BGSF, Inc. Reports Third Quarter 2025 Financial Results and Announced a Stock Buyback Plan
BGSF (NYSE:BGSF) reported Q3 2025 results and announced a stock buyback program of up to $5.0M. Q3 revenues from continuing operations were $26.9M, a 14.4% increase sequentially driven by seasonal billed hours. Gross profit was $9.7M. Net loss narrowed to $3.1M (‑$0.28 per diluted share) versus a $4.9M loss in Q2. Adjusted EBITDA returned to positive $1.0M (3.6% margin). The company completed the sale of its Professional division to INSPYR and paid a $2.00 special dividend on September 30, 2025.
BGSF (NYSE:BGSF) ha riportato i risultati del terzo trimestre 2025 e ha annunciato un programma di riacquisto azioni fino a $5.0M. I ricavi del terzo trimestre dalle operazioni in corso sono stati $26.9M, con un incremento sequenziale del 14,4% trainato dalle ore fatturate stagionali. Il gross profit è stato $9.7M. La perdita netta è diminuita a $3.1M (-$0.28 per azione diluita) rispetto a una perdita di 4,9 M$ nel secondo trimestre. L'EBITDA rettificato è tornato positivo a $1.0M (margine 3,6%). L'azienda ha chiuso la vendita della sua divisione Professionale a INSPYR e ha pagato un dividendo speciale di $2.00 il 30 settembre 2025.
BGSF (NYSE:BGSF) informó resultados del tercer trimestre de 2025 y anunció un programa de recompra de acciones de hasta $5.0M. Los ingresos del tercer trimestre procedentes de operaciones continuas fueron $26.9M, un aumento secuencial del 14,4% impulsado por horas facturadas estacionales. El beneficio bruto fue de $9.7M. La pérdida neta se redujo a $3.1M (-$0.28 por acción diluida) frente a una pérdida de 4.9M en el segundo trimestre. El EBITDA ajustado volvió a ser positivo, $1.0M (margen del 3.6%). La empresa completó la venta de su división Profesional a INSPYR y pagó un dividendo especial de $2.00 el 30 de septiembre de 2025.
BGSF (NYSE:BGSF)가 2025년 3분기 실적을 발표했고 최대 $5.0M 규모의 자사주 매입 프로그램을 발표했습니다. 계속영업에서의 3분기 매출은 $26.9M로, 계절적 청구 시간에 의해 전 분기 대비 14.4% 증가했습니다. 총이익은 $9.7M이었습니다. 순손실은 $3.1M으로 축소되었으며 희석주당 -$0.28입니다(전분기 2분기 손실 4.9M과 비교). 조정된 EBITDA는 다시 양수로 돌아가 $1.0M이며 마진은 3.6%입니다. 회사는 INSPYR에 전문 부문을 매각했고 2025년 9월 30일에 $2.00의 특별 배당을 지급했습니다.
BGSF (NYSE:BGSF) a publié les résultats du T3 2025 et a annoncé un programme de rachat d'actions allant jusqu'à $5.0M. Les revenus du T3 provenant des opérations en cours s'élèvent à $26.9M, soit une hausse séquentielle de 14,4 % tirée par les heures facturées saisonnières. Le bénéfice brut s'est élevé à $9.7M. La perte nette s'est réduite à $3.1M (-$0.28 par action diluée) contre une perte de 4,9 M$ au T2. L'EBITDA ajusté est revenu positif à $1.0M (marge de 3,6 %). L'entreprise a finalisé la vente de sa division Professionnelle à INSPYR et a versé un dividende spécial de $2.00 le 30 septembre 2025.
BGSF (NYSE:BGSF) meldete die Ergebnisse für Q3 2025 und kündigte ein Aktienrückkaufprogramm von bis zu $5.0M an. Der Umsatz im Q3 aus fortgeführten Geschäftsbereichen betrug $26.9M, eine sequentielle Steigerung von 14,4 % getrieben durch saisonale Abrechnungsstunden. Bruttogewinn war $9.7M. Nettoe Verlust verringerte sich auf $3.1M (-$0.28 pro verwässerter Aktie) gegenüber einem Verlust von 4,9M im Q2. EBITDA-adjusted kehrte positiv zurück auf $1.0M (3,6 % Marge). Das Unternehmen schloss den Verkauf seiner Professional Division an INSPYR ab und zahlte am 30. September 2025 eine Sonderdividende von $2.00.
