Q4 2022 BGSF Inc Earnings Call
[music].
Good morning, everyone and welcome to the BG assets, Inc.
Fiscal 2022 fourth quarter and full year financial results conference call.
All lines have been placed on mute for the presentation portion of optical with an opportunity for a question and answer it.
If you'd like to ask a question. Please press star followed by one on your telephone keypad.
Remind that this conference call is being recorded.
I would now like to turn you over to Sandy Martin Freeport's Advisors. Please go ahead.
Thank you good morning, and welcome to the Bgs F. 2022 fourth quarter and full year earnings conference call with me on the call today are Beth Garvey Chair, President and Chief Executive Officer, and Dan Hollenbach, Chief Financial Officer.
After our prepared remarks, there will be a Q&A session. As noted today's call is being webcast live.
Replay will be available later today and also archived on the company's Investor Relations page. Today's discussion will include forward looking statements, which are based on certain assumptions made by BG assessed under the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 actual results.
And 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 Manny.
Management's statements are made as of today March 9th 2023, and the company assumes no obligation to update these statements publicly even if new information becomes available in the future. During the call management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operating.
<unk> related to the financial condition and results.
These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute reconciliations of GAAP to non-GAAP measures are provided in today's earnings press release, I'll now turn the call over to Beth Garvey Beth.
Thank you Sandy and thank you for joining us today for our year end 2022 earnings discussion I'm very pleased to report record revenues in 2022, and 298 million a strong 24, 8% increase over 2021 and full year adjusted EBITDA and adjusted EPS.
We're at 45% and 47% respectively over prior year periods.
As a reminder, we divested our light industrial segment during the first quarter of 2022, we believe this more fully aligns with our core strategy of building higher margin, Mark and consulting managed services and workforce solutions.
Also during 2022, we successfully launched the company's integrated I T technology platform, which we know is foundational to our plans to create significant long term value for our business I will speak more about this in a few moments.
It had a very busy and productive year and I would like to recognize and thank all of our <unk> team members and their commitment and diligence last year. Our teams work together with purpose persistence and perseverance to complete our strategic directives in 2022, and they deserve the credit for our operational and financial.
Taxes.
While I am discussing our team I also want to share that we have continued to build on our strong bench, our culture and our talent development.
As announced earlier this week, we are making a CFO transition later this month and I want to welcome John Barnett as our incoming Chief Financial Officer.
John brings strong finance leadership capabilities with deep experience working in public and private company and his leadership style fits well with our bgs that culture.
Dan will be working with John and transitioning his CFO duties and I look forward to having John joined this call in a couple of months to discuss our Q1 results.
I also wanted to take a moment to thank Dan for his tremendous contributions to our organization everyone. In our organization is grateful to him for his dedicated leadership and CFO role in 2015.
Additionally, we have continued to strengthen our leadership bench them anyway.
Remember of 2022, we added Melissa Phillips as our Chief Digital Officer.
Unless there's a strong later in cells and digital delivery and she is responsible for lead generation enablement on bgs that sells in recruiting technical platform.
Tech enabled lead generation is a valuable component of our growth initiatives for 2023 and beyond.
Early in 2023, we lived Chris loop into the important role of Chief strategy Officer.
This is a visionary leader in business transformation and growth and he has been responsible for champion N V. G. S. S. I T innovation platform as we scaled our business it Chris.
Chris is providing project management leadership for the company's strategic initiatives and it's also defining the structure and process for our important M&A work.
We also promoted no called resin to our position of Chief Information Officer, Nicole joined our company in 2019 and was instrumental in the success of our I T roadmap journey.
Today, we believe that our current I P tech stack as well as our digital tools and resources, our distinct competitive advantages for our company. The successful implementation of our strategic initiatives three years ago has positioned us for growth and value creation in 2023 and beyond.
Before I turn the call over to Dan I want to cover a couple of strategic initiatives that we're working on.
During the second quarter, we plan to rebrand all of our businesses to be G at that.
We know that the power of maximizing our reputation bank going to market as D. G. S. S gives us traction on cross selling efforts and we have seen evidence of this unprofessional side during a soft launch of <unk> in 2022, Ben and I will provide more details on that in a few minutes.
