Everyone, I'm Sandy Martin with Three Part Advisors. Welcome to the IDEAS Conference. Next up, we've got BG Staffing, traded on the NYSE, ticker BGSF. This is a really neat transformational story, a kind of a combination of staffing people and technology. I'm excited for the team to share it with you. Today, we've got Keith Schroeder, Co-Chief Executive Officer and Chief Financial Officer, and Kelly Brown, Co-Chief Executive Officer and President of BGSF Staffing. I'll hand it over to the team. Thank you, Sandy. Hi, everybody. All right. Okay. Hi. As Sandy said, BG Staffing has been through a bit of a journey, over the last 20 years, we've really built up what we now have as a national provider of staffing services to the property management space. That is primarily in the multifamily space. We do also service the commercial real estate space. When you think about all of the operators of communities across the country, that is our target candidate base and our target client base. We will dive in here, of course. Standard safe harbor slide there for you. I'll go and advance in, we're going to get into just a company snapshot. Whenever you think about our presence nationwide, that includes servicing over 9,000 customers over the course of the year. When you think about a customer, you think about a property. That could be an apartment community, that could be an office building, but that is whenever we think about a customer, that is the site that we place our people at. The management companies oftentimes work for an ownership group, so it could be a third-party management company, or it could be an owner group that also manages their own portfolios, all of which are our customers. As you can see, 60 markets across the U.S. When we talk about a market, we talk about a geographic location where we have a candidate base that we've built by recruiting a candidate pool of the maintenance personnel, the office personnel. Again, anything that it would take to operate a residential or a commercial community. 2025, you see $93 million in revenue, $2.2 million in EBITDA. I do want to give a bit of a disclaimer that that was EBITDA for both continuing and Discontinued Operations. We divested our professional services division in the fall of 2025, we are now a standalone property management staffing-focused company. We've received some pretty significant recognition in building over the last 20 years, this presence across the country. There are a couple of accolades that we want to mention. In 2023, the National Apartment Association, folks refer to it as NAA. That is the largest organization that provides education and networking across the U.S. for apartment management companies, as well as the employees of those companies. We were recognized as the Supplier Company of the Year, being a supplier to property management firms. That was pretty significant recognition from NAA. This year, we also have two individuals that are finalists. We'll actually find out just next week if they're winners or not of these respective areas, DEI Champion of the Year, as well as Supplier Salesperson of the Year. These are pretty significant accolades in the world of property management that NAA recognizes on an annual basis. Also, from more of a staffing lens, Staffing Industry Analysts, or SIA, has recognized us as one of the best places for working parents in 2025. That is an accolade that we wanted to mention as well, that's more from the staffing area of the business. Giving you a little bit of history, as I mentioned, we did go through a divestiture last fall. Back in 2007 is when we were acquired, and that's when our geographic expansion really ramped up. From 2007 through going all the way up to 2023, the property management division was primarily growing through organic growth. Like I said, geographic expansion across the country. The other division, the professional services division, was growing at the same time, primarily through acquisition. BGSF was really forming up those two divisions from 2007 all the way through 2023. Then 2023, we launched a technology transformation that I'm going to talk more about in a moment. That technology transformation is what really led us into, then in 2025, the divestiture of the professional services division. What that did was a couple of things. The divestiture allowed us to be singular-focused in the property management staffing space. It also allowed us to pay off debt. We are now in a great cash position to continue on with our growth. As a result of the divestiture and that positioning in 2025, we underwent a rebrand. Rather than being branded purely as BGSF, we are now branded as BG Staffing. It's indicative of what we do in the market. It creates clarity to our customers, and that also empowers us online to have stronger SEO. Staffing is such a strongly searched term that branding to BG Staffing also enabled us to leverage our technology in a stronger way to attract candidates and customers online. I'm going to talk more about our future roadmap, but I wanted to give you that story of what the last 20 years have looked like and what's led us here today. When you're thinking about BG Staffing at a glance, I want to talk about scale. Again, whenever I mention the technology roadmap that we executed back in 2022 into 2023, it involved building that foundation. When you talk about a staffing company, paying people and delivering candidates is everything. That's what differentiates a strong staffing company from a weak one. We built technology that empowers us to pay people accurately and on time, and to attract and place candidates quickly. That's what the tech roadmap was all about. When you think