Aug 10, 2023 -- BGSF, Inc. (NYSE: BGSF), a growing provider of consulting, managed services and professional workforce solutions, reported financial results for the second quarter ended July 2, 2023.

Beth A. Garvey, Chair President and CEO, stated, “Second quarter total revenues increased 9.1%, and we were pleased with improvements in gross margins and profitability, as well as stronger cash flow from operations in the first half of 2023. Revenues for the Professional segment included a sales lift from Horn Solutions for the full quarter and Arroyo Consulting for a portion of the quarter. In addition, we experienced strong momentum in managed services that was somewhat pressured by softness on the contract side. Our strategic acquisitions provided greater cross-selling and go-to-market opportunities this quarter, as well as valuable nearshore and offshore IT demand. Revenue for the Real Estate segment continued to grow with new markets and the expansion of existing markets. We are seeing a return to more normal seasonality in Real Estate, and believe that our innovations and technology, as well as our diverse geographic footprint, position us well for changing dynamics in the apartment and multi-family industries.”

Q2 2023 Highlights from Continuing Operations

Revenues were $80.8 million, up 9.1% from 2022.

Gross profit was $29.6 million, up 18.0% from 2022. Gross profit margins increased to 36.6% in 2023, from 33.8% in 2022.

Net income from continuing operations was $2.6 million, or $0.24 per diluted share.

Adjusted EBITDA from continuing operations was $7.5 million (9.3% of revenues), compared to $5.4 million (7.3% of revenues) in 2022.

Adjusted EPS from continuing operations was $0.37 per diluted share compared to $0.34 per diluted share in 2022.

Six Month 2023 Highlights from Continuing Operations

Revenues were $156.1 million, up 9.5% from 2022.

Gross profit was $56.4 million, up 16.2% from 2022. Gross profit margins increased to 36.1% in 2023, from 34.0% in 2022.

Operating income (loss) in 2023 includes a non-cash charge of $22.5 million (using year-to-date tax rate, the impact was $16.9 million after-tax or $1.58 per diluted share) related to the impairment of trade name intangible assets from the rebranding to BGSF for all entities.

Net loss from continuing operations was $(13.9) million, or $(1.29) per diluted share.

Adjusted EBITDA from continuing operations was $11.8 million (7.5% of revenues), compared to $9.3 million (6.5% of revenues) in 2022, an increase of 25.9% year over year.

Adjusted EPS from continuing operations was $0.55 per diluted share in 2023, compared to $0.58 per diluted share in 2022.

About BGSF

BGSF provides consulting, managed services and professional workforce solutions to a variety of industries through its various divisions in IT, Cyber, Finance & Accounting, Managed Services, and Real Estate (apartment communities and commercial buildings). The Company’s disciplined acquisition philosophy, which builds value through both financial growth and the retention of unique and dedicated talent within BGSF’s family of companies, has resulted in a seasoned management team with strong tenure and the ability to offer exceptional service to our field talent and client partners while building value for investors.

SOURCE BGSF