Edition: August 2020
Edition: August 2020 2 FORWARD LOOKING STATEMENT This presentation - - PowerPoint PPT Presentation
Edition: August 2020 2 FORWARD LOOKING STATEMENT This presentation - - PowerPoint PPT Presentation
Edition: August 2020 2 FORWARD LOOKING STATEMENT This presentation contains forward-looking statements regarding the business, operations and prospects of BGSF and industry factors affecting it. Forward- looking statements may include, but are
FORWARD LOOKING STATEMENT
This presentation contains forward-looking statements regarding the business, operations and prospects of BGSF and industry factors affecting it. Forward- looking statements may include, but are not limited to, statements with respect to our future financial or operating performance, future plans and objectives, competitive positioning, requirements for additional capital, government regulation of operations and the timing and possible outcome of litigation and regulatory matters. All statements, other than statements of historical fact, included or incorporated by reference in this presentation, including statements that address activities, events or developments that we, or our subsidiaries, expect or anticipate may occur in the future, are forward-looking statements. Often, but not always, forward-looking statements can be identified by use of forward-looking words such as “aim,” “potential,” “may,” “could,” “can,” “would,” “might,” “likely,” “will,” “expect,” “intend,” “plan,” “budget,” “scheduled,” “estimate,” “anticipate,” “believe,” “forecast,” “committed,” “future” or “continue” or the negative thereof or similar variations. Forward-looking statements are based on certain assumptions and analyses made by us, in light of
- ur experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate
in the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. You are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and known and unknown risks, many of which are outside our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among other things, general business, economic, competitive, political and social uncertainties, the actual results of current operations, industry conditions, intellectual property and other proprietary rights, liabilities inherent in our industry, accidents, labor disputes, delays in obtaining regulatory approvals or financing and general market factors, including interest rates, equity markets, business competition, changes in government regulations. Additional risks and uncertainties include, but are not limited to, those listed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause results to differ from those anticipated. Forward-looking statements contained in this presentation, or made by us, are as of the date of the presentation and we disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events, results or otherwise, except as required by applicable securities laws. This presentation also contains information about BGSF’s Adjusted EBITDA, which is not a measure derived in accordance with GAAP and which excludes components that are important to understanding BGSF’s financial performance. The definition of Adjusted EBITDA is disclosed in BGSF’s Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Investors should recognize that this non-GAAP measure might not be comparable to similarly titled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
2
~25,000 Staffing Firms 16M
Temporary & Contract Employees Hired Annually
~3 million
Temporary & Contract Employees Employed Weekly Unemployment Rate
$126.1B
- EST. Annual Sales for FY 2020
17% Y/Y decrease from est. 2019
TRENDS: Remote Work & Technology
Temp Penetration Rate As of July 2020 154 Firms Over $100M Revenue
INDUSTRY
1 U.S. BUREAU OF LABOR STATISTICS 2 STAFFING INDUSTRY ANALYSTS (SIA) &AMERICAN STAFFING ASSOC. July 2020 2 2 2 2 13
Skills Shortage & Unemployment
85%
- f Temporary Workers Have Healthcare Benefits
10.2% in June 1.71%
1 2 * *4
1.34%
JUNE 2009
2.03%
APRIL 2000
1.03%
DEC 1990
1.71%
JULY 2020
Source: US Bureau of Labor Statistics2007
Founding of BGSF
2010 – 2017
Completed Nine Acquisitions
2017 – 2018
Organically grew TWO NEW BRANDS
2019 – 2020
Completed Two Acquisitions
3 DIVISIONS
Real Estate Professional Light Industrial
89 LOCATIONS
SERVING 44 STATES & DC
And Now In
Canada
5
PEOPLE PLACED TO WORK
>28,000 >6,800
PAYCHECKS A WEEK
89%
CLIENT RETENTION
>9,000
CLIENTS SERVED UNIQUE ASSIGNMENTS
>75,000
6
7
Workforce and Onsite Management Solutions for Warehousing, Manufacturing, and Call Centers Commercial Real Estate Staffing Front Office and Maintenance Workers for Apartment Communities IT Workforce Solutions, BI, Cyber Security Enterprise Performance Management and Full Project Management Creative, Digital and Marketing Talent
