BGSF - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone. Welcome to the BGSF Inc. Fourth Quarter and Year-End 2020 Financial Results Conference Call.

As a reminder, this conference call is being recorded.

Now I will turn the call over to Hala Elsherbini, Investor Relations, to provide instructions and read the safe harbor statement. ahead. go Please

Hala Elsherbini

Financial welcome XXXX and are BGSF quarter a Hollenbach, fourth Garvey, remarks, speakers' Thank will there results to conference year-end be Chief Dan and earnings and session. today After call. and the President opening you, Q&A CEO; the Officer. With Beth me

later being company's for archived XX on the call As webcast A and noted, is today's replay today live. Relations page. Investor and recorded will be available days

risks and forward-looking XX-Q statements. harbor and on Reform Now uncertainties, company's in Item of are Discussions indicated under uncertainties report statement. statements, Because for with actual of may listed in this any include covered by made company's based which expressed call various risks made cannot All Securities Act Form on will BGSF in of risks only XX-K of publicly, the forward-looking any statements. and Those control, many other safe company's no those permission. of company are of The on those the laws and and Form BGSF obligation and is with by forward-looking results by and from results company's beyond on future. assumptions certain new date as the the those conference are and of be Litigation XA the the XXXX. the reports the including update assumes the Private Securities annual provisions indicated This even reports Exchange the the call, based differ today could Commission. from information its made of filings safe if quarterly copyright by ability harbor rebroadcast and the and are portion materially the to to broadcast done - and could written actual forward-looking all or cases, predict the cause in of that use company the available uncertainties the differ statements statements these or this materially to U.S. these becomes

financial management measures not the to Board related to are business business be a of our the non-GAAP results will which and Directors or measures, information management, activities our operations. the condition results information for and for calculated of call, evaluation non-GAAP and isolation to operating During investors trends internal with discuss accordance should report in of are GAAP in to GAAP. These to considered substitute financial the of as measures superior financial and some supplement useful intended as used and

of the please these to Beth most website. For a comparable release measures, directly Garvey. reconciliation non-GAAP company's posted news today's on the turn call the now measures I'll to over Beth? see GAAP

Beth Garvey

fourth to our Thank quarter and today's everyone and to XXXX. thank very you, Hala, call for discuss eventful joining results a you

like I'd continued First, everyone call and performance. our remained such to of review and our by I'll the dedication, I and work members to discuss operational to segment of turn end hard all has business call team with return acknowledge start during our BGSF on safe. tough outlook. their a each financial and the for will remarks a hope then healthy I to at with closing our general a units especially taking year. results some our begin Dan moment highlights at over today's

class and been to our field continued the and bedrock our executed Our members resiliency our and fortified support partners. of servicing talent business mid-March continuity has plan our ability team

as position company fortunate a today purpose. more and in a are stronger with We

members Before acquisition our from our of I like review welcome XXXX Solutionz. announced our Momentum performance, would to also team I recently new

to and drive reach broadly our IT client this years, the our opportunities greatly capabilities into we and markets solutions revenues. Technology, more recruiting segment expertise excited are solutions with partnered selling to across higher for and many and Their current EdgeRock professional expand have base. We into about partner team higher fits through our end

and further. In a also the pandemic prior story our cultural were to position addition, beyond. targeted had our their We confident some strength, in just great XXXX they and the fit, begun. in tools are I'm A add a that investments easy even ago, cross-selling and year will onset. in will of to the It's completed having our business COVID-XX of integrate elevate growth to strategies

what through the downside performance and professionally. while coronavirus strategies the knew be However, has sales measures our of no collaborative of delivered our impact the to team would And personally the XXXX quick impacted results, duration response or the and one pandemic resilient or our mitigate profitability.

intentional the business. we services, a future growth. new and to XXXX, bringing for during client year, emerge ERP In stronger the it as our we highlight and our more We workforce support the platform I'd and initiatives IT made great We focus go digital us. supporting completed high opportunity strategically on completed made leader of each we Technology, the projects could to on a the DXXX offense. of level February priority system. every the of critical base. took pandemic continues priority our implementation strengthen acquired several year, EdgeRock be we these. progress diversified managed a to a in how We transformation, EdgeRock for to Most including like day technology business consulting notably, several to several to our to subside. on During the perform

the seeing for cloud-based BI also of platform Power data the are We insights. benefits

