Bgsf, Inc. · NYSE:BGSF
Bgsf — Investor Presentation (March 2021)
36 slides from Bgsf's investor presentation, March 2021
Slide 1: Investor Presentation
A Workforce Solutions Provider Investor Presentation March 2021 Your Future. Our Purpose.
Slide 2: Forward Looking Statements
Forward Looking Statements 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 pe
Slide 3: Delivering an Attractive Investment Thesis
Delivering an Attractive Investment Thesis Organic and Acquisitive Growth Focusing on high-end, specialized consulting services $277.9M * Revenues Revenue Diversification, Scale & Margin Enhancement Strong family of brands BGSF NYSE Strategic Geographic Expansion 5.8% ** Leveraging fragmented workfo
Slide 4: Leveraging Core Brands to Create Scale and Drive Market Share Gains
Leveraging Core Brands to Create Scale and Drive Market Share Gains Real Estate Light Industrial Front Office and Maintenance Workers for Apartment Communities Workforce and Onsite Management Solutions for Warehousing, Manufacturing, and Call Centers Commercial Real Estate Staffing Professional IT C
Slide 5: Strong Client and Talent Engagement
Strong Client and Talent Engagement 92.1% > 22,000 > 8,100 Client Retention People Placed to Work Clients Served > 45,000 > 5,000 Unique Assignments Paychecks Per Week Fiscal Year 2020 Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 5
Slide 6: Award-Winning National Provider and Strong Brand Equity
Award-Winning National Provider and Strong Brand Equity 2020 2020 STAFFING INDUSTRY 2020 DALLAS BUSINESS ANALYSTS (SIA) EY Entrepreneur JOURNAL STAFFING 100 of the Year TOP STAFFING LIST & GLOBAL Finalist AGENCY POWER 500 Beth Garvey #7 Beth Garvey 2020 2020 STAFFING INDUSTRY STAFFING INDUSTRY ANALY
Slide 7: Fragmented Industry Ripe for Consolidation
Fragmented Industry Ripe for Consolidation ~25,000 2 6.3% Staffing Firms Unemployment Rate 1 175 Firms Over $100M Revenue As of Jan. 2021 ~16 million TRENDS 1.94% 1 2 Temporary & Contract Remote Work & Technology Temp Penetration Rate Employees Hired Annually Skills Shortage & Unemployment As of Feb
Slide 8: 70th Largest Workforce Solutions Provider in Highly Fragmented Industry
70th* Largest Workforce Solutions Provider in Highly Fragmented Industry Growing 50th* Largest Entered National IT Staffing Canada Market Presence Firm 46 States & DC 2020 13 on-site locations * Staffing Industry Analyst 2020 Update 2007 2010-2017 2017-2018 2019-2020 2021 Founding of Completed Nine
Slide 9: Three Strong Platforms Leveraging a Diversified Revenue and Margin Mix
Three Strong Platforms Leveraging a Diversified Revenue and Margin Mix Real Estate Professional Light Industrial % of Revenues 24.7% 49.8% 25.5% % of GP $'s 33.9% 52.7% 13.4% Gross Margin 37.5% 29.1% 14.4% * Fiscal 2020 Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 9
Slide 10: Reshaping Our Organization for Success and Elevated Cross-Selling Opportunities
Reshaping Our Organization for Success and Elevated Cross-Selling Opportunities Real Estate Professional Light Industrial Talent Leadership Strategic Acquisition Team Consolidation Account Teams Keenly focused on Specialized vertical focus Higher mix of onsite candidate sourcing across brands locati
Slide 11: Real Estate
Real Estate Optimizing Margins through Pricing Efficiencies Best-in-class Placement 100% APARTMENT COMMUNITIES Solutions Organic Growth High Industry Only Public COMMERCIAL Engagement Staffing Company REAL ESTATE in Real Estate Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com
Slide 12: Real Estate Revenue Mix Driving Niche in Maintenance Solutions
Real Estate Revenue Mix Driving Niche in Maintenance Solutions Percent of Total Revenue 25% 2020 70% 30% 30% of Revenue of Revenue Maintenance Office SUPERVISOR MANAGER ASSISTANT 70% ASSISTANT MANAGER LEAD (HVAC) LEASING AGENT Real Estate Light Industrial MAKE READY (HANDYMAN) BILINGUAL AGENT ENGINE
