BGSF, Inc. (BGSF) Q3 2024 Earnings Call Transcript

Total Revenues $71.2 million, down from $83.5 million year-over-year (down 14.0%), but up 4.5% sequentially. The decline year-over-year was attributed to softness in the Professional segment, particularly in Finance and Accounting.

Property Management Revenues $30 million, reflecting a seasonal increase of 15.9% sequentially from the second quarter of 2024. The increase was due to typical seasonality and strategic initiatives.

Professional Segment Revenues $41 million, down 12.9% year-over-year, remaining soft compared to the second quarter due to declines in the Finance and Accounting division.

Gross Profit $24.3 million, down from $30 million year-over-year. The margin was 34.2%, down from 35.9% in the prior year, primarily due to cost pressures and lower perm placement.

SG&A Expenses $22 million, compared to $22.7 million in the prior year's quarter, showing a slight decrease year-over-year. Included $526,000 in nonrecurring fees related to strategic alternatives.

Adjusted EBITDA $3.2 million (4.5% of revenue), up from $2.6 million (3.8% of revenue) in the second quarter, indicating a sequential improvement.

Adjusted Earnings per Share $0.10 per diluted share, an improvement from $0.07 per share in the second quarter, but down from $0.36 per share in the third quarter of 2023.

Cash from Operating Activities $21.2 million for the first nine months of the fiscal year.

Capital Spend $1.4 million for the first nine months, primarily for IT investments.

Debt-to-EBITDA Leverage Ratio 3.8x, compliant with new credit facility amendment terms.