about that addressable market, that $800 million-plus addressable market that we have, it was very important to make sure that we were set from a technology foundation to be able to grow. Our plan is to continue on through organic growth in several different ways that we'll discuss in a minute. Also on this slide, I just wanted to clarify what we place. This is a common question that we get. What does a property management staffing company do? And it is. It's everything that you think about on-site to run a property. These are maintenance techs, property managers, groundskeepers, leasing consultants, in this huge industry that is across the country. Everywhere you look, there is an apartment community already built or being built, and all of them need a staff. It is proven to be a very stable and high-margin vertical to operate in. When you think about growth has come through, like I said, organically by geographic expansion. Now we are thinking about, okay, in addition to placing people, in addition to providing people to the properties, once they are on the properties, what do those people need to do? In a lot of ways, they need to leverage technology. Through a market study, one adjacency that we identified that we have launched this year is through what we are calling our PropTech initiative. When you think about the technology that these candidates are leveraging when they are on-site, that technology, in a lot of ways, needs support. We have a PropTech base of consultants that go out and also help our communities leverage the technology that they have invested in a stronger way. Again, we love organic growth, and that is one way that this year we are going to continue on that organic growth path. Also, I am going to talk in a minute about where AI fits into that, because it does fit in in a couple different ways, both in how we operate and as well in how we are watching our customers operating. Definitely positioned for growth in several different ways that we have outlined here. And when you think about that national presence, that is really important to our customers because that is what really makes them choose us. There are competitors in the market that I will talk about in a minute, but being able to deliver quickly is what our customers rely on. They call us when they need somebody, sometimes same day or next day. If a community has a high level of move-ins, move-outs, they may need a few extra make-ready hands on deck to get those apartments ready. You have a bad storm, the property is in rough shape, they will call us and say, "Hey, just send us help. We just need property cleanup. We want to get back to being curb-ready so that when folks drive into the property, it looks good." All of these different things take speed. What we have done internally is we have built our technology to leverage AI to source candidates, talk to candidates through the website. When candidates are engaging or poking through the website looking for a job, AI picks up on that, brings them in, brings them in for a sourcing discussion to figure out where the best fit could be. We are also leveraging technology from a customer engagement vantage point. When customers are showing buyer signals on the website, we have an AI salesperson, her name is Chase, that engages with that customer right away to gather that customer's needs and then get them more quickly to the person that can fill that job for them. AI absolutely has a place both in how we operate as a staffing company, as well as how our customers are operating. A common question that we get is AI a threat? Is AI a threat to your business? Is it going to change how you operate moving forward? What we're seeing in the property management space is it's not changing the demand, it's changing what's expected of the folks that are operating at the property. What we've seen so far are things like centralization of certain services, whether it's rent payments or handling renewals. What that means is that the folks that are on site are more handling customer engagement, because just like us, every property has competitors down the street. It's very important to have that good experience to keep retention at the properties. AI is not necessarily replacing roles. It is changing what those roles are expected to deliver on the properties. When you think about our competitive landscape, it's diverse. There are competitors that are very small, operating in just one city, and there are competitors that, like us, have grown across the country. What this diagram breaks down is, it shows you based on a market study that we did last fall, the amount of revenue that some of these smaller competitors are taking on a local level, versus when you look at us, that's across the country, the amount of revenue that we're generating. We're finding that more and more of our customers are wanting someone that can service everywhere that they operate. If you have a customer that operates in properties in 17 different cities, they want one provider that can service their properties in all of those cities, versus relying on smaller guys that might just operate in one or two of their cities. While there is a pretty strong competitive landscape, fortunately, the last 20 years of work that we did spreading our geographic presence is now paying off because we're hearing customers say, "Hey, I don't want to use 17 different staffing providers everywhere that I operate. I just want to call one. I just need to simplify." That's been positive for us, and it's made all of that work expanding geographically really pay off. When you think about our value proposition, the main one I'm going to talk about here, because