☑
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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26-0656684
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||
(State of Incorporation)
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(I.R.S. Employer Identification Number)
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||||
5850 Granite Parkway, Suite 730
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Plano,
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Texas
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75024
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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Trading Symbol(s)
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Name of Exchange on Which Registered
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Common Stock, par value $0.01 per share
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BGSF
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NYSE
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Large accelerated filer
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¨
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Accelerated filer
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þ
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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☑
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Emerging growth company
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☐
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Page
No.
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Forward-Looking Statements
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PART I
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PART II
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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||
PART III
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PART IV
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Item 16
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Form 10-K Summary
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•
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In June 2010, we purchased the interests of BG Personnel Services, LP and BG Personnel, LP, and purchased the common stock of B G Staff Services, Inc. Shortly after the purchase, we relocated our home office to Dallas, Texas.
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•
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In December 2010, we purchased substantially all of the assets and assumed certain liabilities of JNA Staffing Inc., which specialized in providing temporary staffing services within the State of Wisconsin. These operations were rolled into our existing operations in Milwaukee, Wisconsin.
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•
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In December 2011, we purchased substantially all of the assets and assumed certain liabilities of Extrinsic, LLC, which specialized in providing information technology (“IT”) staffing services to client partners within the U.S. We continue to operate under the Extrinsic trade name.
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•
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In December 2012, we acquired substantially all of the assets and assumed certain liabilities of American Partners, Inc., which specialized in providing IT staffing services to client partners within the U.S. We continue to operate under the American Partners trade name.
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•
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In June 2013, we acquired substantially all of the assets and assumed certain liabilities of InStaff Holding Corporation and InStaff Personnel, LLC, a wholly owned subsidiary of InStaff Holding Corporation (collectively, “InStaff”). This acquisition has allowed us to strengthen and expand our operations in our Light Industrial segment. We continue to operate under the InStaff trade name.
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•
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In March 2015, we acquired substantially all of the assets and assumed certain liabilities of D&W Talent, LLC (“D&W”), which specialized in providing temporary and full-time staffing services of accounting and finance personnel and secretarial and administrative personnel to client partners in Texas and Louisiana. We continue to operate under the Donovan & Watkins trade name.
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•
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In October 2015, we acquired substantially all of the assets and assumed certain liabilities of Vision Technology Services, Inc., Vision Technology Services, LLC, and VTS-VM, LLC (collectively, “VTS”), which provided IT temporary staffing talent and project management services. We continue to operate under the Vision Technology Services trade name.
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•
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In April 2017, we acquired substantially all of the assets and assumed certain liabilities of Zycron, Inc. (“Zycron”), which provided IT temporary staffing talent and project management services. We continue to operate under the Zycron trade name.
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•
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In September 2017, we acquired substantially all of the assets and assumed certain liabilities of Smart Resources Inc. and Accountable Search, LLC (collectively, “Smart”), which specialized in providing temporary and full-time staffing services of accounting and finance personnel and secretarial and administrative personnel to client partners in Chicago market. We continue to operate under the Accountable Search and Smart Resources trade names.
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•
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In December 2019, we acquired substantially all of the assets and assumed certain liabilities of L.J. Kushner & Associates, L.L.C. (“LJK”), which provided cybersecurity retained search services specializing in recruiting high and mid-level IT security professionals. We continue to operate under the L.J. Kushner & Associates trade name.
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•
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In February 2020, we acquired 100% of the equity of EdgeRock Technology Holdings, Inc. (“EdgeRock”), which provides specialized IT consultants and focuses on the sourcing and placement of technology professionals specialized in leading software and data ecosystems. We continue to operate under the EdgeRock Technology Partners trade name.
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•
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Develop and expand their infrastructure and service offerings more quickly and achieve greater cost savings;
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•
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Invest in new technologies;
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•
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Expand operations into new markets more rapidly;
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•
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Devote greater resources to marketing;
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•
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Compete for acquisitions more effectively and complete acquisitions more easily; and
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•
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Aggressively price products and services and increase benefits in ways that we may not be able to match.
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2019
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2018
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|
2017
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|||
Maryland
|
|
11
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%
|
|
11
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%
|
|
12
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%
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Tennessee
|
|
15
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%
|
|
14
|
%
|
|
12
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%
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Texas
|
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28
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%
|
|
29
|
%
|
|
29
|
%
|
•
|
discrimination and harassment;
|
•
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wrongful termination or denial of employment;
|
•
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violations of employment rights related to employment screening or privacy issues;
|
•
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classification of field talent;
|
•
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assignment of illegal aliens;
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•
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violations of wage and hour requirements;
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•
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retroactive entitlement to field talent benefits;
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•
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errors and omissions by our field talent;
|
•
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misuse of client partners proprietary information;
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•
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misappropriation of funds;
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•
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damage to client partners facilities due to negligence of field talent; and
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•
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criminal activity.
