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BG Staffing Q1 revenue up 4.7%, anticipates $7.0 million in financing

May 05, 2015

BG Staffing Inc. (NYSE MKT: BGSF) reported revenue rose 4.7% year over year and gross margin improved in the first quarter to $40.9 million. However, the Plano, Texas-based staffing provider posted a net loss in the quarter.

The company provides staffing in light industrial, IT and multi-family (front office and maintenance personnel to the multi-family housing industry).

(US$ thousands) Q1 2015  Q1 2014  % growth
Revenue $40,884 $39,038 4.7%
Gross profit $8,341 $7,712 8.2%
Gross margin 20.4% 19.8%  
Net income/loss   $164 -$1,530 --

Quote

“We continued to make important progress in executing our business plan during the first quarter of 2015,” said President and CEO L. Allen Baker Jr. “The completion of this latest accretive acquisition, in the attractive staffing niche of finance and accounting fits perfectly into our growth and expansion plans. It will allow us to further diversify the revenue and cash flow portfolio we are building for our shareholders — and leverage our internal operational infrastructure.”

Equity financing

BG Staffing also today announced it expects to enter into subscription agreements with certain investors to sell an aggregate of 636,500 shares of its common stock at a price of $11.00 per share in a registered shelf offering for gross proceeds of approximately $7 million. The company intends to use all of the funds to reduce debt. The closing expected to occur on or about May 6, subject to satisfaction of customary closing conditions.

“This financing allows us to continue to execute on our proven business model of organic growth and accretive acquisitions,” Baker said. “During the first quarter this year we completed our latest acquisition which diversified our reach into the accounting and finance market. We continually seek appropriate acquisitions which would broaden our service offerings and/or geographic footprint in the US.”

Share price and market cap

Shares of BG Staffing fell 1.67% to $11.80 in early afternoon trading today, and the company has a market cap of $77.86 million, according to Google.