Also I want to comment on home solutions acquisition that we closed in December of 2022, we have not in the horn leadership team for many years and this was a natural fit for our business with annual revenues of $30 million. This company was a sizable acquisition for us which adds to the top line starting in 2023.
As we previously discussed corn is a good strategic fit because it builds on high value consulting and managed service businesses and the finance and accounting sector.
We envision expanded market share in terms of geographic footprint as well as new client partners and significant cross sell prospect.
<unk> business has also demonstrated a track record of double digit growth rates excellent EBITDA returns and industry leading margins.
Financially. This transaction was immediately accretive to our business and it's also benefiting our B G. S. F team members and our customers now.
Now I'll turn the call over to Dan After he covers our financial results for the quarter and the year I'll come back and discuss our business outlook for 2023 and mission critical initiatives that we're working on that.
Thank you Beth and good morning, everyone. This is my final earnings call as the CFO of Etfs.
So Matt jump for Joy.
Calls anymore.
With deeply mixed emotions that I will be leaving my posted CFO of this great organization.
It has truly been an honor and privilege to.
Served in this role since May of 2015, and I look forward to helping the transition with John and the team as a company starts a new chapter in our strategic growth plan.
Today I will discussing results based on the earnings release filed last night.
Our annual report on Form 10-K will be filed next Wednesday.
We'll also be using the term property management real estate to describe that segment.
As Beth mentioned, we sold our light industrial segment in early 2022, and our financial results are discussed as continuing operations.
We're noted excludes discontinued operations for this year than last year.
Now for the numbers.
Fourth quarter revenues were up 14, 2% to $77 3 million.
By segment property management grew 16, 6% and professional increased $8 nine on an organic basis.
Corner solutions contributed $1 4 million of revenue in December for three weeks.
Professional wage rates increased 17%, while property management wage rates increased 10% Q over Q.
Permanent placement revenues remaining consistent.
As we expected our Q4 revenues returned to more normalized patterns in 2022 and declined sequentially coming off a strong corporate recovery quarter a year ago.
Between Q3, and Q4 professional was essentially flat due to more ends in December of this year versus last year and the deferment of some managed services projects in the late Q1 and Q2 of 'twenty three.
Property management was down 4% as expected we continue to see solid demand in projects related to cloud migration ERP selection and implementation as well as customization.
Fourth quarter gross profit dollars increased by 15, 5% compared to the prior year quarter.
To $27 1 million professional was up seven 6% on an organic basis and property management up over 17%.
As a percentage of revenue total gross profit margin increased by 40 basis points to a strong 35%.
Compared to a year ago quarter, selling general and administrative expenses were $23 2 million compared to $16 5 million last year.
The increase was driven by $40 million annualized head count costs for new roles, primarily in the second half of the year associated with strategic investments for internal talent to support our own projects.
Future growth plans.
The additions were property management relates to the return to the commercial business plus as.
As well as planned growth in multifamily this year.
In addition, the fourth quarter at 21 included a $2 million of cares Act credit file.
Finally, we recorded M&A deal cost of $265000 in bonus accruals and other year end reserves of approximately $500000 in the fourth quarter of 'twenty to over 21.
Fourth quarter net income from continuing operations was $1 4 million or <unk> 14 per diluted share compared with net income of $4 3 million or <unk> 41 per diluted share a year ago, which included a credit of $1 6 million or <unk> 15 per diluted share.
Adjusted EBITDA for Q4 was $4 3 million or five 6% of revenues compared to $5 1 million or seven 5% of revenues in 'twenty, one although revenues and gross profit margins grew year over year as mentioned, we invested in people to drive growth in 2023, which impacted our actual and adjusted EBITDA.
Our margins in Q4 2002.
Alright, effective Q4 tax rate was 33% for 'twenty, two compared with 24, 3% in last year's fourth quarter.
As Beth mentioned for the year, we reported record 22 revenues of $298 4 million up 24, 8%, while gross profit was $103 5 million or 27, 9%.
Property management revenues grew 31, 6% professional up 19, 7% organically.
Our managed services Division led by our momentum solutions acquisition in 2021 doubled in size.