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•
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you may have difficulty buying and selling our common stock at all or at the price you consider reasonable;
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•
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market visibility for shares of our common stock may be limited, which may have a depressive effect on the market price for shares of our common stock and on our ability to raise capital or make acquisitions by issuing our common stock.
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•
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actual or anticipated fluctuations in our quarterly or annual operating results;
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•
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changes in financial or operational estimates or projections;
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•
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conditions in markets generally;
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•
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changes in the economic performance or market valuations of companies similar to ours; and
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•
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general economic or political conditions in the United States or elsewhere.
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•
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a classified board of directors with three-year staggered terms;
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•
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the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval;
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•
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stockholder action can only be taken at a special or regular meeting and not by written consent except in limited circumstances;
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•
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advance notice procedures for nominating candidates to our board of directors or presenting matters at stockholder meetings;
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•
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removal of directors only for cause;
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•
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allowing only our board of directors to fill vacancies on our board of directors or increase the size of our board of directors; and
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•
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super-majority voting requirements to amend certain provisions of our certificate of incorporation.
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Quarter Ended:
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|
High
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Low
|
||||
December 29, 2019
|
|
$
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22.31
|
|
$
|
18.00
|
|
September 29, 2019
|
|
$
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20.00
|
|
$
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16.00
|
|
June 30, 2019
|
|
$
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23.99
|
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$
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15.91
|
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March 30, 2019
|
|
$
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28.01
|
|
$
|
19.25
|
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December 30, 2018
|
|
$
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27.46
|
|
$
|
18.61
|
|
September 30, 2018
|
|
$
|
29.59
|
|
$
|
22.61
|
|
July 1, 2018
|
|
$
|
24.07
|
|
$
|
17.86
|
|
April 1, 2018
|
|
$
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19.46
|
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$
|
15.30
|
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Declared Date
|
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Record Date
|
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Distribution Date
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Dividend per Share
|
|
Amount Paid
|
||
January 26, 2017
|
|
February 13, 2017
|
|
February 20, 2017
|
|
$0.25
|
|
$
|
2,167,327
|
|
April 20, 2017
|
|
May 1, 2017
|
|
May 8, 2017
|
|
$0.25
|
|
2,188,744
|
|
|
July 20, 2017
|
|
July 31, 2017
|
|
August 7, 2017
|
|
$0.25
|
|
2,189,844
|
|
|
October 23, 2017
|
|
November 2, 2017
|
|
November 7, 2017
|
|
$0.25
|
|
2,189,844
|
|
|
Total
|
|
|
|
|
|
|
|
$
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8,735,759
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|
|
|
|
|
|
|
|
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||
February 1, 2018
|
|
February 12, 2018
|
|
February 20, 2018
|
|
$0.25
|
|
$
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2,189,844
|
|
May 10, 2018
|
|
May 21, 2018
|
|
May 29, 2018
|
|
$0.30
|
|
2,638,232
|
|
|
July 25, 2018
|
|
August 6, 2018
|
|
August 13, 2018
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|
$0.30
|
|
3,026,709
|
|
|
October 26, 2018
|
|
November 5, 2018
|
|
November 13, 2018
|
|
$0.30
|
|
3,067,124
|
|
|
Total
|
|
|
|
|
|
|
|
$
|
10,921,909
|
|
|
|
|
|
|
|
|
|
|
||
February 6, 2019
|
|
February 19, 2019
|
|
February 26, 2019
|
|
$0.30
|
|
$
|
3,068,847
|
|
April 25, 2019
|
|
May 6, 2019
|
|
May 13, 2019
|
|
$0.30
|
|
3,068,974
|
|
|
July 31, 2019
|
|
August 12, 2019
|
|
August 19, 2019
|
|
$0.30
|
|
3,071,862
|
|
|
October 29, 2019
|
|
November 11, 2019
|
|
November 18, 2019
|
|
$0.30
|
|
3,072,659
|
|
|
Total
|
|
|
|
|
|
|
|
$
|
12,282,342
|
|
Plan Category
|
|
Number of Securities to be
Issued upon Exercise of
Outstanding Options,
Warrants and Rights (a)
|
|
Weighted-average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
|
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected
in Column (a))
|
||
Equity Compensation Plans Approved by Security Holders (2013 Long-Term Incentive Plan)
|
|
582,845
|
|
|
$18.32
|
|
255,894
|
|
Total
|
|
582,845
|
|
|
$18.32
|
|
255,894
|
|
|
Fiscal Years Ended
|
||||||||||||||||||
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
|
December 25,
2016 |
|
December 27,
2015 |
||||||||||
|
(dollars in thousands, except per share data)
|
||||||||||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
294,314
|
|
|
$
|
286,863
|
|
|
$
|
272,600
|
|
|
$
|
253,852
|
|
|
$
|
217,534
|
|
Gross profit
|
$
|
80,681
|
|
|
$
|
76,595
|
|
|
$
|
68,402
|
|
|
$
|
60,073
|
|
|
$
|
47,907
|
|
Selling, general and administrative expenses
|
$
|
56,199
|
|
|
$
|
51,066
|
|
|
$
|
44,576
|
|
|
$
|
37,971
|
|
|
$
|
29,389
|
|
(Gain) Loss on contingent consideration
|
$
|
—
|
|
|
$
|
(3,775
|
)
|
|
$
|
(226
|
)
|
|
$
|
(167
|
)
|
|
$
|
1,001
|
|
Depreciation and amortization
|
$
|
4,820
|
|
|
$
|
5,044
|
|
|
$
|
6,292
|
|
|
$
|
6,733
|
|
|
$
|
5,544
|
|
Operating income
|
$
|
19,662
|
|
|
$
|
24,260
|
|
|
$
|
17,760
|
|
|
$
|
15,536
|
|
|
$
|
11,973
|
|
Loss on extinguishment of debt
|
$
|
541
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
404
|
|
|
$
|
439
|
|
Interest expense, net
|
$
|
1,569
|
|
|
$
|
2,850
|
|
|
$
|
3,253
|
|
|
$
|
3,962
|
|
|
$
|
2,996
|
|
Change in fair value of put option
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(177
|
)
|
Income before income taxes
|
$
|
17,552
|
|
|
$
|
21,410
|
|
|
$
|
14,507
|
|
|
$
|
11,170
|
|
|
$
|
8,715
|
|
Income tax expense
|
$
|
4,305
|
|
|
$
|
3,860
|
|
|
$
|
8,659
|
|
(1)
|
$
|
4,288
|
|
|
$
|
3,368
|
|
Net income
|
$
|
13,247
|
|
|
$
|
17,550
|
|
|
$
|
5,848
|
|
|
$
|
6,882
|
|
|
$
|
5,347
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share – basic
|
$
|
1.29
|
|
|
$
|
1.83
|
|
|
$
|
0.67
|
|
|
$
|
0.85
|
|
|
$
|
0.76
|
|
Net income per share – diluted
|
$
|
1.28
|
|
|
$
|
1.79
|
|
|
$
|
0.65
|
|
|
$
|
0.82
|
|
|
$
|
0.73
|
|
Weighted average shares outstanding – basic
|
10,239
|
|
|
9,577
|
|
|
8,734
|
|
|
8,108
|
|
|
7,079
|
|
|||||
Weighted average shares outstanding – diluted
|
10,351
|
|
|
9,808
|
|
|
9,038
|
|
|
8,400
|
|
|
7,289
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Financial Data:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA (2)
|
$
|
26,590
|
|
|
$
|
27,106
|
|
|
$
|
24,737
|
|
|
$
|
22,643
|
|
|
$
|
19,398
|
|
Same Day EBITDA (2)
|
$
|
26,590
|
|
|
$
|
27,106
|
|
|
$
|
24,216
|
|
|
$
|
22,643
|
|
|
$
|
19,398
|
|
Cash dividends declared per common share
|
$
|
1.20
|
|
|
$
|
1.15
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
$
|
0.75
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
$
|
27,030
|
|
|
$
|
20,555
|
|
|
$
|
16,320
|
|
|
$
|
19,185
|
|
|
$
|
10,016
|
|
Total assets
|
$
|
115,586
|
|
|
$
|
100,269
|
|
|
$
|
104,633
|
|
|
$
|
81,214
|
|
|
$
|
84,400
|
|
Total outstanding borrowings, net
|
$
|
27,494
|
|
|
$
|
20,089
|
|
|
$
|
44,123
|
|
|
$
|
23,618
|
|
|
$
|
30,649
|
|
Total other long-term liabilities
|
$
|
6,303
|
|
|
$
|
662
|
|
|
$
|
2,629
|
|
|
$
|
1,858
|
|
|
$
|
4,519
|
|
Stockholders’ equity
|
$
|
68,457
|
|
|
$
|
65,702
|
|
|
$
|
39,135
|
|
|
$
|
40,488
|
|
|
$
|
25,928
|
|
(1)
|
Includes a $3.3 million re-measurement of the net deferred tax assets as a result of the TCJA.
|
(2)
|
We present Adjusted EBITDA and Same Day EBITDA (defined below), measures that are not in accordance with generally accepted accounting principles (“non-GAAP”), in this Annual Report on Form 10-K to provide investors with a supplemental measure of our operating performance. We believe that Adjusted EBITDA and Same Day EBITDA are useful performance measures and are used by us to facilitate comparisons of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under generally accepted accounting principles (“GAAP”) can provide alone. Our board and management also use Adjusted EBITDA and Same Day EBITDA as some of the primary methods for planning and forecasting overall expected performance and for evaluating on a quarterly and annual basis actual results against such expectations, and as a performance evaluation
