Bgsf, Inc. · NYSE:BGSF
Bgsf — Investor Presentation (August 2021)
35 slides from Bgsf's investor presentation, August 2021
Slide 1: Investor Presentation
A Workforce Solutions Provider Investor Presentation August 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 $283M * Revenues Revenue Diversification, Scale & Margin Enhancement Strong family of brands Strategic Geographic Expansion BGSF >3.7% ** Leveraging fragmented workforce en
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 86% > 11,000 > 4,000 Client Retention People Placed to Work Clients Served > 25,000 > 5,700 Unique Assignments Paychecks Per Week 6 MO Fiscal 2021 Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf.com 5
Slide 6: Fragmented Industry Ripe for Consolidation
Fragmented Industry Ripe for Consolidation ~25,000 5.4% 1 2 Staffing Firms Unemployment Rate 175 Firms Over $100M Revenue As of July 2021 TRENDS ~16 million 1.83% 1 2 Remote Work & Technology Temporary & Contract Temp Penetration Rate Increase in Demand Employees Hired Annually As of July 2021 Skill
Slide 7: 70th Largest Workforce Solutions Provider in Highly Fragmented Industry
70th* Largest Workforce Solutions Provider in Highly Fragmented Industry Growing 50th* Largest Entered National IT Solutions Presence Canada Market Firm 41 States & DC 2020 12 on-site locations * Staffing Industry Analyst 2020 Update 2007 2010-2017 2017-2018 2019-2020 2021 Founding of Completed Nine
Slide 8: 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 28.0% 47.4% 24.6% % of GP $'s 36.3% 51.1% 12.6% Gross Margin 37.0% 30.8% 14.7% Fiscal Year-to-date 2021 Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf.
Slide 9: 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 10: 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 | August 2021 Your Future. Our Purpose. | bgsf.com
Slide 11: Real Estate Revenue Mix Driving Niche in Maintenance Solutions
Real Estate Revenue Mix Driving Niche in Maintenance Solutions Percent of Total Revenue 28.0% 2Q 2021 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 E
Slide 12: Real Estate Division – Strategic Geographic Expansion
Real Estate Division – Strategic Geographic Expansion WA 32 MN States & D.C. WI OR MI MA PA IL IN OH NJ NV UT CO ~3,500 * KS MO MD VA Clients CA KY TN NC OK AR AZ SC MS AL GA TX LA 93.8% * Client ~19,000* FL Retention Jobs Placed * 6 MO Fiscal 2021 Investor Presentation | August 2021 Your Future. Ou
Slide 13: Professional
Professional Leading Brand Portfolio with National Practice Implementation Continued 10 Large Consultant of New Technology Education White Papers, BG Brands Pool Across Workday, Salesforce, AI, CPE Events, Multiple Verticals Cyber Security, Webinars Servicing three verticals: OneStream IT CONSULTING
Slide 14: 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 2Q 2021 Professional Search & Information Technology 47.4% Project Support Solutions FINANCE & ADMINISTRATIVE ADVANCED ANALYTICS Real Estate Light Industrial ACCOUNTING MA
Slide 15: Professional Division – Growing National Presence
Professional Division – Growing National Presence 41 States, D.C. & Canada MA RI IL NJ >400* MD Clients TN NC AZ TX 75%* ~1,600* Client Consultant FL Retention Engagements CLIENT STATES * 6 MO Fiscal 2021 LOCATION AND CLIENT STATES Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf
Slide 16: Light Industrial
Light Industrial Delivering High Client Retention 70%+* 97%* Long-term Client relationships Retention Through 12 on-site locations Increased Logistics opportunities Historically Advanced Mfg. through outperforming Automation eCommerce industry Robotics * Fiscal 2020 Investor Presentation | August 20
Slide 17: Light Industrial Division
Light Industrial Division Percent of Total Revenue 24.6% Meeting Rising Demand 2Q 2021 for Logistics & Warehouse LOGISTICS/WAREHOUSE CALL CENTER OPERATIONS FORKLIFT DRIVERS PICKERS/PACKERS LIGHT ASSEMBLY Real Estate Light Industrial PRODUCTION WORKERS LIGHT MANUFACTURING Professional GENERAL LABOR I
Slide 18: Light Industrial Division
Light Industrial Division Long-term relationships through on-site locations 7 ~150* WI 2 On-Sites States Clients IL 1 On-Site 11 90%* Locations Client TN* 1 On-site Retention NM** MS 1 On- TX Site 7 On-Sites 12 >5,000* On-Site Jobs Placed Locations * Managed out of MS offices * 6 MO Fiscal 2021 ** M
Slide 19: Financial Highlights
Financial Highlights 54 6.3% 1 3 29.3% 1 Days Sales Adjusted TTM Gross Profit Outstanding EBITDA 3.7% 4 2.3x 3 3.6x 2 Current Dividend Debt / Adjusted Yield Dividend Cover TTM EBITDA (Annualized) 1 Q2 2021 2 Adjusted TTM EBITDA Q2 2021/Annual Dividend 3 As of June 27, 2021 4 Weighted average closing
Slide 20: Improving Revenue Mix Toward Higher Margin
Improving Revenue Mix Toward Higher Margin Percent of Total Revenue 100% 23% 28% 2007 2016 42% 2021 BGSF 47% Founded 35% 25% Light Industrial Professional Real Estate FY 2007, FY 2016, 6 MO 2021 Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf.com 20
Slide 21: 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 $277.9 $24.7 $272.6 $25 $253.9 $22.6 $250 $20 $18.7 $200 $15 $150 $136.7 $142.1 $10 $8.5 $100 $7.7 $50 $5 23.7% 25.1% 26.7% 27.
Slide 22: 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 284% 61.6% 16.1% 80.1% 1.3% 19.9% in millions in millions $4 $40 $35 $36.6 $36.2 $3
Slide 23: Division Breakdown
Division Breakdown Stabilized sequential results while managing through COVID-19 pandemic (in millions) Revenue $40 Thousands $36.6 $36.2 $30 $34.0 $31.3 $31.1 $20 $21.2 $20.6 $19.2 $17.8 $18.6 $18.3 $18.0 $17.0 $14.2 $10 $11.8 $0 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q20
Slide 24: Margin Enhancement Levers
Margin Enhancement Levers Mix shift Systems and Cross-selling operational improvements Acquisitions Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf.com 24
Slide 25: 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 26: 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 27: 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 28: Thank you.
Thank you. www.bgsf.com For More Information Please contact [email protected].
Slide 29: Appendix
Appendix Investor Presentation | August 2021 Your Future. Our Purpose. | bgsf.com 29
Slide 30: 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 31: 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 32: 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 33: 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 34: Award-Winning National Provider
Award-Winning National Provider 2021 2019 Best Place for Working Parents Dallas Business Journal Ranked #49 Middle Market 50 Dallas Business Journal Ranked Top Staffing Agency Dallas Business Journal Ranked #2 Top Staffing Agency INDIVIDUALS: Dallas Morning News Ranked #104 Top Public Companies in N
Slide 35: Executive Leadership
Executive Leadership Beth Garvey – President and Chief Executive Officer Beth Garvey began serving as President and Chief Executive Officer Kelly Brown – President, Real Estate of the Company in October 2018. Ms. Garvey previously served as After opening the Nashville office as director of sales for