BGSF, Inc.

Good morning everyone and welcome to the BGSF Inc fiscal 2022 fourth quarter and four year financial results conference call. All lines have been placed on mute for the presentation portion of the call with an opportunity for question and answer at the end. If you would like to ask a question, please press start followed by one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn you over to Sandy Martin, Freepath Advisors. Please go ahead.

Thank you. Good morning, and welcome to the BGSF 2022 fourth quarter and four-year 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 Securities and Exchange Commission. Management statements are made as of today, March 9th, 2023, 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-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute. Reconciliations of GAAP to non-GAAP 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 for joining us today for our year-end 2022 earnings discussions. and very pleased to report record revenues in 2022 of $298 million, a strong 24.8% increase over 2021, and full-year adjusted EBITDA and adjusted EPS were up 45% and 47%, respectively, over prior year periods. As a reminder, we divested our light industrial segment during the first quarter of 2022. We believe this more fully aligns with our core strategy of building higher-margin work in consulting, managed service, and workforce solutions. Also during 2022, we successfully launched the company's integrated IT technology platform, which we know is foundational to our plans to create significant long-term value for our business. I will speak more about this in a few moments. We've had a very busy and productive year, and I would like to recognize and thank all of our BGSS team members and their commitment and diligence last year. Our teams work together with purpose, persistence, and perseverance to complete our strategic directives in 2022, and they deserve the credit for our operational and financial successes. While I am discussing our teams, I also want to share that we have continued to build on a strong bench our culture and our talent development. As announced earlier this week, we are making a CFO transition later this month, and I want to welcome John Barnett as our incoming Chief Financial Officer. John brings strong finance leadership capabilities with deep experience working in public and private companies, and his leadership style fits well with our BGSF culture. Dan will be working with John and transitioning his CFO duties, and I look forward to having John join this call in a couple of months to discuss our Q1 results. I also want to take a moment to thank Dan for his tremendous contributions to our organization. Everyone in our organization is grateful to him for his dedicated leadership as a CFO role in 2015. Additionally, we have continued to strengthen our leadership bench in many ways. In November of 2022, we added Melissa Phillips as our Chief Digital Officer. Melissa is a strong leader in sales and digital delivery. and she is responsible for lead generation enablement on BGSS sales and recruiting technical platform. Tech-enabled lead generation is a valuable component of our growth initiative for 2023 and beyond. Early in 2023, we moved Chris Loop into the important role of chief strategy officer. Chris is a visionary leader in business transformation and growth, and he has been responsible for championing BGSS IT innovation platform as we scaled our businesses. Chris is providing project management leadership for a company's strategic initiatives and is also defining the structure and process for our important M&A work. We also promoted Nicole Rosen to our position of Chief Information Officer. Nicole joined our company in 2019 and was instrumental in the success of our IT roadmap journey. Today, we believe that our current IT tech staff, as well as our digital tools and resources, are distinct competitive advantages for our company. The successful implementation of our strategic initiatives three years ago has positioned us for growth and value creation in 2023 and beyond. Before I turn the call over to Dan, I want to cover a couple of strategic initiatives that we are working on. During the second quarter, we plan to rebrand all of our businesses to BGSF. We know that the power of maximizing our reputation by going to market as BGSF gives us traction on cross-selling efforts and we have seen evidence of this on professional sites during a soft launch of our renaming in 2022. Dan and I will provide more details on that in a few minutes. Also, I want to comment on Horn Solutions' acquisition that we closed in December of 2022. We have known the Horn leadership team for many years, and this was a natural fit for our business. With annual revenues of $30 million, this company was a sizable acquisition for us, which adds to the top line starting in 2023. As we previously discussed, Horn is a good strategic fit because it builds on high-value consulting and managed service businesses in the finance and accounting sector. We envision expanded market share in terms of geographic footprint, as well as new client partners and significant cross-sell prospects. This business has also demonstrated a track record of double-digit growth rates, excellent EBITDA returns, and industry-leading margins. Financially, this transaction was immediately accretive to our business and is also benefiting our BGSF team members and our customers. Now I will turn the call over to Dan after he covers our financial results. For the quarter and the year, I will come back and discuss our business outlook for 2023 and mission-critical initiatives that we are working on.