|
|
|
|
Fiscal Years Ended
|
||||||||||||||||||
|
|
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
|
December 25,
2016 |
|
December 27,
2015 |
||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||
Net income
|
|
$
|
13,247
|
|
|
$
|
17,550
|
|
|
$
|
5,848
|
|
|
$
|
6,882
|
|
|
$
|
5,347
|
|
|
Interest expense, net
|
|
1,569
|
|
|
2,850
|
|
|
3,253
|
|
|
3,962
|
|
|
2,996
|
|
||||||
Income tax expense
|
|
4,305
|
|
|
3,860
|
|
|
8,659
|
|
(3)
|
4,288
|
|
|
3,368
|
|
||||||
Loss on extinguishment of debt
|
|
541
|
|
|
—
|
|
|
—
|
|
|
404
|
|
|
439
|
|
||||||
Change in fair value of put option
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(177
|
)
|
||||||
|
Operating income
|
|
19,662
|
|
|
24,260
|
|
|
17,760
|
|
|
15,536
|
|
|
11,973
|
|
|||||
Depreciation and amortization
|
|
4,820
|
|
|
5,044
|
|
|
6,292
|
|
|
6,733
|
|
|
5,544
|
|
||||||
(Gain) Loss on contingent consideration
|
|
—
|
|
|
(3,775
|
)
|
|
(226
|
)
|
|
(167
|
)
|
|
1,001
|
|
||||||
Share-based compensation
|
|
953
|
|
|
1,069
|
|
|
447
|
|
|
314
|
|
|
353
|
|
||||||
Transaction fees
|
|
434
|
|
|
508
|
|
|
464
|
|
|
227
|
|
|
527
|
|
||||||
IT roadmap
|
|
721
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Adjusted EBITDA
|
|
26,590
|
|
|
27,106
|
|
|
24,737
|
|
|
22,643
|
|
|
19,398
|
|
|||||
Same day adjustment
|
|
—
|
|
|
—
|
|
|
(521
|
)
|
|
—
|
|
|
—
|
|
||||||
|
Same day EBITDA
|
|
$
|
26,590
|
|
|
$
|
27,106
|
|
|
$
|
24,216
|
|
|
$
|
22,643
|
|
|
$
|
19,398
|
|
(3)
|
Includes a $3.3 million re-measurement of the net deferred tax assets as a result of the TCJA.
|
|
|
|
Fiscal Year Ended
|
||||||||||
|
|
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
||||||
|
|
|
52 week
|
|
52 week
|
|
53 Week
|
||||||
|
|
|
(dollars in thousands)
|
||||||||||
Revenues
|
|
$
|
294,314
|
|
|
$
|
286,863
|
|
|
$
|
272,600
|
|
|
Cost of services
|
|
213,633
|
|
|
210,268
|
|
|
204,198
|
|
||||
|
Gross Profit
|
|
80,681
|
|
|
76,595
|
|
|
68,402
|
|
|||
Selling, general and administrative expenses
|
|
56,199
|
|
|
51,066
|
|
|
44,576
|
|
||||
Gain on contingent consideration
|
|
—
|
|
|
(3,775
|
)
|
|
(226
|
)
|
||||
Depreciation and amortization
|
|
4,820
|
|
|
5,044
|
|
|
6,292
|
|
||||
|
Operating income
|
|
19,662
|
|
|
24,260
|
|
|
17,760
|
|
|||
Loss on extinguishment of debt
|
|
541
|
|
|
—
|
|
|
—
|
|
||||
Interest expense, net
|
|
1,569
|
|
|
2,850
|
|
|
3,253
|
|
||||
|
Income before income tax
|
|
17,552
|
|
|
21,410
|
|
|
14,507
|
|
|||
Income tax expense
|
|
4,305
|
|
|
3,860
|
|
|
8,659
|
|
||||
|
Net income
|
|
$
|
13,247
|
|
|
$
|
17,550
|
|
|
$
|
5,848
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Fiscal Year Ended
|
||||||||||
|
|
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
||||||
Revenues
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
||||
Cost of services
|
|
72.6
|
|
|
73.3
|
|
|
74.9
|
|
||||
|
Gross Profit
|
|
27.4
|
|
|
26.7
|
|
|
25.1
|
|
|||
Selling, general and administrative expenses
|
|
19.1
|
|
|
17.8
|
|
|
16.4
|
|
||||
Gain on contingent consideration
|
|
—
|
|
|
(1.3
|
)
|
|
(0.1
|
)
|
||||
Depreciation and amortization
|
|
1.6
|
|
|
1.8
|
|
|
2.3
|
|
||||
|
Operating income
|
|
6.7
|
|
|
8.5
|
|
|
6.5
|
|
|||
Loss on extinguishment of debt
|
|
0.2
|
|
|
—
|
|
|
—
|
|
||||
Interest expense, net
|
|
0.5
|
|
|
1.0
|
|
|
1.2
|
|
||||
|
Income before income tax
|
|
6.0
|
|
|
7.5
|
|
|
5.3
|
|
|||
Income tax expense
|
|
1.5
|
|
|
1.3
|
|
|
3.2
|
|
||||
|
Net income
|
|
4.5
|
%
|
|
6.1
|
%
|
|
2.1
|
%
|
|
|
Fiscal Year Ended
|
||||||||||||
|
|
December 29,
2019 |
|
December 30,
2018 |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||
Revenues by Segment:
|
|
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
96,422
|
|
|
32.8
|
%
|
|
$
|
86,874
|
|
|
30.3
|
%
|
Professional
|
|
123,343
|
|
|
41.9
|
%
|
|
119,300
|
|
|
41.6
|
%
|
||
Light Industrial
|
|
74,549
|
|
|
25.3
|
%
|
|
80,689
|
|
|
28.1
|
%
|
||
Total Revenues
|
|
$
|
294,314
|
|
|
100.0
|
%
|
|
$
|
286,863
|
|
|
100.0
|
%
|
|
|
Fiscal Year Ended
|
||||||||||||
|
|
December 29,
2019 |
|
December 30,
2018 |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||
Gross Profit by Segment:
|
|
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
36,928
|
|
|
45.8
|
%
|
|
$
|
32,955
|
|
|
43.0
|
%
|
Professional
|
|
32,898
|
|
|
40.7
|
%
|
|
31,565
|
|
|
41.2
|
%
|
||
Light Industrial
|
|
10,855
|
|
|
13.5
|
%
|
|
12,075
|
|
|
15.8
|
%
|
||
Total Gross Profit
|
|
$
|
80,681
|
|
|
100.0
|
%
|
|
$
|
76,595
|
|
|
100.0
|
%
|
|
|
Fiscal Year Ended
|
||||
|
|
December 29,
2019 |
|
December 30,
2018 |
||
Gross Profit Percentage by Segment:
|
|
|
|
|
||
Real Estate
|
|
38.3
|
%
|
|
37.9
|
%
|
Professional
|
|
26.7
|
%
|
|
26.5
|
%
|
Light Industrial
|
|
14.6
|
%
|
|
15.0
|
%
|
Company Gross Profit Percentage
|
|
27.4
|
%
|
|
26.7
|
%
|
|
|
Fiscal Year Ended
|
|||||||||||||||||||
|
|
December 29,
2019 |
|
December 30,
2018 |
|
|
|
|
|||||||||||||
|
|
Amount
|
|
% of Revenue
|
|
Amount
|
|
% of Revenue
|
|
$
Change
|
|
%
Change
|
|||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||
Compensation and related
|
|
$
|
41,401
|
|
|
14
|
%
|
|
$
|
38,756
|
|
|
14
|
%
|
|
$
|
2,645
|
|
|
7
|
%
|
Advertising and recruitment
|
|
1,925
|
|
|
1
|
%
|
|
1,915
|
|
|
1
|
%
|
|
10
|
|
|
1
|
%
|
|||
Occupancy and office operations
|
|
3,987
|
|
|
1
|
%
|
|
3,685
|
|
|
1
|
%
|
|
302
|
|
|
8
|
%
|
|||
Client engagement
|
|
1,443
|
|
|
—
|
%
|
|
1,270
|
|
|
—
|
%
|
|
173
|
|
|
14
|
%
|
|||
Software
|
|
1,906
|
|
|
1
|
%
|
|
1,342
|
|
|
—
|
%
|
|
564
|
|
|
42
|
%
|
|||
Professional fees
|
|
1,327
|
|
|
—
|
%
|
|
1,155
|
|
|
—
|
%
|
|
172
|
|
|
15
|
%
|
|||
Public company related costs
|
|
675
|
|
|
—
|
%
|
|
524
|
|
|
—
|
%
|
|
151
|
|
|
29
|
%
|
|||
Bad debt
|
|
128
|
|
|
—
|
%
|
|
41
|
|
|
—
|
%
|
|
87
|
|
|
212
|
%
|
|||
Share-based compensation
|
|
953
|
|
|
—
|
%
|
|
1,069
|
|
|
—
|
%
|
|
(116
|
)
|
|
(11
|
)%
|
|||
Transaction fees
|
|
434
|
|
|
—
|
%
|
|
508
|
|
|
—
|
%
|
|
(74
|
)
|
|
(15
|
)%
|
|||
IT roadmap
|
|
721
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
721
|
|
|
100
|
%
|
|||
Other
|
|
1,299
|
|
|
—
|
%
|
|
801
|
|
|
—
|
%
|
|
498
|
|
|
62
|
%
|
|||
|
|
$
|
56,199
|
|
|
19
|
%
|
|
$
|
51,066
|
|
|
18
|
%
|
|
$
|
5,133
|
|
|
10
|
%
|
|
|
Fiscal Year Ended
|
||||||||||||
|
|
December 30,
2018 |
|
December 31,
2017 |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||
Revenues by Segment:
|
|
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
86,874
|
|
|
30.3
|
%
|
|
$
|
71,807
|
|
|
26.3
|
%
|
Professional
|
|
119,300
|
|
|
41.6
|
%
|
|
126,641
|
|
|
46.5
|
%
|
||
Light Industrial
|
|
80,689
|
|
|
28.1
|
%
|
|
74,152
|
|
|
27.2
|
%
|
||
Total Revenues
|
|
$
|
286,863
|
|
|
100.0
|
%
|
|
$
|
272,600
|
|
|
100.0
|
%
|
|
|
Fiscal Year Ended
|
||||||||||||
|
|
December 30,
2018 |
|
December 31,
2017 |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||
Gross Profit by Segment:
|
|
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
32,955
|
|
|
43.0
|
%
|
|
$
|
27,138
|
|
|
39.7
|
%
|
Professional
|
|
31,566
|
|
|
41.2
|
%
|
|
30,626
|
|
|
44.8
|
%
|
||
Light Industrial
|
|
12,074
|
|
|
15.8
|
%
|
|
10,638
|
|
|
15.5
|
%
|
||
Total Gross Profit
|
|
$
|
76,595
|
|
|
100.0
|
%
|
|
$
|
68,402
|
|
|
100.0
|
%
|
|
|
Fiscal Year Ended
|
||||
|
|
December 30,
2018 |
|
December 31,
2017 |
||
Gross Profit Percentage by Segment:
|
|
|
|
|
||
Real Estate
|
|
37.9
|
%
|
|
37.8
|
%
|
Professional
|
|
26.5
|
%
|
|
24.2
|
%
|
Light Industrial
|
|
15.0
|
%
|
|
14.3
|
%
|
Company Gross Profit Percentage
|
|
26.7
|
%
|
|
25.1
|
%
|
|
|
Fiscal Year Ended
|
|||||||||||||||||||
|
|
December 30,
2018 |
|
December 31,
2017 |
|
|
|
|
|||||||||||||
|
|
Amount
|
|
% of Revenue
|
|
Amount
|
|
% of Revenue
|
|
$
Change
|
|
%
Change
|
|||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||
Compensation and related
|
|
$
|
38,756
|
|
|
14
|
%
|
|
$
|
33,168
|
|
|
12
|
%
|
|
$
|
5,588
|
|
|
17
|
%
|
Advertising and recruitment
|
|
1,915
|
|
|
1
|
%
|
|
1,504
|
|
|
1
|
%
|
|
411
|
|
|
27
|
%
|
|||
Occupancy and office operations
|
|
3,685
|
|
|
1
|
%
|
|
3,204
|
|
|
1
|
%
|
|
481
|
|
|
15
|
%
|
|||
Client engagement
|
|
1,270
|
|
|
—
|
%
|
|
1,215
|
|
|
—
|
%
|
|
55
|
|
|
5
|
%
|
|||
Software
|
|
1,342
|
|
|
—
|
%
|
|
1,216
|
|
|
—
|
%
|
|
126
|
|
|
10
|
%
|
|||
Professional fees
|
|
1,155
|
|
|
—
|
%
|
|
876
|
|
|
—
|
%
|
|
279
|
|
|
32
|
%
|
|||
Public company related costs
|
|
524
|
|
|
—
|
%
|
|
496
|
|
|
—
|
%
|
|
28
|
|
|
6
|
%
|
|||
Bad debt
|
|
41
|
|
|
—
|
%
|
|
761
|
|
|
—
|
%
|
|
(720
|
)
|
|
(95
|
)%
|
|||
Share-based compensation
|
|
1,069
|
|
|
—
|
%
|
|
447
|
|
|
—
|
%
|
|
622
|
|
|
139
|
%
|
|||
Transaction fees
|
|
508
|
|
|
—
|
%
|
|
464
|
|
|
—
|
%
|
|
44
|
|
|
9
|
%
|
|||
Other
|
|
801
|
|
|
—
|
%
|
|
1,224
|
|
|
—
|
%
|
|
(423
|
)
|
|
(35
|
)%
|
|||
|
|
$
|
51,066
|
|
|
18
|
%
|
|
$
|
44,575
|
|
|
16
|
%
|
|
$
|
6,491
|
|
|
15
|
%
|
|
|
Fiscal Year Ended
|
||||||||||
|
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
||||||
|
|
(dollars in thousands)
|
||||||||||
Working capital
|
|
$
|
27,030
|
|
|
$
|
20,555
|
|
|
$
|
16,320
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
|
$
|
17,954
|
|
|
$
|
18,426
|
|
|
$
|
18,064
|
|
Net cash used in investing activities
|
|
(9,729
|
)
|
|
(924
|
)
|
|
(25,644
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(8,225
|
)
|
|
(17,502
|
)
|
|
7,580
|
|
|||
Net change in cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Payments due by period
|
||||||||||||||||||
|
|
Total
|
|
Less than 1
year
|
|
1–3 years
|
|
3–5 years
|
|
More than 5
years
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Long-term debt obligations
|
|
$
|
27,845
|
|
|
$
|
375
|
|
|
$
|
1,313
|
|
|
$
|
26,157
|
|
|
$
|
—
|
|
Contingent consideration and holdback
|
|
3,500
|
|
|
1,000
|
|
|
2,500
|
|
|
—
|
|
|
—
|
|
|||||
Operating lease obligations
|
|
6,077
|
|
|
1,521
|
|
|
2,810
|
|
|
1,550
|
|
|
196
|
|
|||||
Contractual cash obligations
|
|
$
|
37,422
|
|
|
$
|
2,896
|
|
|
$
|
6,623
|
|
|
$
|
27,707
|
|
|
$
|
196
|
|
|
Page
|
|
|
Audited Consolidated Financial Statements of BG Staffing, Inc.