Permanent placement revenues were up 13, 5% year over year.
Our gross profit percent increased 80 basis points to 34, 7% in 2022.
Pretty management grew at 36, 4% with professional up 19, 8% organically.
G&A costs as a percentage of sales grew 60 basis points this year compared with last year.
Detail of R 22 versus <unk> 21, SG&A cost is included in the MD&A section of our annual report on Form 10-K.
Net income from continuing operations was $11 3 million or $1 70 per diluted share compared to $10 5 million or $1 per diluted share for the 'twenty one period.
Benefiting 'twenty, one where two things.
One 9 million net gain on contingent consideration and a $1 $7 million of carriers credits.
Adjusted EBITDA from continuing operations totaled $21 7 million or seven 3% of revenue.
Third to $15 million or six 3% of revenue last year.
Finally, as a full year effective tax rate from continuing operations was 23, 1% for 22 compared to 21% a year ago.
Yes.
Regarding the company's financial position, we continue to maintain a strong liquidity position and balance sheet.
At the end of Q4 accounts receivables grew to $66 3 million driven by our growth and additional foreign solutions.
Days sales outstanding remained consistent with the end of Q3, and our working capital ratio strengthened to $2 seven from $1 95 last year.
Based on our strong EBITDA during 2002, we continue to invest in our IP roadmap and returned capital to our shareholders through the dividend program.
Our banking leverage ratio of funded debt to trailing 12 months pro forma adjusted EBITDA moved to two four times due to the <unk> solutions acquisition.
As Beth mentioned, the company's board of Directors recently approved management's plan to rebrand all of our businesses to Bts.
Eliminates the various trade names currently in use.
It is management's intent to complete this rebranding by the end of Q2.
The decision to rebrand creates an indication of impairment of the trade name assets and assets. The company recorded a write off of.
There are approximately $22 5 million.
And the trade names in 2023.
As the trade names were classified as indefinite life intangible assets. The company has not been amortizing carrying values. There is no cash impact or any adjustment to amortization expense related to the suspected impairment charge.
We will provide more details in her closing remarks.
As we have said previously we believe our prudent financial management and capital allocation strategy are sufficient to provide ample flexibility to fund operations.
Best for future growth.
And return value to shareholders through cash dividends and stock appreciation.
I will now turn the call back to Doug.
Thank you Dan.
Fiscal 2022, with a transformational year for our company.
Our internal goals and objectives set in motion in 2019 or successfully implemented and now we have transitioned to enhancement and continuous improvement on our it roadmap.
In addition, our strategic M&A work, including our divestiture of in staff completed in 2022 has allowed our company to grow and more high value high margin businesses by consulting and managed services on the professional side.
Finally, we continue to expand our multifamily solutions into six North American cities during 2022.
And adding our first Canadian office in Toronto.
Late in 2022, we began to experience advancement in our commercial real estate or property management solution, which we knew would be slow to recover after the pandemic.
Now I would like to comment about our roadmap initiatives a bit further our.
Our technology modernization project that went live last year was built to scale bgs growth plans to support a $1 billion revenue company.
We have identified efficiencies that allow us to grow faster, while reducing overall costs and risks in cyber and other regulatory and ESG related way.
We're also tracking ROI metrics this year against our it roadmap investment and are beginning to capture both hard and soft dollar cost savings. For example, we are sagging annual software costs of approximately $350000 and believe that we will capture north of 5% gross profit benefit from our it modernization effort.
<unk>.
Over the next 10 years, we have set.
Aggressive goals in accordance with our new strategic growth plan. We believe the successful implementation of these initiatives are important titles. Thanks to reach the next level of growth and to capture meaningful share and highly competitive marketplace.
Another way these goals and objectives are foundational for our long term sustainable growth and value creation today I plan to define these core initiatives and I will continue to update you as the years progressed.
First process improvement.
Before IP roadmap, we believe there are processes were either very good or adequate.
Based on the work we did during our it systems upgrades, we learned that there are much better and more efficient way to do many things.
We want to institutionalize best practices and processes in many area.
Secondly.
Shared services.
And efficient and effective shared service platform will allow us to remove back office tasks and responsibilities from a recruiting and sales efforts reduce risks and realized significant cost synergies along the way.
