PLANO, Texas, Oct. 30,
2018 /PRNewswire/ -- BG Staffing, Inc. (NYSE American:
BGSF), a rapidly growing national provider of professional
temporary staffing services, today reported record financial
results for its third quarter and nine months ended
September 30, 2018.
Quarter Three 2018
Results
|
|
|
|
2018
|
|
2017
|
|
Change
|
|
%
Change
|
|
|
(amounts in
thousands, except per-share amounts)
|
Revenues
|
|
$
|
77,062
|
|
|
$
|
71,282
|
|
|
$
|
5,780
|
|
|
8.1
|
%
|
Gross
profit
|
|
$
|
21,373
|
|
|
$
|
18,248
|
|
|
$
|
3,125
|
|
|
17.1
|
%
|
Gross profit
percentage
|
|
27.7
|
%
|
|
25.6
|
%
|
|
2.1
|
%
|
|
8.2
|
%
|
Net income
|
|
$
|
5,061
|
|
|
$
|
3,137
|
|
|
$
|
1,924
|
|
|
61.3
|
%
|
Net income per
diluted share
|
|
$
|
0.49
|
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
40.0
|
%
|
Weighted average
diluted shares
|
|
10,343
|
|
|
9,077
|
|
|
1,266
|
|
|
13.9
|
%
|
Adjusted EBITDA
(1)
|
|
$
|
8,109
|
|
|
$
|
7,165
|
|
|
$
|
944
|
|
|
13.2
|
%
|
Adjusted EBITDA
percentage (2)
|
|
10.5
|
%
|
|
10.1
|
%
|
|
0.4
|
%
|
|
4.0
|
%
|
|
|
Nine-Month
2018 Results
|
|
|
|
2018
|
|
2017
|
|
Change
|
|
%
Change
|
|
|
(amounts in
thousands, except per-share amounts)
|
Revenues
|
|
$
|
214,863
|
|
|
$
|
196,899
|
|
|
$
|
17,964
|
|
|
9.1
|
%
|
Gross
profit
|
|
$
|
57,875
|
|
|
$
|
49,146
|
|
|
$
|
8,729
|
|
|
17.8
|
%
|
Gross profit
percentage
|
|
26.9
|
%
|
|
25.0
|
%
|
|
1.9
|
%
|
|
7.6
|
%
|
Net income
|
|
$
|
12,697
|
|
|
$
|
6,723
|
|
|
$
|
5,974
|
|
|
88.9
|
%
|
Net income per
diluted share
|
|
$
|
1.32
|
|
|
$
|
0.75
|
|
|
$
|
0.57
|
|
|
76.0
|
%
|
Weighted average
diluted shares
|
|
9,639
|
|
|
9,020
|
|
|
619
|
|
|
6.9
|
%
|
Adjusted EBITDA
(1)
|
|
$
|
20,218
|
|
|
$
|
17,942
|
|
|
$
|
2,276
|
|
|
12.7
|
%
|
Adjusted EBITDA
percentage (2)
|
|
9.4
|
%
|
|
9.1
|
%
|
|
0.3
|
%
|
|
3.3
|
%
|
|
|
(1)
|
Non-GAAP financial
measure. See reconciliation at end for details.
|
(2)
|
Adjusted EBITDA as a
percentage of revenue.
|
Beth A. Garvey, President and
CEO, stated, "We are pleased with the Company's performance through
the third quarter of the year as we continue to increase our gross
profit and adjusted EBITDA percentage. Our third quarter growth was
fueled by tremendous quarter-over-quarter increases in the Real
Estate and Light Industrial segment revenues. Favorable economic
trends, a robust job market, and positive business sentiment among
our client base contributed to the strong quarter."
Garvey added, "The demand for our services continues to be
strong and the Company is well positioned to capitalize on these
favorable economic conditions with its menu of services, expanded
geographic footprint and talented full time and contract
employees."
Conference Call
The Participant Dial-In Number for the
conference call is 1-631-891-4304. Participants should dial in to
the call at least five minutes before 1:30pm
PT (4:30pm ET) on
October 30, 2018. The call can also be accessed "live" online
at http://public.viavid.com/index.php?id=131412. A replay of
the recorded call will be available for 90 days on the Company's
website (http://bgstaffing.investorroom.com/). You can also listen
to a replay of the call by dialing 1-844-512-2921 (international
participants dial 1-412-317-6671) starting October 30, 2018,
at 7:30pm ET through November 6,
2018 at 11:59 pm ET. Please use PIN
Number 10005532.