|
|
|
|
|
|
Consolidated Balance Sheets as of December 29, 2019 and December 30, 2018
|
|
|
|
Consolidated Statements of Operations for each of the three fiscal years ended December 29, 2019
|
|
|
|
Consolidated Statements of Changes in Stockholders' Equity for the three fiscal years ended December 29, 2019
|
|
|
|
Consolidated Statements of Cash Flows for each of the three fiscal years ended December 29, 2019
|
|
|
|
|
|
|
|
December 29, 2019
|
|
December 30, 2018
|
||||
ASSETS
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||
|
Accounts receivable (net of allowance for doubtful accounts of $468,233 at 2019 and 2018)
|
|
$
|
39,423,801
|
|
|
$
|
37,606,721
|
|
|
|
Prepaid expenses
|
|
1,224,230
|
|
|
984,219
|
|
|||
|
Income taxes receivable
|
|
69,649
|
|
|
—
|
|
|||
|
Other current assets
|
|
19,516
|
|
|
22,733
|
|
|||
|
|
Total current assets
|
|
40,737,196
|
|
|
38,613,673
|
|
||
|
|
|
|
|
|
|
||||
Property and equipment, net
|
|
3,545,049
|
|
|
2,556,992
|
|
||||
|
|
|
|
|
|
|
||||
Other assets
|
|
|
|
|
|
|
||||
|
Deposits
|
|
3,843,023
|
|
|
3,209,419
|
|
|||
|
Deferred income taxes, net
|
|
4,071,847
|
|
|
4,870,997
|
|
|||
|
Right-of-use asset - operating leases
|
|
4,386,317
|
|
|
—
|
|
|||
|
Intangible assets, net
|
|
33,807,973
|
|
|
33,034,173
|
|
|||
|
Goodwill
|
|
25,194,639
|
|
|
17,983,549
|
|
|||
|
|
Total other assets
|
|
71,303,799
|
|
|
59,098,138
|
|
||
|
Total assets
|
|
$
|
115,586,044
|
|
|
$
|
100,268,803
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||
|
Long-term debt, current portion (net of deferred finance fees of $-0- and $44,920 for 2019 and 2018, respectively)
|
|
$
|
375,000
|
|
|
$
|
4,242,580
|
|
|
|
Accrued interest
|
|
73,027
|
|
|
308,547
|
|
|||
|
Accounts payable
|
|
479,422
|
|
|
146,257
|
|
|||
|
Accrued payroll and expenses
|
|
10,079,832
|
|
|
10,411,374
|
|
|||
|
Accrued workers’ compensation
|
|
405,207
|
|
|
530,980
|
|
|||
|
Contingent consideration, current portion
|
|
—
|
|
|
2,363,512
|
|
|||
|
Lease liability, current portion
|
|
1,277,843
|
|
|
—
|
|
|||
|
Other current liabilities
|
|
1,016,565
|
|
|
—
|
|
|||
|
Income taxes payable
|
|
—
|
|
|
55,841
|
|
|||
|
|
Total current liabilities
|
|
13,706,896
|
|
|
18,059,091
|
|
||
|
|
|
|
|
|
|
||||
Line of credit (net of deferred finance fees of $351,128 and $571,782 for 2019 and 2018, respectively)
|
|
19,993,829
|
|
|
10,078,507
|
|
||||
Long-term debt, less current portion (net of deferred finance fees of $-0- and $65,850 for 2019 and 2018, respectively)
|
|
7,125,000
|
|
|
5,767,650
|
|
||||
Contingent consideration, less current portion
|
|
2,174,378
|
|
|
—
|
|
||||
Lease liability, less current portion
|
|
4,128,951
|
|
|
—
|
|
||||
Other long-term liabilities
|
|
—
|
|
|
661,542
|
|
||||
|
|
Total liabilities
|
|
47,129,054
|
|
|
34,566,790
|
|
||
|
|
|
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|||||
Preferred stock, $0.01 par value per share, 500,000 shares authorized, -0- shares issued and outstanding
|
|
—
|
|
|
—
|
|
||||
Common stock, $0.01 par value per share; 19,500,000 shares authorized, 10,309,236 and 10,227,247 shares issued and outstanding for 2019 and 2018, respectively, net of treasury stock, at cost, 1,004 and 828 shares for 2019 and 2018, respectively
|
|
75,775
|
|
|
78,246
|
|
||||
Additional paid in capital
|
|
59,617,787
|
|
|
57,624,379
|
|
||||
Retained earnings
|
|
8,763,428
|
|
|
7,999,388
|
|
||||
|
|
Total stockholders’ equity
|
|
68,456,990
|
|
|
65,702,013
|
|
||
|
|
Total liabilities and stockholders’ equity
|
|
$
|
115,586,044
|
|
|
$
|
100,268,803
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
$
|
294,313,548
|
|
|
$
|
286,862,926
|
|
|
$
|
272,600,050
|
|
|
Cost of services
|
|
213,632,283
|
|
|
210,267,734
|
|
|
204,198,052
|
|
||||
|
Gross profit
|
|
80,681,265
|
|
|
76,595,192
|
|
|
68,401,998
|
|
|||
Selling, general and administrative expenses
|
|
56,199,521
|
|
|
51,066,327
|
|
|
44,575,015
|
|
||||
Gain on contingent consideration
|
|
—
|
|
|
(3,775,307
|
)
|
|
(225,743
|
)
|
||||
Depreciation and amortization
|
|
4,820,256
|
|
|
5,044,487
|
|
|
6,291,958
|
|
||||
|
Operating income
|
|
19,661,488
|
|
|
24,259,685
|
|
|
17,760,768
|
|
|||
Loss on extinguishment of debt
|
|
540,705
|
|
|
—
|
|
|
—
|
|
||||
Interest expense, net
|
|
1,568,815
|
|
|
2,850,405
|
|
|
3,253,134
|
|
||||
|
Income before income taxes
|
|
17,551,968
|
|
|
21,409,280
|
|
|
14,507,634
|
|
|||
Income tax expense
|
|
4,304,978
|
|
|
3,859,739
|
|
|
8,659,200
|
|
||||
|
Net income
|
|
$
|
13,246,990
|
|
|
$
|
17,549,541
|
|
|
$
|
5,848,434
|
|
|
|
|
|
|
|
|
|
||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
||||
|
Basic
|
|
$
|
1.29
|
|
|
$
|
1.83
|
|
|
$
|
0.67
|
|
|
Diluted
|
|
$
|
1.28
|
|
|
$
|
1.79
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||
|
Basic
|
|
10,238,565
|
|
|
9,577,498
|
|
|
8,733,941
|
|
|||
|
Diluted
|
|
10,350,775
|
|
|
9,808,080
|
|
|
9,038,187
|
|
|||
|
|
|
|
|
|
|
|
||||||
Cash dividends declared per common share
|
|
$
|
1.20
|
|
|
$
|
1.15
|
|
|
$
|
1.00
|
|
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Preferred
Stock
|
|
Shares
|
|
Par
Value
|
|
Treasury Stock Amount
|
|
Additional Paid in Capital
|
|
Retained
Earnings
|
|
Total
|
||||||||||||
Stockholders’ equity, December 25, 2016
|
|
—
|
|
|
8,668,485
|
|
|
$
|
86,685
|
|
|
$
|
—
|
|
|
$
|
36,142,688
|
|
|
$
|
4,259,081
|
|
|
$
|
40,488,454
|
|
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
447,301
|
|
|
—
|
|
|
447,301
|
|
|||||
Issuance of shares, net of offering costs
|
|
—
|
|
|
70,670
|
|
|
707
|
|
|
—
|
|
|
991,793
|
|
|
—
|
|
|
992,500
|
|
|||||
Exercise of common stock options and warrants
|
|
—
|
|
|
20,221
|
|
|
202
|
|
|
—
|
|
|
93,547
|
|
|
—
|
|
|
93,749
|
|
|||||
Cash dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,735,759
|
)
|
|
(8,735,759
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,848,434
|
|
|
5,848,434
|
|
|||||
Stockholders’ equity, December 31, 2017
|
|
—
|
|
|
8,759,376
|
|
|
87,594
|
|
|
—
|
|
|
37,675,329
|
|
|
1,371,756
|
|
|
39,134,679
|
|
|||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,069,482
|
|
|
—
|
|
|
1,069,482
|
|
|||||
Issuance of shares, net of offering costs
|
|
—
|
|
|
1,293,750
|
|
|
12,938
|
|
|
—
|
|
|
21,347,200
|
|
|
—
|
|
|
21,360,138
|
|
|||||
Issuance of restricted shares, net of 828 shares of treasury stock
|
|
—
|
|
|
41,172
|
|
|
412
|
|
|
(24,027
|
)
|
|
(412
|
)
|
|
—
|
|
|
(24,027
|
)
|
|||||
Exercise of common stock options and warrants
|
|
—
|
|
|
132,949
|
|
|
1,329
|
|
|
—
|
|
|
867,949
|
|
|
—
|
|
|
869,278
|
|
|||||
Option cancellation agreement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,335,169
|
)
|
|
—
|
|
|
(3,335,169
|
)
|
|||||
Cash dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,921,909
|
)
|
|
(10,921,909
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,549,541
|
|
|
17,549,541
|
|
|||||
Stockholders’ equity, December 30, 2018
|
|
—
|
|
|
10,227,247
|
|
|
102,273
|
|
|
(24,027
|
)
|
|
57,624,379
|
|
|
7,999,388
|
|
|
65,702,013
|
|