higher functionality, currently at XX technology system with scale real Our weekly And applicant speed. estate website in completed is of partner is identified in out original XXXX. and automated adoption our Overall, XX%. the our much card digital gaining levels time enhanced we've upgrades have early projects XX and experience and improved client

cybersecurity continually to and HR our Long significant We our Enhance enhancements cloud on our efforts. applicant technology and making we the system, our payroll position. boost to projects will additional transition improve center are optimize fully progress data tracking term, X systems. migration integrate

structure We client increase division new are new a which system, which new entered geography will in strategically of year, we group, our in launched the integrated to which professional Inc. operational our We with offering to contracts realignment acquisitions. also speed this and a Canadian management contract and renamed our recent workforce compliance broader provider. the improved solidify BGSF and for market company at to the of is the January our We further executed. QX, leadership, business further our solutions

into mitigate the and our pressure highlights, streams. both earnings to durability changing revenue our go to our like help on during these model in diversity reiterate the I'd I continues Before our creating results, diversification times, that rapidly segment of while

but pent-up by for pandemic The believe made extended I'm the what have review on respond Despite owners to Estate moratorium pandemic. of Let's a the a experience in Real March moratorium Headwinds, been which to for the of also demand. nonemergency pressure great the XX, virtual this segment, growth companies overnight largest been begin to continues to tightening we move the leasing maintenance period, the has role has with our owners played recently prepare in under progress extremely to early and segment is from all a management behind including expenses deal and impact. position headwinds, during eviction management high-volume the through and pleased sustained we for COVID-XX strategically any - season stock all courts. these

process for multifamily BG As previously mentioned, both evolving our and sales talent. is

selling are in-person new addressing in ways, We and and approaches. virtual unique

center Our relations. customer we talent a sales our our acquisition and launched markets and execution streamline recruiting is stronger, talent to across optimize and

down have a talent the salesperson acquisition recruiter accelerate our We breaking where the aggressive now market the and have market and the in past. being - year hubs local down the throughout pool individuals in they're to breaking plan and pleased, our will in an was our as multiple are in it markets hub a versus recruiter we in to are

approaches differentiated As pipeline fill mentioned, we as client progress we solid with the are and seeing working opportunities. on

are better for a second of We this this with planned the year. of half recovery stronger expectations segment of positioned

prioritized. the order segment Professional large Sequentially, to cloud quarter to continues higher tapered and customers as strong with is - of stronger move This the to flow fourth in completion some benefit segment. as the the from off Turning cybersecurity projects. demand

pandemic holidays were into the off pushed QX. the saw some extended to also time engagements We during due and

seeing of budget expansion are reset with of the January our activity solid we and XXXX the proposal teams. However, a account pipeline of strategic

team opportunity our Additionally, greater build as for engagements. Solutionz Momentum multiyear brings services offerings and the our mentioned, I managed base of

is in Extrinsic Our into unit. division QX IT Partners, Solutionz American Momentum our now aligned business consulting restructuring with EdgeRock, and

units. our infrastructure up make development business now and Technology Vision and Zycron While

We expect levels. pre-pandemic resurgence the realignment this team in a revenue for to will position

we leadership client drive integrated would and we going cost Additionally, finance which relationships unit, growth forward. our and solutions and offering, professional expect strong into sales and efforts it across brands efficiencies. X better our business accounting also Overall, will support resources the restructuring our partner align

the Lastly, Light finish tremendous has year. Industrial to

as current given tailwind During the engagements. shortages. to better-than-expected performance quarter, clients driving in This segment results well overall lift with provided shopping a we online our nice warehouse the labor as saw significant and growth new

well is retention we reminder, rate. a a of positioned vertical this on-site are with in As XX% business as our high

see to pleased builds team their pipeline. are We continuing momentum as this

execute our in our proved efforts, in adversity We marketing, strengthening XXXX, heavy overcome technology During in different of accomplished challenges, and leadership and a making lot tremendous sales year of a to strategic ability very our changes the our we've lifting our structure. environment.

collective and inclusion. improvement. and also by perspective built and driven equity on is our individual is harnesses One Our culture diversity, continuous that

As more broad we our people DE&I last discussed now which organization. and comprised is quarter, than of perspectives across the XX formed council, represents we

to work discuss engagements. Dan turn diversity, our We enhance experiences said, and out now will support our the of to to I'll continue deepen pillars that our to build foster over With financials. KPIs our call to the excellence inclusive DE&I community and

