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Edited Transcript of BGSF earnings conference call or presentation 12-Mar-19 8:30pm GMT

Q4 2018 BG Staffing Inc Earnings Call

PLANO Mar 15, 2019 (Thomson StreetEvents) -- Edited Transcript of BG Staffing Inc earnings conference call or presentation Tuesday, March 12, 2019 at 8:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Beth A. Garvey

BG Staffing, Inc. - CEO & President

* Dan Hollenbach

BG Staffing, Inc. - CFO & Secretary

* Terri MacInnis

Bibicoff & Macinnis, Inc. - VP of IR

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Conference Call Participants

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* Howard Allen Halpern

Taglich Brothers, Inc., Research Division - Senior Equity Analyst

* Jeffrey Michael Martin

Roth Capital Partners, LLC, Research Division - Director of Research & Senior Research Analyst

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Presentation

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Operator [1]

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Thank you for standing by. This is the conference operator. Welcome to the BG Staffing Year-End Results Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions)

I would now like to turn the conference over to Terri MacInnis, VP of IR with Bibicoff + MacInnis. Please go ahead.

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Terri MacInnis, Bibicoff & Macinnis, Inc. - VP of IR [2]

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Thank you, Ben. It's my pleasure to welcome you to the BG Staffing conference call to discuss Q4 and year-end financial and operating results and a progress report on the company's business strategy. With me today on our call is Beth Garvey, President and CEO; and Dan Hollenbach, Chief Financial Officer.

By now you should have seen a copy of this morning's press release announcing BG's Q4 year-end financial results as well as the Form 10-K. If you do not have a copy of the press release or Form 10-K, you can find it in the Investor Relations section on BG's website at bgstaffing.com.

I remind you that this call is being webcast live and recorded. A replay of the event will be available later today on the company's website and will remain available for at least 90 days following the call.

I'd also like to remind you that our discussions today include forward-looking statements. These statements are based on certain assumptions made by BG Staffing based on, and are made under, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including those listed in Item 1A of the company's annual report on Form 10-K and in the company's other filings and reports with the Securities and Exchange Commission. All risks and uncertainties are beyond the ability of the company to control, and in many cases, the company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. These forward-looking statements are made as of the date of this call, and BG Staffing assumes no obligation to update these statements publicly even if new information becomes available in the future.

This broadcast is covered by U.S. copyright laws, and any use or rebroadcast of all or any portion of this conference call may only be done with the company's expressed written permission.

During our call, we will discuss some non-GAAP measures, which we use for internal evaluation and to report the results of the business as useful information to management, our Board of Directors and investors about our operating activities and business trends related to our financial condition and results of operations. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered in isolation, as a substitute for or as superior to financial measures calculated in accordance with GAAP. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see today's earnings release posted on the company's website.

I'll now turn the call over to Dan Hollenbach, BG Staffing's Chief Financial Officer. Dan?

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [3]

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Thanks, Terri, and good afternoon to everyone. We appreciate your interest in BG Staffing. We are enormously pleased with the performance of BG Staffing in 2018, and I would like to start by again taking a moment to acknowledge all of our team members at each of our BG Staffing business units for their hard work and dedication to our company's continued success and strong gross profit margins. Their contributions are vitally important, and we are very proud of the job they continue to do for us.

BG Staffing provides contingent staffing services within 3 industry segments. Our Real Estate segment operates in apartments via BG Multifamily and in commercial buildings via BG Talent. Our Professional segment includes our Finance & Accounting and IT groups. And we have our Light Industrial segment. Today, BG Staffing operates 75 branch offices and 19 on-site locations across 27 states. Our Real Estate division opened 3 new offices and split 4 existing offices in 2018. We currently plan to open 5 new real estate offices in 2019 and expand into California. Beth will talk more about our initiative into California in her remarks.

I'll review our financial results before turning the call over to Beth Garvey, our President and CEO, for her comments on the reporting periods just ended, in addition to our company's strategy, execution and outlook on current industry conditions.

I'll start by noting that fourth quarter 2018 results are for a 13-week period versus 14 weeks ended December 2017, and the 2018 year-end results are for 52 weeks versus 53 weeks in 2017. We've provided reconciliations of these numbers on a same-day basis in both our earnings release and our annual report on 10-K.

