BGSF Inc (BGSF) 2024 Q2 法說會逐字稿

Good morning, everyone. Welcome to the BGSF, Inc., fiscal 2024 second quarter financial results conference call. (Operator Instructions) Please note this event is being recorded.

大家早安。歡迎參加 BGSF, Inc. 2024 財年第二季財務業績電話會議。（操作員說明）請注意此事件正在被記錄。

Now, I would like to turn the call over to Sandy Martin, Three Part Advisors. Please go ahead.

現在，我想將電話轉給三部分顧問桑迪馬丁。請繼續。

Good morning. Thank you for joining us today for BGSF second quarter 2024 earnings conference call. With me on the call are Beth Garvey, Chair, President and Chief Executive Officer; and John Barnett, Chief Financial Officer. After our prepared remarks, there will be a Q&A session.

早安.感謝您今天參加 BGSF 2024 年第二季財報電話會議。與我一起參加電話會議的有董事長、總裁兼執行長貝絲‧加維 (Beth Garvey)；和財務長約翰·巴尼特。在我們準備好的發言之後，將有一個問答環節。

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.

如前所述，今天的電話會議正在進行網路直播。今天稍後將提供重播，並存檔在該公司的投資者關係頁面 Investor.bgsf.com 上。

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.

今天的討論將包括前瞻性陳述，這些陳述是基於公司根據 1995 年《私人證券訴訟改革法案》的安全港條款所做的某些假設。由於各種風險和不確定性，包括公司向美國證券交易委員會提交的文件中列出的風險和不確定性，實際結果可能與前瞻性陳述所示的結果有重大差異。

Management's 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. During the call, management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operations 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. GAAP and non-GAAP measures are reconciled in today's earnings press release.

管理階層的聲明截至今天發布，公司不承擔公開更新這些聲明的義務，即使將來出現新資訊。在電話會議期間，管理階層也會參考某些非公認會計準則財務指標，這些指標有助於評估公司與財務狀況和績效相關的營運狀況。這些非公認會計準則措施旨在補充公認會計準則財務信息，不應被視為替代品。公認會計準則和非公認會計準則衡量標準在今天的收益新聞稿中進行了調整。

I'll now turn the call over to Beth Garvey.

我現在將電話轉給貝絲·加維。

Thank you, Sandy, and thank you all for joining us. Welcome to our second quarter earnings conference call. In May, we announced a review of strategic alternatives and as part of that ongoing process to maximize shareholder value, the Board and I will continue to evaluate all options. While I cannot provide an update today, the process is ongoing and we look forward to sharing the results in the future. Also, we will not take questions regarding the strategic alternatives or our process in today's Q&A. Thank you so much for understanding.

謝謝你，桑迪，也謝謝大家加入我們。歡迎參加我們的第二季財報電話會議。五月，我們宣布對策略選擇進行審查，作為股東價值最大化的持續流程的一部分，董事會和我將繼續評估所有選擇。雖然我今天無法提供最新信息，但該過程仍在進行中，我們期待著將來分享結果。此外，我們不會在今天的問答中回答有關策略替代方案或流程的問題。非常感謝您的體諒。

Before we cover our results, I am pleased to share that we have been recognized by Staffing Industry Analysts naming us the 49th largest IT staffing firm in the US, an improvement from 52nd as well as the 97th largest staffing firm, an improvement from 121st place in 2023. Moving up in SIA's annual rankings is an important milestone recognizing our teams hard work and dedication to delivering value and excellence to our customers and strategic partners.

在我們公佈結果之前，我很高興地告訴大家，我們得到了人才產業分析師的認可，將我們評為美國第49 大IT 人力資源公司（較第52 位有所進步）以及第97 位最大人力資源公司（較第121 名有所進步） 2023年。新航年度排名的提升是一個重要的里程碑，這是對我們團隊辛勤工作和致力於為客戶和策略合作夥伴提供價值和卓越的奉獻的認可。

Over the last 12 months, challenging macro pressures have significantly impacted our entire industry due to higher interest rates and inflationary pressures that have negatively impacted most businesses in the US. For the second quarter, our total revenues were $68 million, comprised of approximately $26 million for Property Management and $42 million for the Professional segment. Year-over-year comparisons, although still meaningful, may not measure our incremental progress this year, compared to sequential comparisons.