BGSF (NYSE:BGSF) أعلنت عن نتائج الربع الثالث من 2025 وذكرت برنامج إعادة شراء أسهم يصل إلى $5.0M. جاءت إيرادات الربع الثالث من العمليات المستمرة عند $26.9M، بزيادة قدرها 14.4% على أساس فصلي مدفوعة بساعات الفوترة الموسمية. بلغ الربح الإجمالي $9.7M. تقلصت الخسارة الصافية إلى $3.1M (-$0.28 للسهم المخفف) مقابل خسارة قدرها 4.9 مليون دولار في الربع الثاني. عاد EBITDA المعدلة إلى الإيجابية عند $1.0M وهو هامش 3.6%. أكملت الشركة بيع قسمها Professional لـ INSPYR ودفعت توزيعا خاصا قدره $2.00 في 30 سبتمبر 2025.
- Revenue $26.9M in Q3, +14.4% vs Q2
- Adjusted EBITDA $1.0M (3.6% margin) in Q3
- Shareholder return $2.00 special dividend paid Sept 30, 2025
- Buyback program authorized up to $5.0M
- Net loss $3.1M in Q3 (‑$0.28 per diluted share)
- Post‑sale noise transition expected to cause near‑term financial volatility
Insights
BGSF reports sequential revenue and margin improvement, reduced net loss, and a
BGSF delivered higher revenues of
The Board approved a stock repurchase program of up to
Watch the following over the next 1–6 quarters: buyback execution and any purchases disclosed, quarterly Adjusted EBITDA and Adjusted EPS trends, progress and compensation under the TSA through the stated up to six‑month window, and management updates on the AI sales/recruiting deployment timeline. These concrete items will show whether the momentum in margins and non‑GAAP earnings persists.
PLANO, TX / ACCESS Newswire / November 7, 2025 / BGSF, Inc. (NYSE:BGSF), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the third fiscal quarter ended September 28, 2025 and announced a stock buyback plan.
The Board of Directors of BGSF continues to evaluate the best use of excess capital and today the Board approved a stock repurchase program under which BGSF may repurchase up to
Q3 2025 Highlights from Continuing Operations (results include sequential comparisons to Q2 2025):
Revenues were
$26.9 million for Q3, compared to$23.5 million for Q2. The14.4% increase from Q2 is primarily driven by increased billed hours from seasonal demand.Gross profit was
$9.7 million for Q3, up from$8.4 million in Q2, primarily due to higher sales.Net loss was
$3.1 million , or$0.28 per diluted share for Q3, compared to a net loss of$4.9 million in Q2 or$0.44 per diluted share.Adjusted EBITDA 1 income was
$1.0 million (3.6% of revenues) in Q3 compared to$1.1 million loss (4.9% of revenues) in Q2.Adjusted EPS 1 income was
$0.08 for Q3, compared with Adjusted EPS 1 loss of$0.10 for Q2.
SUMMARY OF FINANCIAL RESULTS FROM CONTINUING OPERATIONS
(dollars in thousands, except per share) (unaudited)
For the Thirteen Week Periods Ended | ||||||||||||
September 28, |
| June 29, | ||||||||||
Revenues | $ | 26,895 | $ | 29,824 | $ | 23,506 | ||||||
Gross profit | $ | 9,660 | $ | 10,696 | $ | 8,410 | ||||||
Gross profit percentage | 35.9 | % | 35.9 | % | 35.8 | % | ||||||
Operating loss | $ | (937 | ) | $ | (1,003 | ) | $ | (4,425 | ) | |||
Net loss | $ | (3,078 | ) | $ | (1,812 | ) | $ | (4,862 | ) | |||
Net loss per diluted share | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.44 | ) | |||
Non-GAAP Financial Measures: | ||||||||||||
Adjusted EBITDA 1 | ||||||||||||
Adjusted EBITDA Margin (% of revenue) 1 | 3.6 | % | 0.3 | % | (4.9 | )% | ||||||
Adjusted EPS 1 | $ | 0.08 | $ | 0.01 | $ | (0.10 | ||||||
1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below.