Dan Hollenbach

so and the remarks everyone. business filed our today. highlights solid fiscal ended by and year us We year Beth, XX-K financial our you, December for period. the fiscal you the XX, Thank XXXX, focus Thank earlier Form footing, the diversified model. I'll year on We for today, key quarter afternoon, supported for on the good ended joining

the position this leveraged put pandemic, to IT that road much projects Beth navigate the year. well at us map several mentioned, onset were of better As a in we underway and

maintaining remaining projects. we we to management, are While the approach expense our conservative road IT are reserving map

$XX plan projects. X-year reminder, XXXX support the early a for in a approved million to Board As these

goal of to our efficiencies. XX% which are underway digital achieving operating allow maximizing We well us to transformation, our benchmark should

filling year. open Additionally, are last roles were on that we hold

acquisition early review in the mentioned, like to also numbers, we Solutionz Before I BGSF entire team the welcome Momentum would as to I announced Beth the the February. of family.

were excited real Industrial division, a expand in million of quarter fourth consolidated in about moving and by largely $X.X fees X.X% revenues acquisitions showed in million opportunities a Professional Placement our improvement, higher market our to quarter year the contribution footprint on to $XX.X partnership And the Light this increase potential. by Revenues numbers. XX% with by XX.X% by increased declined X impacted brings decline the into search an Overall, estate, to end up now solid compared same are margin addition QX division. to a the professional across We the to retained XXXX. compared group. our offset our last driven from X.X%

versus As we real versus in Beth revenues year. in revenues and increase Industrial in XXXX. saw moratorium of post the evictions may stabilization exceeding backlog pressure this declined headwinds versus with last extension on the XX.X% X.X% revenue creating an decline moratorium. a the other we sequential This a down decline delayed and estate delivering a X.X% Sequentially, XX.X% believe mind, by estate. spending was mentioned, is Light Real which year. Keep increase X.X% continued X.X% expectations be continue supported to sequential sequential last QX

year. versus revenues. the last decline efforts of in remain a Cross-selling continue some the quarter for Professional which norms. the This fourth an our more a early slowdown holiday are completions becoming group due we extended professional year-end break, X% in Our robust sequential overall budgeting compared these a project with to by resulted X% solid and as division efforts, to shifts followed accelerate part an decline showed progress historical large meaningful

X.X% and respectively. XXXX, in by of up and For profits X.X% this were XXXX, generated from X.X% X.X% gross revenues Professional of program,

Our yielding X% of XX% gross current generate goal cross is of revenues profit. to from selling,

million For the compared profit $XX.X quarter, consolidated X.X% XXXX. to gross improved QX to by

same and from As mitigating of EdgeRock in the expenses expenses million points to primarily real compared increased X year, from $X.X by or gross offset due our acquisition, SG&A decline to legacy as margin X.X% benefiting acquisitions, actions by by reduced operations basis by the offset quarter our last and costs. selling additional cost professional higher increased XX.X%, revenue, result a a revenues XXX estate. of to the percent

quarter of diluted and our from $XX.X the year net the a across or segment. declines was As diluted impairment division. share million income net or impact revenue, million of income XX.X% per $X.XX diluted fourth to quarter reflecting $X.X Gross contribution greatly discussed earlier. in with were diluted a $X.X drove impacted assets Current compared year $X.X was gross benefited held or net percent an intangible million of finance effects versus at of $X.XX SG&A was share pandemic last the The XXXX million in real $XXX.X QX quarter deleveraging per million, professional Fiscal and periods X.X% of share income the gross certain our accounting a quarter consolidated Fourth offset and for COVID-XX a revenue income or year-over-year, EBITDA million per acquisitions. profit million XX.X% by was XX.X% net for in XXXX. revenues to X income was per diluted $X.X $XX.X ago. expenses of of net $XX.X and included $X.XX compared Net profit of estate, while diluted goodwill in $X.XX share down $X.XX share our $X.X higher X.X%. $X.XX year XXXX million same tax. in year, revenues down recognized steady This same both per profit ago. $X.X in million, Adjusted or for million the was share decline compared XX.X% per or revenue from

year XX.X% in $XX.X EBITDA in was million XXXX, to versus was and XXXX. rate share versus XX.X% per $X.XX. adjusted this compared $XX.X tax earnings adjusted $X.XX effective And Our to million decreased

million to primarily from cost recent expenses our Our costs our SG&A and mitigation $X.X fees, additional IT selling transaction road million, due $X.X a operations, legacy costs X increased for in the by offset and year by map actions. additional decrease costs acquisitions,