For the quarter, our revenues for Q4 2018 were $72 million, down 4.9% from Q4 2017, with gross profit percentage of 26%, up from 25.4% for the fourth quarter of 2017. Please note that fourth quarter 2018's same-day revenue grew 4%, same-day gross profit grew 6% and same-day EBITDA grew 9%.

Net income for Q4 2018 was $4.9 million or $0.47 per diluted share compared with a net loss of $875,000 or $0.10 per diluted share for Q4 2017. Consistent with Q3 2018, customer sentiment remained positive, and demand momentum was steady as we moved sequentially from Q3 through Q4 and into 2019. A reconciliation of same-day calculations is, again, detailed in our news release and our annual report on Form 10-K.

Turning to our year-end results, remember, on a 52- versus 53-week basis. Revenues for 2018 were $286.9 million, an increase of $14.3 million or 5.2% compared with 2017. For the year, gross profit increased $8.2 million or 12% to $76.6 million. Gross profit percentage increased to 26.7% compared with 25.1% in the previous year. The company produced robust net income of $17.6 million or $1.79 per diluted share for the year ended 2018 compared with net income of $5.8 million or $0.65 per diluted share in 2017. Please note that 2018 year-end same-day revenue grew 7%, same-day gross profit grew 14% and same-day EBITDA grew 12%.

Turning now to our annual segment results, which were reported on a GAAP basis and were impacted by inconsistent revenue days. 2018 Real Estate revenues, which are all from organic growth, increased $15.1 million or 21% to $86.9 million over 2017 as we continue to scale this highest-profit margin segment of our business. Real Estate gross profit percentage was 27.9% for 2018, up slightly over the same period in 2017. As a reminder, this segment operates through 2 divisions: BG Talent in commercial buildings, which was formed in 2018; and BG Multifamily, which operates in apartment communities. Talent contributed $2.7 million of the revenue increase, and revenues from Multifamily contributed $12.4 million. Field talent in the Talent division typically have a higher skill set from which we generate higher-margin revenues as compared with Multifamily. Our growth plan is for Talent to follow in the footsteps of Multifamily markets. We believe the total opportunity for the Talent segment can equal that of Multifamily in terms of revenues and number of offices. Today, Multifamily operates 45 offices, and Talent has 6 offices.

Our Professional segment's revenues for the year were $119.3 million, a decrease of $7.3 million or 5.8% compared with 2017. Year-to-date gross profit percentage for the segment increased to 26.5% from 24.2% in the prior year. These 2018 results reflect the full year of both Zycron and Smart acquisitions, whereas 2017 included 39 weeks of Zycron and 15 weeks of Smart. The Zycron acquisition contributed an additional $5.8 million, and the Smart acquisition contributed an additional $8.4 million increase over 2017.

Consistent with the first 3 quarters of 2018, our Professional segment revenues were negatively affected by a large F&A project. We generated $6 million less revenue and $1 million less gross profit attributable to that lower-margin project in 2018 versus 2017. As we seek to replace that business, we finally are doing so with higher-margin accounts. The large relocation project we have discussed on previous calls is in full swing and contributed $1.6 million in revenue for 2018 at a significantly higher gross profit percent.

Light Industrial segment year-to-date revenues increased $6.5 million to $80.6 million or 9% versus 2017, outperforming the industry average. Light Industrial gross profit percentage was 15% compared with 14.3% for the prior year-to-date period. We are very pleased to see both sequential and year-over-year improvements in gross margins in what is normally ours and the industry's lowest-margin business as demand for light industrial staffing continued to accelerate, along with the overall economic activity.

Turning now to selling expenses for 2018, which increased approximately $2.9 million or 6.6% over 2017, due primarily to growth in our Real Estate segment of $2.5 million or 16.4%, of which $100,000 was attributable to new offices. This growth was consistent with revenue growth and office expansion. Our Professional segment expenses increased $2.6 million, with Zycron increasing $1 million and Smart contributing $2.4 million of the increase, reflecting the full year for both in 2018. Excluding Zycron and Smart, our other IT and Finance & Accounting group selling expenses decreased $782,000, while the Light Industrial segment increased $367,000 or 6.3%.

