Q1 2026 BGSF Inc Earnings Call

May 7, 2026

Operator 2: Good morning, everyone. Welcome to BGSF, Inc. Q1 fiscal 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, please press star and then 1 on a touch-tone phone. To withdraw your question, please press star and then 2. As a reminder, this conference call is being recorded. I will turn the call over to Sandy Martin, Three Part Advisors. Please go ahead, ma'am.

Operator: Good morning, everyone. Welcome to BGSF, Inc. Q1 fiscal 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, please press star and then one on a touch-tone phone. To withdraw your question, please press star and then two. As a reminder, this conference call is being recorded. I will turn the call over to Sandy Martin, Three Part Advisors. Please go ahead, ma'am.

Speaker #2: After today's presentation, there will be an opportunity to ask questions. To ask a question, please press star and then one on the touch-tone phone.

Speaker #2: To withdraw your question, please press star and then two. As a reminder, this conference call is being recorded. Now I will turn the call over to Sandy Martin, three-part advisors.

Speaker #2: Please go ahead, ma'am. Good morning. Thank you for joining us today for the company's first quarter 2026 conference call to discuss our results. On the call with me are Kelly Brown, president, and co-CEO, and Keith Schroeder, co-CEO and CFO.

Sandy Martin: Good morning. Thank you for joining us today for the company's Q1 2026 conference call to discuss our results. On the call with me are Kelly Brown, President and Co-CEO, and Keith Schroeder, Co-CEO and CFO. After our prepared remarks, there will be a question and answer session. As noted, today's call is being webcast live. A replay will be available later today and archived on the company's investor relations page at investor.bgsf.com. Today's discussion will include forward-looking statements, which are based on certain assumptions made by the company under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results 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.

Speaker #2: After our prepared remarks, there will be a question-and-answer session. As noted, today's call is being webcast live. A replay will be available later today and archived on the company's investor relations page at investor.bgsf.com.

Speaker #2: Today's discussion will include forward-looking statements, which are based on certain assumptions made by the company under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, actual results 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.

Speaker #2: Management statements are made as of today, and the company assumes no obligation to update these statements publicly. Even if new information becomes available in the future, management will refer to non-GAAP measures, including adjusted EPS and adjusted EBITDA, reconciliation to the nearest GAAP measures are available at the end of our earnings release.

Sandy Martin: Management statements are made as of today, and the company assumes no obligation to update these statements publicly, even if new information becomes available in the future. Management will refer to non-GAAP measures, including Adjusted EPS and Adjusted EBITDA. Reconciliation to the nearest GAAP measures are available at the end of our earnings release. I'll now turn the call over to Keith Schroeder.

Speaker #2: I'll now turn the call over to Keith Schroeder.

Speaker #3: Thank you, Sandy, and thank you all for joining us in today's call. As expected, BGSF's transition services agreement with Inspire successfully concluded on March 31st.

Keith Schroeder: Thank you, Sandy, and thank you all for joining us in today's call. As expected, BGSF's transition services agreement with INSPYR successfully concluded on 31 March. Beginning in Q2, we are now operating as a standalone company. This re-represents a meaningful inflection point for the business, enabling our leadership team and employees to dedicate their full attention to managing a best-in-class property staffing company and executing our 2026 strategic growth initiatives. Operating independently simplifies the organization's support structure and strengthens our ability to drive operational discipline, efficiency, and accountability. During the quarter, we made solid progress through three key directives that remain central to our strategy. First, we will be leveraging insights from an independent consulting firm to support incremental top-line revenue. Kelly will provide an update on several encouraging developments following my remarks.

Speaker #3: Thus, beginning in the second quarter, we are now operating as a standalone company. This represents a meaningful inflection point for the business, enabling our leadership team and employees to dedicate their full attention to managing a best-in-class property staffing company and executing our 2026 strategic growth initiatives.

Speaker #3: Operating independently simplifies the organization's support structure and strengthens our ability to drive operational discipline, efficiency, and accountability. During the quarter, we made solid progress through three key directives that remain central to our strategy.

Speaker #3: First, we leveraging insights from an independent consulting firm to support incremental top-line revenue. Kelly will provide an update on several encouraging developments following my remarks.

Speaker #3: Second, we have resized our general and administrative cost structure to align with our standalone property staffing business, and we'll continue to look for opportunities to optimize our cost structure.

