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BG Staffing revenue up 25%

November 02, 2015

BG Staffing Inc. (NYSE MKT: BGSF) reported revenue rose 25.3% year over year in the third quarter to $60.2 million, bolstered by the March acquisition of Willis Group’s Donovan & Watkins division, as well as strong growth in all of its segments.

Gross margin also improved.

The Plano, Texas-based company provides staffing in light industrial, IT and multifamily (front office and maintenance personnel to the multi-family housing industry). Quarterly gross profit increased year over year in each of its three business segments: Commercial rose 24.8%; multifamily rose 26.4%; and professional staffing rose 65.3%.

(US$ thousands) Q3 2015  Q3 2014  % growth
Revenue $60,171 $48,008 25.3%
Gross profit $13,856 $9,986 38.8%
Gross margin 23.0% 20.8%  
Net income $2,215 $365 nm

Quote

“Our momentum is building as we continued to make important progress in executing our business plan on all fronts during the third quarter of 2015,” said President and CEO L. Allen Baker, Jr. “The recent acquisition of Vision Technology Services (closed in Q4) continues our momentum in building a diversified staffing solution company and we look forward to continuing execution of our business plan in the fourth quarter of 2015 and throughout 2016.”

Baker concluded, “Our results were bolstered by the March acquisition of D&W Talent in the attractive staffing niche of finance and accounting, and strong growth in all of our segments. We are very pleased with the results of the third quarter, our best ever, and look forward to finishing 2015 as our strongest year on record.”

Share price and market cap

Shares of BG Staffing rose 13.54% to $13.00 in early afternoon trading today, and the company has a market cap of $96.06 million, according to Yahoo!