I've already talked about time to fill and how important speed is, I want to talk about client partnerships. What we're seeing in the property management landscape is these owner groups are relying more and more on third-party management companies. Quite frankly, the top 10 management companies, if you just consider size by the amount of units they manage, the big guys are getting bigger, and they want one staffing provider that can service them everywhere that they are. What we've done is we've aggressively gone and pursued strategic partnerships with those top 10 management companies. We already have documented agreements with over half of them that provide them with specific terms that encourage them to use us for all of their staffing needs. Making it easier for them to just call BG. We've structured what we call our strategic accounts team internally that have a dedicated focus on those customers. These client partnerships have really proven to successfully achieve growth during a couple of years that have, frankly, been a little tough on the industry. We've seen our owners fight stubborn interest rates. We've seen our owners face heightened insurance costs. During a time when our owners are facing those increased costs, we can at least alleviate that pain point of having a lot of vendors to manage and giving them one-stop staffing source, and that's been very well-received. That's been a huge value proposition for us is that dedicated focus on those customer partnerships and making it easy to choose BG for their staffing needs. These are some logos. You can see some of the logos that we work with. We're proud to say we do work with over 60%, almost 70% of the top 100 property management companies across the country. On top of that, the strategic customer agreements that I just mentioned, we already have them with over half of the top 10. We're proud of that because it has taken a dedicated focus on nurturing those and on securing those. Like I said, some of these companies were using, I'm not exaggerating, 20 different staffing providers across the country. To get them to narrow that down to one, two, maybe three, has been quite an achievement. It's great to see these companies choosing us, and great to see, like I said, both that technology play as well as that geographic expansion really pay off by securing agreements with these logos. This gets a little bit more into the roles that we place. Just to create clarity, leasing, maintenance, resident operations, we do place them all, and that's what's great about the PropTech expansion that I'll talk more about in a moment, is it services all of these same roles. Whether it's maintenance or leasing, technology is a huge part to play. When you think about maintenance, they have inventory management that they're responsible for. They have service request documentation that they're responsible for. Technology lifts all of that up. On the leasing side, when it comes to renewal management, revenue management, setting rental rates, everything that's involved in managing a property involves technology. That's why with the PropTech growth this year, we're excited to be able to plug in in that way as well. You can see a breakdown here of all of the different roles and to what percentage those roles tend to be placed. Then also the size of the company, small, mid-size, or enterprise, that are part of the market. As you can see, it's pretty even. That's good for us because you have a diversity in the size of the customers, you have diversity in the roles that you place. All of that creates an opportunity for us. Whether you are a management company that has a portfolio of 10 properties or a management company that manages thousands of units across the country, we are the right fit. We can place whether you have one to two placements a month or hundreds, we're prepared to service that need. That's why with the geographic diversity we've created, the local level relationships are just as important as those national ones, and we've created a company structure that can foster both. What's next? I've already talked about PropTech, and I think, hopefully I've created a good understanding of what that means. Specifically within PropTech, Yardi is the name of a company that is a software that is the largest software used across the property management landscape, we are a part of their independent consultant network. Yardi as a software company, goes in, installs their software, sets it up for the property management company, configures it, there tends to leave a training gap, or even just a specific configuration gap for the properties. That's where our consultants come in. That's where our PropTech team comes in, whether it's ongoing training, maintenance of the systems. Yardi has an approved consultant network that provides that. We work directly with Yardi to deliver on that, Yardi refers business to us whenever they have a customer that has certain needs. If Yardi does not have the internal resources to fulfill that need, they call BG. That is how we're going to expand on that PropTech area. There are also other adjacencies for future growth that we plan to pursue, student housing being one of them. When you think about a student housing apartment community, they're all over the place. That is a very specific niche because you have 100 move-outs at a time when students leave, that takes a very specific turn effort. There are companies that do currently do it. We also believe that with the right recruiting strategy, we could grow into the student housing area of the business. Senior living is growing very quickly, putting a focus on what senior living communities need, the type