BGSF, Inc. (NYSE:BGSF) Q3 2023 Earnings Call Transcript

Beth Garvey: We’ve already started to see that. Internally, we track the contribution to overhead by employee and I think we had a target of getting 9% efficiencies. So we’ve hit that this last quarter, but keeping in mind that our third quarter is our highest quarter in revenue, we like — we’re going to wait to see what happens in December to see how it stabilizes, but that’s far from we’ve been pleased.

Howard Halpern: Okay, thanks and keep up the great work, guys.

Operator: Our next question comes from George Melas from MKH Management.

George Melas: Thank you. Hi, Beth and John. Congrats on good results in a tough environment. I have a very general question, which is you did this rebranding I think it’s already quite a few quarters ago. How do you manage the business differently now that you have that and what does that enable you to do?

Beth Garvey: Great question, George. Thank you for asking it. So we did that in second quarter. And what it allows us to be able to do is we had 13 different ways we communicated out to the public based off of the 13 different brands that we had. Centralizing that and having it all change over to BGSF, we have had our social presence increase triple at this point and sometimes it’s five times what it was before, depending on the platforms. That allows us to be able to do more targeted campaigns to be able to attract customers and candidates. I believe we had a report out this week that some of those initiatives have reported, we allow our customers to come in directly into the platform now to supply orders, to give us an order, and we had 70 orders in the last few weeks that have come in through the websites because of the things that we’ve done.

So all about attraction of the candidates as well as the customer, and we track that very, very closely to see how the initiatives are working within the new platforms.

George Melas: Okay. And then from the P&L sort of from a reporting perspective you had — I can’t remember if these brands had separate P&Ls. Clearly at one point they did. How do you manage that in the professional segment?

John Barnett: George, we’re actually — internally, that’s right. Traditionally, when we made acquisitions, quite often there was an earn out attached to it and so we — internally, we did keep it as a separate P&L. Now, with acquisitions aside from Arroyo, which is really different than what our traditional IT business is right, we view that in really IT and then finance and accounting segments. Now that we have added Horn and we will — internally, we will start looking at the business from a — how IT — traditional IT — how is traditional finance and accounting, and then how is managed services performing specific to both IT and finance, but really managed services in total as that becomes also a bigger part of our business.

George Melas: Okay. That’s really interesting. Great. It seemed like the Property Management was extremely strong. It seems like it’s your best quarter ever and it seems to be continued momentum there. What makes it so successful because at one point, it felt like it was decelerating a little bit and now it’s really back on track and doing very well.

Beth Garvey: Well, George, they really decelerated during COVID. They got hit very, very hard. But that team is an amazingly engaged team and they really did great things within the industry. As a reminder, they won the national supplier of the year for NAA, which is amongst all suppliers to the Department Association. So this team shines bright and that is a relationship business in whole and the team does an amazing job in making sure that they are offering solutions to our customers and it turns into results and revenue.

George Melas: Sounds good. Thanks for that.

Operator: [Operator Instructions]. Our next question comes from Mike Taglich from Taglich Brothers.

Mike Taglich: Good morning, Beth. Morning, guys. Again obviously condolences on Allen, a terrific guy. Most of my questions have been answered. If I’m looking at adjusted for the acquisition as of date — as of the beginning of this year, if I put Arroyo and obviously Horn was already in it, what would by nine-month EBITDA number be, the adjusted EBITDA number?