Interim Co-Chief Executive Officer and Chief Financial Officer, Keith Schroeder, said, "The sale of BGSF's Professional division to INSPYR closed as planned following the shareholder vote on September 4th. Following the closing, the Board of Directors determined that a return to capital to the shareholders was appropriate and we announced and delivered a
Interim Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, "The strategic initiatives outlined in the last quarter are continuing as planned. We remain committed to aligning Property Management costs with revenue and are actively investing in tools to enhance performance, which will also provide an opportunity to better align cost with improved financial results. Our AI-powered sales and recruiting technologies are on track to be operational over the next couple of quarters, and we are already seeing early signs of improved efficiency. These efforts, combined with ongoing cost reductions, position us well to drive revenue growth and profitability in the quarters ahead. Following the close of the transaction, we retained an independent consulting firm to complete a thorough assessment of our business and the broader property management workforce solutions market. This external analysis provided valuable insight into market size, competitive positioning, and white space opportunities. As a result, we refined our strategic roadmap and aligned our organization around clear priorities to drive sustainable growth. We anticipate revenue growth in 2026 versus 2025, supported by strong execution of our strategic initiatives."
Conference Call
BGSF will discuss its third quarter 2025 financial results during a conference call and webcast at 9:00 a.m. ET on November 7, 2025. Interested participants may dial 1-888-506-0062 (Toll Free) or 1-973-528-0011 (International) and enter access code 736091. A replay of the call will be available until November 21, 2025. To access the replay, please dial 1-877-481-4010 (Toll Free), or 1-919-882-2331 (International) and enter access code 52955. The live webcast and archived replay are accessible from the investor relations section of the Company's website at https://investor.bgsf.com/events-and-presentations/default.aspx
About BGSF
BGSF provides best-in-class property management resources and solutions to growing apartment and luxury communities, as well as commercial properties, and was awarded Supplier Company of the Year by the National Apartment Association in recent years. Through its exclusive and semi-exclusive agreements with some of the largest property management companies in North America, BGSF offers differentiated advantages to clients, including trained talent and unique technological platforms that seek to maximize efficiencies in the growing residential and commercial leased property industries. For more information on the Company and its services, please visit its website at www.bgsf.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding BGSF's expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding the future revenue and the business plans of BGSF's management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "endeavor," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of BGSF considering their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on BGSF as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting BGSF will be those anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the mix of services or solutions utilized by BGSF's client partners and such client partners' needs for these services or solutions, market acceptance of new offerings of services or solutions, the ability of BGSF to expand what it does for existing client partners as well as to add new client partners, whether BGSF will have sufficient capital to operate as anticipated, the impact of the use of AI-powered sales and recruiting technologies and the timing of their availability, the impact of our strategic initiatives and cost reductions, the demand for BGSF's services and solutions, economic activity in BGSF's industry and in general, and certain risks, uncertainties, and assumptions described in BGSF's most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. BGSF undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws.