Our corporate G&A expenses for Q4 2018 reflect the $1.6 million gain on contingent consideration or earn-outs. Under U.S. GAAP accounting rules, we are required to revalue this liability for estimated contingent earn-out payments with any revaluation recorded through the income statement. In effect, the revaluation of the earn-out to its quarter-end fair value is a reduction in the acquisition purchase price. Excluding the effect of the gain on earn-out, our G&A expenses would have been $1.5 million, an amount that is 2% of revenues for the fourth quarter 2018, which compares with 1.9% for the fourth quarter 2017.

Our G&A expenses were down 46% for 2018 year-to-date period, primarily due to gain on earn-outs of 3.8% -- sorry, $3.8 million. Excluding the effect of the gain on earn-outs, 2018 G&A expenses would have been $7 million, an increase of 12.4%, which is 2.4% of revenues versus 2.2% in 2017. The 0.2% increase was due to an increase in share-based compensation in 2018.

Our effective income tax rate was 18% for 2018 compared with 59.7% for 2017. Contributing to the lower tax rate this year was a deduction attributable to the option buyback held by our Chairman, Allen Baker, in connection with the company's successful public stock offering that closed in May, increased WOTC credits as well as the rate reduction tax legislation passed in December of 2017. The 2017 increase was primarily the result of write-down of the deferred asset as a result of that tax change. We currently estimate a 23% effective rate for 2019.

We continue to generate robust operating cash flows as a result of our strong balance sheet, effective working capital management and solid earnings, allowing us to reduce debt while at the same time keep returning capital to our shareholders in the form of a regular quarterly dividend, currently set at $0.30 per share with an approximate yield of 4.5%. BG Staffing has now paid a quarterly dividend for 17 consecutive quarters. Our current debt to adjusted trailing 12-month EBITDA is 0.74%.

Adjusted EBITDA for the year was $27.1 million or 9.4% of revenues in 2018 compared with $24.7 million or 9.1% of revenues for 2017. We believe adjusted EBITDA is a useful performance measure and is used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide a more complete understanding of factors and trends affecting our business. We also believe that investors, analysts and other interested parties view our ability to generate adjusted EBITDA as an important measure of our operating performance and that of other companies in our industry. Additionally, the financial covenants in our credit agreement are based on adjusted EBITDA as defined in that agreement. Reconciliations of adjusted EBITDA to net income are available in our latest annual report on Form 10-K and our earnings release, both of which are available on our website.

Before I turn the call over to her, we'd like to congratulate Beth and tell you that staffing industry analysts recently named her one of 2019 North American Staffing 100 and included her in the Global Power 150 - Women in Staffing list for 2018, recognizing top influencers in the staffing industry. Congratulations, Beth.

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [4]

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Thank you, Dan. Good afternoon, everyone, and thank you for joining us today. I'm pleased to review 2018's strong operating results in which, once again, we met or exceeded our goals in every significant category. Based on our financial strength, overall growth and increasing profitability and cash flow, we are optimistic about 2019.

We continue to see strong customer demand. Once again, our success was led by solid operational performance by our management team in the field. We are proud to have reported 26% annual consolidated gross profit, our seventh consecutive quarter, with consolidated gross profit percentage in excess of 25%. BG's gross margin percentage has steadily increased from 19.1% as of fiscal year-end 2013 to 26.7% for 2018.

We believe that not all revenue is created equal and consistently strive to partner with clients where our services are not commoditized. While our revenue growth over the past several years has certainly been impressive, we believe our laser focus on the strategic priority of growing returns, as measured by gross profit margin percentage, adjusted EBITDA and EBITDA margin, benefits our shareholders with sustained value creation. Value creation grows by increasing margins, which we do through focused operational discipline, organic growth initiatives and selective value-creating M&A.

We believe targeted acquisitions allow us to build our service offerings more quickly and at a lower costs than if we built them in-house. Our goal is to seek acquisitions primarily in our Professional segment that will expand our footprint into new geographic markets or provide a skill set that helps complete our talent offering puzzle. We feel this provides an ease of use for our client partners offering a one-stop solution in their staffing needs. In addition, it helps us strengthen our cross-sell efforts around the country.

