BGSF, Inc.

Good morning everyone. Welcome to BGSF Inc third quarter fiscal 2022 financial results conference call. My name is Bailey and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. As a reminder, this conference call is being recorded. Now I will turn the call over to Sandy Martin, three-part advisors. Please go ahead.

Thank you, and good morning, everyone. Welcome to the BGSF third quarter 2022 earnings conference call. With me on the call today are Beth Garvey, chair, president, and chief executive officer, and Dan Hollenbeck, chief financial officer. After our prepared remarks, there will be a Q&A session. As noted, today's call is being webcast live. A replay will be available later today and also archived on the company's investor relations page. Today's discussion will include forward-looking statements which are based on certain assumptions made by BGSF under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including those listed in the company's filings with the SEC. Management statements are made as of today, November 3, 2022, and the company assumes no obligation to update these statements publicly, even if new information becomes available in the future. During the call, management will also reference certain non-GAAP financial measures which can be useful in evaluating the company's operations related to the financial condition and results these non-gap measures are intended to supplement gap financial information and should not be considered a substitute reconciliations of gap to non-gap measures are provided in today's earnings press release i'll now turn the call over to beth garvey beth thank you sandy and thank you all for joining bgss third quarter 2022 earnings calls

I am pleased to report that the momentum we experienced in the first half of 2022 continued through the third quarter. We reported record revenues for the third quarter, totaling $78.5 million, at 22.3% year-over-year. Our professional segment accounted for 58% of consolidated revenues, with notable strength primarily on the IT side, with business investments continuing in cloud migration, ERP selection, and implementation. We also experience growth in our managed services and consulting areas. Our real estate segment continues to expand and accounted for 42% of revenues. As we discussed last quarter, the multifamily industry is significantly underbuilt, and the National Apartment Association and National Multifamily Housing Council estimate that 600,000 apartment homes are needed today in the U.S. It is also estimated that the U.S. is underbuilt by 4.3 million units by 2035, which has been accelerating primarily due to the pandemic and further demographic shifts. People today in all ages and categories are choosing to live in apartments. Multifamily housing or renting single-family homes are no longer a transitional housing option. Alternatively, people are deciding that apartments and building rent communities are a desirable solution for long-term housing. These strong tailwinds have contributed to BGSS market leadership position in the multifamily industry over the last couple of years. We recognize that long-term pent-up demand exists, and we are seeing strong new demand for apartments and built-to-rent single-family housing communities across North America. Our real estate division is strategically focused across the U.S., opening six new key markets this year, including our recent expansion into Canada. Finally, Recall that we experienced unseasonably strong real estate segment performance in Q4 of 2021. We think this activity was driven by pent-up demand that started during COVID lockdowns coupled with landlord spending again. Last year's strength creates tougher comparisons for us in the fourth quarter of this year. With that said, I'd like to turn the call over to Dan to walk through our financial results in more detail for the quarter. Then I'll wrap up the call with some comments on how we see our markets changing and BGSS plans for delivering unique workforce solutions for current and future customer needs, strategic initiatives, and M&A.