BG Staffing sees slight profit margin increase
"We experienced strong revenue growth in 2014 with revenue exceeding 2013 by $21.1 million, and saw margins increased by nearly one percentage point," said L. Allen Baker, Jr., President and CEO.
"We are extremely pleased with 2014, our first full year as a public company. We have seen our strategy of integrating recent acquisitions produce successful results in the form of higher sales and margins. As a result of these efforts, we expect to continue to increase revenues and to improve our profitability."
Baker continued, "Now that we have finalized the successful integration of our InStaff acquisition, which was completed in 2013, we look forward to continuing to build on our five-year track record of accretive acquisitions."
Revenues for the year 2014 were $172.8 million, an increase of 13.9% when compared with revenues from the year 2013 of $151.7 million. Gross profit was 20.0% for the year 2014 compared with 19.2% for the year 2013. The gross margin percentage increased on a year-over-year basis due to a revenue mix shift resulting from increased revenues from higher margin customers and a reduction in revenue of some lower margin customers. The Company reported a net loss of $0.4 million, or $0.08 per diluted share for the full year 2014 compared with pro forma net income of $0.3 million, or $0.05 per diluted share for the full year 2013. On December 28, 2014, the Company's working capital position was $8.6 million.
During the full year 2014, our net loss included $3.4 million in non-cash expenses. The non-cash expenses included $1.2 million in non-cash expense related to stock options granted to management and warrants issued to outsiders, a $1.0 million loss on extinguishment of related party debt, and $1.2 million for the mark-to-market impact of a put option.