimistic about the Company’s future growth and increased cash flow Dividend History Q1 ’18 Q4 ’17 Q3 ’17 Q2 ’17 Q1 ’17 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16 Quarterly Dividend $0.25 $0.25 $0.2

  18. Slide 18: Balance Sheet

    18 Source: Quarterly Report on Form 10-Q Balance Sheet April 1, 2018 December 31, 2017 Current assets Cash and cash equivalents -$ -$ Accounts receivable, net 35,018,400 36,707,885 Prepaid expenses 1,803,606 947,968 Income taxes receivable - 190,912 Other current assets 201,862 143,237 Total current

  19. Slide 19: Income Statement

    19 Income Statement (in 000’s, except per share amounts) Source: Quarterly Report on Form 10-Q 2018 2017 Revenues 66,855$ 56,844$ Cost of services 49,546 43,172 Gross profit 17,310 13,671 % of revenue 25.9% 24.1% Selling expenses 10,290 8,099 Contribution to overhead 7,020 5,572 % of revenue 10.5% 9

  20. Slide 20: Staffing Industry Segments

    20 Commercial Professional & Specialty • Light Industrial * • Office/Clerical • Multifamily * • Finance & Accounting * • Information Technology * du  Clinical/Scientific  Education/Library  Engineering/Design  Healthcare  Legal  Marketing/Creative Staffing Industry Segments 1 Source: Staffing

  21. Slide 21: U.S. Staffing Industry Forecast – Market Size

    21 $119.4 $126.1 $134.6 $138.1 $142.8 $148.3 $153.2 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 2013 2014 2015 2016 2017 2018P 2019P U.S. Staffing Industry Forecast – Market Size ($B) Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast April 18, 2018 3% 3% 7% 6% 4

  22. Slide 22: U.S. Staffing Industry Forecast by segment

    22 U. S. Staffing Industry Forecast ($B) Source: Staffing Industry Analysts: Daily News – April 18, 2018 $19.1 $72.6 $51.1 $20.2 $76.1 $52.0 $21.2 $79.1 $52.9 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 Place & Search Professional/Specialty Commercial 2019P 2018P 2017 2018 Growth 2019 Growth 2% 5% 6% 2% 4%

  23. Slide 23: Temp Penetration Rate

    23 Temp Penetration Rate The temporary penetration rate was at 2.04% for March 2018 Source: Staffing Industry Analysts: Daily News – April 6, 2018 1.95% 1.96% 1.97% 1.98% 1.99% 2.00% 2.01% 2.02% 2.03% 2.04% 2.05% Mar 2016 Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Temp P

  24. Slide 24: Unemployment Rate

    24 Unemployment Rate Source: Staffing Industry Analysts: Daily News – April 6, 2018. General Unemployment Rate 4.1% College Unemployment Rate 2.20% 4.00% 4.20% 4.40% 4.60% 4.80% 5.00% 5.20% Mar- 2016 Jun- 2016 Sep- 2016 Dec- 2016 Mar- 2017 Jun- 2017 Sep- 2017 Dec- 2017 Mar- 2018 Unemployment Rate 0.

  25. Slide 25: Investor Relations

    25 Investor Relations Terri MacInnis, VP of IR Bibicoff + MacInnis, Inc. 818-379-8500 terri@bibimac.com

BG Staffing — Taglich Bros. Annual Investment Conference May 2018 on 6ix