to to full flow While maintained of impact million, we and steady reflect at million results $X.X cash continued primarily $X.X by year DSOs the position. to pandemic, challenges FICO liquidity end XX operations from increased our ratio quarter, of XX $X.X trailing deferral. adjusted margins, preserve the collection of receivables, Leverage X.XX generated a and end XX-month outstanding days end days under million. to XX. debt And the reduced XX QX and the due quarter as of XXXX presented Cash days by versus EBITDA at of was the the by XXXX. we solid the at the generate increased remains the at debt Xx December during

see payment to our share. We pleased are consecutive dividend of Board Directors quarterly XXth per $X.XX approved the of

Board of precautionary the QX initial peak after quarter. before double the liquidity to $X.XX the as in third rate quarterly reduced pandemic measure rate the the during the preserve a While cents of

for general of back XXXX. potential. And our further closing sheet So call strength the cash of business, generation the evidence our outlook remarks. Beth turn a balance her for will over our and now to I

Beth Garvey

and Industry Staffing strategic agency accolades U.S. agency agency drive of have Search outlook Journal, teams staffing by satisfaction. extremely Accountable company plans and an for top strong perspective, staffing resilience, Smart our executing. client XXth and well XXth talent We for largest #X entire was restructuring optimize from with I'm and XXXX several awards of pleased a We off to largest best year. Analysts. improvement honored by the structure, IT preparation, were Dan. Dallas Thanks, already in received to we staffing are our automation including industry also From in to to the XXXX. XXXX, is Business start executed in with a staffing aligned and year the BGSF. we our the for operational results And Resources how

the relaunch Estate created pandemic is working a pause. after Real segment Our to markets XXXX

a the there as of With should back for moratorium come uncertainty second in projects some another place, is online. anticipate extension, level still we delayed half but capital better

activity. addition to follow-on For our synergies strong acquisition in professional group, we the Solutionz project Momentum anticipate from

also drives a existing of with differentiated robust engagements. client building demand Lot continues industrial to execute remains flow offerings. We well, fairly for steady cross-selling higher see pipeline opportunities. our M&A our acquisition The strengthening relationships and solutions focus new

We complementary seek companies in have new synergistic focused enhancement, to offer to strong our sector IT and quality that will geographic diversification brand expertise high-growth are our metrics solutions our and or segment. on approach We fit. a scale Professional a areas accretive quickly offerings and cultural margin that within to and disciplined those specialties. We continuing believe EBITDA build our further

Staffing to for great encouraged an From XX% of we a Solutionz our of strategy forecast for offerings of expand M&A capabilities. XXXX. perspective, and acquisition to industry Momentum portfolio that see are is industry Our Industry growth enhance demonstration service and overall our Analysts

market improving April U.S. employment Bureau at trends temporary of of temporary trough staffing reports the Within the Statistics the showed of above February from with trough the labor volumes X.XX%. Labor solid XXXX XXXX XXXX level and which Additionally, pandemic. X.XX%, solutions, workforce improvement is rate the to X.XX%. Compared point pre-pandemic of to February penetration

about a turn, very are In offerings. It stakeholders. to the the hallmark We excited We that we our market value and we deliver to also I'm reset stronger opportunities for and next conviction force turned faced supportive as in to teams believes phase our And our the In share innovation, manage for success our crisis. holding team growth. of philosophy will of true long-term as with overall to has many ways higher our said, creation well drives long-term we ahead With that that positioned ability open I the empower to of the truly take call up our we and shareholder seek build strong enter our XXXX into results improve in our of for questions. leverage our invigorated to corporate engaged, opportunities a to diversified summary, front improved disruptions this and kept confident us advantage relies members. on growth culture. through emerged promotes year in positive and the to value. highly ideas remain

Operator

Instructions]. [Operator

Kinstlinger Global Our with Partners. Alliance first question from comes Brian

Unidentified Analyst

And to This - the and relief. will is Jacob when declared and lifted? the quantify take or week end? in moratorium revenue a there the a you on does, is the that when unconstitutional, for in on business? might after What's it Earlier be your now long comply step-up judge view moratorium Staffing's moratorium junctive it Texas need And CDC's CDC eviction DV Brian. can injunctive this could might how federal either

Beth Garvey

Well, I to think that the at end that week. I better answer able would be of question this