在過去 12 個月中，由於利率上升和通膨壓力對美國大多數企業產生了負面影響，充滿挑戰的宏觀壓力對我們整個行業產生了重大影響。第二季度，我們的總收入為 6,800 萬美元，其中物業管理收入約為 2,600 萬美元，專業部門收入為 4,200 萬美元。雖然比比比較仍然有意義，但與連續比較相比，可能無法衡量我們今年的增量進展。

Property Management revenues were down year-over-year and up sequentially compared to the first quarter. Although we've not yet returned to normal seasonality, albeit trending in the right direction, we were pleased to report a sequential sales lift in the second quarter of 4.8% versus the first quarter.

物業管理收入較去年同期下降，較第一季上升。儘管我們尚未恢復正常的季節性，但趨勢是正確的，但我們很高興地報告第二季的銷售額比第一季連續成長了 4.8%。

In the Professional segment, revenues declined in the second quarter over both the sequential and year-over-year periods, mainly because project ends exceeded project starts. However, business indicators began to shift on positive momentum in the quarter. Notably, new contract wins outpaced contract ends by approximately 25% through June.

在專業業務領域，第二季營收季比和年比均有所下降，主要是因為專案結束時間超過了專案開始時間。然而，本季業務指標開始轉向積極勢頭。值得注意的是，截至 6 月份，新簽訂的合約數量比合約結束數量多了約 25%。

This sustained acceleration was primarily seen in the IT workforce solutions, managed solutions, and near and offshore engagements. These projects will generate revenue and cash flow in the second half of the year. This is very encouraging and I will speak more about our outlook in a moment.

這種持續的加速主要體現在 IT 勞動力解決方案、託管解決方案以及近岸和離岸業務。這些項目將在下半年產生收入和現金流。這是非常令人鼓舞的，我稍後將更多地談論我們的前景。

We continue to manage costs and took prudent action in the second quarter to reduce headcount and lower fixed costs. These actions will benefit our short-term profitability goals while supporting our strategic growth plans. After John walks through the detailed financial results for the quarter, I will return to discuss significant operational initiatives and our outlook. John?

我們繼續管理成本，並在第二季採取審慎行動，以減少員工人數並降低固定成本。這些行動將有利於我們的短期獲利目標，同時支持我們的策略成長計畫。在約翰詳細介紹本季的財務表現後，我將回來討論重要的營運舉措和我們的前景。約翰？

Thank you, Beth, and good morning, everyone. As Beth mentioned, the challenging environment impacting our industry has made year-over-year financial comparisons more difficult to see our progress. Although year-over-year comparisons are important, I plan to focus on a few sequential comparisons to highlight current trends.

謝謝你，貝絲，大家早安。正如貝絲所提到的，影響我們行業的充滿挑戰的環境使得逐年財務比較更難看到我們的進展。儘管逐年比較很重要，但我計劃專注於一些連續比較以突出當前趨勢。

Second quarter revenues were $68.1 million versus $80.8 million in the prior year quarter and flat sequentially. On a sequential basis, Property Management revenues reflected seasonal lift with an increase of 4.8% from the first quarter of 2024.

第二季營收為 6,810 萬美元，去年同期營收為 8,080 萬美元，與上一季持平。以環比計算，物業管理收入反映季節性成長，較 2024 年第一季成長 4.8%。

For the second quarter, revenues in our Professional segment remained soft compared to the first quarter and were down in line with competitors versus the prior year period. However, as Beth mentioned, we are seeing sequential improvement in new contract wins.

第二季度，我們的專業部門的營收與第一季相比仍然疲軟，與去年同期相比，與競爭對手持平。然而，正如貝絲所提到的，我們看到新合約的贏得情況連續改善。

Professional project wins in the second quarter will begin to show up in revenue in the third and fourth quarters. We are encouraged by an improving demand environment, an uptick in contract wins and are cautiously optimistic that BGSF and perhaps the industry are nearing a positive inflection.

第二季贏得的專業項目將開始體現在第三和第四季的收入中。我們對需求環境的改善和合約數量的增加感到鼓舞，並對 BGSF 乃至整個行業接近積極拐點持謹慎樂觀態度。

Gross profit and margins in the second quarter were $23.6 million and 34.7% compared to $29.6 million and 36.6% in the prior year period. The year-over-year decrease in gross profit margin is attributed to lower margins and Property Management driven by market competition and lower permanent placement which has no cost of sales.

第二季毛利和利潤率分別為 2,360 萬美元和 34.7%，而去年同期為 2,960 萬美元和 36.6%。毛利率年減的原因是市場競爭驅動的利潤率下降和物業管理以及無銷售成本的永久安置減少。

Compared to the first quarter, gross profit margins improved by 60 basis points. As we discussed last quarter, we expect Professional segment gross margins to improve sequentially due to actions we were taking.

