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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


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Edition: August 2020

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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.

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~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 1

3

Skills Shortage & Unemployment

85%

  • f Temporary Workers Have Healthcare Benefits

10.2% in June 1.71%

1 2 * *
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4

1.34%

JUNE 2009

2.03%

APRIL 2000

1.03%

DEC 1990

1.71%

JULY 2020

Source: US Bureau of Labor Statistics
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2007

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

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PEOPLE PLACED TO WORK

>28,000 >6,800

PAYCHECKS A WEEK

89%

CLIENT RETENTION

>9,000

CLIENTS SERVED UNIQUE ASSIGNMENTS

>75,000

6

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7

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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

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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

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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

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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)

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2020

New Locations

  • Cleveland
  • New Jersey
  • Orange County
  • Baltimore

NJ (1) MD (1)

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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 1

12

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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

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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

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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)

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Onsite Locations

“E” COMMERCE INCREASE CLERICAL CHAT CUSTOMER SERVICE AGENTS

ADVANCED MFG. AUTOMATION ROBOTICS

LOGISTICS

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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

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Primary Skills Offered

Logistics/Warehouse Call Center Operations Forklift Drivers Pickers/Packers Light Assembly Production Workers Light Manufacturing General Labor

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JOBS PLACED

20,000

ON-SITE LOCATIONS

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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

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$ 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 filings

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DEBT

$ 40m

1

ENTERPRISE VALUE

$137m

*

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$0.05

TEMPORARILY REDUCED QUARTERLY DIVIDEND

DEBT/ PF TTM EBITDA

1.72x

2.1%

CURRENT DIVIDEND YIELD (ANNUALIZED)

11.3

  • TEMP. DIVIDEND

COVER

2

*

3

Russell 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 filings

20

*

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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)

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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

*

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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

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Six Months Ended June 28, 2020
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$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%

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REVENUE

*

* Pre impairment
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Technology & Innovation Cross Sell Acquisitions Build Value Organic Growth

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ACQUISITION CRITERIA

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Thank you for your continued support and interest in BGSF.

www.bgstaffing.com

Investor Relations ir@bgstaffing.com