BGSF Inc Reports Second Quarter 2024 Financial Results

Intellectia.AI2024-08-08

Illustration by Intellectia.AI

BGSF, Inc. Reports Second Quarter 2024 Financial Results

BGSF, Inc. (BGSF), a growing provider of consulting, managed services, and professional workforce solutions, today reported its financial results for the second fiscal quarter ended June 30, 2024.

Financial Performance Overview

Metric	Q2 2024	Q1 2024	Consensus Estimates	Interpretation
Total Revenue	$68.1 million	$68.8 million	$74 million	Slight sequential decrease, missing consensus estimates
Gross Profit	$23.6 million	$23.4 million	Not Provided	Small increase due to higher Property Management sales
Net Loss	$0.8 million	$0.8 million	Not Provided	Consistent sequentially
Earnings Per Share (EPS)	$(0.07)	$(0.07)	$0.08	Below expectations
Adjusted EBITDA	$2.6 million	$2.7 million	Not Provided	Small decrease
Adjusted EPS	$0.07	$0.07	Not Provided	Unchanged

Despite a slight decline in total revenue and net loss remaining consistent, the company's gross profit saw a minor increase. The financial performance missed consensus estimates, indicating some challenges in meeting market expectations.

Segment Revenue Breakdown

Segment	Q2 2024 Revenue	Q1 2024 Revenue	Sequential Change	Interpretation
Property Management	Not Specified	Not Specified	+4.8%	Seasonal fluctuations drove growth
Professional Segment	Not Specified	Not Specified	-4.1%	Project completions outpaced new engagements

The Property Management segment experienced healthy growth due to seasonal trends, while the Professional segment saw a decline as project completions outpaced new project starts.

Comments from Company Officers

Beth A. Garvey, Chair, President, and CEO, highlighted the company's recent project wins, which are expected to contribute to revenues in the second half of 2024. She noted significant growth in managed services and consulting engagements in the Professional segment and mentioned a major IT transformation project for an international client which will positively impact future financials.

Share Repurchase Programs & Dividends

No specific announcements regarding dividends or share repurchase programs were provided in the report.

Forward Guidance

The company has provided forward-looking statements expressing optimism about the second half of 2024, anticipating strong revenue growth in the Professional division and an increase in permanent placement activity in finance and accounting services.

Stock Price Movement

Following the earnings release, BGSF's stock saw an increase of approximately 4.02%.

This earnings summary provides a detailed overview of BGSF’s financial performance for the second quarter of 2024, highlighting the strengths and weaknesses in its operations and future outlook.