of staffing that they need, that's a huge opportunity that we believe we could grow into in the coming years. Also concierge. The type of buildings, the type of apartment buildings that are being built, even just in the last five, 10 years, it's become much more experience-focused. A lot of times these are mid to high-rise types of buildings, they all tend to have a concierge on site. We're seeing a higher and higher demand for concierge as a service, a lot of times that is a contract. They say, "Hey, we have this concierge spot. We want a contract with you. Just keep that spot filled," off you go. We do believe concierge is another adjacency that we will explore for growth in the next couple of years. As you can see, our core business being staffing has multiple ways that we can expand out and get even more sticky with these customers that we do currently service. Quite an opportunity there. Just a little bit about our leadership team. We have a very diverse leadership team, I love that. We're not all from property management. We're not all from staffing. We have a diverse group that comes with a lot of different backgrounds, that creates diversity in thought and diversity in planning in how we're going to grow. Our strategic meetings are always very candid in the best way, I love that. I just wanted to show a slide that shows a little bit about our leadership team. 60+ years of combined industry experience a few logos from where some of our folks came from among the leadership team. With that, I am going to turn it over to Keith because I think I have talked quite enough to get into a little bit about our financials. No problem. Thank you so much. You're welcome. You want that guy? Yeah. Okay. To the right. Good morning, everyone. Up to the next slide. As we alluded to earlier, we have taken a number of actions during 2025 to basically improve our overall balance sheet. We sold the professional division in September 2025 for about $100 million. With that, we were able to pay off all of our debt, and we now have, even after paying off the debt and a few other things which I'll get into, we are holding cash of around $19 million, which is just under $2 a share. With the excess cash that we still have on hand, we will make decisions on the use of that in the future, but it will be definitely in the long-term interest of our shareholders. Since we have the cash, if we need to invest in additional technology investments, growth initiatives, et cetera, we have the cash on hand to make that happen. Some of the actions we have already taken to return cash to shareholders, we paid a $2 per share, a special dividend in October of last year, that was about $22 million. We declared a stock buyback plan of up to $5 million in November of last year. To date, we've spent about $2.5 million of that and purchased about 565,000 shares, which is about 5% of our outstanding shares. That was good growth. Next slide is the quarterly financials for Q1 2026 versus 2025. Again, this is the continuing operations only. Does not continue any Discontinued Operations. As you can see, top-line, we were flat year-over-year, but want to say, as we said on the last earnings call, that we do expect to see growth for the full year of 2026 over 2025 in the mid-to-single-digit growth range. We are seeing some change. One thing I want to point out on this slide is our gross profit margin. It is that first blue bar there. We have done a good job over the years, and there is a slide a little bit later that shows a longer-term trend. That is a very important margin for us. We look at that very closely, and that is pricing. We stay very disciplined to price. We do not chase things that we do not need to chase. That is very good for us. The last thing I want to point out on the slide, we did have an EBITDA loss in the quarter of about $500,000. That was not expected. Q1 is a very low sales quarter for us, and so that was not unexpected. I also want to point out that despite the year-over-year flat line on the top, we reduced our EBITDA loss in half from 2025 to 2026. That was an important milestone for us. A lot of cost cutting went on in there. This one, I want to point out what the positive effects of the sale of the professional group came. This chart looks a little backwards maybe, but this has the activity for the year ends of 2023, 2024, 2025, and then the quarter end of 2026. The blue bar is our cash and short-term investments at the end of each of those periods. The orange was our outstanding debt, and then the green is the working capital. The main thing I want to point out on here is that we have greatly improved the strength of our balance sheet. As you can see, we did not have any cash on hand end of 2023 and 2024. But with the sale of professional and after paying off all debt, after paying all deal-related fees, which there always are a lot, and returning $22 million to shareholders, $2.5 million of cash paid out in stock buybacks, we still ended up with about $19 million in cash. That is a good outcome for us. Other thing I want to point out, the orange column, that is our outstanding debt, as it says. That debt was really all driven by acquisitions for the professional group. That has, one, we have paid all that off, but that need we do not see going forward. That is another positive for the strength of our balance sheet. And then last but not least, this is a five-period look-back. It shows the performance for 2023 through 2025 full year. Again, this is continuing operations only. And then a TTM for 2026. As you can see, obviously top-line growth declines in 2023 and 2024. That was consistent with the staffing industry overall. We were not