Our primary target with the shared service platform.
Recently scaled the business and eliminate non revenue producing tasks from our <unk> segment.
Third mergers and acquisitions and organic growth.
Although we have reported strong growth over the past several years, we know that the comparisons our comps will continue to get tougher.
We have a well defined plan for both organic and acquisition growth and now must execute on those plans.
And to open new markets and real estate segment and leverage technology to create territory mapping to expand and grab more market share in 2023.
We are encouraged by the growth prospects both of our segments and our real estate property management segment, we see pent up demand and multifamily as well as the return to work trends in commercial.
<unk> professional consulting work continues to be very specialized which we believe are based on long term secular growth trends and it transformation finance and accounting and cyber security, we are well positioned in all of these areas.
Fourth branding of Bgs apps as I alluded to earlier the power of consolidating our name offices and more importantly, our voice in the marketplace will allow us to gain traction in new market.
Eliminating the confusion of going to market and multiple names will benefit everyone our clients our consultant and our skilled talent.
This is a foundational to our business and we believe that our <unk> brand power and brand recognition is important, especially as we expand in high value professional consulting and managed services.
Also our real estate segment for multifamily and commercial are very much tied to the confidence that our brand brings regarding skilled talent and augmented workforces. This is simple yet powerful pivot for us and we like that it does not cost us much to implement across our segments.
In 2023, we are poised for another strong year at Etfs and with unemployment numbers at a 50 year low at three 5% and college degreed unemployment numbers, even lower at just one 9% we know that finding the right labor and talent will benefit from long term secular growth trends.
Finding people and then training and deploying the right talent is a key differentiator for us.
On our call today with some additional commentary on our strategy on M&A outlook.
Valuations have improved we continue to be very selective as we have stated in the past we want to add businesses that improve our margins and or solve a problem for our customers. One of the areas. We continue to hear from our customers is the need for a nearshore or offshore talent. This is another potential opportunity for us however are defined.
<unk> criteria remains unchanged as we look for good DNA fit with our business in North America, and or abroad, we require a strong fit for our customers and for our culture and we want good valuation with high margin businesses with that we will now open the call to your questions operator.
Thank you Beth if you'd like to ask a question. Please press star followed by one on your telephone keypad if for any reason you'd like to withdraw your question. Please press star followed by two.
As a reminder, if you are using a speakerphone. Please pick up your handset before asking your question.
Okay.
So our first question comes from the line of Howard <unk>.
Robert Your line is now open. Please go ahead.
Congratulations guys great year.
Thank you Eric.
Hi.
What.
The real estate and property management, how many offices did you end the year in and what kind of pace of openings or split do you anticipate.
Going forward.
And we have a total of 64 markets right now that are active in real estate.
We are targeting.
Six new markets next year and we have.
Four markets that we are going to be doing the territory mapping in.
Okay.
That sounds good.
Great.
Yes.
In terms of.
<unk>.
What you've done to restructure a little bit further in.
In the fourth quarter, the $4 million.
Is that going to be the new what the SG&A wrapped a new baseline going forward that $23 million and then.
Work off of that number for modeling purposes.
Well I think in that number was about $765000 part of the transactional fees.
<unk>.
Okay, which.
Depending on M&A deals may continue or not but it depends on what we have going in the pipeline and then as mentioned there was about $500000 of sort of year end sort of catch up stuff.
Just normally catch in the fourth quarter, so probably.
Just south of $23 million might be your base.
Okay.
Matt.
That will cover.
One of the operations to youre going to be able to absorb all that in there with that.
Yeah.
I apologize for that.
Yes, that's all.
That only has three weeks supporting that.
When we chat this afternoon I can give you an adjusted number on that.
Oh, okay.
In.
In terms of the rebranding.
Is that what might be incremental cost be at least in the first half of the year.
Yes.
Are you, saying.
Is there a cost to <unk>.
And the name out.
Right is there any.
Is it just going to be the range that we're going to see.
Yes.
Believe what I've heard and we've had discussions is very minimal cost in terms of changing as we already owned the name or where do you think that DSS a lot. So.
Is that correct.
