Edition: May 2020
2 FORWARD LOOKING STATEMENT This presentation contains forward-looking statements regarding the business, operations and prospects of BGSF and industry factors affecting it. Forward- looking statements may include, but are not limited to, statements with respect to our future financial or operating performance, future plans and objectives, competitive positioning, requirements for additional capital, government regulation of operations and the timing and possible outcome of litigation and regulatory matters. All statements, other than statements of historical fact, included or incorporated by reference in this presentation, including statements that address activities, events or developments that we, or our subsidiaries, expect or anticipate may occur in the future, are forward-looking statements. Often, but not always, forward-looking statements can be identified by use of forward-looking words such as “aim,” “potential,” “may,” “could,” “can,” “would,” “might,” “likely,” “will,” “expect,” “intend,” “plan,” “budget,” “scheduled,” “estimate,” “anticipate,” “believe,” “forecast,” “committed,” “future” or “continue” or the negative thereof or similar variations. Forward-looking statements are based on certain assumptions and analyses made by us, in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. You are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and known and unknown risks, many of which are outside our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among other things, general business, economic, competitive, political and social uncertainties, the actual results of current operations, industry conditions, intellectual property and other proprietary rights, liabilities inherent in our industry, accidents, labor disputes, delays in obtaining regulatory approvals or financing and general market factors, including interest rates, equity markets, business competition, changes in government regulations. Additional risks and uncertainties include, but are not limited to, those listed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause results to differ from those anticipated. Forward-looking statements contained in this presentation, or made by us, are as of the date of the presentation and we disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events, results or otherwise, except as required by applicable securities laws. This presentation also contains information about BGSF’s Adjusted EBITDA, which is not a measure derived in accordance with GAAP and which excludes components that are important to understanding BGSF’s financial performance. The definition of Adjusted EBITDA is disclosed in BGSF’s Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Investors should recognize that this non-GAAP measure might not be comparable to similarly titled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
INDUSTRY 3 ~20,000 Staffing Firms 2 154 Firms Over $100M Revenue 17M 2 Temporary & Contact Employees Hired Annually 3.1M 2 Temporary & Contract Employees Employed Weekly $119.4B * 2 EST. Annual Sales for FY 2020 21% Y/Y decrease from est. 2019 * 4.4% in March, rising to 14.7% in April 1 Unemployment Rate 1.56% 1 Temp Penetration Rate As of April 2020 TRENDS: Remote Work & Technology * Staffing Industry Analysts estimates Skills Shortage & Unemployment a decline in 2020 projected revenues 85% between 10% and 45% 2 2 of Temporary Workers Have Healthcare Benefits 1 U.S. BUREAU OF LABOR STATISTICS 2 STAFFING INDUSTRY ANALYSTS (SIA) &AMERICAN STAFFING ASSOC. April 2020
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5 3 DIVISIONS 88 LOCATIONS Real Estate Professional SERVING 40 STATES & DC Light Industrial 2019 – 2020 Completed Two Acquisitions 2017 – 2018 Organically grew TWO NEW BRANDS 2010 – 2017 Completed Nine Acquisitions 2007 Founding of BGSF
6 >28,000 92% >9,000 CLIENT RETENTION PEOPLE PLACED CLIENTS SERVED TO WORK >6,800 >75,000 PAYCHECKS A WEEK UNIQUE ASSIGNMENTS