Slide 13: Real Estate Division – Strategic Geographic Expansion
Real Estate Division – Strategic Geographic Expansion WA 36 MN States & D.C. WI OR MI MA PA IL IN OH NJ NV UT CO 7,600 * KS MO MD Clients CA VA TN NC OK AZ SC GA TX LA 93.8% Client ~34,500* BG MULTIFAMILY STATES FL Retention Jobs Placed BG TALENT & BG MULTIFAMILY STATES * Fiscal 2020 Investor Presen
Slide 14: Professional
Professional Leading Brand Portfolio with National Practice Implementation Continued 10 Large Consultant of New Technology Education BG Brands Pool Across Workday, Salesforce, AI, White Papers, CPE Events, Multiple Verticals Cyber Security, Webinars Servicing three verticals: OneStream IT CONSULTING
Slide 15: Professional Division – Building Cross-Selling Opportunities as a Single-Source Provider
Professional Division – Building Cross-Selling Opportunities as a Single-Source Provider Percent of Total Revenue Cyber Security 2020 Professional Search & Information Technology 50% Project Support Solutions FINANCE & ADMINISTRATIVE ADVANCED ANALYTICS Real Estate Light Industrial ACCOUNTING MARKETI
Slide 16: Professional Division – Growing National Presence
Professional Division – Growing National Presence 44 States, D.C. & Canada MA RI IL NJ ~375 MD Clients TN NC AZ TX 89% >1,500 Client Consultants FL Retention Placed CLIENT STATES Year-to-date 2020 BRANCHES AND CLIENT STATES Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 16
Slide 17: Light Industrial
Light Industrial Delivering High Client Retention 70%+ 97% Long-term Client relationships Retention Through 13 on-site locations Increased Logistics opportunities Historically Advanced Mfg. through outperforming Automation eCommerce industry Robotics Investor Presentation | March 2021 Your Future. O
Slide 18: Light Industrial Division
Light Industrial Division Percent of Total Revenue 25.5% Meeting Rising Demand for Logistics & Warehouse 2020 LOGISTICS/WAREHOUSE CALL CENTER OPERATIONS FORKLIFT DRIVERS PICKERS/PACKERS LIGHT ASSEMBLY Real Estate Light Industrial PRODUCTION WORKERS LIGHT MANUFACTURING Professional GENERAL LABOR Inve
Slide 19: Light Industrial Division
Light Industrial Division Long-term relationships through on-site locations 7 ~140 WI 2 On-Sites States Clients IL 1 On-Site 11 97% Branches Client TN* 1 On-Site Retention NM** 2 On-Sites MS 1 On- TX Site 6 On-Sites 13 9,200 On-Site Jobs Placed Locations * Managed out of MS offices *Year-to-date 202
Slide 20: Financial Highlights
Financial Highlights 27.4% 4 58 3 6.7% 4 Days Sales Gross Profit Adjusted EBITDA Outstanding 2.7% 1 4.5x 1.85x 2 3 Current Dividend Yield Temp. Dividend Debt / Adjusted Cover TTM EBITDA (Annualized) 1 Weighted average closing price last 10 days as of Mar. 13, 2021 2 Adjusted TTM EBITDA at Dec. 27, 2
Slide 21: Improving Revenue Mix Toward Higher Margin
Improving Revenue Mix Toward Higher Margin Percent of Total Revenue 100% 20% 25% 40% 2007 2015 2020 50% BGSF Founded 25% 40% Light Industrial Professional Real Estate 2007, 2015, 2020 fiscal year Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 21
Slide 22: Strong Historical Growth Profile
Strong Historical Growth Profile Revenue Adjusted EBITDA ($ in millions) – Gross Margin % ($ in millions) – Adjusted EBITDA Margin % $350 $30 $27.1 $26.6 $300 $286.9 $294.3 $24.7 $272.6 $277.9 $25 $253.9 $22.6 $250 $20 $18.7 $200 $15 $150 $10 $100 $50 $5 23.7% 25.1% 26.7% 27.4% 27.4% 8.9% 9.1% 9.4%
Slide 23: Leveraging Diversification
Leveraging Diversification Operating Income* Revenue* Real Estate Professional Light Industrial Real Estate Professional Light Industrial Operating Income Operating Income Operating Income Revenue Revenue Revenue 41.0% 2.4% 0.2% 28.7% 12.2% 5.1% in millions in millions $18 $140 Thousands Thousands $