And Theres only a few things will be changing will have to change some things when it comes to trade shows and some of our marketing materials.
That would get pushed out, but it'll be minimal and we budgeted for that.
Okay and.
In terms of the <unk>.
Cross sell opportunities with corn and what's going on internally.
And are you seeing.
What are you what are your people seen in terms of the opportunities that are out there that you can drive that further.
I think the team are Super excited about horn actually both teams are excited when we went down to visit the horn team and it was probably one of our most energetic meetings with a new company we've ever acquired so they see the benefit of the cross sell initiatives and.
And they actually are a lot of members of our team knew that teams.
At Horn, so the energy and synergy just in getting to know each other.
Was immediate and so I think that everyone is super excited and they've already started cross selling a lot and introducing each other's each other's clients.
Okay, and just one last one more what you see in the landscape out there is our.
<unk> seen more talent.
You're drawing more talent in the end.
Versus projects that are out there I guess, what im getting at is is there more are you seeing a more balanced.
Market out there or is it still tilted one way or the other.
It's still tilted so.
It's just an interesting market out there right now there's still a drive for people in there.
And it hadn't led up much even though theres a bunch of layoffs, it's not and where we play so we're not getting the benefit from that side.
Okay, Okay, congratulations and keep up the good work.
Thank you Howard.
Okay.
Thank you.
Our next question comes from the line of Jeff Martin of Roth Capital. Your line is now open. Please go ahead.
Thanks, Good morning, Dan Congratulations on your retirement I wish you well do you have a lot of funding.
And happy memories ahead of you.
Sure.
I guess just piggybacking off the SG&A question is it fair to look at this is a 14 week quarter. Therefore, you back out 114th of $23 million, which is more like $23 5 million kind of run rate and then you've got a couple of items that you mentioned that.
Q1, it can be half a million lower for the year and catch up on comp and then subtract transaction fee. So we're actually closer probably to the.
The $20 million on a run rate basis at least for Q1 is that fair.
Yes.
I've got a chat about that later on when we have our call.
One.
Yeah, Yeah, Okay, and then Beth maybe could speak to the longer term opportunity strategically with horn I know they bring.
Expanded capabilities, particularly on the consulting side, but maybe speak to kind of the end markets. You are most excited about and then also.
The.
Transition to geographic expansion and how that plays out over what timeframe.
Okay, well the one thing about one is youre located in Austin, Houston, and Dallas, and the ability to be able to expand them in the other markets that we operate in will be very beneficial for us.
The thing that we're most excited about it is they are they have such a strong finance and accounting group and its high end consulting what it really does is it completes another piece of our puzzle with our customers. So when we go in and we help a customer pick what software. They want then we go in and help them implement the software that they get than we have.
Customize the software and then the horn solutions, we get to help.
Bam come in and do the reporting that comes out of the software. So it really does make the circle complete in regards to what we're what we are able to do with our customer to keep them.
GSS client versus having to go somewhere else to get those resources and that's been one thing that we're most excited about because we were strong in F&I.
But.
The horn is three times larger than what we had in place already so very good for us.
Okay, and then on the commercial side of real estate, maybe walk us through.
The.
Transitioning to.
'twenty two if he saw pent up demand coming trying to get a sense because it had multifamily real estate in general had a very strong year. It looks like that was driven primarily by multifamily but.
Maybe give us give us a look at.
If that pent up demand on the commercial side is unwavering.
And it is still in play right now.
I know that there is still that returned to work.
Out there in the fourth quarter third and fourth quarter, we started to say more companies come back to work, which gave US an opportunity we had consolidated that came with within our multifamily group during COVID-19.
As that started to break free and we started saying we'll go back into the offices, we broke it back out and once we did that we put out a manager over that entire group and then started back filling positions. So that we can get back into the market early as those things started to break so I think that as we moved into 2023.
And we are still seeing some cities and across.
Across the U S that are ready to open up and get back to normal and some that still aren't and so the one thing about real estate. We have learned is there's no wide sweep of what's going on it's just pockets. Some pockets that are doing better than others and some paid some pockets are growing in some pockets are still holding.
Holding onto and deciding whether or not people are going to go back to the office. So.
We just have to be.