National their lobbying So now. right has happening Apartment actually It's week. Association actually

are a that the front lobbying a a they front of front lot of making in are government So people. in lot They're of of lot moratorium. these on the the in people. of decisions of people They're

So everywhere. there's around around speculation flying articles everywhere. flying There's

a sure to position because a management is today, getting say. heel, us, spin - of really something movement NAA better And when answer are be week to that on that I there with they, the those before I what give a lot the positive we And not the they they're So on feel lot weren't the the getting - a companies would anything. I'm in means relief. now should that there right how rent do things now to after but week like NAA

feel company. there'll the to, relief depends like they if relief opportunities how sort that It do - quickly we of hit be to just do there's us we can on in rent management for the rent starts now that see that So manage the future. some

Unidentified Analyst

payment real know about around M&A thought on has adding Okay. of side geographies the logos. is and business? more any tuck-in But estate company of I acquisitions the the most the

Beth Garvey

of what real on side sorry, business? I'm estate And the

Unidentified Analyst

Payments.

Beth Garvey

have We not.

Unidentified Analyst

acquisitions in Any general? tuck-in

Beth Garvey

largest. had They we Well, the in, estate. in been are several already same But bulk have brought are did that the there sector, the markets of already end us we and thing. we that business. have the that - to We've always we're real for if

of an to acquisition So already we're place there's no reason really buy for in. us some that

largest, We are we estate the in supplier. know, as real as far

for that us. think is don't in acquisition in just an that area I the So works

doesn't that a business. that supplier we opportunities mean other look help wouldn't at estate that Now now. the real we have launched And project support right

for help looked areas. far that have who people suppliers we multifamily, And of have us be we But no, are those as side to it, as that. to I could expansion an started not in think as doing at that, So well. payments

Unidentified Analyst

X just And more for Okay. me.

delivery? a up, talk be basis? As there in can you open model Do on such be remote delivery, staffing more going about on expect businesses challenges a forward? determined as any that person customer-by-customer will Or hybrid you versus will

Beth Garvey

hybrid model out a is there, on is already and customer-by-customer There a it basis.

do model. work there's new people they they starting And of their So a lot from may wherever think there's hires. that some about then are are want adopting, forever that to how to

they're So you're of if some There's a someone you of then kind then in home. for you not work opportunity bringing additional be new to able for while them are and would coaching. if in and from are whether have from a or work a perspective being home, out. it come not to hire, able people able being is successful and who at onboarded And to looking successful from to being go

that's And prevalent everybody there's I going be believe shots models start So the most for really out. part, to how think that to more But U.S. don't in decided more as and shake regard. the is around I different that the

fact, think are people at on businesses week what are of ready regards still the Dallas point right the A people Chamber opened and able [indiscernible], Dallas to shot. be Regional Texas up getting to doing the has next to a where now get that now call around at starting I'm in some I of it. that looking matter really we're this are start for to

the do it'll model. companies it think that of have think think think I in But do know back who be don't a to ever that to yet, be don't has I that. that we're to very I evolving. few hybrid will but are I there I still everybody decided go So that And more office. - there

Operator

from with comes ROTH next Jeff question Capital. Our Martin

Jeffrey Martin

larger own I estate it you from you're bit geographies speak the Beth, if your given business each curious in, of other on timing and which of to could curious little but restrictions. kind you to some you're California, major dynamics with But its geographies in, different within the hoping seeing sets loosening much about I are different state touched that different guidelines trends side. a was what of seeing know know not I you're has lately. the you're markets, of you're the real exposed

Beth Garvey

lot our We markets pause during have a of that kind of went COVID. on

keeping person actually right that about a market we So mind right? person in that off-line if we're have then came locations that during that and in XXXX. market we X leaves, in had XX not now, So

the than last think those year. we're market the headcount in on still process February since a in bit are the - Chicagos, of or We're York is DCs markets our in that every bringing in have those not kind the of any first last are days, really a little the But The have back will time of we cities the are year seeing budget, X that. in we this I the slowly. activity more XX suburban We done early or seeing little that our more markets. from of hit we're different. away again, New say we is which larger I

Jeffrey Martin

Or all [indiscernible]. that's business And that's across just three lines?