CONTACT:
Steven Hooser or Sandy Martin
Three Part Advisors
ir@BGSF.com 214.872.2710 or 214.616.2207
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 28, | December 29, | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 41,170 | $ | 32 | ||
Accounts receivable (net of allowance for credit losses of $ 1,156 and $ 910 , respectively) | 15,126 | 17,148 | ||||
Escrow receivable | 4,950 | - | ||||
Prepaid expenses | 1,121 | 1,600 | ||||
Other current assets | 1,620 | 2,213 | ||||
Current assets of discontinued operations | - | 24,354 | ||||
Total current assets | 63,987 | 45,347 | ||||
Property and equipment, net | 279 | 608 | ||||
Other assets | ||||||
Deposits | 1,938 | 2,003 | ||||
Software as a service, net | 3,143 | 4,068 | ||||
Deferred income taxes, net | 9,299 | 7,849 | ||||
Right-of-use asset - operating leases, net | 738 | 1,083 | ||||
Intangible assets, net | 3,115 | 4,385 | ||||
Goodwill | 1,074 | 1,074 | ||||
Noncurrent assets of discontinued operations | - | 83,694 | ||||
Total other assets | 19,307 | 104,156 | ||||
Total assets | $ | 83,573 | $ | 150,111 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Dividend payable | $ | 22,400 | $ | - | ||
Accounts payable | 1,958 | 80 | ||||
Accrued payroll and expenses | 5,348 | 4,868 | ||||
Transition services payable | 1,474 | - | ||||
Long-term debt, current portion (net of debt issuance costs of $ - and $ 24 , respectively) | - | 3,801 | ||||
Accrued interest | - | 223 | ||||
Income taxes payable | 332 | 212 | ||||
Note payable | 539 | - | ||||
Convertible note | - | 4,368 | ||||
Lease liabilities, current portion | 433 | 544 | ||||
Current liabilities of discontinued operations | - | 11,825 | ||||
Total current liabilities | 32,484 | 25,921 | ||||
Line of credit (net of debt issuance costs of $ - and $ 770 , respectively) | - | 5,625 | ||||
Long-term debt, less current portion (net of debt issuance costs of $ - and $ 198 , respectively) | - | 32,527 | ||||
Lease liabilities, less current portion | 403 | 698 | ||||
Noncurrent liabilities of discontinued operations | - | 3,071 | ||||
Total liabilities | 32,887 | 67,842 | ||||
Commitments and contingencies | ||||||
Preferred stock, | - | - | ||||
Common stock, | 55 | 53 | ||||
Additional paid in capital | 71,345 | 70,260 | ||||
(Accumulated deficit) retained earnings | (20,714 | ) | 11,956 | |||
Total stockholders' equity | 50,686 | 82,269 | ||||
Total liabilities and stockholders' equity | $ | 83,573 | $ | 150,111 | ||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and dividend amounts)
For the Thirteen and Thirty-nine Week Periods Ended September 28, 2025 and September 29, 2024
Thirteen Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||
Revenues | $ | 26,895 | $ | 29,824 | $ | 71,284 | $ | 80,096 | |||||||||
Cost of services | 17,235 | 19,128 | 45,654 | 50,461 | |||||||||||||
Gross profit | 9,660 | 10,696 | 25,630 | 29,635 | |||||||||||||
Selling, general, and administrative expenses | 10,223 | 11,363 | 31,804 | 32,365 | |||||||||||||
Gain on contingent consideration | (450 | ) | - | (450 | ) | - | |||||||||||
Depreciation and amortization | 824 | 336 | 1,411 | 1,007 | |||||||||||||
Operating loss | (937 | ) | (1,003 | ) | (7,135 | ) | (3,737 | ) | |||||||||
Interest expense, net | (1,570 | ) | (1,222 | ) | (4,595 | ) | (3,518 | ) | |||||||||
Loss from continuing operations before income taxes | (2,507 | ) | (2,225 | ) | (11,730 | ) | (7,255 | ) | |||||||||
Income tax (expense) benefit from continuing operations | (571 | ) | 413 | 1,461 | 1,402 | ||||||||||||
Net loss from continuing operations | (3,078 | ) | (1,812 | ) | (10,269 | ) | (5,853 | ) | |||||||||
Loss from discontinued operations: | |||||||||||||||||
Income from discontinued operations | 226 | 1,473 | 3,695 | 4,703 | |||||||||||||
Loss on sale | (2,892 | ) | - | (2,892 | ) | - | |||||||||||
Income tax expense | (68 | ) | (465 | ) | (804 | ) | (1,207 | ) | |||||||||