與第一季相比，毛利率提高了60個基點。正如我們上季度討論的那樣，由於我們採取的行動，我們預計專業部門的毛利率將連續改善。

SG&A expenses for the second quarter were $21.6 million compared to $21 million in the first quarter and $22.6 million in the prior year's quarter. With top line sales compression persisting, we continue to manage our cost structure, reducing fixed costs where it is prudent, balancing short-term gains and long-term benefits.

第二季的銷售、管理及行政費用為 2,160 萬美元，而第一季為 2,100 萬美元，去年同期為 2,260 萬美元。隨著營收持續壓縮，我們持續管理成本結構，謹慎降低固定成本，平衡短期效益和長期效益。

Second quarter adjusted EBITDA was $2.6 million or 3.8% of revenue sequentially compared to $2.7 million or 3.9% in the first quarter. The 2023 second quarter adjusted EBITDA was $7.5 million or 9.3% of revenue. We reported adjusted earnings of $0.07 per diluted share even with $0.07 per share in the 2024 first quarter, which compares to $0.37 per share in the second quarter of 2023.

第二季調整後 EBITDA 為 260 萬美元，佔營收的 3.8%，而第一季為 270 萬美元，佔營收的 3.9%。2023 年第二季調整後 EBITDA 為 750 萬美元，佔營收的 9.3%。我們報告的調整後每股攤薄收益為 0.07 美元，2024 年第一季每股收益為 0.07 美元，而 2023 年第二季每股收益為 0.37 美元。

We generated cash from operating activities for the first six months of $14.7 million, which enabled us to reduce funded debt from $63 million at the end of 2023 to $52 million at the end of the second quarter. Capital expenditures were $1 million for the first half and reflects our expected run rate spend. At June 30, our funded debt to trailing 12-month pro forma adjusted EBITDA was 2.8 times.

我們前六個月的營運活動產生了 1,470 萬美元的現金，這使我們能夠將融資債務從 2023 年底的 6,300 萬美元減少到第二季末的 5,200 萬美元。上半年的資本支出為 100 萬美元，反映了我們預期的運行率支出。截至 6 月 30 日，我們的融資債務與過去 12 個月預計調整後 EBITDA 的比為 2.8 倍。

With that, I would like to turn the call back to Beth.

說到這裡，我想把電話轉回給貝絲。

Thank you, John. As expected, we communicated last quarter. The first half of 2024 was difficult, but we began seeing positive momentum late in the second quarter, that should improve our results starting in the third quarter. We expect our fourth quarter revenues to increase compared to fourth quarter of 2023. Although macro headwinds and recession fears continue to challenge our industry, we are cautiously optimistic given our developing backlog of professional projects and early traction in property management. We are actively preparing for a return to elevated seasonal work with our property management teams.

謝謝你，約翰。正如預期的那樣，我們在上個季度進行了溝通。2024 年上半年很困難，但我們在第二季末開始看到積極的勢頭，這應該會改善我們從第三季開始的業績。我們預計第四季度的營收將較 2023 年第四季有所成長。儘管宏觀逆風和衰退擔憂繼續挑戰我們的行業，但鑑於我們不斷積壓的專業項目和物業管理的早期吸引力，我們持謹慎樂觀的態度。我們正在與物業管理團隊積極準備恢復季節性工作。

With a more robust sales enablement process bolstered by our system upgrades, we have been able to strategically target properties with targeted campaigns around our customers operating realities. Driving leads to the sales teams, increasing relationship touch points and closing deals. This year unit owners and property management groups felt rate and occupancy pressures as well as increased operating expense.

憑藉我們的系統升級支援的更強大的銷售支援流程，我們能夠圍繞客戶的營運實際情況，透過有針對性的活動來策略性地定位房產。為銷售團隊帶來潛在客戶，增加關係接觸點並達成交易。今年，單位業主和物業管理集團感受到了房價和入住率的壓力以及營運費用的增加。

As a result, several property management groups are opting for a short list of preferred dependable suppliers rather than a larger pool of vendors. As a leader in the industry with a reputation of delivering exceptional talent, our strategic sales team has been able to secure positions on these lists as a private provider, this is a win-win for our client partners as well as for us.