Keith Schroeder: Second, we have resized our G&A cost structure to align with our standalone property staffing business and will continue to look for opportunities to optimize our cost structure. We continue to estimate ongoing G&A costs at approximately $12 million annually, including roughly $2 million in public company costs, reflecting a more appropriate and sustainable cost base. Third, informed by an external organizational and incentive compensation study, we took targeted actions late in the first quarter to reduce selling costs. While the timing limits of the near-term impact, we expect the full benefit of these actions to be realized beginning in Q3 of this year. On an annualized basis, these initiatives are anticipated to generate approximately $1 million in cash cost savings. These actions reinforce our focus on execution, margin improvement, and progress towards sustained profitability.

Speaker #3: We continue to estimate ongoing G&A costs at approximately $12 million annually, including roughly $2 million in public company costs, reflecting a more appropriate and sustainable cost base.

Speaker #3: Third, informed by an external organizational and incentive compensation study, we took targeted actions late in the first quarter to reduce selling costs. While the timing limits of the near-term impact, we expect the full benefit of these actions to be realized beginning in the third quarter of this year.

Speaker #3: On an annualized basis, these initiatives are anticipated to generate approximately $1 million in cash cost savings. These actions reinforce our focus on execution, margin improvement, and progress towards sustained profitability.

Speaker #3: With that, I'll turn it over to Kelly to walk through the strategic initiatives currently underway.

Keith Schroeder: With that, I'll turn it over to Kelly to walk through the strategic initiatives currently underway.

Speaker #4: Thank you, Keith, and good morning, everyone. To start, we're proud to share that BGSF was recognized as one of the 2026 best places for working parents, awarded by the Staffing Industry Analysts Organization, or SIA.

Kelly Brown: Thank you, Keith. Good morning, everyone. To start, we are proud to share that BGSF was recognized as one of the 2026 best places for working parents, awarded by the Staffing Industry Analysts organization, or SIA. This recognition reflects our ongoing commitment to supporting working families through flexible people-first policies that strengthen engagement and retention across the communities that we serve. We were also recognized by SIA as one of the top 100 largest staffing firms in the US. Operationally, we completed the BG Staffing rebrand in Q1, a pivotal step in sharpening our market positioning and building a more scalable technology-enabled digital lead generation platform. By clarifying our brand positioning and strengthening our digital marketing foundation, we are seeing improved SEO performance, a larger and more efficient funnel, and deeper client engagement. We are also encouraged by the early results of our technology investments.

Speaker #4: This recognition reflects our ongoing commitment to supporting working families through flexible, people-first policies that strengthen engagement and retention across the communities that we serve.

Speaker #4: We were also recognized by SIA as one of the top 100 largest staffing firms in the US. Operationally, we completed the BG Staffing Rebrand in the first quarter.

Speaker #4: A pivotal step in sharpening our market positioning and building a more scalable, technology-enabled, digital lead generation platform. By clarifying our brand positioning and strengthening our digital marketing foundation, we are seeing improved SEO performance, a larger and more efficient funnel, and deeper client engagement.

Kelly Brown: By clarifying our brand positioning and strengthening our digital marketing foundation, we are seeing improved SEO performance, a larger and more efficient funnel, and deeper client engagement. We are also encouraged by the early results of our technology investments.

Speaker #4: We are also encouraged by the early results of our technology investments. Today, we are operating in both recruiting and sales AI capabilities. And we believe we have established a balanced model that combines advanced technology with human expertise as the market continues to evolve.

Kelly Brown: Today, we are operating in both recruiting and sales AI capabilities, and we believe we've established a balanced model that combines advanced technology with human expertise as the market continues to evolve. These capabilities are improving efficiency and accelerating speed to fill for our clients while enhancing the candidate's experience as well. Our AI-enabled recruiting tools have already streamlined interviews for more than 7,500 candidates, strengthening compliance and security while expediting critical steps such as identity verification. The result is a materially faster time to fill with higher qualified candidates. On the sales side, our AI sales assistant platform has successfully converted inquiries into new clients, and our relationship teams then step in to arrange and schedule delivery.