|||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
952,738
|
|
|
—
|
|
|
952,738
|
|
|||||
Cancellation of restricted shares
|
|
—
|
|
|
(2,250
|
)
|
|
(23
|
)
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of shares
|
|
—
|
|
|
47,403
|
|
|
474
|
|
|
—
|
|
|
999,526
|
|
|
—
|
|
|
1,000,000
|
|
|||||
Exercise of common stock options and warrants
|
|
—
|
|
|
36,836
|
|
|
369
|
|
|
(3,291
|
)
|
|
41,121
|
|
|
—
|
|
|
38,199
|
|
|||||
Change in accounting principal - operating leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200,608
|
)
|
|
(200,608
|
)
|
|||||
Cash dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,282,342
|
)
|
|
(12,282,342
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,246,990
|
|
|
13,246,990
|
|
|||||
Stockholders’ equity, December 29, 2019
|
|
—
|
|
|
10,309,236
|
|
|
$
|
103,093
|
|
|
$
|
(27,318
|
)
|
|
$
|
59,617,787
|
|
|
$
|
8,763,428
|
|
|
$
|
68,456,990
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income
|
|
$
|
13,246,990
|
|
|
$
|
17,549,541
|
|
|
$
|
5,848,434
|
|
||
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
|
|
|
||||
|
|
Depreciation
|
|
830,299
|
|
|
746,443
|
|
|
592,317
|
|
||||
|
|
Amortization
|
|
3,989,957
|
|
|
4,298,044
|
|
|
5,699,641
|
|
||||
|
|
Loss on disposal of property and equipment
|
|
30,767
|
|
|
17,765
|
|
|
17,373
|
|
||||
|
|
Loss on extinguishment of debt, net
|
|
540,705
|
|
|
—
|
|
|
—
|
|
||||
|
|
Contingent consideration adjustment
|
|
—
|
|
|
(3,775,307
|
)
|
|
(225,743
|
)
|
||||
|
|
Amortization of deferred financing fees
|
|
173,018
|
|
|
453,513
|
|
|
251,376
|
|
||||
|
|
Interest expense on contingent consideration payable
|
|
123,761
|
|
|
624,145
|
|
|
1,208,095
|
|
||||
|
|
Provision for doubtful accounts
|
|
128,260
|
|
|
40,618
|
|
|
760,633
|
|
||||
|
|
Share-based compensation
|
|
952,738
|
|
|
1,069,482
|
|
|
447,301
|
|
||||
|
|
Deferred income taxes
|
|
799,150
|
|
|
1,531,516
|
|
|
3,109,942
|
|
||||
|
|
Net changes in operating assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Accounts receivable
|
|
(1,758,340
|
)
|
|
(939,454
|
)
|
|
1,434,308
|
|
|||
|
|
|
Prepaid expenses
|
|
(726,840
|
)
|
|
(36,251
|
)
|
|
102,443
|
|
|||
|
|
|
Other current assets
|
|
3,217
|
|
|
120,504
|
|
|
27,425
|
|
|||
|
|
|
Deposits
|
|
(475,399
|
)
|
|
(302,315
|
)
|
|
(245,018
|
)
|
|||
|
|
|
Accrued interest
|
|
(235,520
|
)
|
|
(22,083
|
)
|
|
229,762
|
|
|||
|
|
|
Accounts payable
|
|
675,790
|
|
|
(1,763,355
|
)
|
|
(555,971
|
)
|
|||
|
|
|
Accrued payroll and expenses
|
|
(82,430
|
)
|
|
(1,129,431
|
)
|
|
284,667
|
|
|||
|
|
|
Accrued workers’ compensation
|
|
(125,773
|
)
|
|
(61,141
|
)
|
|
(162,435
|
)
|
|||
|
|
|
Other current liabilities
|
|
16,565
|
|
|
(87,553
|
)
|
|
(299,691
|
)
|
|||
|
|
|
Income taxes receivable and payable
|
|
(125,490
|
)
|
|
246,753
|
|
|
(384,177
|
)
|
|||
|
|
|
Operating leases
|
|
(27,581
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
Other long-term liabilities
|
|
—
|
|
|
(154,959
|
)
|
|
(76,959
|
)
|
|||
|
|
Net cash provided by operating activities
|
|
17,953,844
|
|
|
18,426,475
|
|
|
18,063,723
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
||||||
|
Businesses acquired, net of cash received
|
|
(7,500,000
|
)
|
|
—
|
|
|
(24,500,000
|
)
|
|||||
|
Capital expenditures
|
|
(2,229,509
|
)
|
|
(923,994
|
)
|
|
(1,145,757
|
)
|
|||||
|
Proceeds from sale of property and equipment
|
|
440
|
|
|
—
|
|
|
2,350
|
|
|||||
|
|
Net cash used in investing activities
|
|
(9,729,069
|
)
|
|
(923,994
|
)
|
|
(25,643,407
|
)
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|||||||
|
Net borrowings (payments) under line of credit
|
|
9,694,667
|
|
|
(10,717,778
|
)
|
|
(2,514,646
|
)
|
|||||
|
Proceeds from issuance of long-term debt
|
|
7,500,000
|
|
|
—
|
|
|
25,000,000
|
|
|||||
|
Principal payments on long-term debt
|
|
(10,121,000
|
)
|
|
(13,766,500
|
)
|
|
(1,112,500
|
)
|
|||||
|
Payments of dividends
|
|
(12,282,342
|
)
|
|
(10,921,909
|
)
|
|
(8,735,759
|
)
|
|||||
|
Issuance of shares under the 2013 Long-Term Incentive Plan and Form S-3 registration statement, net of exercises
|
|
38,200
|
|
|
22,205,389
|
|
|
86,249
|
|
|||||
|
Option cancellation agreement
|
|
—
|
|
|
(3,335,169
|
)
|
|
—
|
|
|||||
|
Contingent consideration paid
|
|
(2,672,000
|
)
|
|
(962,996
|
)
|
|
(4,024,257
|
)
|
|||||
|
Deferred financing costs
|
|
(382,300
|
)
|
|
(3,518
|
)
|
|
(1,119,403
|
)
|
|||||
|
|
Net cash (used in) provided by financing activities
|
|
(8,224,775
|
)
|
|
(17,502,481
|
)
|
|
7,579,684
|
|
||||
Net change in cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash and cash equivalents, beginning of year
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash and cash equivalents, end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|||||||
|
Cash paid for interest
|
|
$
|
1,350,713
|
|
|
$
|
1,764,960
|
|
|
$
|
1,447,138
|
|
||
|
Cash paid for taxes, net of refunds
|
|
$
|
3,563,703
|
|
|
$
|
2,012,325
|
|
|
$
|
5,909,250
|
|
||
Non-cash transactions:
|
|
|
|
|
|
|
|
|
|||||||
|
Leasehold improvements funded by landlord incentives
|
|
$
|
—
|
|
|
$
|
366,202
|
|
|
$
|
255,493
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Maryland
|
|
11
|
%
|
|
11
|
%
|
|
12
|
%
|
Tennessee
|
|
15
|
%
|
|
14
|
%
|
|
12
|
%
|
Texas
|
|
28
|
%
|
|
29
|
%
|
|
29
|
%
|
|
|
2019
|
|
2018
|
||||
Beginning balance
|
|
$
|
468,233
|
|
|
$
|
473,573
|
|
Provision for doubtful accounts
|
|
128,260
|
|
|
40,618
|
|
||
Amounts written off, net
|
|
(128,260
|
)
|
|
(45,958
|
)
|
||
Ending balance
|
|
$
|
468,233
|
|
|
$
|
468,233
|
|
|
|
|
December 29,
2019 |
|
December 30,
2018 |
|
December 31,
2017 |
|||
Weighted-average number of common shares outstanding:
|
|
10,238,565
|
|
|
9,577,498
|
|
|
8,733,941
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
||||
|
Stock options and restricted stock
|
|
90,681
|
|
|
186,995
|
|
|
268,765
|
|
|
Warrants
|
|
21,529
|
|
|
43,587
|
|
|
35,481
|
|
Weighted-average number of diluted common shares outstanding
|
|
10,350,775
|
|
|
9,808,080
|
|
|
9,038,187
|
|
|
Stock options and restricted stock
|
|
238,750
|
|
|
175,000
|
|
|
178,000
|
|
|
Warrants
|
|
—
|
|
|
—
|
|
|
32,250
|
|
Anti-dilutive shares
|
|
238,750
|
|
|
175,000
|
|
|
210,250
|
|
Accounts receivable
|
|
$
|
187,000
|
|
Prepaid expenses and other assets
|
|
14,000
|
|
|
Intangible assets
|
|
4,249,430
|
|
|
Goodwill
|
|
7,211,090
|
|
|
Total net assets acquired
|
|
$
|
11,661,520
|
|
Cash
|
|
$
|
7,500,000
|
|
Hold back (included in Other current liabilities)
|
|
1,000,000
|
|
|
Common stock
|
|
1,000,000
|
|
|
Fair value of contingent consideration
|
|
2,161,520
|
|
|
Total fair value of consideration transferred for acquired business
|
|
$
|
11,661,520
|
|
|
|
Estimated Fair
Value
|
|
Estimated
Useful Lives
|
||
Covenants not to compete
|
|
$
|
500,000
|
|
|
5 years
|
Trade name
|
|
3,000,000
|
|
|
Indefinite
|
|
Client partner list
|
|
749,430
|
|
|
5 years
|
|
Total
|
|
$
|
4,249,430
|
|
|
|
|
|
2019
|
|
2018
|
||||
Revenues
|
|
$
|
297,362
|
|
|
$
|
290,195