因此，一些物業管理集團選擇了一小部分首選的可靠供應商，而不是更多的供應商。作為以提供卓越人才而聞名的行業領導者，我們的策略銷售團隊能夠作為私人提供者在這些名單上佔據一席之地，這對我們的客戶合作夥伴和我們來說都是雙贏的。

The industry shift to a narrow list of trusted property management suppliers allows our teams to showcase our people and culture as a competitive advantage at BGSF. In the industry last year, the multifamily sector experienced higher M&A of property management companies, which created delays in capital decisions and higher deferred maintenance levels. We believe this was created a backlog on repairs and capital improvements which will benefit us in the second half of 2024, especially as the Fed lowers interest rates as expected.

產業向少數值得信賴的物業管理供應商的轉變使我們的團隊能夠展示我們的員工和文化，作為 BGSF 的競爭優勢。去年，在該行業中，多戶住宅行業經歷了更多的物業管理公司併購，這導致了資本決策的延遲和更高的延期維護水平。我們認為，這是造成維修和資本改善積壓的原因，這將使我們在 2024 年下半年受益，特別是在聯準會按預期降低利率的情況下。

For property management we also see measurable traction as we executed our territory mapping strategy in an effort to increase market share. Our pilot market saw a 19% increase in revenue year-over-year and we are actively rolling out the process in additional markets. In addition, as our strategic partnerships gained traction, we aligned management to strengthen those relationships and brought on a seasoned SVP of sales to lead the local sales teams in the market.

對於物業管理，我們在執行領土測繪策略以努力增加市場份額時也看到了可衡量的吸引力。我們的試點市場收入年增 19%，我們正在其他市場積極推廣該流程。此外，隨著我們的策略合作夥伴關係獲得關注，我們調整了管理層以加強這些關係，並聘請了一位經驗豐富的銷售高級副總裁來領導市場上的本地銷售團隊。

Andrew Hill joined us in June and has strong track record of building powerful sales teams in a competitive environment. Andrew's expertise, coupled with our enhanced efforts around sales training and development will improve the effectiveness and speed with which we onboard and train our sales teams.

Andrew Hill 於 6 月加入我們，在競爭激烈的環境中建立強大的銷售團隊方面擁有良好的記錄。安德魯的專業知識，加上我們在銷售培訓和發展方面加強的努力，將提高我們入職和培訓銷售團隊的效率和速度。

As discussed last quarter, we know this industry is evolving and changing and we are proud to be on the leading edge of innovation with an expanding industry of apartments, luxury communities and commercial conversions to residential.

正如上季所討論的，我們知道這個行業正在不斷發展和變化，我們很自豪能夠在不斷擴大的公寓、豪華社區和商業住宅改建行業中處於創新前沿。

On the professional side, we began to see declines in customer spending in the first quarter of last year that accelerated for the remainder of 2023. Typical engagements with three or four resources tighten to one or two, with project ends exceeding project starts almost every quarter starting with Q3 in 2023.

在專業方面，我們從去年第一季開始看到客戶支出下降，並在 2023 年剩餘時間內加速下降。與三到四個資源的典型合作會減少到一到兩個，從 2023 年第三季開始，專案結束幾乎每季都會超過專案啟動。

Despite these trends, our strategic IT partnerships and software development opportunity pipelines began to expand, accelerating project quotes and awards related to managed services and IT consulting engagements.

儘管有這些趨勢，我們的策略 IT 合作夥伴關係和軟體開發機會管道開始擴大，加速了與託管服務和 IT 諮詢業務相關的專案報價和獎勵。

As I mentioned earlier, project wins exceeded project ends starting in the last few weeks of the second quarter. We also won the most significant project in our company's history, a major IT transformation project for a large international client which will begin contributing to our financials in Q3. We are actively deploying project teams to many engagements are more encouraged about the revenue outlook for the professional division than we have been in more than a year.

正如我之前提到的，第二季最後幾週開始的專案贏得數量超過了專案結束數量。我們還贏得了公司歷史上最重要的項目，這是一個大型國際客戶的重大 IT 轉型項目，該項目將在第三季開始為我們的財務做出貢獻。我們正在積極地將專案團隊部署到許多專案中，我們對專業部門的收入前景比一年多來更加鼓舞。

While our first half results do not fully capture the momentum from these recent business wins, we anticipate a strong revenue ramp up in the professional division starting in the third quarter and continuing with more client engagements and billable work in the fourth quarter.

雖然我們上半年的業績並未完全體現最近這些業務勝利帶來的勢頭，但我們預計從第三季度開始，專業部門的收入將強勁增長，並在第四季度繼續增加更多的客戶參與和計費工作。

In addition, we are seeing an increase in our perm placement activity for finance and accounting services with recent double-digit growth sequentially, which we know is a positive signal about hiring for the US businesses.

