2021 Q4 Form 10-K Financial Statement

#000147490322000020 Filed on March 10, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2021
Revenue $67.69M $64.18M $239.0M
YoY Change 37.8% 20.65% 15.4%
Cost Of Revenue -$1.105M $57.69M $158.1M
YoY Change -102.19% 11.35% 12.05%
Gross Profit $23.43M $22.05M $80.94M
YoY Change 43.63% 28.76% 22.56%
Gross Profit Margin 34.61% 34.35% 33.86%
Selling, General & Admin $14.22M $18.49M $65.12M
YoY Change -6.34% 24.34% 17.87%
% of Gross Profit 60.68% 83.86% 80.45%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $757.4K $190.7K $685.5K
YoY Change -8.75% -7.75% -9.44%
% of Gross Profit 3.23% 0.86% 0.85%
Operating Expenses $14.97M $18.49M $65.12M
YoY Change -6.47% 24.34% 17.87%
Operating Profit $8.457M $6.196M $14.53M
YoY Change 2684.4% 69.84% -1282.36%
Interest Expense -$406.3K -$431.3K -$1.433M
YoY Change 19.51% 19.81% -10.45%
% of Operating Profit -4.8% -6.96% -9.86%
Other Income/Expense, Net
YoY Change
Pretax Income $2.378M $5.764M $13.10M
YoY Change -20.17% 75.3% -565.68%
Income Tax $718.8K $1.121M $3.558M
% Of Pretax Income 30.22% 19.44% 27.17%
Net Earnings $5.311M $4.644M $14.11M
YoY Change 140.73% 81.0% 878.83%
Net Earnings / Revenue 7.85% 7.23% 5.9%
Basic Earnings Per Share $0.51 $0.45 $1.36
Diluted Earnings Per Share $0.50 $0.45 $1.35
COMMON SHARES
Basic Shares Outstanding 10.41M shares 10.38M shares 10.37M shares
Diluted Shares Outstanding 10.46M shares 10.43M shares 10.42M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2021
SHORT-TERM ASSETS
Cash & Short-Term Investments $112.1K $112.1K
YoY Change
Cash & Equivalents $112.1K $0.00 $112.1K
Short-Term Investments
Other Short-Term Assets $2.381M $19.90K $11.93M
YoY Change -98.01% 442.06%
Inventory
Prepaid Expenses $2.346M
Receivables $48.13M $54.05M $48.13M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $60.17M $55.91M $60.17M
YoY Change 37.85% 30.7% 38.01%
LONG-TERM ASSETS
Property, Plant & Equipment $4.331M $3.046M $8.245M
YoY Change 25.03% -18.61% -15.0%
Goodwill $29.14M $34.16M
YoY Change 7.73% 8.95%
Intangibles $33.58M $35.96M
YoY Change 4.52% 1.47%
Long-Term Investments
YoY Change
Other Assets $1.284M $1.321M $17.15M
YoY Change 7.4% -98.4% 55.93%
Total Long-Term Assets $88.12M $88.19M $88.12M
YoY Change 1.72% 2.16% 1.64%
TOTAL ASSETS
Total Short-Term Assets $60.17M $55.91M $60.17M
Total Long-Term Assets $88.12M $88.19M $88.12M
Total Assets $148.3M $144.1M $148.3M
YoY Change 13.83% 11.62% 13.81%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $401.2K $362.8K $401.2K
YoY Change 82.61% -16.21% 100.59%
Accrued Expenses $16.15M $15.52M $3.309M
YoY Change 55.69% 21.24% -17.26%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $3.563M $3.375M $3.563M
YoY Change 35.71% 38.46% 37.02%
Total Short-Term Liabilities $28.38M $26.63M $28.38M
YoY Change 55.41% 49.29% 55.1%
LONG-TERM LIABILITIES
Long-Term Debt $23.30M $24.05M $35.89M
YoY Change -11.41% -10.47% 12.15%
Other Long-Term Liabilities $3.565M $3.620M $7.430M
YoY Change -51.53% -30.08% -48.76%
Total Long-Term Liabilities $26.87M $27.67M $43.32M
YoY Change -20.18% -13.64% -6.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $28.38M $26.63M $28.38M
Total Long-Term Liabilities $26.87M $27.67M $43.32M
Total Liabilities $71.70M $72.07M $71.70M
YoY Change 10.62% 10.76% 10.65%
SHAREHOLDERS EQUITY
Retained Earnings $14.59M $10.53M
YoY Change 188.97% 171.78%
Common Stock $66.36K $66.12K
YoY Change -10.12% -12.83%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 610.0 shares
Shareholders Equity $76.59M $72.03M $76.59M
YoY Change
Total Liabilities & Shareholders Equity $148.3M $144.1M $148.3M
YoY Change 13.83% 11.62% 13.81%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2021
OPERATING ACTIVITIES
Net Income $5.311M $4.644M $14.11M
YoY Change 140.73% 81.0% 878.83%
Depreciation, Depletion And Amortization $757.4K $190.7K $685.5K
YoY Change -8.75% -7.75% -9.44%
Cash From Operating Activities $4.309M $616.1K $6.663M
YoY Change 8.53% -80.69% -70.06%
INVESTING ACTIVITIES
Capital Expenditures -$1.638M -$462.9K -$3.204M
YoY Change 809.73% 671.48% 49.72%
Acquisitions $3.791M
YoY Change -82.77%
Other Investing Activities -$45.72K $5.160K -$3.821M
YoY Change -86.55% -74.2% -82.63%
Cash From Investing Activities -$1.683M -$457.7K -$7.024M
YoY Change 217.59% 1044.32% -70.91%
FINANCING ACTIVITIES
Cash Dividend Paid $4.567M
YoY Change -11.41%
Common Stock Issuance & Retirement, Net -$41.21K
YoY Change 239.67%
Debt Paid & Issued, Net $2.063M
YoY Change 91.86%
Cash From Financing Activities -2.513M -158.4K $473.1K
YoY Change -26.94% -94.97% -74.97%
NET CHANGE
Cash From Operating Activities 4.309M 616.1K $6.663M
Cash From Investing Activities -1.683M -457.7K -$7.024M
Cash From Financing Activities -2.513M -158.4K $473.1K
Net Change In Cash 112.1K -0.0000000005821 $112.1K
YoY Change 2602518020981563.0% -83.97%
FREE CASH FLOW
Cash From Operating Activities $4.309M $616.1K $6.663M
Capital Expenditures -$1.638M -$462.9K -$3.204M
Free Cash Flow $5.946M $1.079M $9.867M
YoY Change 43.28% -66.8% -59.55%