LIGHT INDUSTRIAL
8 Accounting/Finance, Legal, HR, and Administrative/Clerical Talent
REAL ESTATE PROFESSIONAL
REAL ESTATE
FRONT OFFICE & MAINTENANCE TEMPORARY WORKERS
APARTMENT COMMUNITIES
COMMERCIAL REAL ESTATE HIGH INDUSTRY INVOLVEMENT
100%
ORGANIC
GROWTH
Only Public Staffing Company in Real Estate
4
NEW LOCATIONS IN 2020
9
MAINTENANCE
70%OF REVENUE
SUPERVISOR ASSISTANT LEAD (HVAC) MAKE READY (HANDYMAN) ENGINEERS GROUNDSKEEPER PORTER
30% OF REVENUE
OFFICE
LEASING AGENT BILINGUAL AGENT MANAGER ASSISTANT MANAGER
10
CO (2) KS (1) AZ (3) OK (2) TX (11) MO (1) LA (1) GA (3) FL (6) SC (3) NC (4) TN (2) VA (2) MI (1) OH (3) IN (1) IL (2) WI (1) MN (1) UT (1) NV (1) WA (1) PA (2) MA (1) BG MULTIFAMILY BRANCHES
53
CLIENTS SERVED
>8,000
BG TALENT BRANCHES
9
JOBS PLACED
>51,000
STATES SERVICING
30
BG MULTIFAMILY STATES BG TALENT & BG MULTIFAMILY STATES CA (2) OR (1) AL (1)
11
2020
New Locations
- Cleveland
- New Jersey
- Orange County
- Baltimore
NJ (1) MD (1)
PROFESSIONAL
INFORMATION TECHNOLOGY, FINANCE & ACCOUNTING AND CREATIVE
9
BG BRANDS
NATIONAL PRACTICE
IT
23%
LARGEST SEGMENT OF PROFESSIONAL RESOURCES
IMPLEMENTATION OF NEW TECHNOLOGY
Workday, Salesforce, AI, Cyber Security, OneStream CONTINUED EDUCATION WHITE PAPERS, CPE EVENTS, WEBINARS LARGE CONSULTANT POOL ACROSS MULTIPLE VERTICALS IN DATABASE
FINANCE & ACCOUNTING
6%
OF STAFFING MARKET
1 S IA, July 2020 1 112
Information Technology Solutions Professional Search & Project Support
Advanced Analytics, EPM/CPM, Oracle ERP and HCM Staffing Solutions, Full Project Teams and Outsourcing; Specializing in SAP and Workday, Cyber Security Accounting & Finance, HR, Engineering, Legal, Administrative, Marketing, Creative and Digital Talent
13
PROFESSIONAL
CROSS SELLING
Continuing development of new systems and technologies for both IT and F&A (Hyperion, Workday, Salesforce) will continue to drive the need for technical and functional resources 14
BRANCHES
15
TX (3)
STATES
10
STATES SERVED
44
CLIENTS IN 2020
320
CLIENT STATES BRANCHES & CLIENT STATES
IL (2) NC (1)
MD (1) RI (1)
CONSULTANTS PLACED
3,800
CLIENT RETENTION
85%
AZ (1) FL (1)
MA (1) NJ (1)
15
Onsite Locations
“E” COMMERCE INCREASE CLERICAL CHAT CUSTOMER SERVICE AGENTS
ADVANCED MFG. AUTOMATION ROBOTICS
LOGISTICS
12
ONSITE LOCATIONS
C O M M E R C I A L S T A F F I N G ~ D I S T R I B U T I O N , L O G I S T I C S , C A L L C E N T E R S
LIGHT INDUSTRIAL
16
Primary Skills Offered
Logistics/Warehouse Call Center Operations Forklift Drivers Pickers/Packers Light Assembly Production Workers Light Manufacturing General Labor
17
JOBS PLACED
20,000
ON-SITE LOCATIONS
12
CLIENT RETENTION
96%
CLIENTS IN 2020
125
STATES SERVICING
6
BRANCHES
12
TX (7) NM** TN* MS (2) IL (1) WI (2)
2 ON-SITES 5 ON-SITES 1 ON-SITES 1 ON-SITE 1 ON-SITE 2 ON-SITES* Managed out of MS offices ** Managed out of El Paso, TX offices
18
$ 97m
$ 5.69 $22.38
MARKET CAP SHARES OUT
10.3m (primary) 10.3m (diluted)
*
1*
1*
52-WEEK RANGE
* As of August 31,2020 1 Treasury stock method – Qtr. Ended June 28, 2020 Source: Public filings19
DEBT
$ 40m
1ENTERPRISE VALUE
$137m
*
$0.05
TEMPORARILY REDUCED QUARTERLY DIVIDEND
DEBT/ PF TTM EBITDA
1.72x
2.1%
CURRENT DIVIDEND YIELD (ANNUALIZED)
11.3
- TEMP. DIVIDEND
COVER
2*
3Russell 2000
BGSF
NSYE Listed
3 * As of August 31,2020 2 Adjusted PF TTM EBITDA for the Qtr. Ended June 28, 2020/Annual Dividend 3 As of and for the TTM Qtr. Ended June 28, 2020 Source: Public filings20
*
ADJUSTED EBITDA
$19.4 $22.6 $24.7 $27.1 $26.6 $12.0 $8.5
8.9% 8.9% 9.1% 9.4% 9.0% 8.2% 6.2%
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2015 2016 2017* 2018 2019 6MO 19 6MO 20
$217.5 $253.9 $272.6 $286.9 $294.3 $142.6 $136.7
22.0% 23.7% 25.1% 26.7% 27.4% 27.6% 27.2%
2015 2016 2017* 2018 2019 6MO 19 6MO 20
ADJUSTED EBITDA MARGIN %
REVENUE
GROSS MARGIN %
21
Source: Public Filings * 2017 was a 53 week fiscal year($ in millions)
Real Estate Professional Light Industrial
23% 54% 23%
2015
*
Real Estate Professional Light Industrial
20% 40% 40%
22
* 2015 fiscal year; 2020 6 Mos.
2020
*
Gross Profit % % of GP $'s % of Revenues
14.4% 12.3% 23.3% 28.1% 55.2% 53.4% 38.0% 32.5% 23.3%
Light Industrial Professional Real Estate
23
Six Months Ended June 28, 2020$37,146 $31,872 $61,915 $72,993 $43,573 $31,808
$2,341 $1,968 $4,046 $3,349 $6,941 $3,813
*
15.9% 45.1% 17.3%
2019 2020 2019 2020 2019 2020
OPERATING INCOME
LIGHT INDUSTRIAL
14.2%
PROFESSIONAL
17.9%
REAL ESTATE
27.0%
24
REVENUE
*
* Pre impairmentTechnology & Innovation Cross Sell Acquisitions Build Value Organic Growth
25
ACQUISITION CRITERIA
Thank you for your continued support and interest in BGSF.
www.bgstaffing.com
Investor Relations ir@bgstaffing.com