|
|
Gross profit
|
|
$
|
83,730
|
|
|
$
|
79,927
|
|
Net income
|
|
$
|
14,089
|
|
|
$
|
18,329
|
|
Net income per share:
|
|
|
|
|
|
|||
Basic
|
|
$
|
1.38
|
|
|
$
|
1.91
|
|
Diluted
|
|
$
|
1.36
|
|
|
$
|
1.87
|
|
|
|
2019
|
|
2018
|
||||
Leasehold improvements
|
|
$
|
1,266,925
|
|
|
$
|
1,243,270
|
|
Furniture and fixtures
|
|
1,207,665
|
|
|
1,062,696
|
|
||
Computer systems
|
|
3,746,156
|
|
|
2,273,205
|
|
||
Vehicles
|
|
161,429
|
|
|
96,288
|
|
||
|
|
6,382,175
|
|
|
4,675,459
|
|
||
Accumulated depreciation
|
|
(2,837,126
|
)
|
|
(2,118,467
|
)
|
||
Property and equipment, net
|
|
$
|
3,545,049
|
|
|
$
|
2,556,992
|
|
|
December 29, 2019
|
||
2020
|
$
|
1,520,950
|
|
2021
|
1,449,770
|
|
|
2022
|
1,360,320
|
|
|
2023
|
982,511
|
|
|
2024
|
567,633
|
|
|
Thereafter
|
196,075
|
|
|
Total lease payment
|
6,077,259
|
|
|
Interest
|
(670,465
|
)
|
|
Present value of lease liabilities
|
$
|
5,406,794
|
|
|
|
December 29, 2019
|
||||||||||
|
|
Gross Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
||||||
Finite lives:
|
|
|
|
|
|
|
||||||
Client partner lists
|
|
$
|
52,358,991
|
|
|
$
|
40,462,549
|
|
|
$
|
11,896,442
|
|
Covenant not to compete
|
|
2,615,585
|
|
|
1,662,220
|
|
|
953,365
|
|
|||
Computer software
|
|
1,228,057
|
|
|
750,457
|
|
|
477,600
|
|
|||
|
|
56,202,633
|
|
|
42,875,226
|
|
|
13,327,407
|
|
|||
Indefinite lives:
|
|
|
|
|
|
|
||||||
Trade names
|
|
21,913,000
|
|
|
1,432,434
|
|
|
20,480,566
|
|
|||
Total
|
|
$
|
78,115,633
|
|
|
$
|
44,307,660
|
|
|
$
|
33,807,973
|
|
|
|
December 30, 2018
|
||||||||||
|
|
Gross Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
||||||
Finite lives:
|
|
|
|
|
|
|
||||||
Client partner lists
|
|
$
|
51,609,561
|
|
|
$
|
36,931,448
|
|
|
$
|
14,678,113
|
|
Covenant not to compete
|
|
1,918,000
|
|
|
1,499,005
|
|
|
418,995
|
|
|||
Computer software
|
|
848,111
|
|
|
391,612
|
|
|
456,499
|
|
|||
|
|
54,375,672
|
|
|
38,822,065
|
|
|
15,553,607
|
|
|||
Indefinite lives:
|
|
|
|
|
|
|
||||||
Trade names
|
|
18,913,000
|
|
|
1,432,434
|
|
|
17,480,566
|
|
|||
Total
|
|
$
|
73,288,672
|
|
|
$
|
40,254,499
|
|
|
$
|
33,034,173
|
|
Fiscal Years Ending:
|
|
||
2020
|
$
|
3,399,649
|
|
2021
|
1,781,077
|
|
|
2022
|
1,685,982
|
|
|
2023
|
1,633,332
|
|
|
2024
|
1,546,195
|
|
|
Thereafter
|
3,281,172
|
|
|
Total
|
$
|
13,327,407
|
|
|
|
Real Estate
|
|
Professional
|
|
Light Industrial
|
|
Total
|
||||||||
December 31, 2017
|
|
$
|
1,073,755
|
|
|
$
|
11,871,474
|
|
|
$
|
5,024,820
|
|
|
$
|
17,970,049
|
|
additions from acquisitions
|
|
—
|
|
|
13,500
|
|
|
—
|
|
|
13,500
|
|
||||
December 30, 2018
|
|
1,073,755
|
|
|
11,884,974
|
|
|
5,024,820
|
|
|
17,983,549
|
|
||||
additions from acquisitions
|
|
—
|
|
|
7,211,090
|
|
|
—
|
|
|
7,211,090
|
|
||||
December 29, 2019
|
|
$
|
1,073,755
|
|
|
$
|
19,096,064
|
|
|
$
|
5,024,820
|
|
|
$
|
25,194,639
|
|
|
|
December 29,
2019 |
|
December 30,
2018 |
||||
Field talent payroll
|
|
$
|
4,505,264
|
|
|
$
|
4,236,534
|
|
Field talent payroll related
|
|
1,246,353
|
|
|
1,402,926
|
|
||
Accrued bonuses and commissions
|
|
1,585,681
|
|
|
1,673,130
|
|
||
Other
|
|
2,742,534
|
|
|
3,098,784
|
|
||
Accrued payroll and expenses
|
|
$
|
10,079,832
|
|
|
$
|
10,411,374
|
|
|
Estimated Cash Payment
|
|
Discount
|
|
Net
|
||||||
Due in:
|
|
|
|
|
|
||||||
One to two years
|
$
|
1,250,000
|
|
|
$
|
(193,719
|
)
|
|
$
|
1,056,281
|
|
Two to three years
|
1,250,000
|
|
|
(131,903
|
)
|
|
1,118,097
|
|
|||
Contingent consideration
|
$
|
2,500,000
|
|
|
$
|
(325,622
|
)
|
|
$
|
2,174,378
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Current federal income tax
|
|
$
|
2,380,289
|
|
|
$
|
1,568,308
|
|
|
$
|
4,619,445
|
|
|
Current state income tax
|
|
1,125,539
|
|
|
759,915
|
|
|
929,813
|
|
|
|||
Deferred income tax
|
|
799,150
|
|
|
1,531,516
|
|
|
3,109,942
|
|
(1)
|
|||
Income tax expense
|
|
$
|
4,304,978
|
|
|
$
|
3,859,739
|
|
|
$
|
8,659,200
|
|
|
|
|
|
December 29,
2019 |
|
December 30,
2018 |
||||
Deferred tax assets:
|
|
|
|
|
|||||
|
Allowance for doubtful accounts
|
|
$
|
105,015
|
|
|
$
|
102,980
|
|
|
Goodwill and intangible assets
|
|
3,764,556
|
|
|
4,320,035
|
|
||
|
Workers’ compensation
|
|
97,003
|
|
|
85,413
|
|
||
|
Contingent consideration
|
|
560,001
|
|
|
581,278
|
|
||
|
Share-based compensation
|
|
278,095
|
|
|
276,552
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|||||
|
Prepaid expenses
|
|
(427,166
|
)
|
|
(202,832
|
)
|
||
|
Fixed assets
|
|
(305,657
|
)
|
|
(292,429
|
)
|
||
Deferred income taxes, net
|
|
$
|
4,071,847
|
|
|
$
|
4,870,997
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Tax expense at federal statutory rate
|
|
$
|
3,685,913
|
|
21.0
|
%
|
|
$
|
4,495,949
|
|
21.0
|
%
|
|
$
|
4,979,395
|
|
34.3
|
%
|
State income taxes, net of federal benefit
|
|
1,038,380
|
|
5.9
|
%
|
|
776,984
|
|
3.6
|
%
|
|
610,691
|
|
4.2
|
%
|
|||
Re-measurement of deferred assets
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
3,314,037
|
|
22.8
|
%
|
|||
Equity, permanent differences and other
|
|
218,025
|
|
1.2
|
%
|
|
(714,845
|
)
|
(3.3
|
)%
|
|
(62,318
|
)
|
(0.4
|
)%
|
|||
Work Opportunity Tax Credit, net
|
|
(637,340
|
)
|
(3.6
|
)%
|
|
(698,349
|
)
|
(3.3
|
)%
|
|
(182,605
|
)
|
(1.2
|
)%
|
|||
Income tax expense
|
|
$
|
4,304,978
|
|
24.5
|
%
|
|
$
|
3,859,739
|
|
18.0
|
%
|
|
$
|
8,659,200
|
|
59.7
|
%
|
|
December 29,
2019 |
|
December 30,
2018 |
||||||||||
Base Rate
|
$
|
2,844,957
|
|
|
5.25
|
%
|
|
$
|
650,289
|
|
|
6.50
|
%
|
LIBOR
|
17,500,000
|
|
|
3.26
|
%
|
|
10,000,000
|
|
|
5.16
|
%
|
||
Total
|
$
|
20,344,957
|
|
|
|
|
$
|
10,650,289
|
|
|
|
|
|
December 29,
2019 |
|
December 30,
2018 |
||||||||
Base Rate (1)
|
|
$
|
7,500,000
|
|
5.25
|
%
|
|
$
|
1,121,000
|
|
6.50
|
%
|
LIBOR
|
|
—
|
|
—
|
%
|
|
9,000,000
|
|
5.41
|
%
|
||
Long-term debt
|
|
$
|
7,500,000
|
|
|
|
$
|
10,121,000
|
|
|
||
(1) On January 21, 2020 the rate was changed to 3.16%
|
|
|
|
|
|
|
Fiscal:
|
|
||
2020
|
$
|
375,000
|
|
2021
|
562,500
|
|
|
2022
|
750,000
|
|
|
2023
|
937,500
|
|
|
2024
|
25,219,957
|
|
|
|
27,844,957
|
|
|
Less deferred finance fees
|
(351,128
|
)
|
|
Total
|
$
|
27,493,829
|
|
Amounts Recorded at Fair Value
|
|
Financial Statement Classification
|
|
Fair Value Hierarchy
|
|
December 29,
2019 |
|
December 30,
2018 |
||||
Contingent consideration, net
|
|
Contingent consideration, net - current and long-term
|
|
Level 3
|
|
$
|
2,174,378
|
|
|
$
|
2,363,512
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Weighted-average fair value of awards
|
$
|
6.12
|
|
|
$
|
12.27
|
|
|
$
|
3.94
|
|
|
Weighted-average risk-free interest rate
|
2.3
|
|
%
|
2.7
|
|
%
|
1.8
|
|
%
|
|||
Weighted-average dividend yield
|
$
|
1.18
|
|
|
$
|
1.04
|
|
|
$
|
1.00
|
|
|
Weighted-average volatility factor
|
42.6
|
|
%
|
42.3
|
|
%
|
43.2
|
|
%
|
|||
Weighted-average expected life
|
10.0
|
|
yrs
|
8.6
|
|
yrs
|
6.0
|
|
yrs
|
|
|
Number of
Shares
|
|
Weighted Average Exercise Price Per Share
|
|
Weighted Average Remaining Contractual Life
|
|
Total Intrinsic Value of Options
