2019 Q1 Form 10-Q Financial Statement

#000147490319000017 Filed on May 09, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q2
Revenue $68.78M $66.86M
YoY Change -2.79%
Cost Of Revenue $50.34M $49.55M
YoY Change -3.88%
Gross Profit $18.44M $17.31M
YoY Change 0.48%
Gross Profit Margin 26.81% 25.89%
Selling, General & Admin $13.62M $11.98M
YoY Change 11.12%
% of Gross Profit 73.87% 69.2%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $202.4K $165.8K
YoY Change 15.0%
% of Gross Profit 1.1% 0.96%
Operating Expenses $13.62M $11.98M
YoY Change 11.12%
Operating Profit $3.587M $4.035M
YoY Change -11.93%
Interest Expense -$350.0K -$870.0K
YoY Change 3.57%
% of Operating Profit -9.76% -21.56%
Other Income/Expense, Net
YoY Change
Pretax Income $3.233M $3.164M
YoY Change -15.5%
Income Tax $737.4K $698.6K
% Of Pretax Income 22.81% 22.08%
Net Earnings $2.496M $2.466M
YoY Change 7.92%
Net Earnings / Revenue 3.63% 3.69%
Basic Earnings Per Share $0.24 $0.28
Diluted Earnings Per Share $0.24 $0.27
COMMON SHARES
Basic Shares Outstanding 10.23M shares 8.761M shares
Diluted Shares Outstanding 10.40M shares 9.087M shares

Balance Sheet

Concept 2019 Q1 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $0.00 $0.00
Short-Term Investments
Other Short-Term Assets $22.73K $201.9K
YoY Change -21.46%
Inventory
Prepaid Expenses $2.460M $1.804M
Receivables $35.71M $35.02M
Other Receivables $0.00 $0.00
Total Short-Term Assets $38.19M $37.02M
YoY Change -9.35%
LONG-TERM ASSETS
Property, Plant & Equipment $2.348M $2.242M
YoY Change 28.03%
Goodwill $17.98M $17.98M
YoY Change 11.8%
Intangibles $32.35M $36.19M
YoY Change 2.93%
Long-Term Investments
YoY Change
Other Assets $62.12M $63.47M
YoY Change -0.66%
Total Long-Term Assets $64.47M $65.72M
YoY Change 0.1%
TOTAL ASSETS
Total Short-Term Assets $38.19M $37.02M
Total Long-Term Assets $64.47M $65.72M
Total Assets $102.7M $102.7M
YoY Change -3.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $154.2K $754.0K
YoY Change -61.86%
Accrued Expenses $10.91M $11.21M
YoY Change -10.97%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $3.643M $3.235M
YoY Change 71.22%
Total Short-Term Liabilities $19.21M $20.71M
YoY Change -11.89%
LONG-TERM LIABILITIES
Long-Term Debt $4.555M $19.69M
YoY Change 10.8%
Other Long-Term Liabilities $0.00 $609.6K
YoY Change 148.59%
Total Long-Term Liabilities $4.555M $20.30M
YoY Change 12.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $19.21M $20.71M
Total Long-Term Liabilities $4.555M $20.30M
Total Liabilities $37.41M $63.27M
YoY Change -3.29%
SHAREHOLDERS EQUITY
Retained Earnings $7.226M $1.647M
YoY Change -52.79%
Common Stock $78.27K $87.64K
YoY Change 0.05%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 828.0 shares
Shareholders Equity $65.25M $39.47M
YoY Change
Total Liabilities & Shareholders Equity $102.7M $102.7M
YoY Change -3.52%