immune from that, I guess I should say. But the important thing is that for the most part, we have held our gross profit margin. Yes, we did dip down a bit from 2023 into 2024. Since then, we've held that pretty flat, that's an important margin for us, important thing that we look at every day and make sure that our pricing is staying very solid. There's no need to chase price out in this market. Other thing I want to point out, that green line, that's our COH percent. COH is our contribution overhead, and we define that as our gross profit less the selling expenses. Despite the big declines overall, we took large cost reductions in selling and in general administrative expenses at the end of 2024 and into 2025 and continuing into 2026. We've been able to hold that% relatively flat the last two periods there, and that is an area we will continue to look at. We are a much smaller organization than what we were. We understand that those fixed costs, if you will, need to be highly scrutinized, and we have, but there's always more room. We're always looking at that. With that is the last slide in our presentation, I guess I'll open up to any questions for us. We still have 10 minutes to go. Question. I'm trying to understand. The people who are brought to these communities, are they your employees or are they the employees of the communities? Yeah. Okay. I think everybody heard that question. The question was. The employees that we send to the communities are they our employees or employees of the community, and they start as our employees. We hire, and they're W2 employees that we hire after we have sourced them and recruited them. The customer can hire them if they would like after a certain amount of hours that we have billed. We will bill at a certain bill rate, and out of that, we pay the candidate, and after they've worked so many hours, the customer can hire them, or if they want to hire them earlier, they just pay a conversion fee to hire that candidate. They start as our employee. Okay. I know it's much larger there. Would you consider your business to be similar to FirstService Residential? FirstService Residential. I don't know that I'm familiar. I'm not familiar with them. Well, they're one of the largest staffers, at least in this area for. Okay. In property management? Huh? For personnel like Oh, property management. Okay. Yeah. They are a property management company. Yes, FirstService Yeah would be a customer of ours. They are a management company that owners rely on to maintain and manage their communities. That would be an example of a customer that could hire us to bring candidates to their communities. Yep. Just to be clear, the management companies themselves, they might hire on their own. What they rely on us for, if they're having a hard time filling a certain position, or if they just have a lot of need that their internal team can't hire for on their own, they would augment with us. That would be an example of a customer. That could be a potential customer of ours. The other question I had is, this may be only unique to this area, but a number of the personnel in residential buildings are unionized. Do you have unionized staff, and how do you deal with? We've had strikes in the past and all that stuff. Yeah. The union presence can be a little tricky to navigate. We face that in Chicago a lot as well. Our primary customer base and our primary candidate base are outside of the unions. to be frank, because there is a lot of demand that actually is outside of that. Yeah, it can be tricky to navigate the union landscape, depending on the market, certainly. Outside of New York and Chicago, we really don't face a lot of union presence in a lot of the areas that we operate in. We really try to focus on where does our business model fit best, and if it's outside of that's fine. Yeah, I understand where you're coming from on the union challenges. Thank you. Yeah. Question. You said you have strategic partnerships with top 10 property management companies. Just wondering what percentage of revenue that makes up. As of Q1, it was just under 30%, in the upper 20%. That's going to grow as we secure more partnerships. Question. What's the range of employment rate, wages, excuse me, that you pay? I'm looking actually for the full, including fringes and so on. whole. Yeah. Varies widely, clearly, since we operate in so many cities across the country and with minimum wages constantly fluctuating. If I had to give an overall range of what we pay, not what we bill, but what we pay, I would say it probably widely ranges between $14 an hour, depending on minimum wage. It could go well up into the upper $40 an hour, close to $50 an hour for some of the specialized engineers and maintenance that we place. Our average markup on that usually is around 80%, just depending on the specific position. That's a pretty good markup. 80% you said? 80%. 