BGSF, INC. Q3 FY2024 earnings call

• Total revenues in the third quarter were $71.2 million, up 4.5% sequentially. Property Management revenues had a seasonal lift of 15.9% from Q2 2024. Professional segment revenue was soft compared to Q2 and down year-over-year. Managed Solutions showed strength with new contract wins. Launched advanced lead generation engine in Q3, which generated almost 400 marketing qualified leads and 171 sales qualified leads, translating to over $1 million in booked revenue. IT consulting sales stabilized and grew slightly, and Managed Solutions had double-digit growth and sequential lift. Hired Hitesh Talati for strategy and innovation, and SVP of Sales Andrew Hill is leading sales teams with enhanced training efforts.

Total revenues were $71 million. Property Management had almost $30 million in sales, and the Professional segment had $41 million in sales. Excluding perm placement, IT consulting represents almost 70% of quarterly revenues. IT consulting sales were up slightly sequentially in the third quarter. Managed Solutions had double-digit growth over a year ago and 10% sequential lift compared to the second quarter. Property Management sales increased due to seasonality and strategic initiatives. Professional segment revenues were under pressure in the third quarter, especially in the Finance and Accounting division.

• Believes results are stabilizing with potential for growth if macro and industry pressures subside. No specific timeline provided for the strategic alternatives review yet. Anticipates benefit from better project and business flow in 2025 and beyond as macroeconomic pressures ease.

Q: Has the past pent-up maintenance demand materialized in Property Management and update on territory mapping?

A: John Barnett said pent-up demand hasn't shown up yet, but there's pent-up demand out there.

Q: Did momentum from project wins exceeding project ends carry through in the third quarter for Professional segment and timing for fourth quarter?

A: Beth Garvey said there was an uptick in the third quarter, especially late September, with wins outpacing ends, and some may have pushed into October but good traction.

Q: Timeline on strategic alternatives review?

A: Beth Garvey said there's no timeline at this point, continuing to work diligently but no timeline provided.