Slide 24: Division Breakdown
Division Breakdown Stabilized sequential results while managing through COVID-19 pandemic (in millions) Revenue* $50 Thousands $40 $36.3 $36.6 $30 $34.0 $31.3 $20 $20.0 $20.6 $19.2 $17.8 $18.3 $17.7 $14.2 $10 $11.8 $0 1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20 Real Estate Profession
Slide 25: Margin Enhancement Levers
Margin Enhancement Levers Mix shift Systems and Cross-selling operational improvements Acquisitions Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 25
Slide 26: Capital Allocation Strategy Aligned to Strategic Growth
Capital Allocation Strategy Aligned to Strategic Growth Capital Allocation Priorities Drivers Sustainable Dividend • Sales growth through market share expansion Investments to Support • Margin growth via pricing Organic Growth discipline • Operating cost efficiencies Strategic Acquisitions Investor
Slide 27: Empowered, Vibrant and Purpose-Driven Culture
Empowered, Vibrant and Purpose-Driven Culture Fostering Diversity, Equity and Inclusion VIIBE Council – Voices Inspiring Inclusion, Belonging and Equity Pillars of Excellence Focused on diversity education, training and engagement Enhanced Governance & Board Diversity Current 28.5% female representa
Slide 28: Delivering an Attractive Investment Thesis
Delivering an Attractive Investment Thesis Organic and Acquisitive Growth Focusing on high-end, specialized consulting services Revenue Diversification, Scale & Margin Enhancement Strong family of brands Strategic Geographic Expansion Leveraging fragmented workforce environment Operational Efficienc
Slide 29: Thank you.
Thank you. www.bgsf.com For More Information Please contact [email protected].
Slide 30: Appendix
Appendix Investor Presentation | March 2021 Your Future. Our Purpose. | bgsf.com 30
Slide 31: Presentation of Non-GAAP Measures
Presentation of Non-GAAP Measures The financial results of BGSF 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 perfo
Slide 32: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA We define “Adjusted EBITDA” as earnings before interest expense, income taxes, depreciation and amortization expense, transaction fees and other non-capital information technology project expenses (“IT roadmap”) and certain non-cash expenses suc
Slide 33: Reconciliation of Adjusted EPS
Reconciliation of Adjusted EPS We define “Adjusted EPS” as diluted earnings per share eliminating amortization expense of intangible assets from acquisitions, contingent consideration gains or losses, and certain specific events, such as transaction fees and the IT roadmap, and certain non-cash expe
Slide 34: Historical Acquisitions
Historical Acquisitions February 2021 – Momentum Solutionz February 2020 – EdgeRock Technology Holdings December 2019 – L.J. Kushner & Assoc. September 2017 – Smart Resources, Inc., Accountable Search, LC April 2017 – Zycron, inc. October 2015 – Vision Technology Services March 2015 – D&W Talent, LL
Slide 35: Award-Winning National Provider
Award-Winning National Provider 2019 2018 Dallas Business Journal Ranked #49 Middle Market 50 Dallas Business Journal Ranked #31 Middle Market 50 Dallas Business Journal Ranked #2 Top Staffing Agency Dallas Business Journal Ranked #2 Top Staffing Agency Dallas Morning News Ranked #104 Top Public Com
Slide 36: Executive Leadership
Executive Leadership Beth Garvey – President and Chief Executive Officer Charity Ellis – President, Real Estate Beth Garvey began serving as President and Chief Executive Officer of the Charity Ellis joined BG in 2012 as Director of Sales for our Charlotte, Company in October 2018. Ms. Garvey previo