Net loss | $ | (5,812 | ) | $ | (804 | ) | $ | (10,270 | ) | $ | (2,357 | ) | |||||
Net (loss) income per share - basic: | |||||||||||||||||
Net loss from continuing operations | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.93 | ) | $ | (0.54 | ) | |||||
Net income (loss) from discontinued operations: | |||||||||||||||||
Income | 0.02 | 0.13 | 0.34 | 0.43 | |||||||||||||
Loss on sale | (0.26 | ) | - | (0.26 | ) | - | |||||||||||
Income tax expense | - | (0.03 | ) | (0.08 | ) | (0.11 | ) | ||||||||||
Net loss per share - basic | $ | (0.52 | ) | $ | (0.07 | ) | $ | (0.93 | ) | $ | (0.22 | ) | |||||
Net (loss) income per share-diluted: | |||||||||||||||||
Net loss from continuing operations | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.93 | ) | $ | (0.54 | ) | |||||
Net income (loss) from discontinued operations: | |||||||||||||||||
Income | 0.02 | 0.13 | 0.34 | 0.43 | |||||||||||||
Loss on sale | (0.26 | ) | - | (0.26 | ) | - | |||||||||||
Income tax expense | - | (0.03 | ) | (0.08 | ) | (0.11 | ) | ||||||||||
Net loss per share - diluted | $ | (0.52 | ) | $ | (0.07 | ) | $ | (0.93 | ) | $ | (0.22 | ) | |||||
Weighted-average shares outstanding: | |||||||||||||||||
Basic | 11,079 | 10,919 | 11,018 | 10,882 | |||||||||||||
Diluted | 11,079 | 10,919 | 11,018 | 10,882 | |||||||||||||
Cash dividends declared per common share | $ | 2.00 | $ | - | $ | 2.00 | $ | 0.15 | |||||||||
PROPERTY MANAGEMENT SEGMENT
(dollars in thousands) (unaudited)
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
Contract field talent | $ | 26,341 | $ | 29,380 | $ | 69,619 | $ | 78,711 | ||||||||
Contingent placements | 554 | 444 | 1,665 | 1,385 | ||||||||||||
Revenue | 26,895 | 29,824 | 71,284 | 80,096 | ||||||||||||
Compensation and related | 17,197 | 19,088 | 45,541 | 50,341 | ||||||||||||
Other | 38 | 40 | 113 | 120 | ||||||||||||
Gross profit | 9,660 | 10,696 | 25,630 | 29,635 | ||||||||||||
Selling: | ||||||||||||||||
Compensation | 4,349 | 4,965 | 12,469 | 14,286 | ||||||||||||
Advertising, occupancy, and travel | 472 | 537 | 1,297 | 1,445 | ||||||||||||
Software, insurance, and professional fees | 483 | 316 | 1,152 | 949 | ||||||||||||
Other | 368 | 659 | 2,577 | 2,033 | ||||||||||||
Contributions to overhead | 3,988 | 4,219 | 8,135 | 10,922 | ||||||||||||
General and administrative: | ||||||||||||||||
Compensation | 2,073 | 2,348 | 6,318 | 7,027 | ||||||||||||
Software | 750 | 694 | 2,197 | 1,920 | ||||||||||||
Professional fees | 131 | 437 | 1,334 | 1,369 | ||||||||||||
Strategic alternatives review | 482 | 526 | 2,116 | 874 | ||||||||||||
Other | 1,115 | 881 | 2,345 | 2,462 | ||||||||||||
Gain on contingent consideration | (450 | ) | - | (450 | ) | - | ||||||||||
Depreciation and amortization | 824 | 336 | 1,411 | 1,007 | ||||||||||||
Operating loss | (937 | ) | (1,003 | ) | (7,136 | ) | (3,737 | ) | ||||||||
Interest expense, net | (1,570 | ) | (1,222 | ) | (4,595 | ) | (3,518 | ) | ||||||||
Income tax (expense) benefit from continuing operations | (571 | ) | 413 | 1,461 | 1,402 | |||||||||||
Net loss from continuing operations | $ | (3,078 | ) | $ | (1,812 | ) | $ | (10,270 | ) | $ | (5,853 | ) | ||||
Capital expenditures | $ | 117 | $ | 270 | $ | 123 | $ | 1,132 | ||||||||
Total assets | $ | 41,881 | $ | 50,241 | $ | 41,881 | $ | 50,241 | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Thirty-nine Week Periods Ended September 28, 2025 and September 29, 2024
2025 | 2024 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (10,270 | ) | $ | (2,357 | ) | ||
Net income from discontinued operations | (2,890 | ) | (3,496 | ) | ||||
Adjustments to reconcile net loss to net cash (used in) provided by activities: | ||||||||
Depreciation | 86 | 121 | ||||||
Amortization | 1,325 | 886 | ||||||
Software as a service | 950 | 417 | ||||||
Loss on sale of discontinued operations | 2,892 | - | ||||||
Loss on disposal of property and equipment | 11 | 3 | ||||||
Contingent consideration adjustment | (450 | ) | - | |||||