此外，我們看到金融和會計服務領域的永久就業活動增加，最近連續出現兩位數成長，我們知道這是美國企業招聘的正面訊號。

Our industry has indicated that businesses that operate in a more consultive versus staffing manner in IT services will benefit in the long-term, which aligns with the strategic shift we put into play over two years ago.

我們的行業表明，從長遠來看，在 IT 服務中以更多諮詢方式而非人員配置方式運營的企業將從長遠來看受益，這與我們兩年多前實施的戰略轉變相一致。

Our collective IT expertise in BGSF is highly valuable to our clients as we bring an unbiased approach to every part of the tech cycle. Our recent technology partnerships with Workday, SAP and others has bolstered our reputation in the market, which will continue to benefit us in the second half of 2024 and beyond. Managed solutions continues to grow and innovate with our Arroyo teams, which delivers onshore and offshore work, important AI solutions, and valuable ERP connector products.

我們在 BGSF 的集體 IT 專業知識對我們的客戶非常有價值，因為我們為技術週期的每個部分帶來了公正的方法。我們最近與 Workday、SAP 等公司的技術合作夥伴關係增強了我們在市場上的聲譽，這將在 2024 年下半年及以後繼續使我們受益。託管解決方案與我們的 Arroyo 團隊一起不斷發展和創新，提供陸上和海上工作、重要的 AI 解決方案和有價值的 ERP 連接器產品。

This is an exciting area for us with software engineers delivering intelligence, product development, cloud initiatives and delivery excellence. I am pleased with BGSF's near-term growth prospects. We will continue to focus on reducing and optimizing costs to drive higher profitability and improve our structural margins. We know we have work to do, but we are relentlessly focused on sales, profitability and cash flow growth.

對我們來說，這是一個令人興奮的領域，軟體工程師提供智慧、產品開發、雲端計劃和卓越交付。我對 BGSF 的近期成長前景感到滿意。我們將繼續專注於降低和優化成本，以提高獲利能力並改善結構性利潤。我們知道我們還有工作要做，但我們堅持不懈地專注於銷售、獲利能力和現金流成長。

Thank you for your time today. I want to thank all of our stakeholders, employees, clients, partners and investors for their continued support and belief in our vision at BGSF.

感謝您今天抽出時間。我要感謝我們所有的利害關係人、員工、客戶、合作夥伴和投資者對 BGSF 願景的持續支持和信任。

We would now like to open the call for questions. Operator?

我們現在要開始提問。操作員？

(Operator Instructions) Jeff Martin, Roth Capital.

（操作員指令）Jeff Martin，Roth Capital。

Thanks. Good morning Beth and John. Beth, I missed your comments about the third and fourth quarter by real estate and professional. I did catch that you expect fourth quarter to be up year-over-year, but if you could just repeat those comments, I apologize. I missed them?

謝謝。早安，貝絲和約翰。貝絲，我錯過了您對房地產和專業人士第三季和第四季的評論。我確實了解到您預計第四季度將同比增長，但如果您能重複這些評論，我深表歉意。我想念他們嗎？

In regards to property management?

關於物業管理？

Professional and property management third and fourth quarter?

專業和物業管理第三季和第四季？

We believe that the second half of the year is going to be far better than the first half of the year in both segments. We've got a lot of positive momentum going on in the professional side in regards to wins that we won in May and June. Start dates kind of stagger out between starting in August, September and October.

我們相信，下半年這兩個領域的表現都將遠遠好於上半年。就我們在五月和六月贏得的勝利而言，我們在職業方面有很多積極的勢頭。開始日期在八月、九月和十月之間錯開。

So we see those things coming in and then property management goes into their normal seasonality uptick. And coupled with the building out of this territory mapping tool that we've seen success in, we think the quarter is going to the end of the year is definitely going to be better than the first half of the year.

因此，我們看到這些事情出現，然後物業管理進入正常的季節性上升。再加上我們已經看到成功的領域地圖工具的構建，我們認為到年底的季度肯定會比上半年更好。

Great. And then you talked about some large contracts. Last quarter there was an SAP cloud contract and I think a couple of divestitures. Just curious if those are off and running or if those were delayed a little bit in the second quarter in terms of start?

偉大的。然後你談到了一些大合約。上個季度有一份 SAP 雲端合同，我認為有一些資產剝離。只是好奇這些是否已經啟動並運行，或者是否在第二季度的啟動方面有所延遲？

Some of them have started running, but the big one that we've been working on, I think our teams right now are actually doing discovery this week. And so we shall start seeing some of that revenue coming in, in late August and into September, we start ramping up.