Now speaking of cross-sell. We began our efforts in the summer of 2018, and we are extremely pleased that it accounted for 2.8% of our Professional division revenue by the end of the year. One good example of a successful cross-sell was our Zycron IT business to Donovan & Watkins for finance and accounting work. We now are that customer's exclusive F&A provider and expect to generate $6 million in revenue over the next 2 to 3 years from that account. In addition, our Smart Resources F&A division cross-sold IT work to Zycron, which is now one of 4 providers, down from 20, at a customer that historically averaged $20 million in annual spend.

I'd like to think of us as a serial acquirer. However, in 2018, we did not complete any acquisitions. With over 20,000 staffing firms in the U.S., the pipeline remains very full and active as we saw approximately 100 opportunities in 2018. Each week, we evaluate the opportunities for accretive businesses that we believe will complement both our existing market exposures and our diversification strategy.

On the operational side of our business, we've made meaningful early progress of our 3 2019 initiatives, which are California, technology enhancements and culture. I'll start with California. In Q1, our BG Multifamily Real Estate division will enter the California market, the largest U.S. department market with 2.8 million units. Additionally, our IT division is poised to start providing consultancy in California in early April.

Our technology initiative is directed at both talent acquisition and engagement as well as system upgrades that will enhance the field talent and customer experience. In an effort to achieve this initiative, we brought in a new CIO in January, who has spent over 11 years in the industry focusing on technology and innovation and has already started to move the needle in the right direction.

While these are important tools to help our company grow, we have not lost sight of the fact that we are in the people business. Beyond the technology component, recent candidate surveys tell us that speed, mixed with personal interaction with our teams, results in our most engaged talent resource.

And corporate culture is also very important to us, and the best culture comes from focusing on the bottom up, not the top down. That belief is reflected in our new tagline, "Your future, our purpose." We want to attract the best in the industry, and we believe that a strong culture that supports a work-life balance builds a more engaged workforce. It starts with our team. If they are engaged and appreciated, it is a ripple effect that is felt through our field talent, our customers and our communities we serve.

Now turning to staffing industry outlook. Subject to normal seasonal patterns, we remain optimistic about 2019. The present economy and labor markets are positive for staffing overall. Looking beyond 2019, we believe that even in a softened labor market of the future, economic momentum will continue to be positive for staffing. Industry growth indicates more companies are using temporary and contract employees as a regular and usual component of their business planning and operations across various industries. We're prepared to be agile in our movement in a softened market, which may present us with increasingly appealing acquisition targets at an attractive multiple.

The Bureau of Labor Statistics shows that U.S. temporary labor market penetration rate continues to be strong at 2.06% and rising. And the staffing industry stats for the approximately 7,000 U.S. staffing and recruiting companies are encouraging. I am proud that we play a role in contributing to the livelihood of the more than 3 million temporary and contract employees who are working for American staffing companies during an average week. At BG Staffing, we average 6,600 paychecks a week, resulting in paying close to 30,000 people in 2018. Not only are we in the people business, we're in the purpose business as it all starts with the job.

We've closed the books on a record 2018 and are very optimistic about doing so again in 2019. We continue to proactively identify areas across all segments in which we can provide additional staffing services, and we will continue to invest in these incremental growth activities. We look forward to the anticipated revenues from cross-selling and our entry into California market as a needle-moving initiative in 2019.

With that said, I will turn the call back over to the operator for questions and answers.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from Jeff Martin, who's with Roth Capital Partners.

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Jeffrey Michael Martin, Roth Capital Partners, LLC, Research Division - Director of Research & Senior Research Analyst [2]

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Dan, you touched on the segment performance for the year. I was curious if you and Beth could comment on the segment performance in Q4 and some of the trends that are driving those segments.

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [3]

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I think we saw probably continued momentum through Q4, except in our F&A group. Because of a large project on that relocation, we saw sequential revenue growth in that group from 3 in the 4, sequential growth in the InStaff, which, of course, is normal in the fourth quarter. Real Estate was down in the fourth quarter, which is consistent with third quarter being their largest. And then IT, we had a slight decrease in the fourth quarter, basically to do some project ends and whatnot. So...

