Successful Divestiture and Debt Repayment
In September, BGSF closed on the divestiture of its Professional division for $96.5 million plus a $2.5 million working capital adjustment, and subsequently paid off $46 million in outstanding debt.
Special Dividend and Stock Buyback Plan
The company declared a special cash dividend of $2 per share, returning $22.4 million to shareholders, and announced a stock buyback plan of up to $5 million, reflecting confidence in its long-term strategy.
Sequential Revenue Improvement
Sequentially, revenues improved by 14.4% over the second quarter, benefiting from a seasonal lift due to end of summer turnovers in apartments.
Strategic Initiatives and Market Positioning
BGSF engaged an independent consulting firm to review its business and industry landscape, identifying opportunities to capture a share of a growing $1 billion-plus addressable market.
Improved EBITDA Performance
Third quarter adjusted EBITDA was $980,000 or 3.6% of revenue, compared to $75,000 or 0.3% in the year-ago quarter.