其中一些已經開始運行，但我們一直在研究的大項目，我認為我們的團隊現在實際上正在本週進行發現。因此，我們將開始看到一些收入在八月底和九月到來，我們開始增加。

Okay. Great. And then with respect to the new wins exceeding project ends, you mentioned that started late in the quarter, but how does that dovetail with the 25% higher wind versus end state?

好的。偉大的。然後，關於超過專案結束的新勝利，您提到了從本季末開始的情況，但這與比最終狀態高出 25% 的風能如何吻合？

The wind's going into the second half of the year. Again, they sprinkle in we have many customers, Jeff, that we -- when is basically, we've signed the paper, and so some of them start in August, some start in September, some start in October. So it's just a matter of when those start dates get implemented. We haven't seen anything push from the initial agreements that we have. So that's a positive sign right now, so they're just getting ramped up.

風將進入下半年。再說一遍，我們有很多客戶，傑夫，我們基本上已經簽署了文件，所以其中一些在八月開始，一些在九月開始，一些在十月開始。因此，這只是這些開始日期何時實施的問題。我們還沒有看到我們最初達成的協議有任何推動作用。所以現在這是一個積極的信號，所以他們正在加速。

Yeah. Jeff, we haven't seen this consistency on a weekly basis, right. That we are consistently winning more contracts than we're seeing end, and we haven't seen that in quite a while. So what we've seen in the quarter has been encouraging and continued through this beginning of this quarter.

是的。傑夫，我們還沒有看到每週都有這種一致性，對吧。我們贏得的合約數量持續多於預期，而且我們已經很長一段時間沒有看到這種情況了。因此，我們在本季看到的情況令人鼓舞，並持續到本季初。

Yeah. Okay. That's helpful. Makes a lot of sense. And then just curious on, in terms of working capital, you've generated quite a bit of operating cash flow first half of the year, mainly due to collection of receivables. Just curious, your comfort with your capital availability as things ramp back up and you start to build that working capital again?

是的。好的。這很有幫助。很有道理。然後只是好奇，就營運資金而言，今年上半年您產生了相當多的營運現金流，主要是由於應收帳款的收回。只是好奇，隨著情況回升並且您開始再次建立營運資金，您對可用的資金感到滿意嗎？

Yeah. We feel comfortable with where we are today. I think, well, we've worked very hard on in our accounts receivable team has done a great job over the last year. We've really focused on structure of the organization, training and then we also implemented [pay], which is a really helpful tool to automate a lot of the AR functions and then also just provide a daily guide for what we should be doing and a lot more visibility into our AR balances.

是的。我們對今天的處境感到滿意。我認為，去年我們的應收帳款團隊非常努力，而且做得很好。我們非常關注組織結構和培訓，然後我們也實施了[付費]，這是一個非常有用的工具，可以自動化許多 AR 功能，然後還為我們應該做什麼提供日常指南，更清楚地了解我們的AR 餘額。

And so that's really allowed us to accelerate collections, which is the decline in AR is a combination of the revenue, less revenue, less AR but also we made great strides to push down our DSO.

這確實讓我們能夠加速收集，AR 的下降是收入減少、AR 減少的綜合影響，但我們在降低 DSO 方面也取得了長足的進步。

That's helpful. Thank you.

這很有幫助。謝謝。

Howard Halpern, Taglich Brothers.

霍華德·哈爾彭，塔格利奇兄弟。

Good morning, guys. If you could talk a little bit about, I guess, the pipeline that you have and the type of verticals that the projects you'll be engaging in?

早安，夥計們。我想，您是否可以談談您擁有的管道以及您將參與的專案的垂直類型？

Mostly in our technology space, so it's a lot of managed solutions and bringing in Arroyo. As we talked about getting Arroyo up to speed and integrated, we've got more and more deals where we're doing what we call a plus one campaign, which means that we have customers that are buying one thing from us, and so we're going out and asking them to buy other types of services from us. Since we launched that in 11 months, I think we started it 11 months ago, we were about 12. We had 69 customers now that are buying multiple services from us. So it's those kinds of engagements.