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Jeffrey Michael Martin, Roth Capital Partners, LLC, Research Division - Director of Research & Senior Research Analyst [4]

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Okay. And then, Beth, could you elaborate on the strategy to enter the California market? Is it just Multifamily right now? Are you looking at taking the Talent division there over time? And what about staffing in general?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [5]

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Right now, we've got people in the Multifamily division that will probably be billing by the end of March. And then the IT group, they already have orders. They're just waiting for us to be able to say go, which is why in my notes, I said that we felt that they would be billing in April. We've already got orders pending on both sides for the professional IT side and for Multifamily. As far as Talent goes, I think we're just going to try to figure out right now how it works with us going into just the Multifamily, but we anticipate to be able to grow the Talent group in that market as well. We'll hold off on Light Industrial. Not sure we want to play in that arena right now. I think we needed to do the other ones first, so we'll hold off on the Light Industrial sector for that.

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Jeffrey Michael Martin, Roth Capital Partners, LLC, Research Division - Director of Research & Senior Research Analyst [6]

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Okay, okay. And then in terms of the tactical strategy there, are you going in there by opening a couple of offices? And if so, what parts of California are first? And over the next couple of years, what does that platform look like in terms of the footprint?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [7]

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We're starting on in San Diego. About a year ago, we hired a guy who actually sits on the National Supplier Council for the apartment industry, and he lives in San Diego. He has kind of been going out and been our cheerleader for the last year about the fact that we are coming. So we have a lot of -- since most of our customers in Multifamily have a national presence, they are just waiting for us to give them the green light, and we feel like it'll be very positive along the way. We just extended an offer this week to a salesperson who is going to start next week with her training. So we think that, that's going to be positive along those lines. And then we will grow it from that perspective. But right now, the target is to just do San Diego, and we will continue to do the hub environment like we have right now. So the California positions will be filled with the help of the Dallas hub as well as us putting a stacking coordinator out in California with them.

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Jeffrey Michael Martin, Roth Capital Partners, LLC, Research Division - Director of Research & Senior Research Analyst [8]

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Okay. And then in terms of your cross-selling initiative, that, I think, catches people's attention. What -- do you have a category leader there? And how is that structurally going to evolve over time? It sounds like it was a fairly new initiative mid-year last year.

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [9]

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I think for the most part, we have -- in January, everybody went on the same applicant tracking system. So everybody has access to everybody else's customers. So in addition to that, instead of breaking it down to where we go in and we say, here's the meeting for the F&A group and here's the meeting for the IT group, they are doing sales blitzes between all brands, and those brands get together on a call and they do a training on a particular subject. So the subject for the month may be something to do with F&A, but the IT people are trained or vice versa. And then we go out and do that -- do a sales blitz on that. I think what's been very, very helpful is really educating the folks in our offices as to what the other brands do. So if someone in one office just provides Oracle or SAP and they make a phone call and they say, hey, we don't use Oracle or SAP, we use Workday, then the person on the phone doesn't know exactly that they can say, we have a sister company that offers Workday, and put that business to them. Those kind of communications did not happen before, so it's been a big push in making sure that everybody understands what we have available.

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Operator [10]

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The next question comes from Howard Halpern, who's with Taglich Brothers.

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Howard Allen Halpern, Taglich Brothers, Inc., Research Division - Senior Equity Analyst [11]

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In terms of, I guess, moving into California, specifically on the Multifamily, is there going to be an initial bump in expenses? And if so, what amount could we expect?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [12]

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I don't know that we've identified the amount yet, but there have been additional costs, and that's really just been on the compliance side. So we've had to get with attorneys and have attorneys help us with onboarding paperwork and the employment laws of California, along with -- they have some requirements to where you have to actually do a training for every single individual out there that has got costs associated with that. So we have not put all of those costs together, but there would -- there is a -- some initial costs that go in into California.

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [13]

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Yes. And remember what we're talking about, one office initially, when the salesperson...

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [14]

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And it's a Regus office.

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [15]

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And a Regus office, so not a lot of initial investments. So...

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [16]

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Yes.