Beth Garvey

real just estate. That's

Jeffrey Martin

feel growth professional that your year, this segment. for of Okay. And then the do estate of counting units? you potential rate How type Industrial real SIA industry not Light relative for and to about XX% your estimate the growth

Beth Garvey

XX%. a IT believe our Jeff. percentage, around that right That's combined that professional I is

think around they're predicting for Industrial. X% I to something X% Light

the a just rate. So It's is. I it's think net combined what

if and all overall you feel we good along and together. growth this - those So roll lines, about

Jeffrey Martin

Got it.

with of respect IT to you've then And your made tons map, mean I Okay. road progress.

this that I And does was quantified lifting. impact done for think look again if I like What of does year? how it the for us in this EPS? do curious I a know could that that lot you past. you've year. heavy you've

Dan Hollenbach

was last same the it year. as Probably about

In terms about impact will around flows, CapEx of cash be because the the P&L same. it same the is

different this year. think I much So shouldn't be

So we'll see half in of the off latter XXXX. tail a beginning

Jeffrey Martin

what year? in that on Got those now? timing in the the bigger going are initiatives, the are of terms completion terms on of it. pieces And And this some of what's

Beth Garvey

ones the some we behind big Power Well, that. actually we initially that ERP, things that the scenes, have The like going be to BI all the ones that and the right are were worked pretty on things now. on going

now the moved are into office we've that So front things more related.

So we're payroll, billing, and on our applicant CRM. working our system tracking HR,

launching we for what it with year, of department XXXX. April job to - all So tool date we what gathering present through now those gathering and those get using information do the the the a this things and amazing technologies done as doing need. back are supposed that in out in. an in and spreadsheet to which IT - in and of then Olive send put They're RFPs suggesting to has a a they're are looking and go we to They've together us April, go-live for their what called

we've that payroll so lines it together with the but them our system applicant front that initiative, have sure we up capabilities that making all in office big done very seamlessly. billing same our up can of a when it's work at time well a out we line so tracking So with lot launches that our

Operator

Instructions]. [Operator

with Our next comes Brothers. Halpern Howard Taglich question from

Howard Halpern

do What table going you operations? terms last And of generate they are guys. the be? in quarter, year? what your to impact fourth terms the of bring from the revenue First, what believe cross-selling in to on enhancing in current will Congratulations did or they momentum

Dan Hollenbach

that - about being marketed A They're portion basically - they were was of running million $X through through in revenue. about EdgeRock.

delivery - leverage have model. they business think thing things: contracts. model, bench why that a else to new always if would bought What and other to that's what business? them? could higher they would have us; we have cross-sell end higher then the which We that ability And be lot couple the a bought happened One, somebody a is So you've a them. of do is end at thing long-term of have look They and for that use

Beth Garvey

technologies management [indiscernible] And think PeopleSoft they're if about have platform. tools, in in project putting so they a you that

So through Oracle in and to going able with manage us, and to we now project in Workday have are them in be ServiceNow. go and

So their we the for project us. it have can manage technologies really and build that we out have

So on that And of have, for in across the we've strong they're of they're front us. there's already them board deals for several huge us. coming and customers already opportunities winning put our and we

super them. we're So excited about

Howard Halpern

entering Canada? long-term mentioned are short in Canada. you early about What opportunities you the the call, in and had Okay. And do view

Beth Garvey

hard to don't companies tell. that with to a the and mean, companies us of It's are do business consulting But We our guide bigger we you. would know. ask I It's like early. these lot

Dan Hollenbach

Like Amazon.

Beth Garvey

Amazon. And too. Amazon,

are there. these so in And companies bigger

don't to just lot to have We and there. lot business us go a So we that ask a weren't we've of people because turn had had know. of really down we

go happens. see out just So we're it, bring word the we'll putting what to now and We're ready. ready that we're

Dan Hollenbach

the Yes. have We structure in place.

Howard Halpern

also be area And year? had I guess low that for CapEx this should in $X million you mentioned

Dan Hollenbach

year, number again. we're think $X I - two right this $X at million we should be to - About Yes. million that on

Howard Halpern

weeks business the that final mean, for storms, Texas X Okay. you? in a did but of And down disrupt Texas one. survived you for couple just any hopefully, I

Beth Garvey

did. It

Dan Hollenbach

X good. was Yes. totally not week

Beth Garvey

is... it Yes,

Howard Halpern

it? survived everybody But Okay.