(in thousands)
|
|||||
Awards outstanding at December 25, 2016
|
|
678,411
|
|
|
$
|
8.95
|
|
|
7.8
|
|
$
|
4,511
|
|
Granted
|
|
128,000
|
|
|
$
|
16.76
|
|
|
|
|
|
||
Exercised
|
|
(28,800
|
)
|
|
$
|
7.71
|
|
|
|
|
|
||
Forfeited / Canceled
|
|
(12,200
|
)
|
|
$
|
11.00
|
|
|
|
|
|
||
Awards outstanding at December 31, 2017
|
|
765,411
|
|
|
$
|
10.27
|
|
|
7.3
|
|
$
|
4,521
|
|
Granted
|
|
217,000
|
|
|
$
|
20.73
|
|
|
|
|
|
||
Exercised
|
|
(163,338
|
)
|
|
$
|
10.47
|
|
|
|
|
|
||
Forfeited / Canceled
|
|
(292,088
|
)
|
|
$
|
6.71
|
|
|
|
|
|
||
Awards outstanding at December 30, 2018
|
|
526,985
|
|
|
$
|
16.49
|
|
|
7.7
|
|
$
|
2,932
|
|
Granted
|
|
138,750
|
|
|
$
|
21.49
|
|
|
|
|
|
||
Exercised
|
|
(48,190
|
)
|
|
$
|
10.25
|
|
|
|
|
|
||
Forfeited / Canceled
|
|
(34,700
|
)
|
|
$
|
14.39
|
|
|
|
|
|
||
Awards outstanding at December 29, 2019
|
|
582,845
|
|
|
$
|
18.32
|
|
|
7.5
|
|
$
|
2,793
|
|
|
|
|
|
|
|
|
|
|
|||||
Awards exercisable at December 30, 2018
|
|
238,085
|
|
|
$
|
13.96
|
|
|
7.2
|
|
$
|
1,684
|
|
Awards exercisable at December 29, 2019
|
|
313,645
|
|
|
$
|
16.05
|
|
|
6.8
|
|
$
|
1,991
|
|
|
|
Number of
Shares |
|
Weighted Average Grant Date Fair Value
|
|||
Non-vested outstanding at December 30, 2018
|
|
288,900
|
|
|
$
|
8.34
|
|
Non-vested outstanding at December 29, 2019
|
|
269,200
|
|
|
$
|
20.96
|
|
|
|
Number of
Shares
|
|
Weighted Average Exercise Price Per Share
|
|
Weighted Average Remaining Contractual Life
|
|
Total Intrinsic Value of Warrants
(in thousands)
|
|||||
Warrants outstanding at December 25, 2016 and December 31, 2017
|
|
123,984
|
|
|
$
|
11.51
|
|
|
2.2
|
|
$
|
577
|
|
Exercised
|
|
(30,768
|
)
|
|
$
|
11.27
|
|
|
|
|
|
||
Warrants outstanding at December 30, 2018
|
|
93,216
|
|
|
$
|
11.59
|
|
|
1.3
|
|
$
|
805
|
|
Exercised
|
|
(28,734
|
)
|
|
$
|
6.55
|
|
|
|
|
|
||
Warrants outstanding at December 29, 2019
|
|
64,482
|
|
|
$
|
13.84
|
|
|
0.8
|
|
$
|
473
|
|
|
|
|
|
|
|
|
|
|
|||||
Warrants exercisable at December 30, 2018
|
|
93,216
|
|
|
$
|
11.59
|
|
|
1.3
|
|
$
|
805
|
|
Warrants exercisable at December 29, 2019
|
|
64,482
|
|
|
$
|
13.84
|
|
|
0.8
|
|
$
|
473
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue:
|
|
|
|
|
|
|
|
|
||||
Real Estate
|
|
$
|
96,421,676
|
|
|
$
|
86,874,241
|
|
|
$
|
71,806,700
|
|
Professional
|
|
123,342,647
|
|
|
119,299,424
|
|
|
126,641,358
|
|
|||
Light Industrial
|
|
74,549,225
|
|
|
80,689,261
|
|
|
74,151,992
|
|
|||
Total
|
|
$
|
294,313,548
|
|
|
$
|
286,862,926
|
|
|
$
|
272,600,050
|
|
Depreciation:
|
|
|
|
|
|
|
|
|
||||
Real Estate
|
|
$
|
197,029
|
|
|
$
|
169,682
|
|
|
$
|
109,085
|
|
Professional
|
|
341,529
|
|
|
273,691
|
|
|
179,809
|
|
|||
Light Industrial
|
|
101,889
|
|
|
101,124
|
|
|
106,867
|
|
|||
Home office
|
|
189,852
|
|
|
201,946
|
|
|
196,556
|
|
|||
Total
|
|
$
|
830,299
|
|
|
$
|
746,443
|
|
|
$
|
592,317
|
|
|
|
|
|
|
|
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
||||
Professional
|
|
$
|
3,964,878
|
|
|
$
|
4,168,463
|
|
|
$
|
5,378,992
|
|
Light Industrial
|
|
—
|
|
|
110,251
|
|
|
312,054
|
|
|||
Home office
|
|
25,079
|
|
|
19,330
|
|
|
8,595
|
|
|||
Total
|
|
$
|
3,989,957
|
|
|
$
|
4,298,044
|
|
|
$
|
5,699,641
|
|
|
|
|
|
|
|
|
||||||
Operating income:
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
16,381,823
|
|
|
$
|
14,775,846
|
|
|
$
|
11,553,163
|
|
Professional
|
|
7,702,175
|
|
|
7,967,368
|
|
|
8,518,293
|
|
|||
Light Industrial
|
|
4,776,369
|
|
|
5,583,999
|
|
|
4,304,018
|
|
|||
Home office - selling
|
|
(516,190
|
)
|
|
(666,472
|
)
|
|
(541,160
|
)
|
|||
Home office - general and administrative
|
|
(8,682,689
|
)
|
|
(7,176,363
|
)
|
|
(6,299,289
|
)
|
|||
Home office - gain on contingent consideration
|
|
—
|
|
|
3,775,307
|
|
|
225,743
|
|
|||
Total
|
|
$
|
19,661,488
|
|
|
$
|
24,259,685
|
|
|
$
|
17,760,768
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Capital Expenditures:
|
|
|
|
|
|
|
||||||
Real Estate
|
|
$
|
251,461
|
|
|
$
|
124,643
|
|
|
$
|
139,309
|
|
Professional
|
|
582,573
|
|
|
474,670
|
|
|
564,987
|
|
|||
Light Industrial
|
|
152,632
|
|
|
119,886
|
|
|
53,969
|
|
|||
Home office
|
|
1,242,843
|
|
|
204,795
|
|
|
387,492
|
|
|||
Total
|
|
$
|
2,229,509
|
|
|
$
|
923,994
|
|
|
$
|
1,145,757
|
|
|
|
|
|
|
|
|
||||||
Total Assets:
|
|
|
|
|
|
|
|
|
||||
Real Estate
|
|
$
|
16,785,163
|
|
|
$
|
12,647,505
|
|
|
|
||
Professional
|
|
72,623,242
|
|
|
62,403,104
|
|
|
|
||||
Light Industrial
|
|
15,223,581
|
|
|
16,022,618
|
|
|
|
||||
Home office
|
|
10,954,058
|
|
|
9,195,576
|
|
|
|
||||
Total
|
|
$
|
115,586,044
|
|
|
$
|
100,268,803
|
|
|
|
|
2019
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
||||||||||
Revenues
|
$
|
68,776,067
|
|
|
$
|
73,857,890
|
|
|
$
|
79,364,306
|
|
|
$
|
72,315,285
|
|
|
$
|
294,313,548
|
|
Gross Profit
|
$
|
18,438,640
|
|
|
$
|
20,862,834
|
|
|
$
|
22,176,622
|
|
|
$
|
19,203,169
|
|
|
$
|
80,681,265
|
|
Income before income taxes
|
$
|
3,233,471
|
|
|
$
|
4,924,649
|
|
|
$
|
5,540,959
|
|
|
$
|
3,852,889
|
|
|
$
|
17,551,968
|
|
Net income
|
$
|
2,496,024
|
|
|
$
|
3,801,829
|
|
|
$
|
4,207,170
|
|
|
$
|
2,741,967
|
|
|
$
|
13,246,990
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.24
|
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
|
$
|
0.27
|
|
|
$
|
1.29
|
|
Diluted
|
$
|
0.24
|
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
|
$
|
0.26
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
10,229,462
|
|
|
10,232,588
|
|
|
10,239,126
|
|
|
10,253,085
|
|
|
10,238,565
|
|
|||||
Diluted
|
10,404,355
|
|
|
10,362,038
|
|
|
10,343,673
|
|
|
10,370,996
|
|
|
10,350,775
|
|
|
2018
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
||||||||||
Revenues
|
$
|
66,855,470
|
|
|
$
|
70,945,438
|
|
|
$
|
77,062,137
|
|
|
$
|
71,999,881
|
|
|
$
|
286,862,926
|
|
Gross Profit
|
$
|
17,309,931
|
|
|
$
|
19,192,279
|
|
|
$
|
21,373,025
|
|
|
$
|
18,719,957
|
|
|
$
|
76,595,192
|
|
Income before income taxes
|
$
|
3,164,213
|
|
|
$
|
5,835,370
|
|
|
$
|
6,429,644
|
|
|
$
|
5,980,053
|
|
|
$
|
21,409,280
|
|
Net income
|
$
|
2,465,571
|
|
|
$
|
5,169,884
|
|
|
$
|
5,061,386
|
|
|
$
|
4,852,700
|
|
|
$
|
17,549,541
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.28
|
|
|
$
|
0.56
|
|
|
$
|
0.50
|
|
|
$
|
0.48
|
|
|
$
|
1.83
|
|
Diluted
|
$
|
0.27
|
|
|
$
|
0.54
|
|
|
$
|
0.49
|
|
|
$
|
0.47
|
|
|
$
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
8,761,292
|
|
|
9,235,353
|
|
|
10,109,791
|
|
|
10,184,652
|
|
|
9,577,498
|
|
|||||
Diluted
|
9,087,016
|
|
|
9,538,545
|
|
|
10,342,559
|
|
|
10,365,117
|
|
|
9,808,080
|
|
•
|
Our Class I director is L. Allen Baker, Jr., and the term of such director will expire at the 2021 annual meeting of stockholders;
|
•
|
Our Class II directors are Richard L. Baum, Jr. and Paul A. Seid, and the term of each director will expire at the 2022 annual meeting of stockholders; and
|
•
|
Our Class III directors are C. David Allen, Jr. and Douglas E. Hailey, and the term of each director will expire at the 2020 annual meeting of stockholders.