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8 PROFESSIONAL REAL ESTATE Front Office and Maintenance Workers for Apartment Communities Commercial Real Estate Staffing IT Workforce Solutions, BI, Cyber Security Enterprise Performance Management and Full Project Management Creative, Digital and Marketing Talent LIGHT INDUSTRIAL Accounting/Finance, Legal, HR, Workforce and Onsite Management Solutions and Administrative/Clerical Talent for Warehousing, Manufacturing, and Call Centers
9 REAL ESTATE FRONT OFFICE & MAINTENANCE TEMPORARY WORKERS Only Public Staffing Company in HIGH INDUSTRY Real Estate INVOLVEMENT APARTMENT COMMUNITIES 100% 6 COMMERCIAL NEW LOCATIONS REAL ESTATE ORGANIC IN 2020 GROWTH
10 70% OF REVENUE MAINTENANCE 30% OF REVENUE SUPERVISOR ENGINEERS ASSISTANT GROUNDSKEEPER LEAD (HVAC) PORTER OFFICE MAKE READY (HANDYMAN) MANAGER LEASING AGENT ASSISTANT MANAGER BILINGUAL AGENT
53 8 29 >8,000 >51,000 11 BG MULTIFAMILY BG TALENT CLIENTS SERVED JOBS PLACED STATES SERVICING BRANCHES BRANCHES WA (1) MN (1) WI (1) ID OR (1) MI (1) MA (1) PA (2) IL OH (2) IN NV (1) (2) UT (1) (1) CO (1) MD KS (1) MO (1) VA (2) CA (1) DC (1) TN (2) NC (3) OK (2) AZ (2) SC 2020 AL (3) GA (1) (3) LA New Locations TX (11) Cleveland • (1) New Jersey • Orange County • Baltimore FL • BG MULTIFAMILY STATES (6) BG TALENT & BG MULTIFAMILY STATES 2019 New Locations Birmingham • Northern VA • San Diego • Tucson • Pittsburgh • Portland • South Florida •
12 PROFESSIONAL INFORMATION TECHNOLOGY, FINANCE & ACCOUNTING AND CREATIVE 9 CONTINUED EDUCATION LARGE CONSULTANT IT WHITE PAPERS, POOL ACROSS CPE EVENTS, MULTIPLE VERTICALS 21% WEBINARS IN DATABASE 1 BG BRANDS LARGEST SEGMENT OF PROFESSIONAL RESOURCES FINANCE & ACCOUNTING 6% IMPLEMENTATION 1 OF STAFFING MARKET OF NEW NATIONAL PRACTICE TECHNOLOGY Workday, Salesforce, AI, Cyber Security, OneStream 1 S IA, April 2020
13 Professional Search & Project Support Information Technology Solutions Advanced Analytics, EPM/CPM, Accounting & Finance, HR, Oracle ERP and HCM Staffing Engineering, Legal, Administrative, Solutions, Full Project Teams and Marketing, Creative and Digital Talent Outsourcing; Specializing in SAP and Workday, Cyber Security
PROFESSIONAL CROSS SELLING 14 Continuing development of new systems and technologies for both IT and F&A (Hyperion, Workday, Salesforce) will continue to drive the need for technical and functional resources
15 15 10 42 534 92% 3,800 BRANCHES STATES STATES SERVED CLIENTS IN 2019 CLIENT RETENTION CONSULTANTS PLACED MA (1) RI (1) NJ (1) IL MD (1) (2) NC (1) AZ (1) TX (3) FL (1) CLIENT STATES BRANCHES & CLIENT STATES
LIGHT INDUSTRIAL 16 C O M M E R C I A L S T A F F I N G ~ D I S T R I B U T I O N , L O G I S T I C S , C A L L C E N T E R S 15 Onsite Locations CLERICAL CHAT CUSTOMER SERVICE “E” COMMERCE AGENTS INCREASE ONSITE ADVANCED MFG. LOCATIONS AUTOMATION ROBOTICS LOGISTICS
17 Primary Skills Offered Light Assembly Logistics/Warehouse Call Center Operations Production Workers Forklift Drivers Light Manufacturing General Labor Pickers/Packers
183 98% 12 6 15 18 20,000 CLIENT RETENTION BRANCHES CLIENTS IN 2019 JOBS PLACED ON-SITE LOCATIONS STATES SERVICING WI (2) 2 ON-SITES IL (1) 1 ON-SITE TN* 1 ON-SITE NM** MS 2 ON-SITES (2) TX (8) 4 ON-SITES 5 ON-SITES * Managed out of MS offices ** Managed out of El Paso, TX offices
19 $10.29x * $ 5.69 * 52-WEEK RANGE $22.38 * 10.31m (primary) * SHARES OUT 10.38m (diluted) 1 $106m * MARKET CAP $ 47m DEBT * $153m ENTERPRISE * VALUE * As of May 26xx,2020 1 Treasury stock method – Qtr. Ended March. 29, 2020 Source: Public filings
20 TEMP. REDUCED BGSF $0.05 QUARTERLY DIVIDEND NSYE Listed Russell 2000 1.9% 13.9 2 * TEMP. DIVIDEND TEMP. DIVIDEND * YIELD COVER (ANNUALIZED) 1.64x DEBT/ PF TTM 3 EBITDA 3 * As of May 26,2020 2 Adjusted PF TTM EBITDA for the Qtr. Ended March 29, 2020/Annual Dividend 3 As of and for the TTM Qtr. Ended March 29, 2020 Source: Public filings
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