About BG Staffing, Inc.
Headquartered in Plano, Texas, BG Staffing provides staffing
services to a variety of industries through its various divisions.
BG Staffing is primarily a professional temporary staffing platform
that has integrated several regional and national brands achieving
scalable growth. The Company was ranked as the 59th
largest U.S. staffing company and the 45th largest IT
staffing firm in 2018 by Staffing Industry Analysts. The Company's
disciplined acquisition philosophy, which builds value through both
financial growth and the retention of unique and dedicated talent
within BG Staffing's portfolio of companies, has resulted in a
seasoned management team with strong tenure and the ability to
offer exceptional service to candidates and customers while
building value for investors. For more information on the Company
and its services, please visit its website at
www.bgstaffing.com.
Forward-Looking Statements
The forward-looking
statements in this press release are made under the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
The Company's actual results could differ materially from those
indicated by the forward-looking statements because of various
risks and uncertainties including those listed in Item 1A of the
Company's Annual Report on Form 10-K and in the Company's other
filings and reports with the Securities and Exchange Commission.
All of the risks and uncertainties are beyond the ability of the
Company to control, and in many cases, the Company cannot predict
the risks and uncertainties that could cause its actual results to
differ materially from those indicated by the forward-looking
statements. When used in this press release, the words "believes,"
"plans," "expects," "will," "intends," and "anticipates" and
similar expressions as they relate to the Company or its management
are intended to identify forward-looking statements. Except as
required by law, the Company is not obligated to publicly release
any revisions to these forward-looking statements to reflect the
events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events.
CONTACT:
Terri
MacInnis, VP of Investor Relations
Bibicoff + MacInnis, Inc.
818.379.8500 terri@bibimac.com
BG Staffing, Inc.
Non-GAAP Financial Measures
The financial results of BG Staffing, Inc. are prepared in
conformity with accounting principles generally accepted in
the United States of America
("GAAP") and the rules of the U.S. Securities and Exchange
Commission. To help the readers understand the Company's financial
performance, the Company supplements its GAAP financial results
with Adjusted EBITDA.
A non-GAAP financial measure is a numerical measure of a
company's financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in the statement
of income, balance sheet or statement of cash flows of a
company. Adjusted EBITDA is not measurement of financial
performance under GAAP and should not be considered as an
alternative to net income, operating income, or any other
performance measure derived in accordance with GAAP, or as an
alternative to cash flow from operating activities or a measure of
our liquidity. We believe that Adjusted EBITDA is a useful
performance measure and is used by us to facilitate a comparison of
our operating performance on a consistent basis from
period-to-period and to provide for a more complete understanding
of factors and trends affecting our business than measures under
GAAP can provide alone. In addition, the financial covenants in our
credit agreement are based on Adjusted EBITDA as defined in the
credit agreement.
We define "Adjusted EBITDA" as earnings before interest expense,
income taxes, depreciation and amortization expense, non-cash
items, and certain items that management does not consider in
assessing our on-going operating performance.
Reconciliation of
Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
Thirty-nine Weeks
Ended
|
|
|
September 30,
2018
|
|
September 24,
2017
|
|
September 30,
2018
|
|
September 24,
2017
|
|
|
(dollars in thousands)
|
Net income
|
|
$
|
5,061
|
|
|
$
|
3,137
|
|
|
$
|
12,697
|
|
|
$
|
6,723
|
|
Interest expense,
net
|
|
662
|
|
|
884
|
|
|
2,275
|
|
|
2,280
|
|
Income tax
expense
|
|
1,368
|
|
|
1,616
|
|
|
2,732
|
|
|
3,909
|
|
Depreciation and
amortization
|
|
1,248
|
|
|
1,436
|
|
|
3,801
|
|
|
4,673
|
|
Contingent
consideration adjustment
|
|
(988)
|
|
|
—
|
|
|
(2,160)
|
|
|
—
|
|
Share-based
compensation
|
|
758
|
|
|
92
|
|
|
873
|
|
|
357
|
|
Adjusted
EBITDA
|
|
$
|
8,109
|
|
|
$
|
7,165
|
|
|
$
|
20,218
|
|
|
$
|
17,942
|
|
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SOURCE BG Staffing, Inc.