Speaker #4: These capabilities are improving efficiency and accelerating speed to fill for our clients, while enhancing the candidate's experience as well. Our AI-enabled recruiting tools have already streamlined interviews for more than 7,500 candidates, strengthening compliance and security, while expediting critical steps such as identity verification.

Speaker #4: The result is a materially faster, time-to-fill with higher qualified candidates. On the sales side, our AI sales assistant platform has successfully converted inquiries into new clients, and our relationship teams then step into a range and schedule delivery.

Kelly Brown: On the sales side, our AI sales assistant platform has successfully converted inquiries into new clients, and our relationship teams then step in to arrange and schedule delivery. Taken together, these initiatives reinforce our focus on delivering better outcomes for clients and candidates. We believe this continued focus on the end user experience will continue to position BG Staffing as a differentiated workforce solutions partner.

Speaker #4: Taken together, these initiatives reinforce our focus on delivering better outcomes for clients and candidates, and we believe this continued focus on the end user experience will continue to position BG Staffing as a differentiated workforce solutions partner.

Kelly Brown: Taken together, these initiatives reinforce our focus on delivering better outcomes for clients and candidates. We believe this continued focus on the end user experience will continue to position BG Staffing as a differentiated workforce solutions partner. As a part of our organic growth strategy, we launched our PropTech consulting services through our strategic partnership with Yardi. While still early, the ramp has been encouraging. We've begun building a consulting pipeline for PropTech services, secured initial engagements, and expanded our Yardi consultant network. This opportunity is being driven by increasing complexity in implementation and integrations, the demand for our expertise in evaluation and simplification of existing tech stacks, and continued consolidation of management portfolios within the Property Management industry. PropTech presents a complementary adjacent market to our core staffing business and further strengthens our differentiated position across multifamily and commercial Property Management.

Speaker #4: As a part of our organic growth strategy, we launched our PropTech consulting services through our strategic partnership with Yardi. While still early, the ramp has been encouraging.

Kelly Brown: As a part of our organic growth strategy, we launched our PropTech consulting services through our strategic partnership with Yardi. While still early, the ramp has been encouraging. We've begun building a consulting pipeline for PropTech services, secured initial engagements, and expanded our Yardi consultant network. This opportunity is being driven by increasing complexity in implementation and integrations, the demand for our expertise in evaluation and simplification of existing tech stacks, and continued consolidation of management portfolios within the Property Management industry. PropTech presents a complementary adjacent market to our core staffing business and further strengthens our differentiated position across multifamily and commercial Property Management.

Speaker #4: We've begun building a consulting pipeline for PropTech services, secured initial engagements, and expanded our Yardi consultant network. This opportunity is being driven by increasing complexity in implementation and integrations.

Speaker #4: The demand for our expertise in evaluation and simplification of existing tech stacks and continued consolidation of management portfolios within the property management industry. PropTech presents a complementary, adjacent market to our core staffing business and further strengthens our differentiated position across multifamily and commercial property management.

Speaker #4: If execution continues as planned, we believe PropTech could represent approximately 1 to 2 percent of our total revenue this year. Overall, we are making steady progress advancing our operating model and strengthening our competitive differentiation.

Kelly Brown: If execution continues as planned, we believe PropTech could represent approximately 1% to 2% of our total revenue this year. Overall, we are making steady progress advancing our operating model and strengthening our competitive differentiation. As our AI capabilities continue to evolve, we expect further efficiency gains through recruiting, sales, and service delivery. Our initiatives are beginning to gain momentum, positioning the business for top-line growth and improved financial performance, which Keith will discuss shortly. As previously mentioned last quarter, we also look forward to participating in the two leading rental housing and commercial real estate industry events in June, hosted by the National Apartment Association, as well as BOMA International, which will be valuable platforms for in-person customer engagement and lead generation. With that, I will turn the call back to Keith to cover our Q1 financial results.

Speaker #4: As our AI capabilities continue to evolve, we expect further efficiency gains through recruiting, sales, and service delivery. Our initiatives are beginning to gain momentum.

Speaker #4: Positioning the business for top-line growth and improved financial performance. Which, Keith, we'll discuss shortly. As previously mentioned last quarter, we also look forward to participating in the two leading rental housing and commercial real estate industry events in June, hosted by the National Department Association as well as Beaumont International, which will be valuable platforms for in-person customer engagement and lead generation.

Speaker #4: With that, I will turn the call back to Keith to cover our first quarter financial results.

