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BG Staffing revenue edges up 0.3%

November 03, 2014

BG Staffing Inc. (NYSE MKT: BGSF) reported revenue edged up 0.3 percent year over year in the third-quarter to $48.0 million. Net income fell to $365,000 from $841,000 in the same period last year.

Gross margin, however, rose to 20.8 percent in the third quarter from 19.0 in the year-ago quarter. The increase was primarily attributable to a revenue mix shift resulting from increased revenues from higher margin customers and a reduction in revenue of some lower margin customers, according to the company.

The Plano, Texas-based staffing firm began trading on the New York Stock Exchange MKT Oct. 27.

BG Staffing provides staffing solutions to a variety of industries through three divisions: IT; light industrial; and multi-family, which provides front office and maintenance personnel on temporary basis to apartment communities.

Quote

“We are continuing to successfully implement our plan to diversify our revenue base with offerings in different skill sets serving different geographic areas, and are encouraged to see the impact that strategy has had over the past several years,” said President and CEO L. Allen Baker, Jr. “As a result, we expect to increase revenues in the future and to improve our profitability. In the third quarter of 2014, our commercial business, consisting of our Light Industrial segment, generated revenues of $21.4 million, while our professional business, consisting of our multifamily and IT staffing segments, generated revenues of $26.6 million.”

Revenue

  Q3 2014 ($000s) Q3 2013 ($000s) % growth
Revenue $48,008 $47,866 0.3%

Gross margin

  Q3 2014 Q3 2013
Gross margin 20.8% 19.0%

Net income

  Q3 2014 ($000s) Q3 2013 ($000s) % growth
Net income $365 $841 -56.6%

Share price and market cap

Share of BG Staffing were unchanged. The company has a market cap of $67.28 million.