BGSF, Inc.

Good morning, everyone. Welcome to the BGSF Fiscal 2023 First Quarter Financial Results Conference Call. After the speaker's remark, there will be a questions and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your questions, please press star 2. As a reminder, this conference call is being recorded now. I will turn the conference call over to Sandy Martin, three-part advisor of Please go ahead.

Thank you. Good morning and welcome to the BGSF 2023 First Quarter Earnings Conference Call. With me on the call today are Beth Garvey, Chair, President, and Chief Executive Officer, and John Barnett, Chief Financial Officer. After our prepared remarks, there will be a question and answer 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, 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 first quarter earnings discussion. In late April, we announced our acquisition of Arroyo Consulting. I'm excited about this strategic and high-value addition to our offerings. We believe that Arroyo strengthens our go-to-market cross-sell efforts by providing current and future clients with cost-effective alternatives through near-shore and offshore IT resources. Extending BGSS delivery platform to include Latin America and India adds strategic capabilities and expands our IT talent recruitment reach as well. Our teams are working well together, and we believe that adding these deeper specializations and global reach were a strategic imperative, and we are encouraged by our clients' responses to the addition. Turning to our quarter results, first quarter results were in line with our expectations for both professional and real estate. As you can see in our release, the professional segment benefited from incremental revenues related to our acquisition of Horn Solutions. and we are excited about the cross-selling and expanded wallet share opportunities it will provide. We are cycling against tougher sales comparisons this year as our team is highly focused on pricing, spreads, and overall cost structure as market dynamics involve. Since the fourth quarter of last year, we have seen longer decision timeframes in the selling cycle, which impacts our professional side. However, we continue to see solid demand for ERP and cloud migration services And importantly, we have consulting and managed service specialties in top enterprise-wide technologies. Today, we reported revenue of $75.3 million, up 9.9%, and we also expanded gross margins to 35.6%. Delivery margin expansion was at the core of our professional growth strategy as we journeyed from a staffing company to a high-value consulting and managed services business, delivering expertise to our clients. while also maintaining our solid margin profile in our real estate sector. Now I will turn the call over to John. After he covers our financial results for the quarter, I will come back and discuss our 2023 business outlook and provide comments on our strategic initiatives for this year. John?