Bgsf, Inc. · NYSE:BGSF
Bgsf — BG Staffing — Investor Presentation (May 2015)
31 slides from Bgsf's investor presentation, May 5, 2015
Slide 1: BG Staffing, Inc. Corporate Presentation May 2015
1 BG Staffing, Inc. Corporate Presentation May 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: BG Staffing, Inc. Overview
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Slide 4: BG Staffing, Inc. (NYSE MKT: BGSF)
4 National provider of temporary staffing services. Management has led steady expansion & diversification initiatives. Operates in diversified segments. BG Staffing, Inc. (NYSE: MKT: BGSF)
Slide 5: Recent Events
5 Listed on NYSE MKT in Oct 2014. Closed $9.4M PIPE in Dec 2014. In Jan 2015: Filed $60M S-3 shelf registration statement. Paid $0.15 dividend. Acquired D&W Talent assets in Feb 2015. May 2015 raised dividend to $0.25. Recent Events
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: Organic/Acquisition. Operational Strategy
Slide 7: Management
7 L. ALLEN BAKER, Jr. - President and CEO since 2009. Baker joined the board of directors in 2008 while serving as the Executive Vice President/CFO of a confections manufacturing company. During his tenure at the confections manufacturing company, he led in the acquisition and integration of two oth
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 (Multifamily) • Commercial – Office Clerical – Industrial U.S. Temporary Staffing Segment Categories Source: Staffing Industry Analyst
Slide 9: Multifamily Primary Skills Offered
9 Manager Assistant Manager Leasing Agent Bilingual Leasing Agent Maintenance Supervisor Lead (HVAC) Assistant Maker Ready Grounds Keeper Porter Office Multifamily Primary Skills Offered
Slide 10: Multifamily Geography
10 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 11: IT Staffing Primary Skills Offered
11 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 12: IT Staffing Geography
12 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 13: Finance & Accounting Primary Skills Offered
13 Finance & Accounting Primary Skills Offered • Purchasing Positions • Treasury Positions • HR Positions • Admin Positions • Controllers • Accountants – Tax, SEC, Analysts – Oil & Gas • Clerks to Managers – AP, AR, GL – Payroll, Inventory • Facilities Positions
Slide 14: Finance & Accounting Geography
14 Finance & Accounting 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 Wyom
Slide 15: Commercial Primary Skills Offered
15 Forklift Drivers Pickers/Packers Production workers Light Assembly Light Manufacturing General Labor Commercial Primary Skills Offered
Slide 16: Commercial Geography
16 Commercial 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 17: Accretive Acquisitions
17 2010-BG Staffing (Price $3M; LTM COH $4.56M). Multifamily Staffing 2011-Extrinsic (Price $9.9M; LTM COH $1.52M). IT Staffing (Primarily SAP) 2012–American Partners(Price $13.23M; LTM COH $3.58M). IT Staffing (Primarily Oracle and Hyperion BI) 2013–InStaff (Price ($10.00M; LTM COH $3
Slide 18: Consolidated Revenue
18 $39,778 $50,120 $76,759 $151,678 $172,811 $174,658 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 2010 2011 2012 2013 2014 LTM Consolidated Revenue 13.5% 26.0% 53.2% 97.6% (000)’s 13.9% 2010 - 2014 CAGR 44.4% 1.1%
Slide 19: Consolidated Adjusted EBITDA
19 $1,838 $3,014 $5,314 $10,653 $11,636 $11,841 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2010 2011 2012 2013 2014 LTM Consolidated Adjusted EBITDA 37.9% 64.0% 76.3% 100.5% 9.2% (000)’s 2010 - 2014 CAGR 58.6% 1.8%
Slide 20: Q1 Consolidated Revenue Mix
20 46% 30% 19% 5% 2015 YTD LI IT Multifamily F&A 48% 36% 16% 0% 2014 YTD LI IT Multifamily F&A Q1 Consolidated Revenue Mix
Slide 21: Q1 Consolidated COH Mix
21 33% 29% 28% 10% 2015 YTD LI IT Multifamily F&A 38% 43% 19% 0% 2014 YTD LI IT Multifamily F&A Q1 Consolidated COH Mix
Slide 22: Consolidated Revenue Mix
22 47% 33% 20% 2014 YTD Industrial IT Multifamily 47% 37% 16% 2013 YTD Industrial IT Multifamily Consolidated Revenue Mix
Slide 23: Consolidated COH Mix
23 35% 37% 28% 2014 YTD Industrial IT Multifamily 34% 43% 23% 2013 YTD Industrial IT Multifamily Consolidated COH Mix
Slide 24: Staffing Industry Update
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Slide 25: U.S. Staffing Industry Forecast – Market Size
25 $112.6 $117.9 $124.1 $131.9 $139.1 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2012 2013 2014 2015P 2016P U.S. Staffing Industry Forecast – Market Size ($B) Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast Update April 7, 2015 5% 6% 5% 5% 7%
Slide 26: U.S. Staffing Industry Forecast
26 $16.9 $62.5 $52.4 $18.1 $66.2 $54.8 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 Place & Search Professional/Specialty Commercial 2016P 2015P 2014 U. S. Staffing Industry Forecast ($B) 5% 2015 Growth 2016 Growth 5% 6% 7% 6% 9% Source: Staffing Industry Analysts: U.S. Staffing Industry Forecast
Slide 27: Correlation of Economy and Staffing
27 “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 28: 2015 Q1 Consolidated Operations
28 Revenue up 4.9%. $40,884 $39,038 $38,000 $38,500 $39,000 $39,500 $40,000 $40,500 $41,000 $41,500 Revenue Current Last Adjusted EBITDA is up 9.7%. $2,324 $2,118 $2,000 $2,050 $2,100 $2,150 $2,200 $2,250 $2,300 $2,350 Adjusted EBITDA Current Last 2015 Q1 Consolidated Operations (000)’s
Slide 29: 2014 Consolidated Operations
29 Revenue up 13.9%. $172,811 $151,678 $140,000 $150,000 $160,000 $170,000 $180,000 Revenue Current Last Adjusted EBITDA is up 9.2%. $11,636 $10,653 $10,000 $10,400 $10,800 $11,200 $11,600 $12,000 Adjusted EBITDA Current Last 2014 Consolidated Operations (000)’s
Slide 30: 2015 Q1 Capitalization
30 (000’s) Fiscal Year End December Revolver $13,300 Term Loan A $8,625 Term Loan B $8,000 Total Debt $29,925 Common Stock 6,598,145 Issued & Outstanding $66 Additional Paid in Capital $10,789 Retained Earnings $5,727 Stockholder’s Equity $16,582 Total Capitalization $46,507 Net Working Capital $10,
Slide 31: Contacts
31 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