BGSF, Inc.

Good afternoon, everyone. Welcome to the BGFF, Inc. Fourth Quarter and Year-End 2020 Financial Results Conference Call. As a reminder, this conference call is being recorded. Now, I will turn the call over to Hala Alshabini, Investor Relations, to provide instructions and read the Safe Harbor Statement. Please go ahead.

Thank you. and welcome to the BGSS fourth quarter and year-end 2020 earnings results conference call. With me today are Beth Garvey, President and CEO, and Dan Hollenbach, Chief Financial Officer. After the speaker's opening remarks, there will be a Q&A session. As noted, today's call is being recorded and webcast live. A replay will be available later today and archived for 90 days on the company's investor relations page. Now for the safe harbor statement. Discussions today will include forward-looking statements, which are based on certain assumptions made by BGSFs 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 the quarterly reports on Form 10-Q, 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 statement. These forward-looking statements are made as of the date of this call, and BGSF 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 express written permission. During the call, management will discuss some non-GAAP measures, which are used for internal evaluation and to report the results of the business as useful information to management, the Board of Directors, and investors over 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 superior to financial measures calculated in accordance with GAAP. For a reconciliation of these non-GAAP measures to the most directly comparable gap measures, please see today's news release posted on the company's website. I'll now turn the call over to Beth Garvey.