主要是在我們的技術領域，因此有許多託管解決方案並引入了 Arroyo。當我們談到讓 Arroyo 加快速度並進行整合時，我們收到了越來越多的交易，我們正在進行所謂的「加一」活動，這意味著我們有客戶從我們這裡購買一件東西，所以我們我們出去要求他們向我們購買其他類型的服務。自從我們在 11 個月內推出以來，我想我們是 11 個月前開始的，當時我們大約 12 歲。我們現在有 69 位客戶正在向我們購買多項服務。這就是這些類型的約定。

Okay. And in terms of, you're seeing the ramp-up, but you also, I guess, talked about in the press release, you right sized costs. And so are you leveraged enough now where you're not going to have to increase costs that much to accomplish the ramp in activity that's coming in the second half?

好的。就而言，你看到了成長，但我想你也在新聞稿中談到了你正確調整了成本。那麼，您現在的槓桿是否足夠，無需增加太多成本來實現下半年的活動成長？

A lot of the activity we expect in the second half is actually under contract. Obviously, we have to continue to add to that. It's a matter of timing of the start of the projects and how fast they ramp-up.

我們預計下半年的許多活動實際上都是按合約進行的。顯然，我們必須繼續補充這一點。這是專案啟動的時間和啟動速度的問題。

But yes, we don't expect near term that we would add to our sales cost structure or G&A cost structure to deliver our expected second half results.

但是，是的，我們預計短期內不會增加我們的銷售成本結構或一般管理費用結構來實現我們預期的下半年業績。

Okay. And then just one last one, at least the near term or initial trends in permanent placements. What does that look like and what does that indicate to you potentially for the upcoming quarters?

好的。然後是最後一項，至少是永久安置的近期或初步趨勢。這看起來是什麼樣的？

Permanent placement is usually when the economy soft, something that is not very active. And we saw that last year. We're seeing that pickup in our finance and accounting teams right now, which usually is an indicator that people have a little bit more confidence as they move into the quarters.

永久安置通常是在經濟疲軟、不太活躍的情況下進行的。我們去年就看到了這一點。我們現在看到我們的財務和會計團隊的情況有所好轉，這通常表明人們在進入本季度時信心增強了一些。

And so we're just following that. I think we had double-digit growth in sequential growth and what they had done the first six months of the year, the last six months of last year, and first six months of this year. So we just find that to be positive and usually trends with the industry. So when perm's down, you kind of things are tough, and when perm starts to come back, it's a little bit, it's a glimmer of hope.

所以我們只是遵循這一點。我認為我們的連續成長以及他們今年前六個月、去年最後六個月和今年前六個月的表現都實現了兩位數成長。所以我們發現這是積極的，並且通常是行業的趨勢。所以當燙髮下來時，你的事情會很艱難，當燙髮開始回來時，這是一點點，這是一線希望。

Okay. Well, keep up the good work and look forward to the second half.

好的。好吧，繼續努力，期待下半年。

Thanks, Howard.

謝謝，霍華德。

Bill Dezellem, Tieton Capital.

比爾·德澤勒姆，泰頓資本。

Thank you. I have a group of questions. First of all, what changed? And so in the spirit of why are you now seeing the wins ramping up?

謝謝。我有一組問題。首先，什麼改變了？那麼，本著為什麼你現在看到勝利在增加的精神？

I think there's a change [inaudible] the outlook. People held onto their cash last year, and at some point in these ERP systems, people actually end up saying, hey, we've held long enough, we have to move forward. And so I think we're seeing that shift where people held last year. And people's ERP systems are kind of an important part of their business. So since that's where we play, we're seeing a lot of that pent-up demand start to release.

我認為前景發生了變化[聽不清楚]。去年，人們持有現金，在這些 ERP 系統中的某個時刻，人們實際上最終會說，嘿，我們已經持有足夠長的時間了，我們必須繼續前進。所以我認為我們看到了人們去年的轉變。人們的 ERP 系統是其業務的重要組成部分。因此，由於這就是我們發揮作用的地方，我們看到許多被壓抑的需求開始釋放。

And any further insight at why so much of that demand seemed to be released specifically in the second quarter, as opposed to maybe gradually coming back in?

對於為什麼如此多的需求似乎專門在第二季度釋放，而不是逐漸恢復，還有什麼進一步的見解嗎？

I don't know that we could speculate what the buyer is thinking, what's happening in that regard. I just think our teams have done a really good job in nurturing these relationships and making sure that we're reaching out and having our partnerships in place. And when they were ready, when our customers were ready to go, we were there to help.

我不知道我們是否可以推測買家在想什麼，以及在這方面發生了什麼。我只是認為我們的團隊在培養這些關係並確保我們伸出援手並建立合作夥伴關係方面做得非常好。當他們準備好時，當我們的客戶準備好出發時，我們就在那裡提供幫助。

On the Professional side of the business, these are long sales cycles, too, right. So we've been working on, yeah, a lot of the wins that we had, we've been working on for some time. It's just got to the point where our customers said, okay, let's go, let's move forward with this.