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NatureOfOperations
NATURE OF OPERATIONS<div style="text-align:justify;text-indent:49.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">BGSF, Inc., along with its wholly owned subsidiaries BGSF Professional, LLC (formally 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., BG California Finance &amp; Accounting Staffing, Inc., EdgeRock Technology Holdings, Inc., EdgeRock Technologies, LLC, and BG Personnel of Texas, LLC (collectively, the “Company”), is a national provider of workforce solutions.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">On February 28, 2022, we signed a definitive agreement to sell substantially all our Light Industrial segment (“InStaff”) assets to Jobandtalent (“J&amp;T”), through their wholly-owned subsidiary, Sentech Engineering Services, Inc. The Company anticipates that the transaction will close during the first fiscal quarter of 2022. </span></div><div><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">Instaff's financial results for reported periods have been reflected in our Consolidated Statements of Operations and Comprehensive Income and Consolidated Statements of Cash Flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations are classified as discontinued operations in our Consolidated Balance Sheets.</span></div><div><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">See “Note 4 - Discontinued Operations” in our Consolidated Financial Statements included elsewhere in this report for additional information.</span></div><div><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company continues to operate primarily within the United States of America in the Real Estate and Professional industry segments, and discontinued operations in Light Industrial (see Note 4).</span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Real Estate segment provides office and maintenance field talent to various apartment communities and commercial buildings in 35 states and D.C., via property management companies responsible for the apartment communities' and commercial buildings' day-to-day operations. Our Real Estate segment operates through two divisions, BG Multifamily and BG Talent. </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Professional segment provides skilled field talent on a nationwide basis for information technology (“IT”) and finance, accounting, legal and human resource client partner projects. The Professional segment operates through three divisions, IT Consulting, IT Infrastructure &amp; Development, and Finance and Accounting under various trade names including Extrinsic, American Partners, Donovan &amp; Watkins, Vision Technology Services, Zycron, Smart Resources, L.J. Kushner &amp; Associates, EdgeRock Technology Partners, and Momentum Solutionz.</span></div><div style="text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Light Industrial segment provides field talent primarily to manufacturing, distribution, logistics, and call center client partners needing a flexible workforce currently out of 11 locations and 13 on-sites in 11 states. Light Industrial segment operates through one division under the InStaff trade name.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The Company has adjusted, and continues to monitor and change, its operations in response to COVID-19 in all of its segment, client partner, and home office locations. The outbreak continues to impact both operational and financial performance. The duration of the pandemic, as well as the continued spread of the outbreak, impacts the Company's client partners, and the ongoing government and community reactions to the pandemic remain unpredictable.</span></div>
CY2021 us-gaap Fiscal Period
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<div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Fiscal Year</span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has a 52/53 week fiscal year. Fiscal years for the consolidated financial statements included herein are for the 52 weeks ended December 26, 2021, December 27, 2020, and December 29, 2019, referred to herein as Fiscal 2021, 2020 and 2019, respectively.</span></div>
CY2021 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Reclassifications</span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain reclassifications have been made to the 2019 and 2020 financial statements to conform with the 2021 presentation.</span></div>
CY2021 us-gaap Use Of Estimates
UseOfEstimates
<div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Management Estimates</span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with generally accepted accounting principles in United States of America (“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 allowances for credit losses, goodwill, intangible assets, lease liability, contingent consideration obligations related to acquisitions, and income taxes. Additionally, the valuation of share-based compensation 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. </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The COVID-19 pandemic continues to have an impact on our economy as a result of measures designed to stop the spread of the virus. In light of the ultimate duration and severity of COVID-19, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply the Company’s significant accounting policies. While the ongoing COVID-19 response continues to evolve, management may continue to make changes to these estimates and judgments over time, which could result in meaningful impacts to the Company’s financial statements in future periods. Actual results and outcomes may differ from management’s estimates and assumptions.</span></div>
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726

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