BGSF, Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 29, 2024, reflecting a decline in revenue and profitability compared to the same periods in the previous fiscal year. Total revenues for the thirteen weeks were $71.2 million, down 14.7% from $83.5 million in the prior year. For the thirty-nine weeks, revenues decreased to $208.1 million from $239.6 million, a decline of 13.1%. The decrease in revenue was attributed to reduced demand and increased competition in both the Property Management and Professional segments.

The Property Management segment saw a revenue drop of 17.1% for the thirteen weeks, totaling $29.8 million, while the Professional segment's revenue decreased by 12.9% to $41.4 million. For the thirty-nine weeks, Property Management revenue fell 16.1% to $80.1 million, and Professional segment revenue decreased by 11.2% to $128.0 million. The decline in billed hours and project delays were significant factors impacting these results.

Gross profit for the thirteen weeks ended September 29, 2024, was $24.3 million, representing a gross margin of 34.2%, down from 35.9% in the prior year. For the thirty-nine weeks, gross profit decreased to $71.4 million, with a gross margin of 34.3%, compared to 36.0% in the previous year. The overall gross profit decline was attributed to reduced customer demand across both segments.

BGSF reported a net loss of $(0.07) per share for the thirteen weeks, contrasting with a net income of $0.24 per share in the same period last year. For the thirty-nine weeks, the net loss was $(0.22) per share, an improvement from a net loss of $(1.04) per share in the prior year. The company declared cash dividends of $0.15 per share for the thirty-nine weeks, down from $0.45 in the previous year.

Operating expenses were managed down, with selling, general, and administrative expenses decreasing by 3.1% to $22.0 million for the thirteen weeks and by 5.7% to $64.5 million for the thirty-nine weeks. Compensation and related expenses also saw a reduction, contributing to improved cash flows from operating activities, which were $(2.4) million for the thirteen weeks, a significant improvement from $(11.2) million in the prior year.

Strategically, BGSF completed the acquisition of Arroyo Consulting in April 2023, which contributed $9.8 million in revenue for the previous fiscal year. The company has also made adjustments to its credit facilities, including a recent amendment to its Credit Agreement, which now allows for a revolving credit facility of up to $20 million. As of September 29, 2024, BGSF's total assets were $157.3 million, down from $178.5 million at the end of the previous fiscal year.