Keith Schroeder: Thank you, Kelly. As a reminder, our comments today refer to continuing operations unless otherwise noted. Excuse me. Q1 revenue was $20.9 million. While revenue was flat year over year, this was a positive change compared to the prior two fiscal years. Further, we believe severe nationwide weather and widespread power outages in late January and February affected demand during the quarter. Our gross profit for Q1 was $7.4 million, slightly down from the $7.6 million achieved in the prior year period. Our gross margin was 35.5%, down from 36.2% last year. We believe our gross margin for the full year will trend closer to 36%. SG&A expenses were $8.8 million for the quarter compared to $9 million a year ago.

Speaker #3: Thank you, Kelly. As a reminder, our comments today refer to continuing operations unless otherwise noted. Excuse me. First quarter revenue was $20.9 million. While revenue was flat year over year, this was a positive change compared to the prior two fiscal years.

Speaker #3: Further, we believe severe nationwide weather and widespread power outages in late January and February affected land during the quarter. Our gross profit for the first quarter was $7.4 million, slightly down from the $7.6 million achieved in the prior year period.

Speaker #3: Our gross margin was 35.5%, down from 36.2% last year. We believe our gross margin for the full year will trend closer to 36%. SG&A expenses were $8.8 million for the quarter, compared to $9 million a year ago.

Speaker #3: This quarter includes $483,000 of strategic review costs, compared to $21,000 in the prior year period. In addition, income from discontinued operations, including a $918,000 gain, from the final settlement of net working capital from the sale of the professional division, which is a cash inflow to our financial results.

Keith Schroeder: This quarter includes $483,000 of strategic review costs compared to $21,000 in the prior year period. In addition, income from discontinued operations included a $918,000 gain from the final settlement of net working capital from the sale of the Professional Division, which is a cash inflow to our financial results. Our Adjusted EBITDA for Q1 was a loss of $541,000, an improvement compared to the $1 million loss in the prior year period. As our revenue strengthened during seasonally stronger Q2 and Q3 time periods, the additional gross profit will positively affect our EBITDA, as well as the previously discussed cost reduction actions we implemented during the quarter.

Speaker #3: Our adjusted EBITDA for the first quarter was a loss of $541,000, and improvement compared to the $1 million loss in the prior year period.

Speaker #3: As our revenue strengthened during seasonally stronger Q2 and Q3 time periods, the additional gross profit will positively affect our EBITDA as well as the previously discussed cost reduction actions we implemented during the quarter.

Speaker #3: On a gap basis, we reported a net loss from continuing operations of $13 cents per diluted share, compared to an adjusted EPS loss from continuing operations of $0.07 per share.

Keith Schroeder: On a GAAP basis, we reported a net loss from continuing operations of $0.13 per diluted share compared to an Adjusted EPS loss from continuing operations of $0.07 per share. Consolidated Adjusted EPS for the Q1 was +$0.01 per share. We exited the Q1 with a strong debt-free balance sheet and remain committed to disciplined capital management and cost control. Our cash flows from operations in the Q1 were essentially flat in a seasonally low revenue Q1. We also repurchased 170,862 shares of common stock at an average price of $5.11 per share, which total approximately $873,000 for the Q1. We do continue to expect full year 2026 revenue to grow in the low to mid-single digit range compared to 2025.

Speaker #3: Consolidated adjusted EPS for the quarter was a positive $0.01 per share. We exited the quarter with a strong debt-free balance sheet and remain committed to disciplined capital management and cost control.

Speaker #3: Our cash flows from operations in the first quarter were essentially flat in a seasonally low revenue quarter. We also repurchased $170,862 shares of common stock at an average price of $5.11 per share, which totaled approximately $873,000 for the quarter.

Speaker #3: We do continue to expect full year 2026 revenue to grow in the low to mid-single-digit range compared to 2025. As Kelly outlined, our teams are focused on executing our property management staffing strategy, advancing our growth initiatives, and building momentum across the business.

Keith Schroeder: As Kelly outlined, our teams are focused on executing our property management staffing strategy, advancing our growth initiatives, and building momentum across the business. Completing the divestiture of Professional required a significant effort across the organization, Kelly and I want to thank our employees for their commitment and perseverance throughout the process. From an investor engagement perspective, we will present at the East Coast IDEAS Conference on 11 June for participating in a live presentation and one-on-one meetings. We look forward to updating investors on our progress each quarter. Please reach out after this call if you would like to schedule a follow-up meeting. With that, we would now like to open the call for questions. Operator?