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Howard Allen Halpern, Taglich Brothers, Inc., Research Division - Senior Equity Analyst [17]

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Okay. And in terms of the Talent segment, you said you had 6 offices. How -- I know they're probably not all mature yet, but how are they progressing? And how many of those -- how many new offices will be added to that division, if any, this year?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [18]

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Right now, we do not have any new offices budgeted for them for 2019. What we're finding with that group is the sale process is a bit slower, but the gross profit and the paying bill rights are a lot higher. So we're getting that in the 40% on the gross margin with that division. So we're trying to let them get their -- get established in the markets that we're in right now without stressing them out for growth and letting them kind of get that under their belt. Now that doesn't mean that if they have a customer that wants them to go somewhere, that we would open them. We would not open a new office. But right now, we do not have anything budgeted for them this year.

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Howard Allen Halpern, Taglich Brothers, Inc., Research Division - Senior Equity Analyst [19]

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Okay. And just one last one on all the good cash outflows through the business. How much debt do you estimate you might be able to repay in the coming year?

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [20]

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We -- gosh, sorry, I don't have that in front of me. I think I estimated that based on our current forecast, we will be out of debt by mid-2021, absent acquisitions or anything like that.

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Operator [21]

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The next question comes from [Greg Hellman], who's a private investor.

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Unidentified Shareholder, [22]

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Yes, I want to ask you a question. First of all, for Real Estate, is there like a career path a person can have in your organization within Real Estate to start at a lower level and work his way up or her way up?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [23]

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Absolutely. They do a really good job at bringing everybody in certain levels and moving them up the ladder.

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [24]

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In fact, we just promoted -- how many people?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [25]

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We promoted 6 people.

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Dan Hollenbach, BG Staffing, Inc. - CFO & Secretary [26]

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Six people to what we call...

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [27]

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An assistant hub manager. So we have hub managers, and then we have assistant hub managers. So we took some of the people that were actually working schedules and put them in a training mode so that they could help get people trained in places and move them through.

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Unidentified Shareholder, [28]

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And when you say hub, that's just an office. That's a regional office, right?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [29]

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That's where we do all the recruiting. So that is like the Dallas office, the Tampa office, the Charlotte office. So that's where all the recruiting takes place.

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Unidentified Shareholder, [30]

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Okay. Okay, that's good. And also, in terms of hiring from within versus without for new either hub managers or office managers, can you talk about that? Or do you try to hire from within or you've been able to just hire from within as you grow? Or do you have to go to the outside?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [31]

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That's twofold. So when we go into a new market, we go to the association and ask them to tell us who the rockstar is in the association. So it may be somebody who's got all the contacts within the properties but sells carpet. So they will tell us who the rockstars are, and then we recruit them out of that sector because they've got all the connections. As far as going in and having a staffing coordinator in place, that will be a ground-level person. So that person is the person that we would develop and move them up through the ranks. Now staffing, a salesperson can eventually be a regional salesperson, so we kind of blossom that. But the initial person in a market, we go to the outside on. Otherwise, we try to promote from within.

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Unidentified Shareholder, [32]

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Okay, great. And then finally, can you talk about just the time to fill in for the IT staffing or whether you measure that and whether that's improving? Can you give me like kind of -- some kind of metrics on that, the direction they're going in?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [33]

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We don't have those metrics right now. Like I said, we just put -- got everybody on the same platform in January. So we are building out all of those dashboards and KPIs right now.

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Unidentified Shareholder, [34]

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Okay. And when will that be operational? When will you have these metrics?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [35]

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I anticipate to have them in -- sometime in the next quarter.

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Unidentified Shareholder, [36]

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Okay. That'll be the second quarter -- the quarter ending June?

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [37]

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Yes, bar no problem. My disclaimer, I have a disclaimer here. I just -- I know they're making a lot of progress on it.

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Operator [38]

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This concludes time allocated for questions on today's call. I would now like to turn the conference back over to Beth Garvey for any closing remarks.

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Beth A. Garvey, BG Staffing, Inc. - CEO & President [39]

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Thank you, Ben, and thanks to all of you joining our call today. I look forward to reporting our progress to you as we drive forward our 3-year goal of generating $500 million in revenue with 10%-plus adjusted EBITDA. Have a great afternoon. Talk to you all next quarter.

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Operator [40]

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This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.