在業務的專業方面，這些也是很長的銷售週期，對吧。所以我們一直在努力，是的，我們已經取得了很多勝利，我們已經努力了一段時間了。事情已經到了我們的客戶說，好吧，我們走吧，讓我們繼續前進。

Great. Thank you. And then the large deal, I guess you said it was the largest in the firm's history. Why did you win that versus the competition? And maybe you could lay out who the competition was?

偉大的。謝謝。然後是大交易，我猜你說這是公司史上最大的交易。為什麼你能在競爭中獲勝？也許你可以列出競爭對手是誰？

I'm not sure who we were competing against. I know there was, it was an international company, so it was an international player. And we got called, we met the Chairman of their Board at an event that we were at and we're talking to him about our capabilities and he wasn't very happy with the incumbent and so he asked us to come in at the 11th hour and to present. And our team did an amazing job coming in and figuring out what the needs were and presenting the need. And it was a very, very long and tedious process for them.

我不確定我們在和誰競爭。我知道有，這是一家國際公司，所以它是一個國際參與者。我們接到電話，在我們參加的活動中會見了他們的董事會主席，我們正在與他談論我們的能力，他對現任主席不太滿意，所以他要求我們在 11 號加入小時並呈現。我們的團隊做得非常出色，他們了解了需求並提出了需求。對他們來說，這是一個非常非常漫長且無聊的過程。

But we ended up beating out the incumbent and taking over the -- and winning the deal, which was good. It was very -- it's the biggest one we've ever done and an international player too. So it's very exciting. I'm very proud of the team for that.

但我們最終擊敗了現任者並接管了——並贏得了這筆交易，這很好。這是我們做過的最大的一次，也是一位國際球員。所以這非常令人興奮。我為此團隊感到非常自豪。

And Beth, in that case, are you implementing for the US operations? And so if you do meet their expectations that there would be other countries that you could then do implementations for or how do you see the opportunity for additional business with this customer?

貝絲，那麼，您是在執行美國業務嗎？因此，如果您確實滿足了他們的期望，那麼您可以為其他國家/地區實施實施，或者您如何看待與該客戶開展額外業務的機會？

It's an international company, so we're already going to be helping them in 19 countries. So I believe that there's a -- the team, when they met with the Chairman last week, I believe it was. We believe the deal we have now is just the beginning. We think it will definitely open the doors for more business with this customer in the future.

這是一家國際公司，因此我們已經在 19 個國家/地區為他們提供幫助。所以我相信有一個團隊，當他們上週與主席會面時，我相信是這樣。我們相信我們現在達成的協議只是一個開始。我們認為，這肯定會為未來與該客戶的更多業務打開大門。

Great. Thank you. And then relative to the Property Management business, you referenced that the M&A had led to deferred maintenance. Are you finding that this year, with the pressure on rate and occupancy that that is leading to a continuation or additional maintenance deferral as they're trying to preserve cash? What's the dynamic that you're sensing there?

偉大的。謝謝。然後，相對於物業管理業務，您提到併購導致了延期維護。您是否發現，今年由於利率和入住率面臨壓力，導致他們為了保留現金而繼續或額外延遲維護？您感受到的動態是什麼？

There is a lot of cash being held in that segment and I think a lot of it has to do with. The property's insurance is higher. All their operational costs are higher. So we definitely are seeing them hold cash. But at some point, again, people can only hold maintenance for a certain amount of time before they have to deal with it. And so we do believe that there's lots of pent-up demand there that will eventually break free. We're just not -- it's just not completely started yet.

該領域持有大量現金，我認為其中很大一部分與此有關。財產保險較高。他們所有的營運成本都更高。所以我們一定會看到他們持有現金。但在某些時候，人們只能將維護維持一定的時間，然後才必須處理它。因此，我們確實相信，那裡有大量被壓抑的需求最終會被釋放出來。我們只是還沒完全開始。

Great. Thank you.

偉大的。謝謝。

And ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Beth Garvey for any closing remarks.

女士們、先生們，我們的問答環節到此結束。我想將會議轉回貝絲·加維（Beth Garvey）發表閉幕詞。

Thank you for your time today and we appreciate your continued support. We look forward to talking to you in November. Thanks.

感謝您今天抽出寶貴時間，感謝您一如既往的支持。我們期待在 11 月與您交談。謝謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。