Amortization of debt issuance costs | 1,022 | 129 | ||||||
Interest expense on note payable | 235 | - | ||||||
Provision for credit losses | 1,822 | 1,493 | ||||||
Share-based compensation | 850 | 725 | ||||||
Deferred income taxes | (1,450 | ) | 1,248 | |||||
Accounts receivable | (2,236 | ) | 5,205 | |||||
Escrow receivable | (4,950 | ) | - | |||||
Prepaid expenses | 302 | 1,272 | ||||||
Other current assets | (516 | ) | 795 | |||||
Deposits | 73 | 593 | ||||||
Accounts payable | 1,877 | 126 | ||||||
Accrued payroll and expenses | 2,642 | (87 | ) | |||||
Accrued interest | (223 | ) | (152 | ) | ||||
Income taxes receivable | 323 | (566 | ) | |||||
Transition services payable | 1,474 | - | ||||||
Other current liabilities | 1,939 | - | ||||||
Operating leases | (15 | ) | (65 | ) | ||||
Other long-term liabilities | 3,406 | 10,137 | ||||||
Net cash (used in) provided by continuing operating activities | (1,771 | ) | 16,427 | |||||
Net cash provided by discontinued operating activities | 227 | 4,751 | ||||||
Net cash (used in) provided by operating activities | (1,544 | ) | 21,178 | |||||
Cash flows from investing activities | ||||||||
Proceeds from business sold | 91,528 | - | ||||||
Capital expenditures | (122 | ) | (1,063 | ) | ||||
Net cash provided by (used in) continuing investing activities | 91,406 | (1,063 | ) | |||||
Net cash used in discontinued investing activities | (193 | ) | (307 | ) | ||||
Net cash provided by (used in) investing activities | 91,213 | (1,370 | ) | |||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(in thousands)
For the Thirty-nine Week Periods Ended September 28, 2025 and September 29, 2024
2025 | 2024 | |||||||
Cash flows from financing activities | ||||||||
Net payments under line of credit | (10,220 | ) | (17,188 | ) | ||||
Proceeds from issuance of long-term debt | - | 4,250 | ||||||
Principal payments on long-term debt | (32,725 | ) | (850 | ) | ||||
Payment of convertible note | (4,368 | ) | - | |||||
Payments of dividends | - | (1,639 | ) | |||||
Issuance of ESPP shares | 134 | 355 | ||||||
Issuance of shares under the 2013 Long-Term Incentive Plan | - | 262 | ||||||
Contingent consideration paid | (1,289 | ) | - | |||||
Payments of debt issuance costs | (29 | ) | (554 | ) | ||||
Net cash used in financing activities | (48,497 | ) | (15,364 | ) | ||||
Net change in cash and cash equivalents of continuing operations | 41,138 | - | ||||||
Cash and cash equivalents, beginning of period | 32 | - | ||||||
Cash and cash equivalents, end of period | $ | 41,170 | $ | - | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest, net | $ | 3,398 | $ | 3,396 | ||||
Cash paid for taxes, net of refunds | $ | 535 | $ | 111 | ||||
Non-cash transaction: Dividends declared | $ | 22,400 | $ | - | ||||
NON-GAAP FINANCIAL MEASURES
The financial results of BGSF, 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 our financial performance, we supplements our GAAP financial results with Adjusted EBITDA and Adjusted EPS.
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 and Adjusted EPS are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, net income per diluted share, operating income, or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities or measures of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS are useful performance measures and are 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.
We define "Adjusted EBITDA" as earnings before interest expense, income taxes, depreciation and amortization expense, costs associated with the evaluation of potential strategic alternatives ("strategic alternatives review"), software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance.
We define "Adjusted EPS" as diluted earnings per share eliminating amortization expense of intangible assets from acquisitions, the strategic alternatives review, software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance, net of the respective income tax effect.
