BGSF, Inc.

Good day and welcome to the BDSF Inc. Fiscal Year Fourth Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. We are opening questions only for analysts today. And to ask questions, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Sandy Martin with three-part advisors. Please go ahead, ma'am.

Sandy Martin Good morning. Thank you for joining us for today's BGSF's fourth quarter and full year 2024 earnings conference call. With me on the call today are Beth Garvey, Chair, President, and Chief Executive Officer, and Keith Schroeder, newly appointed 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. Management will refer to non-GAAP measures, including adjusted EPS and adjusted EBITDA. Reconciliations to the nearest GAAP measures can be found at the end of our earnings release. I'll now turn the call over to Beth Garvey.

Thank you, Sandy, and good morning, everyone. I appreciate you joining us today. I'd like to begin by addressing our CFO transition. Yesterday, we announced the appointment of Keith Schroeder as our new Chief Financial Officer. We are thrilled to welcome Keith to the BGSF team. He's a transformational leader with extensive public company experience, bringing strategic, operational, and financial expertise that will strengthen our finance and accounting functions. I also want to express my deep appreciation for John Barnett and his contributions to BGSF during a pivotal and transformative period in our company's history. On behalf of our leadership team and the board, I thank John for his dedication and wish him the very best in his future endeavors. Additionally, I'm proud to share that BGSF has once again been recognized as one of the best places for working parents, marking our fifth consecutive year of receiving this award. Moving on to restructuring our strategic updates, as you recall in December, we announced a significant restructuring plan aimed at reducing costs, improving operational performance, and positioning BGSF for profitable growth. We anticipate cash savings of approximately $7 to $9 million in 2025 from these initiatives, which included headcount reductions and streamlined indirect costs. Furthermore, by shifting our IT middleware maintenance and development to lower-cost, near-shore support with Arroyo, we expect to save an additional $800,000 annually in capital and cash expenditures. Both of our business segments also underwent an organizational restructure, which we believe will enhance communication, improve operational consistency, and drive efficiency gains, ultimately supporting long-term growth. Regarding our strategic alternative process, our timeline remains unchanged. We continue to expect this to be a 12- to 18-month process from our initial announcement in May of 2024. While we are making progress, we recognize that economic and political uncertainties have created a more cautious environment. We remain committed to providing updates when we have definitive developments to share. Before Keith provides financial results, I'd like to highlight key trends in our business segments. Professional segment. Our monthly IT contract revenue normalized for billing days reached its lowest point in June of 2024. However, since then, revenue has stabilized or grown sequentially, with positive trends continuing into January and February of 2025. Fourth quarter revenues were down 3% sequentially, reflecting normal holiday seasonality. However, adjusted for billing days, Q4 was approximately up 2% sequentially. Encouragingly, we added 50 new logos in Q4 and saw a 30% increase in signed master service agreements compared to Q4 of 2023. Increased customer engagement and scope meetings suggest a growing opportunity pipeline, reinforcing our confidence in positive trajectory. In the property management segment, we took decisive action to align direct and indirect operating costs with revenue, improving overall efficiency. The broader multifamily housing sector remains challenged by rising operating expenses and credit challenges. However, we are optimistic about improvement in revenue trends starting in mid-2025. Our territory mapping initiative in key markets drove a 23% increase in revenue and remains a top priority for expansion in 2025. We continue to see year-over-year growth for our exclusive and semi-exclusive preferred vendor agreements, positioning BGSF as a go-to partner for our property management clients. Now I'll turn the call over to Keith to walk us through the financial results.