BGSF, Inc.

Good morning, everyone. Welcome to the BGSF, Inc. Fiscal 2024 Second Quarter Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. Now I would like to turn the call over to Sandy Martin, three-part advisors. Please go ahead.

Good morning. Thank you for joining us today for BGSF's second quarter 2024 earnings conference call. With me on the call are Beth Garvey, chair, president, and chief executive officer, and John Barnett, 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 archived on the company's investor relations page at investor.bgsf.com. Today's discussion will include forward-looking statements which are based on certain assumptions made by the company 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 conditions and results. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute. GAAP and non-GAAP measures are reconciled in today's earnings press release. I'll now turn the call over to Beth Garvey.

Thank you, Sandy, and thank you all for joining us. Welcome to our second quarter earnings conference call. In May, we announced a review of strategic alternatives, And as part of that ongoing process to maximize shareholder value, the board and I will continue to evaluate all options. While I cannot provide an update today, the process is ongoing, and we look forward to sharing the results in the future. Also, we will not take questions regarding the strategic alternatives or our process in today's Q&A. Thank you so much for understanding. Before we cover our results, I am pleased to share that we have been recognized by staffing industry analysts, naming us the 49th largest IT staffing firm in the U.S., an improvement from 52nd, as well as the 97th largest staffing firm, an improvement from 121st place in 2023. Moving up in SIA's annual rankings is an important milestone recognizing our team's hard work and dedication to delivering value and excellence to our customers and strategic partners. Over the last 12 months, challenging macro pressures have significantly impacted our entire industry due to higher interest rates and inflationary pressures that have negatively impacted most businesses in the U.S. For the second quarter, our total revenues were $68 million, comprised of approximately $26 million for property management and $42 million for the professional segment. Year-over-year comparisons, although still meaningful, may not measure our incremental progress this year compared to sequential comparisons. Property management revenues were down year-over-year and up sequentially compared to the first quarter. Although we've not yet returned to normal seasonality, albeit trending in the right direction, we were pleased to report a sequential sales lift in the second quarter of 4.8% versus the first quarter. In the professional segment, revenues declined in the second quarter over both the sequential and year-over-year periods, mainly because project ends exceeded project starts. However, business indicators began to shift on positive momentum in the quarter. Notably, new contract wins outpaced contract ends by approximately 25% through June. This sustained acceleration was primarily seen in the IT workforce solutions, managed solutions, and near and offshore engagements. These projects will generate revenue and cash flow in the second half of the year. This is very encouraging, and I will speak more about our outlook in a moment. We continue to manage costs and took prudent action in the second quarter to reduce headcount and lower fixed costs. These actions will benefit our short-term profitability goals while supporting our strategic growth plans. After John walks through the detailed financial results for the quarter, I will return to discuss significant operational initiatives and our outlook. John?