Beth? Thank you, Holla, and thank you to everyone for joining today's call to discuss our fourth quarter results in a very eventful 2020. First, I hope everyone is remaining healthy and safe. I'll begin today's call with a review of our operational highlights and segment performance. I will then turn the call over to Dan to discuss our financial results and return at the end with some closing remarks on our general outlook. I'd like to start by taking a moment to acknowledge all our team members at each of our BGSF business units for their continued hard work and dedication, especially during such a tough year. Our business continuity plan, executed mid-March, has been the bedrock of our resiliency and fortified our ability to support our team members and continue servicing our field talent and client partners. We are in a fortunate position as a stronger company today and with more purpose. Before I review our 2020 performance, I would also like to welcome our new team members from our recently announced acquisition of Momentum Solutions. We have partnered with this team for many years, selling solutions through EDGROP technologies, and we are excited about the opportunities to expand our reach into higher-end markets to drive higher recruiting revenues. Their expertise fits greatly into our professional segment IT solutions and more broadly across our capabilities and current client partner base. In addition, their tools are easy to integrate and will elevate our cross-selling strategies even further. It's also a great cultural fit and I'm confident that they will add to our growth story in 2021 and beyond. A year ago, the COVID-19 pandemic had just begun. We were in a position of strength, having completed some of the targeted investments in our business prior to the onset. However, no one knew what the duration or the impact of the coronavirus would be personally or professionally. And while the pandemic impacted our 2020 results, our teams delivered resilient performance through quick response measures and collaborative strategies to mitigate the downside of our sales and profitability. During the year, we took the opportunity to be more intentional and strategically go on the offense. We made it a priority to focus on how we could strengthen the business each and every day to emerge stronger as the pandemic subsides. Most notably, we completed several initiatives to support our platform for future growth. I'd like to highlight several of these. In February of 2020, we acquired EdgeRock Technologies, a leader in IT consulting and managed services supporting a diversified client base. Edge Rock continues to perform a high level for us. We made great progress on our digital transformation, bringing critical workforce technology to our business. We completed several priority projects during the year, including the implementation of our new D365 ERP system. We are also seeing the benefits of the Power BI platform for cloud-based data insights. Our website upgrades have enhanced our applicant and client partner digital experience with much improved functionality, scale, and speed. And our automated time card system in real estate is gaining higher adoption levels weekly and is currently at 72%. Overall, we've completed 14 technology projects out of the original 21 identified in early 2019. We are making significant progress on the seven additional projects to improve payroll and HR systems, enhance our applicant tracking system, fully transition our data center cloud migration, and boost our cybersecurity efforts. Long term, we will continually integrate enhancements to optimize our technology position. We also launched a new client contract management system, which will increase the speed and compliance to which new business contracts are executed. We improved our operational structure with realignment of our division leadership and further strategically integrated our recent acquisitions. We entered the Canadian market in Q4, which is a new geography for our professional group, and in January of this year, we renamed the company to BGFF Inc. to further solidify our offering as a broader workforce solutions provider. Before I go into the segment highlights, I would like to reiterate that during these rapidly changing times, the durability of our diversification model continues to help mitigate pressure on our results while we're creating diversity in both our earnings and our revenue streams. Let's begin with real estate segment, which continues to experience the largest pressure from COVID-19 pandemic. Headwinds, including the overnight stop of all non-emergency maintenance early on for a sustained period, the move to virtual leasing during our high volume season, and the eviction moratorium also played a role in owners and management companies tightening all expenses to prepare for any impact. The moratorium has been extended through March 31st, but recently has been under review in the courts. Despite these headwinds, I'm extremely pleased by the progress we have made to strategically position this segment for growth behind the pandemic and respond to what we believe is a great deal of pent-up demand. As previously mentioned, our sales process is evolving for both multifamily and BG talent. We are selling in new and unique ways, addressing virtual and in-person approaches. Our sales execution is stronger, and we launched a talent acquisition center to optimize our recruiting across our markets and streamline customer and talent relations. We have an aggressive plan to accelerate our talent acquisition pool in multiple markets throughout the year, and we are breaking down our individuals in our hubs to where the market will now have a local salesperson and a recruiter in the market versus the recruiter being in the hub as it was in the past. As mentioned, we are working on differentiated approaches and seeing solid progress as we fill the pipeline with client opportunities. We are better positioned for the planned recovery of this segment with expectations of a stronger second half of this year. Turning to the professional segment, this segment continues to benefit from higher demand as customers move to the cloud and if cybersecurity is prioritized. Sequentially, strong order flow tapered off in the fourth quarter with the completion of some large projects. We also saw extended time off during the holidays due to the pandemic, and some engagements were pushed into Q1. However, we are seeing a solid pipeline of proposal activity with the reset of January 2021 budgets and the expansion of our strategic account teams. Additionally, as I mentioned, the Momentum Solutions team brings greater opportunity for our managed services offerings and builds our base of multi-year engagements. Our division restructuring in Q4 is now aligned with EdgeRock, American Partners, Extrinsic, and Momentum Solutions into our IT consulting business unit, while Zycron and Vision Technology now make up our infrastructure and development business units. We expect this realignment will position the team for resurgence in revenue to pre-pandemic levels. Additionally, we integrated our finance and accounting brands into one business unit, which would also drive cost efficiencies. Overall, the restructuring efforts better align our leadership and resources across our professional solutions offering, and we expect it will support sales growth and strong client-partner relationships going forward. Lastly, Line Industrial had a tremendous finish to the year, During the quarter, we saw significant growth with current clients as well as new engagements. This segment provided a nice lift to our overall performance, driving better than expected results given the tailwind in online shopping and warehouse labor shortages. As a reminder, we are well positioned in this vertical as 70% of our business is on-site with a high retention rate. We are pleased to see momentum continuing as this team builds their pipeline. During the year of tremendous challenges, we proved our ability to overcome adversity and execute in a very different environment. We accomplished a lot of heavy lifting in 2020, making strategic changes in our sales efforts, our marketing, our technology, and strengthening our leadership structure. Our culture is also driven by continuous improvement, one that harnesses our individual and collective perspectives and is built on diversity, equity, and inclusion. As we discussed last quarter, we formed a DE&I Council, which is now comprised of more than 45 people and represents broad perspectives across our organization. We will continue to build out our KPIs to support our DE&I pillars of excellence and work to enhance our diversity, foster inclusive experiences, and deepen our community engagement. With that said, I'll now turn the call over to Dan to discuss the financials.