Speaker #3: Completing the divestiture of professional required a significant effort across the organization, and Kelly and I want to thank our employees for their commitment and perseverance throughout the process.

Speaker #3: From an investor engagement perspective, we will present at the East Coast INDS conference on June 11th, participating in a live presentation and one-on-one meetings.

Speaker #3: We look forward to updating investors on our progress each quarter. Please reach out after this call if you would like to schedule a follow-up meeting.

Speaker #3: With that, we would now like to open the call for questions. Operator?

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone.

Operator 2: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. At this time, we will pause momentarily to assemble the roster. The first question will come from Michael Taglich with Taglich Brothers. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. At this time, we will pause momentarily to assemble the roster. The first question will come from Michael Taglich with Taglich Brothers. Please go ahead.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, and then two.

Speaker #1: At this time, we will pause momentarily to assemble the roster. The first question will come from Michael Taglich with Taglich Brothers. Please go ahead.

Speaker #5: Hi, guys. Thanks for taking the call. Just a quick question on the stock buyback. Have you been able to find any blocks of stock, especially recently, or no?

Michael Taglich: Hi, guys. Thanks for taking the call. Just quick question on the stock buyback. Have you been able to buy any blocks of stock, especially recently or no?

Keith Schroeder: We are in a 10b5-1 plan. We really don't know that. It's the broker that is in charge of that. I don't think so.

Speaker #6: We are in a 10(b)(5)(1) plan, so we really don't know that. So it's the broker that is in charge of that. But I don't think so.

Keith Schroeder: We are in a 10b5-1 plan. We really don't know that. It's the broker that is in charge of that. I don't think so.

Speaker #5: Okay. All right. Thank you. We'll talk offline.

Michael Taglich: Okay. All right. Thank you. We'll

Keith Schroeder: Thank you, Mike.

Speaker #6: Thank you, Mike.

Speaker #1: Again, if you have a question, please press star, and then one. Please stand by as we pull for questions. The next question will come from George Mellis with MKH Management.

Operator 2: Again, if you have a question, please press Star and then one. Please stand by as we poll for questions. The next question will come from George Melis with MK Edge Management. Please go ahead.

Operator: Again, if you have a question, please press Star and then one. Please stand by as we poll for questions. The next question will come from George Melis with MK Edge Management. Please go ahead.

Speaker #1: Please go ahead.

Speaker #7: Thank you. Thanks for taking my question. Could you guys give us a little bit of a sense of how you see the market? It seems like the market was a bit tight and in the downturn for a couple of years.

George Melis: Thank you. Thanks for taking my question. Could you guys give us a little bit of sense of how you see the market? It seems like the market was a bit tight and in the downturn for a couple of years. How do you see that evolving or what did you see in so far in 2026? What are your expectations for the rest of the year from a market perspective?

George Melas: Thank you. Thanks for taking my question. Could you guys give us a little bit of sense of how you see the market? It seems like the market was a bit tight and in the downturn for a couple of years. How do you see that evolving or what did you see in so far in 2026? What are your expectations for the rest of the year from a market perspective?

Speaker #7: How do you see that evolving? What did you see in so far in '26, and what do your expectations for the rest of the year from a market perspective?

Speaker #8: Certainly. Good morning. It's been certainly an interesting couple of years. We've had to really work with our client partners. They've navigated a couple of different things, heightened insurance costs, kind of stubborn interest rates.

Kelly Brown: Certainly. Good morning. You know.

George Melis: Good morning.

George Melas: Good morning.

George Melis: It's been certainly an interesting couple of years. We've had to really work with our client as they've navigated a couple different things, heightened insurance costs, kind of stubborn interest rates. That does impact how they operate for various reasons. I think some of that pressure does continue. However, I also think that we've seen a lot of adjustment to just knowing, you know, what these costs are and the impact they can have. You know, while we've seen some loosening in certain pockets, I just think we need to expect it to kind of stay static for a little bit longer, frankly. I also think that there's been a lot of adjusting to what impact does that have on their operational strategy and where does staffing fit into that.