Cashflow Statement

Concept 2019 Q1 2018 Q2
OPERATING ACTIVITIES
Net Income $2.496M $2.466M
YoY Change 7.92%
Depreciation, Depletion And Amortization $202.4K $165.8K
YoY Change 15.0%
Cash From Operating Activities $5.382M $3.600M
YoY Change 1061.29%
INVESTING ACTIVITIES
Capital Expenditures -$340.0K -$150.0K
YoY Change -70.59%
Acquisitions $0.00
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$341.5K -$150.0K
YoY Change -99.21%
FINANCING ACTIVITIES
Cash Dividend Paid $3.069M $2.190M
YoY Change
Common Stock Issuance & Retirement, Net $0.00 -$7.500K
YoY Change
Debt Paid & Issued, Net $1.838M $612.5K
YoY Change
Cash From Financing Activities -$5.040M -3.440M
YoY Change -118.4%
NET CHANGE
Cash From Operating Activities $5.382M 3.600M
Cash From Investing Activities -$341.5K -150.0K
Cash From Financing Activities -$5.040M -3.440M
Net Change In Cash $0.00 10.00K
YoY Change 1908874353777677.0%
FREE CASH FLOW
Cash From Operating Activities $5.382M $3.600M
Capital Expenditures -$340.0K -$150.0K
Free Cash Flow $5.722M $3.750M
YoY Change 357.32%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Fiscal Periods</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has a 52/53 week fiscal year. Fiscal periods for the consolidated financial statements included herein are as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, and include the </font><font style="font-family:inherit;font-size:10pt;">thirteen</font><font style="font-family:inherit;font-size:10pt;"> week periods ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">April&#160;1, 2018</font></div></div>
CY2019Q1 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NATURE OF OPERATIONS</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">BG Staffing, Inc. is a national provider of temporary staffing services that operates, along with its wholly owned subsidiaries BG Staffing, LLC, B G Staff Services Inc., BG Personnel, LP, BG Finance and Accounting, Inc., BG California IT Staffing, Inc., BG California Multifamily Staffing, Inc., and BG California Finance &amp; Accounting Staffing, Inc. (collectively, the &#8220;Company&#8221;), primarily within the United States of America in </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> industry segments: Real Estate, Professional, and Light Industrial. </font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Real Estate segment provides office and maintenance field talent to various apartment communities and commercial buildings, in 28 states, via property management companies responsible for the apartment communities' and commercial buildings' day-to-day operations.</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Professional segment provides skilled field talent on a nationwide basis for</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">information technology ("IT")</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">and finance and accounting client partner projects.</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Light Industrial segment provides field talent primarily to logistics, distribution, and call center client partners needing a flexible workforce in Illinois, Wisconsin, New Mexico, Texas, Tennessee and Mississippi.</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:17px;text-align:justify;text-indent:25px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our business experiences seasonal fluctuations. Our quarterly operating results are affected by the number of billing days in a quarter, as well as the seasonality of our client partners&#8217; business. Demand for our Real Estate staffing services increase in the second and is highest during the third quarter of the year due to the increased turns in multifamily units during the summer months when schools are not in session. Demand for our Light Industrial staffing services increases during the third quarter of the year and peaks in the fourth quarter due to increase in the demand for holiday help. Overall demand can be affected by adverse weather conditions in the winter months. In addition, our cost of services typically increases in the first quarter primarily due to the reset of payroll taxes.</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (&#8220;GAAP&#8221;), pursuant to the applicable rules and regulations of the SEC. The information furnished herein reflects all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading. The Company has determined that there were no subsequent events that would require disclosure or adjustments to the accompanying consolidated financial statements through the date the financial statements were issued. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, included in its Annual Report on Form 10-K.</font></div></div>
CY2019Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Reclassifications</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications have been made to the </font><font style="font-family:inherit;font-size:10pt;">2018</font><font style="font-family:inherit;font-size:10pt;"> financial statements to conform with the </font><font style="font-family:inherit;font-size:10pt;">2019</font><font style="font-family:inherit;font-size:10pt;"> presentation.</font></div></div>
CY2019Q1 us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Management Estimates</font></div><div style="line-height:120%;text-align:justify;text-indent:66px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include goodwill, intangible assets and contingent consideration obligations related to acquisitions. Additionally, the valuation of share-based compensation option expense uses a model based upon interest rates, stock prices, maturity estimates, volatility and other factors. The Company believes these estimates and assumptions are reliable. However, these estimates and assumptions may change in the future based on actual experience as well as market conditions.</font></div></div>

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