BG STAFFING, INC.
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Report Link: Research Update Released (Dated 03/13/2017)
Analyst: Howard Halpern
Taglich Rating: Speculative Buy
Price Target: $16.70
Time Horizon: 12 Months
Rating Established: November 5, 2015
Price When Established: $13.99
Most Recent Report: March 13, 2017
Price When Issued: $13.91
BG Staffing, Inc. Reports 1Q17 Results
On April 27, 2017, BG Staffing, Inc. reported 1Q17 results for the three-months ended March 31, 2017.
BGSF reported 1Q17 net income of $1.3 million or $0.15 per share, on a 4.5% revenue decrease to $56.8 million from $59.6 million. In the year-ago period the company reported net income of $833,138 or $0.11 per share.
Taglich Brothers estimated 1Q17 revenues of $60.4 million and net income of $1.2 million or $0.13 per share.
BG Staffing Acquired Zycron, Inc.
On April 6, 2017, BG Staffing announced it acquired Zycron, a privately held regional provider of IT temporary staffing in the Southeastern US for $19 million in cash and $1 million in unregistered common stock. The terms also includes certain earn out provisions.
In 2016 Zycron generated revenues of approximately $38.3 million from offices located in Nashville, Memphis, and Chattanooga Tennessee.
BG Staffing, Inc., headquartered in Plano, Texas, provides staffing services to a variety of industries through its commercial, multifamily, and professional staffing operating segments. The company is a national, temporary staffing company that provides workers to a variety of clients seeking to match their workforce requirements to their business needs.
Company ReportsResearch Update Released (Dated March 13, 2017)
Research Update Released (Dated November 3, 2016)
Research Update Released (Dated August 16, 2016)
Initial Research Report (Dated November 5, 2015)
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statement is the opinion of Taglich Brothers, Inc. and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in this report are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. As of November 3, 2015, Taglich Brothers, Inc. and/or its affiliates, own more than 1% of BGSF common stock. Taglich Brothers, Inc. has an investment banking relationship with the company mentioned in this report. In 2010, 2011, and 2012, Taglich Brothers Inc. served as the placement agent for $2.3 million in notes, 8.5 million class A units, and 6 million class A units, respectively. In December 2014 Taglich Brothers Inc. was the sole placement agent for 956,050 shares of BGSF common stock. In October 2015 Taglich Brothers Inc. participated as a co-placement agent for a 584,579 common stock block trade by two selling shareholders. Taglich Private Equity, LLC had an advisory agreement with the predecessor company to BG Staffing, Inc. In 2007 to 2013 Taglich Private Equity received an annual advisory fee of $175,000. All research issued by Taglich Brothers, Inc. is based on public information. BG Staffing, Inc. is not paying Taglich Brothers, Inc. for the creation and dissemination of research reports.