Reconciliation of Net Loss to Adjusted EBITDA
(dollars in thousands)
Thirteen Weeks Ended | Thirty-nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | June 29, | ||||||||||||||||
Net loss from continuing operations | $ | (3,078 | ) | $ | (1,812 | ) | $ | (10,269 | ) | $ | (5,853 | ) | $ | (4,862 | ) | |||||
Income tax benefit | 571 | (413 | ) | (1,461 | ) | (1,402 | ) | (1,392 | ) | |||||||||||
Interest expense, net | 1,570 | 1,222 | 4,595 | 3,518 | 1,829 | |||||||||||||||
Operating loss | (937 | ) | (1,003 | ) | (7,135 | ) | (3,737 | ) | (4,425 | ) | ||||||||||
Depreciation and amortization | 824 | 336 | 1,411 | 1,007 | 259 | |||||||||||||||
Gain on contingent consideration | (450 | ) | - | (450 | ) | - | - | |||||||||||||
Share-based compensation | 545 | 286 | 850 | 725 | 137 | |||||||||||||||
Strategic alternatives review | 482 | 526 | 2,116 | 874 | 1,613 | |||||||||||||||
Software as a service 2 | 516 | 179 | 950 | 417 | 291 | |||||||||||||||
Transaction fees | - | 1 | - | 42 | - | |||||||||||||||
Aged receivable adjustment | - | (250 | ) | 1,070 | 758 | 980 | ||||||||||||||
Adjusted EBITDA from continuing operations | 980 | 75 | (1,188 | ) | 86 | (1,145 | ) | |||||||||||||
Adjusted EBITDA Margin (% of revenue) | 3.6 | % | 0.3 | % | (1.7 | )% | 0.1 | % | (4.9 | )% | ||||||||||
(Loss) income from discontinued operations | (1,929 | ) | 1,008 | (2 | ) | 3,496 | 1,126 | |||||||||||||
Adjustments to discontinued operations | 2,073 | 2,885 | 4,429 | 6,144 | 1,142 | |||||||||||||||
Adjusted EBITDA from discontinued operations | 144 | 3,893 | 4,427 | 9,640 | 2,268 | |||||||||||||||
Adjusted EBITDA, net | $ | 1,124 | $ | 3,968 | $ | 3,239 | $ | 9,726 | $ | 1,123 | ||||||||||
2 We capitalizes direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses.
Reconciliation of Net Loss EPS to Adjusted EPS
Thirteen Weeks Ended | Thirty-nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | June 29, | ||||||||||||||||
Net loss from continuing operations per diluted share | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.93 | ) | $ | (0.54 | ) | $ | (0.44 | ) | |||||
Income tax (benefit) expense | 0.05 | (0.04 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | |||||||||||
Interest expense, net | 0.14 | 0.11 | 0.42 | 0.32 | 0.17 | |||||||||||||||
Operating loss | (0.09 | ) | (0.10 | ) | (0.64 | ) | (0.35 | ) | (0.40 | ) | ||||||||||
Depreciation and amortization | 0.07 | 0.03 | 0.13 | 0.09 | 0.02 | |||||||||||||||
Gain on contingent consideration | (0.04 | ) | - | (0.04 | ) | - | - | |||||||||||||
Share-based compensation | 0.05 | 0.03 | 0.08 | 0.07 | 0.01 | |||||||||||||||
Strategic alternatives review | 0.04 | 0.05 | 0.19 | 0.08 | 0.15 | |||||||||||||||
Software as a service | 0.05 | 0.02 | 0.09 | 0.04 | 0.03 | |||||||||||||||
Aged receivable adjustment | - | (0.02 | ) | 0.10 | 0.07 | 0.09 | ||||||||||||||
Adjusted EPS from continuing operations | 0.08 | 0.01 | (0.09 | ) | - | (0.10 | ) | |||||||||||||
Adjusted EPS from discontinued operations | 0.01 | 0.35 | 0.40 | 0.87 | 0.21 | |||||||||||||||
Adjusted EPS | $ | 0.09 | $ | 0.36 | $ | 0.31 | $ | 0.87 | $ | 0.11 | ||||||||||
2 We capitalizes direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses.
SOURCE: BGSF, INC.
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