Beth Garvey

seeing We're from a bounce it. back nice

So business still has happen. to

up those tough it a But to companies of week to doing make are necessarily get work that double it. some week. duty So for was that didn't

Operator

Taglich Michael from Taglich comes question with next Brothers. Our

Michael Taglich

X that's question, Taglich. but year the sorry, to I'm just like of idiot. a it's mute just wanted you if on when because I answered. thank for year, to guys an have wasn't for you I had most are started will, but questions be Last you want button true follow-up working. everybody, my the thanks. you year I Mike

the and If of I real coming about this you be? up to guess the hip, do you activity how feel the had the a backlog leg year? from how recovery estate might what - mean,

Dan Hollenbach

first We X flat anticipate remaining quarters, through Mike. relatively the

and guess word. the - So hoping I is

more quarter. that fourth openings develop as as and see third in ramp-up the Forecasting, we and the expecting some that become shops the prevalent, should

Michael Taglich

I everybody Okay. we'll Good. out guess And find else. like

Dan Hollenbach

Yes.

Operator

Private Davis, And our Investor. question comes next from Daryl

Unidentified Analyst

closing apologies. door but have and My the up on for setting X question I yourself XXXX. focuses Congrats future successful here on on a SG&A,

off, was this disconnected call. I First during

it. already I has this if been hit, So missed

I'm Second, the it XX yet, answer I and haven't there. on in of only be XX-K, the so Page might seen

X%, you I X think that as of and can maintained low-margin years, higher run of of historically, XX% low like end back peers, SG&A, and name I tight percentage some your were they revenues, Their though, the companies revenue, SG&A, I could could of XX%, run or give IT but be margins but your mean, in going peers, more X, higher might in X XX%. margins. mean, they might non-intuitive. And X%, SG&A you They them, those operating were XX%, lower but expenses, just XX%, also like some percentage think operating XX%, a of XX%, range. So names, SG&A a years as space. in margins have and I have operating

like operating cream have been margins also have weird really XX%, but crop, XX% impressive. been your really SG&A, teens, of the for You like because you're XX%,

they speaking, expand and were mean backward not I it's XX% to this XX% what space. the at in curious, that looking of wondering, XXXX both about essentially versus say forward If jumped points, year, I'm IT release them And looking at in same? was from aimed specifically, explained Dan. legacy, is more we to X expect I legacy in and nonintuitive. going IT. attributed about things I'm acquisitions, really just past you forward, looked as this probably at the year-over-year, we So XXXX, about XXX the SG&A your generally should similar basis you that you intuitive, going that's when

Dan Hollenbach

No.

a As percent?

Unidentified Analyst

Yes.

Dan Hollenbach

in big estate, can't me, fast probably excuse you forever. are have real Because dropping. obviously we a in as driven, your we're particular, headcount fixed their entertainment, seen as were which deleverage were bonuses dropped do through revenues couldn't and portion of couldn't up we haven't and affected affected. meal were And cost. we commission it, slightly I travel They cut salary you come just out of deleverage numbers, in A all it, because out and and your

So say could across divisions, we I probably operational think the that.

team. office our both IT as ago, IT years side, years we and HR well map home HR And our our team road our the see X in numbers ago started in When over took analyst you that On X in as have an we X.X investing team. the Beth IT. benefit

heavily our states in So And as not investing now but from as been only team we into XX risk HR from that becomes higher. Canada. changes, compliance we've expand standpoint, in labor a insurance an standpoint,

made significant we've So there. adjustments

Unidentified Analyst

do mention X to just I thing. you. want Got

going eviction the to Just moratoriums. this for anybody regarding read been who've tomorrow or listening

think They of singular. historically and lot a go. might I think they come are investors

who's around. on There's her for Wake should to country. Benfer come You word very can my be the recessions. associated These take helpful. usual. have history read in Forest, X been They're not been Anyone don't of the don't our just of has curious research past regular not with Emily it. These

Beth Garvey

We agree. [indiscernible]. nothing But

is industry moving helpful Our for everything forward.

had and And we good mean I for a that a we're recovery our I V conference So think staffing that's definitely us. this in week, industry thing.

Operator

This Instructions]. session. any for to Beth I conference back [Operator Showing closing Garvey questions. remarks. question-and-answer turn concludes further our no would the to like over

Beth Garvey

Thank you, us results continued Please first and safe appreciate to and healthy. We your our to on appreciate Sarah. We join time call quarter look today, we you updating our May. in for stay taking you support. forward

Operator

concluded. now Thank you attending for presentation. The today's conference has

You may now disconnect.

BGSF (BGSF) 12 Mar 212020 Q4 Earnings call transcript