Very aware of how we sell in those markets to be able to stay on top of it and going ahead and breaking the bank group out and allowing them to start getting the market early will be helpful for us in this year.
Yeah, Okay, and then last question on the margin front, you've been very disciplined over over the years.
In terms of expanding gross margins is typically translated into very good EBITDA margins just curious what the growth investments that you made in the back half of 'twenty two how should we think about EBITDA margins in 2023 relative to.
The last couple of years and is it going to take a little bit of time to digest those investments in.
You see the longer term benefit on the EBITDA margin side.
Well.
We do see.
Some leveraging of the cost that we spent over the last three years going into 'twenty three 'twenty four Jeff so so.
We anticipate.
Better EBITDA return.
As we move forward.
As we leverage the people that we have and grow faster than that SG&A cost.
And leverage the cost that we put into the IP roadmap.
I can't give you a specific percent, but well.
We do expect that to expand yes.
Yeah, Ken Great.
Great Congratulations on a good year and then again once you own retirement congratulations.
Yes.
I'll leave it there.
Okay.
With.
That being said free yet [laughter].
Yes.
Yes.
Thank you.
Our next question comes from the line of Michael Glick of neglect. Your profit. Your line is now open. Please go ahead.
Good morning, guys and congratulations Dan.
Thanks very much.
Thanks.
I'm actually surprised that the explosion of SG&A I mean was this the plan.
<unk>.
To have this kind of level of expenses.
Well I do think Matt that we had to.
We kind of paused our hiring when we went live on the systems at the end of June and so in order for us to be able to go through and and hit our numbers for 2023, we needed to be able to go ahead and get positions in place to be profitable or not profitable, but to drive the sales and growth for 'twenty. Three so it was a decision that was made.
Two.
Go ahead and move things forward or move things back so that we can be advanced into for it so I think that.
Yes. It was part of the plan to answer in regards to the hiring part of it.
How much of it was higher than it was.
And then.
Okay.
Michael We did have the wrap up of the IP roadmap this year as well so that cost was anticipated.
But the fourth quarter was a dramatic increase in SG&A.
Versus the three quarters before that.
Great sales are up in all of that obviously earnings are down which is not the plan.
So it was part of plan or not I mean, I was surprised that we didn't bring more to the bottom line.
So I want to spend some time understanding that better.
Well, we did mention that.
And the managed services.
Division brought to us by the momentum we had some delays in projects that was anticipated in November and December their numbers were lower than expected.
And then there were.
And on the it side.
Higher than there were last year, so we haven't.
Again, we were sort of anticipating this year to be like last year, we had llorens than we did last year.
November and December numbers.
We had some adjustments in terms of year end accruals, we had some transaction fees related to form.
So.
When you say.
So if I'm running a budget.
Yeah.
Should I assume it's going to be.
SG&A $26 8 million plus an inflation factor annualized in the fourth quarter.
No.
So wish I assume it should be I mean, you guys have a budget for this coming year.
I'm really surprised.
I missed.
Yes.
We prefer not to give those numbers out on the earnings call happy to have.
With you Michael.
Okay.
Yes.
The.
Would you go into detail about.
The.
The catch up stuff was that under accruals or what is that.
Expenses you Werent.
Our surprise expenses it just happened in Q4.
We had some catch up on bonus plans, where we had some kickers that came in.
As as.
People reach certain.
Levels and their bonus plan.
We.
Picked up in Q4 versus picking up earlier in the year.
Some other expenses that how much did that add up to.
That was about to just north of $200000.
And then we had just under $300000 on some other accruals that we needed to adjust.
And then we had the transaction fees related to horn.
And you could put those you couldnt capitalize those transaction fees into the transaction.
Transaction fees are not capitalized anymore.
Okay.
Alright, it used to be under a cold, but not under another new guests.
Let's see so much.
Top line growth.
Margin growth work that math.
Magical way, where we get leverage on the bottom line.
So as we've mentioned we.
Certainly are looking at next year and then seeing.
Expansion in the bottom EBITDA percent Michael.
I hope so okay.
Great. Thank you very much and we'll talk offline.
Thank you as a reminder, if you'd like to ask a question. It is star followed by one on your telephone keypad.
