Q2 2024 BGSF Inc Earnings Call Transcript
Key Points
- BGSF Inc (BGSF) was recognized as the 49th largest IT staffing firm in the US, improving from 52nd place, and the 97th largest staffing firm, up from 121st place in 2023.
- The company reported a sequential sales lift in the Property Management segment of 4.8% in the second quarter compared to the first quarter.
- New contract wins in the Professional segment outpaced contract ends by approximately 25% through June, indicating positive momentum.
- BGSF Inc (BGSF) successfully reduced funded debt from $63 million at the end of 2023 to $52 million by the end of the second quarter.
- The company won the largest project in its history, a major IT transformation project for a large international client, which will contribute to financials starting in Q3.
- Total revenues for the second quarter were $68.1 million, down from $80.8 million in the prior year quarter.
- Gross profit and margins decreased year-over-year, with gross profit at $23.6 million and margins at 34.7%, compared to $29.6 million and 36.6% in the prior year period.
- The Professional segment experienced a decline in revenues both sequentially and year-over-year due to project ends exceeding project starts.
- Adjusted EBITDA for the second quarter was $2.6 million or 3.8% of revenue, down from $7.5 million or 9.3% of revenue in the second quarter of 2023.
- The company continues to face challenging macroeconomic pressures, including higher interest rates and inflation, impacting the overall industry.
Good morning, everyone. Welcome to the BGSF, Inc., fiscal 2024 second quarter financial results conference call. (Operator Instructions) Please note this event is being recorded.
Now, I would like to turn the call over to Sandy Martin, Three Part Advisors. Please go ahead.
Good morning. Thank you for joining us today for BGSF second quarter 2024 earnings conference call. With me on the call are Beth Garvey, Chair, President and Chief Executive Officer; and John Barnett, Chief Financial Officer. After our prepared remarks, there will be a Q&A session.
As noted, today's call is being webcast live. A replay will be available later today and archived on the company's Investor Relations page at investor.bgsf.com.
Today's discussion will include forward-looking statements, which are based on certain assumptions made by the company under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those
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