George Melas: It's been certainly an interesting couple of years. We've had to really work with our client as they've navigated a couple different things, heightened insurance costs, kind of stubborn interest rates. That does impact how they operate for various reasons. I think some of that pressure does continue. However, I also think that we've seen a lot of adjustment to just knowing, you know, what these costs are and the impact they can have. You know, while we've seen some loosening in certain pockets, I just think we need to expect it to kind of stay static for a little bit longer, frankly. I also think that there's been a lot of adjusting to what impact does that have on their operational strategy and where does staffing fit into that.

Speaker #8: That does impact how they operate. For various reasons. And I think some of that pressure does continue. However, I also think that we've seen a lot of adjustment to just knowing what these costs are and the impact they can have.

Speaker #8: So while we've seen some loosening in certain pockets, I just think we need to expect it to kind of stay static for a little bit longer, frankly.

Speaker #8: But I also think that there's been a lot of adjusting to what impact does that have on their operational strategy and where does staffing fit into that.

Speaker #8: So while I certainly don't think that it's loosened up significantly, I do think a lot of adjusting has happened that does have a positive impact on our customers' ability to leverage services such as ours ongoing.

Kelly Brown: While I certainly don't think that it's loosened up significantly, I do think a lot of adjusting has happened that does have a positive impact on our customers' ability to leverage services such as ours ongoing.

Speaker #9: Okay. Great. Thanks for that. And then maybe just a second question. From a tech perspective, the company has invested quite a bit of tech in tech in the last, let's say, three, four, five years.

George Melis: Okay, great. Thanks for that. Then maybe just a second question. From a tech perspective, the company has invested quite a bit of tech, in tech in the last, let's say, 3, 4, 5 years. Of course, it's an evolving process. It's a never-ending process. How comfortable are you right now with your current tech in particular to recruit your staff and to meet the needs of your customers?

George Melas: Okay, great. Thanks for that. Then maybe just a second question. From a tech perspective, the company has invested quite a bit of tech, in tech in the last, let's say, 3, 4, 5 years. Of course, it's an evolving process. It's a never-ending process. How comfortable are you right now with your current tech in particular to recruit your staff and to meet the needs of your customers?

Speaker #9: And of course, it's an evolving process. It's a never-ending process. But how comfortable are you right now with your current tech, in particular, to recruit your staff and to meet the needs of your customers?

Speaker #8: That's a great question. We're really comfortable with the technology that we have, with regards to our ability to recruit. We are able to leverage AI in various ways to get our candidates the response time to our candidates, much quicker.

Kelly Brown: Great question. You know, we're really comfortable with the technology that we have with regards to our ability to recruit. We are able to leverage AI in various ways to get our candidates, you know, the response time to our candidates much, much quicker. That said, now that we are past the TSA, we continue to go through a review of every piece of technology that we are using. Is it the right technology for our business as a standalone business? Where are there any sort of cost optimization efforts that we can make? I would say that we're comfortable right now with the technology that we have with regards specifically to recruiting. Know that we will continue to evaluate now that we do operate as a standalone company.

Speaker #8: That said, now that we are past the TSA, we continue to go through a review of every piece of technology that we are using.

Speaker #8: Is it the right technology for our business as a standalone business? And where are there any sort of cost optimization efforts that we can make?

Speaker #8: So I would say that we're comfortable right now with the technology that we have, with regards specifically to recruiting. But know that we will continue to evaluate now that we do operate as a standalone company.

Speaker #9: Great. Thank you very much.

George Melis: Great. Thank you very much.

George Melas: Great. Thank you very much.

Speaker #8: Absolutely. Thank you, George.

Kelly Brown: Absolutely. Thank you, George.

Speaker #1: This concludes our question and answer session. I would like to turn the conference back over to Kelly Brown for any closing remarks.

Operator 2: This concludes our question and answer session. I would like to turn the conference back over to Kelly Brown for any closing remarks.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Kelly Brown for any closing remarks.

Speaker #8: Thank you for your time today. We appreciate your interest in BGSF and look forward to providing an update on our second quarter in a few months.

Kelly Brown: Thank you for your time today. We appreciate your interest in BGSF and look forward to providing an update on our Q2 in a few months. Have a great day.

Speaker #8: Have a great day.

Operator 2: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.