80%. Yeah. 80% markup. Yeah. what would we. There's a 36% markup If there is a- That's the margin Client that wants to hire a super, you pay them, whatever, $40, you charge them $72 roughly. Mm-hmm. Yep. For that $32 difference, how do you negotiate? Well, no, I just want to keep it. Keep them. You said a certain amount of time. How does it work? Whenever we place a candidate, we call it contract to hire. The required hours is 320 hours of work. Then they can hire them without a fee. If they want to hire them after, say, they've worked 200 hours, we would just take those remaining hours times the assigned bill rate, and they can pay that as the conversion fee or sort of a placement fee, you could look at it. 320 hours is the amount of hours that we, as BG, require them to work under our bill rate before they can hire a candidate without a fee. If they're not hired, you continue to pay them out of your own pocket? Well, only if they work. Yes. They only get paid if they work. We don't have benched employees. We don't have a whole big bench of people that, "Oh, we have a job for you today," or we don't. No. It's, "We have a job for you. You get paid. We don't have a job for you. You don't get paid. To your point, if they don't get the job permanently, we'll just redeploy them at other placements that we have available. We only pay them if they submit hours that are then approved by a customer. Our timekeeping system, they approve their hours through the app, and then the customer has to approve those hours as well. Do they get paid W2? Yes. These are great questions. In the past or currently, have you ever taken any meaningful financial hits because of liability for- employee that's made a mistake or done something willfully illegal? No, nothing that I'm aware of, any size. Well, small incidents. Nothing meaningful. Yeah, they're small things. Very small, but no, nothing substantial. Yeah. Fortunately. Yeah. We didn't burn down a building or anything like that, no. Do you have outside insurance, or are you self-insured? We have outside insurance for most things. We are self-insured for workers' comp and for health. On the change to BG Staffing, have you seen tangible benefits yet that you can relay to us, or is it still too early? I think the easiest way to measure that benefit would be in what we call our web leads. If a customer submits a lead through the website, if I'm ABC Management Company and I need a groundskeeper, I go to bgsf.com, and I submit that through the website. That then goes to our team to fulfill that need, and those have tangibly gone up through Q1. We do have data around that that we can follow up with, but that would be, in my opinion, the best measure- I think so of success is the increased revenue that we've experienced as a result of the heightened amount of web leads that go through the website. Yeah. All leads to revenue. Those are great questions. Any other questions? Well, I'm still trying to figure out what exactly will differentiate you from your competitors. Is it a relationship? Do you have anything that will make it different, or that it's a little secret sauce or something? It's just you have a relationship, and you place these people, and there is really very little differentiation between you and other staffing companies. It's a really great question. Just to make sure everybody heard, the question is, what's our differentiator? Why us? What's different about BG? Combination of things. One, you're spot on. Relationships. Relationships very much matter in the property management space. That's why we're so heavily embedded throughout the country. I mentioned NAA is the National Apartment Association, but there are affiliates across the country. St. Louis, where I'm from, has their own apartment association, and Chicago as well. So we have people that foster relationships locally, and that is a differentiator, but the second one is the tech at speed. If they're calling BG, we know they're calling competitors as well. Who is going to deliver the fastest? Candidate and customer experience is everything. That is the thing that's going to differentiate you because if you can hire the candidate quickly, candidates want to be hired fast, and they want to get on a job fast. Our relationships attract those candidates because I can say if a candidate's interviewing with Greystar, one of the logos we flashed on the screen, well, I can probably get that candidate on a Greystar property tomorrow. You can go through the interview process if you want, but by working with me, that candidate has an advantage because I can put them on a Greystar placement tomorrow because I already have that relationship. We are so focused on leveraging our technology to make our candidate experience and our customer experience the best, the fastest, the easiest. That's the big differentiator. The quality, I believe. Yeah Of its candidates as well. Yes. Yeah. The adjacent markets that you're targeting, you mentioned these properties that you have competitive advantages. May or may not play all that well. Where do you stand on some of these markets? Like the dorm. You mentioned several of them. Right now, we have focused first on launching the PropTech adjacency. That's the one we're launching right now in 2026. Between student housing and concierge, those are both adjacencies that we will focus more on once we really see revenue ramping up with PropTech. We don't want to spread ourselves too thin trying to confuse the marketplace by launching too many things at one time. We really want to make sure our customers understand our PropTech Initiative and how that works with the people that we place first. We'll focus on the others later, probably, I'm guessing 2007. We'll just use an annual cadence. 2026, all-in on PropTech. 2007, we'll choose either student housing, senior, or concierge to focus on next. We have been successful in organic growth. It doesn't mean we wouldn't consider an acquisition. It would have to be the exact right fit and make sense financially because there are specialized firms that already work in those adjacencies. We have to evaluate, is it going to continue to be an organic play, or could an acquisition possibly make sense? It could be either one. Yeah. We are now over time. I apologize. We'll be around all day. Great questions. Yeah. If you find us around, please stop, and you can get ahold of us any time for any additional questions you might think of as time rolls forward.