BGSF Inc. (NYSE: BGSF) reported second-quarter revenue rose 18.8% year over year. President and CEO Beth Garvey said the Plano, Texas-based staffing provider is seeing results from its operational restructuring executed last year combined with improvement in strategy.
Gross margin also improved.
| Q2 2021 | Q2 2020 | % change | |
| Revenue | $74,391,537 | $62,606,334 | 18.8% |
| Gross profit | $21,782,814 | $16,905,143 | 28.9% |
| Gross margin | 29.3% | 27.0% | |
| Net income/loss | $3,442,838 | -$4,829,263 | nm |
“Industry outlook remains strong for each of our segments, and as we continue to progress coming out of the Covid-19 pandemic, we remain optimistic about our ability to deliver growth and profitability for the reminder of the year,” Garvey said.
Operationally, the real estate segment is beginning to recover. However, BGSF expects some lumpiness as it phases in new markets and manage through the labor environment during the remainder of the year.
The company’s professional segment performed well with the IT Consulting brands largely leading the way. The acquisition of Momentum Solutionz earlier this year brought benefits as new client introductions have taken place, and BGSF is executing on new service opportunities and building a strong pipeline through cross-selling and strategic customer engagements, according to Garvey.
Light industrial continued to show strong growth and demand remains high, although the company is still managing through industry-wide labor shortages.
“Lastly, the M&A landscape has started to slow as valuations continue to increase, but we expect to see a resurgence in activity in the second half of the year,” Garvey said.
Share price and market cap
Shares in BGSF were up 5.53% to $12.21 as of 12:10 p.m. Eastern time; they were 27.79% below their 52-week high, according to FT.com. The company had a market cap of $119.59 million.