Our next question comes from the line of Donald David Paterson Investec. Your line is now open. Please go ahead.
Hey, Dan way to go on a successful 2022.
Thank you Joe.
Hey, Dan Congratulations on your next step personally your role at <unk> has been critical for me.
When I assess Venezuela first quality I look at his integrity.
And if you have that sir so thank you very much and I wish you the best.
Hopefully you will stick around longer than a year.
In the transition.
I appreciate it thank you Rick.
Speaking of the transition.
News release for Dan I think it was described the.
The change was part of a transition plan.
Just kind of missed that where's that plan.
Dan do you want to address it.
I'm sorry.
Well so.
I don't know that it was published we've been doing succession planning for.
For a while we always try to think about where leaders are and succession planning. So that we are prepared.
Dan has been.
Open in saying that when he wanted to retire and so we but I've known for a couple of years when he wanted to retire and so we talked with the board and decided to go ahead and push forward.
And having a CFO search so that we would have long enough time to have the transition before Dan decided that it would be his last day, we worked backward element that we've known for a couple of years.
What his timeline was.
Got you.
Your opening remarks, you mentioned the write down for 2023 can you just specify what is being written down.
So we're going to write down this year, yes, so we win when we buy the companies we.
Allocate the purchase price to various things primarily the customer list and the trade name that we're going to use so that $22 $5 million or values that we've assigned to trade names over the.
The last seven or eight or nine acquisitions on the it side.
Oh.
Got you.
And as I promise.
Uh huh.
Smart.
Are those.
Okay.
Got you basically the trade them for the past seven or eight or nine acquisitions and by the way almost correct.
I'm, just saying that the single brand I don't know, if I'm right or wrong on that.
Attitude, but I am a fan of a single brand.
Sure.
Hey, thanks.
I think that may have been.
The next question I think it's been answered in our release a few months ago, what were the revenues for 2022.
There's about a $30 million.
Got you.
Yes.
And then.
Finally, our best annual question looking back at 2022.
One or some of the actions that.
And one where some of your actions you all made that were not.
And we had so many good things Daryl I mean, the fact that we go and live on our technology that was a three year journey that took us a little bit longer because you threw in a pandemic in the middle of it but.
The fact that the whole company has all new technology and then it's all live right now and that is a major accomplishment for us. So I would say that was a great thing I say with the Horn acquisition was also a great thing.
<unk>.
As far as one.
The bad things.
Let's call it fourth quarter SG&A was a little bit of a hit and but we understand it we know what we know what happened to it and we'll adjust for that going forward.
And I think other than that.
I think we've had I think I'm very very proud of our team and what we accomplished over the past year I think we did a lot of.
Revenue growth GDP growth, while we went live on the system and I think that that and shows so much about our team and the people at Bgs, though.
Thank you for that personally.
Obviously, the SG&A for the Q4 jumps off the page.
But also it also what jumps off the page as the revenue growth.
Had gone out of your way to set expectations low for them.
Q4, especially in real estate because of the pent up demand that you experienced in 2021 Q4.
And I'm.
I'm not looking for numbers, but it was an impressive.
Comp year over year.
Does that does that complement has a question embedded in it. So I'll just go ahead and make explicit.
Was that Q4 that we just finished the 2022 Q4.
Is there still pent up demand from the.
Moratoriums are we done with I mean, let's say, if we're one two or 3%, let's call that done is there any real real pent up demand still.
I think it's mostly on the commercial side right now I think the real estate multifamily side as Jim is back.
I would say that the.
Commercial side with the offices still is.
It's back to work discussion is still happening on a daily basis with the companies and and I think that once that all shakes out that that will.
That will help us, but I think that's definitely still out there.
Yeah.
Got you.
So much.
Thanks Dara.
Okay.
Thank you as there are no additional questions Weitzen at this time I'll pass the conference back over to Beth coffee for closing remarks.
Thank you Candice. Thank you for your time today and we appreciate your continued support we look forward to updating you on our first quarter results in a couple of months have a great day.
Ladies and gentlemen that concludes today's BG SaaS fourth quarter 2022 earnings conference call and webcast have a great day ahead, you may now disconnect your lines.
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Yeah.