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View All NewsBGSF revenue falls 9% in Q1; gross margin improves
BGSF Inc. (NYSE: BGSF) reported first-quarter revenue fell 8.6% year over year amid the impact of the pandemic. However, President and CEO Beth Garvey said the Plano, Texas-based staffing provider is seeing results from its efforts to spur growth and profitability.
Gross margin improved.
| (US$) | Q1 2021 | Q1 2020 | % change |
| Revenue | $67,711,690 | $74,067,429 | -8.6% |
| Gross profit | $18,814,731 | $20,275,731 | -7.2% |
| Gross margin | 27.8% | 27.4% | |
| Net income | $711,797 | $1,498,860 | -52.5% |
“Operationally, the real estate segment is showing signs of recovery with a sequential improvement from Q4 2020 to Q1 2021 despite the extension of the moratorium on rent to June 2021 and the severe winter storm experienced in Texas in February, which disrupted productivity due to extended power outages,” Garvey said.
BGSF’s professional segment performed well in its IT consulting practice, Garvey said, citing solid performance in cybersecurity offset by the expected completion of projects and long-term contracts begun during mid-2020.
Share price and market cap
Shares in BGSF were down 2.88% to $13.51 as of 12:41 p.m. Eastern time; they were 20.11% below their 52-week high, according to FT.com. The company had a market cap of $143.8 million.