BGSF, INC. Q4 FY2024 earnings call

• CFO transition: Announced Keith Schroeder as new CFO, thanked John Barnett. - Restructuring: Anticipates $7-9M cash savings in 2025 from initiatives including headcount reductions and streamlined costs; IT middleware shift to Arroyo saves $800k annually. - Strategic alternative process: Timeline remains 12-18 months from May 2024, progress ongoing but impacted by economic/political uncertainties. - Operational highlights: Advanced lead generation engine expanded to finance/accounting teams; restructured technology/digital marketing teams, launched operational excellence team using AI to streamline workflows.

Professional segment: Fourth quarter revenue was $64.4 million, down 3% sequentially but adjusted for billing days was 2% sequentially. Monthly IT contract revenue normalized for billing days reached lowest in June 2024 but stabilized/grew sequentially into Jan-Feb 2025. Added 15 new logos in Q4 and saw 30% increase in signed master service agreements. Property Management segment: Took action to align costs with revenue, territory mapping drove 23% revenue increase. Broader multifamily housing sector challenged by rising expenses and credit issues, but optimistic about mid-2025 revenue trends.

• Restructuring plans position for greater financial efficiency. - Laser-focused on revenue growth and profitability improvement to enhance cash flow and shareholder value. - Expect full run rate of $7-9M annual savings from restructuring in 2025, with majority of people cuts seen in Q1 and commission plan changes in Q2.

• Economic and political uncertainties affecting the strategic alternative process. - Challenges in the multifamily housing sector including rising operating expenses and credit challenges.

Q: About the restructuring cadence, Arroyo process, property management headwinds, and professional services feedback A: Beth Garvey discussed that majority of cost cuts in people were in Dec, seen in Q1; Arroyo team utilization ongoing; property management hopeful for second half due to NAA conversations; professional services has new logos in pipeline with cautious optimism Q: On professional side budget allocation, AI impact, timing of savings, personnel cuts impact, property management territory mapping A: Beth Garvey said AI conversations with clients are positive; savings timeline with people cuts in Q1 and commission changes in Q2; personnel cuts were mostly back office with some disruption in property management sales; territory mapping launched in Houston, Atlanta, with Dallas to launch and others in June