|
Name
|
Age
|
Position
|
|
|
|
Beth Garvey
|
54
|
President and Chief Executive Officer
|
Dan Hollenbach
|
64
|
Chief Financial Officer and Secretary
|
•
|
Beth Garvey, our President and Chief Executive Officer; and
|
•
|
Dan Hollenbach, our Chief Financial Officer and Secretary.
|
Name and
Principal Position |
Year
|
|
Salary ($)
|
|
Bonus
($)
|
|
Stock
Awards ($) (*) |
|
Option
Awards ($) (*) |
|
Non-equity
incentive plan compensation ($) |
|
Non-qualified
deferred compensation earnings ($) |
|
All Other
Compensation ($) |
|
Total ($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beth Garvey President and Chief Executive Officer
|
2019
|
|
$350,000
|
|
$70,000
|
|
$—
|
|
$252,728
|
|
$—
|
|
$—
|
|
$13,710
|
(1)
|
|
$686,438
|
2018
|
|
$292,300
|
|
$75,000
|
|
$—
|
|
$334,210
|
|
$—
|
|
$—
|
|
$11,700
|
(1)
|
|
$713,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dan Hollenbach Chief Financial Officer and Secretary
|
2019
|
|
$275,000
|
|
$55,000
|
|
$—
|
|
$184,766
|
|
$—
|
|
$—
|
|
$5,710
|
(1)
|
|
$520,476
|
2018
|
|
$240,390
|
|
$50,000
|
|
$—
|
|
$254,510
|
|
$—
|
|
$—
|
|
$5,015
|
(1)
|
|
$549,915
|
(*)
|
The amounts reflect the dollar amounts recognized for financial statement reporting purposes in accordance with FASB ASC Topic 718. The assumptions used in the calculation of these amounts are included in Note 14 Share-based Compensation to the audited consolidated financial statements included in this Annual Report on Form 10-K.
|
(1)
|
Represents the matching 401(k) contributions made by us.
|
Name
|
Option Awards
|
|
Stock Awards
|
|||||||||||||||||
Grant date
|
Number of securities underlying unexercised options (#) exercisable
|
Number of securities underlying unexercised options (#) unexercisable
|
Equity incentive plan awards: Number of securities underlying unexercised unearned options (#)
|
Option exercise price ($)
|
Option expiration date
|
|
Number of Shares or Units of Stock that Have Not Vested (#)
|
|
Market Value of Shares or Units of Stock that Have Not Vested ($)
|
|||||||||||
(a)
|
|
(b)
|
(c)
|
(d)
|
(e)
|
(f)
|
|
(g)
|
|
(h)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Beth Garvey
|
09/24/2018
|
—
|
|
6,150
|
|
(1)
|
—
|
|
$
|
25.71
|
|
09/24/2028
|
|
|
—
|
|
|
—
|
|
|
|
09/24/2018
|
40,000
|
|
53,850
|
|
(2)
|
—
|
|
$
|
25.71
|
|
09/24/2028
|
|
|
—
|
|
|
—
|
|
|
|
08/10/2018
|
—
|
|
—
|
|
|
—
|
|
$
|
—
|
|
—
|
|
|
2,500
|
|
(13)
|
$
|
52,925
|
|
|
06/07/2017
|
—
|
|
2,500
|
|
(3)
|
—
|
|
$
|
16.76
|
|
06/07/2027
|
|
|
—
|
|
|
—
|
|
|
|
06/07/2017
|
7,500
|
|
2,500
|
|
(4)
|
—
|
|
$
|
16.76
|
|
06/07/2027
|
|
|
—
|
|
|
—
|
|
|
|
08/16/2016
|
7,458
|
|
5,727
|
|
(5)
|
—
|
|
$
|
17.46
|
|
08/16/2026
|
|
|
—
|
|
|
—
|
|
|
|
08/16/2016
|
32,542
|
|
4,273
|
|
(6)
|
—
|
|
$
|
17.46
|
|
08/16/2026
|
|
|
—
|
|
|
—
|
|
|
|
06/09/2015
|
20,000
|
|
—
|
|
(7)
|
—
|
|
$
|
11.00
|
|
06/09/2025
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dan Hollenbach
|
09/24/2018
|
—
|
|
8,410
|
|
(8)
|
—
|
|
$
|
25.71
|
|
09/24/2028
|
|
|
—
|
|
|
—
|
|
|
|
09/24/2018
|
30,000
|
|
36,590
|
|
(9)
|
—
|
|
$
|
25.71
|
|
09/24/2028
|
|
|
—
|
|
|
—
|
|
|
|
08/10/2018
|
—
|
|
—
|
|
|
—
|
|
$
|
—
|
|
—
|
|
|
2,500
|
|
(13)
|
$
|
52,925
|
|
|
06/07/2017
|
—
|
|
5,000
|
|
(10)
|
—
|
|
$
|
16.76
|
|
06/07/2027
|
|
|
—
|
|
|
—
|
|
|
|
06/07/2017
|
7,500
|
|
—
|
|
(4)
|
—
|
|
$
|
16.76
|
|
06/07/2027
|
|
|
—
|
|
|
—
|
|
|
|
10/27/2015
|
17,012
|
|
—
|
|
(11)
|
—
|
|
$
|
11.07
|
|
10/27/2025
|
|
|
—
|
|
|
—
|
|
|
|
10/27/2015
|
19,835
|
|
—
|
|
(12)
|
—
|
|
$
|
11.07
|
|
10/27/2025
|
|
|
—
|
|
|
—
|
|
(1)
|
Incentive stock options will vest 2,260 on September 24, 2021 and 3,890 on September 24, 2022.
|
(2)
|
Nonqualified stock options vested one-fifth on September 24, 2018 and the remainder of the options vest annually at 20,000, 20,000, 17,740, 16,110 beginning September 24, 2019.
|
(3)
|
Incentive stock options will vest on June 7, 2021.
|
(4)
|
Nonqualified stock options vested one-fifth on June 7, 2017 and the remainder of the options vest in four equal annual increments beginning on June 7, 2018.
|
(5)
|
Incentive stock options vested one-fifth on August 16, 2016 and the remainder of the options vest in four equal annual increments beginning on August 16, 2017.
|
(6)
|
Nonqualified stock options vested one-fifth on August 16, 2016 and the remainder of the options vest in four equal annual increments beginning on August 16, 2017.
|
(7)
|
Incentive stock options vested one-fifth on June 9, 2015 and the remainder of the options vest in four equal annual increments beginning on June 9, 2016.
|
(8)
|
Incentive stock options will vest annually at 2,260, 2,260, and 3,890 beginning September 24, 2020.
|
(9)
|
Nonqualified stock options vested one-fifth on September 24, 2018 and one-fifth on September 24, 2019.
|
(10)
|
Incentive stock options will vest one-half on June 7, 2020 and the remainder of the options vest on June 7, 2021.
|
(11)
|
Incentive stock options vested one-fifth on October 27, 2015 and the remainder of the options vest in four equal annual increments beginning on October 27, 2016.
|
(12)
|
Nonqualified stock options vested one-fifth on October 27, 2015 and the remainder of the options vest in four equal annual increments beginning on October 27, 2016.
|
(13)
|
Shares vested one-fourth on August 10, 2018 and the remainder of the shares vest in three equal annual increments beginning on August 10, 2019.
|
Name
|
Board Member
($)
|
Audit Committee ($)
|
Compensation Committee
($) |
Nominating & Governance Committee ($)
|
Chairman of the Board
($)
|
Total
($) |
||||||||||||
|
|
|
|
|
|
|
||||||||||||
C. David Allen, Jr.
|
$
|
30,625
|
|
$
|
5,000
|
|
$
|
5,000
|
|
$
|
—
|
|
$
|
—
|
|
$
|
40,625
|
|
L. Allen Baker, Jr.
|
$
|
30,625
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
60,625
|
|
$
|
91,250
|
|
Richard L. Baum, Jr.
|
$
|
30,625
|
|
$
|
5,000
|
|
$
|
11,875
|
|
$
|
11,875
|
|
$
|
—
|
|
$
|
59,375
|
|
Douglas E. Hailey
|
$
|
30,625
|
|
$
|
23,750
|
|
$
|
—
|
|
$
|
5,000
|
|
$
|
—
|
|
$
|
59,375
|
|
Paul A. Seid
|
$
|
29,375
|
|
$
|
—
|
|
$
|
5,000
|
|
$
|
5,000
|
|
$
|
—
|
|
$
|
39,375
|
|
Name
|
Fees earned or paid in cash
($) |
Stock awards
($) (*) |
Option awards
($) (*) |
Non-equity incentive plan
compensation ($) |
Nonqualified deferred
compensation earnings ($) |
All other compensation
($) |
Total
($) |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
C. David Allen, Jr.
|
$
|
40,625
|
|
$
|
35,763
|
|
$
|
18,525
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
94,913
|
|
L. Allen Baker, Jr.
|
$
|
91,250
|
|
$
|
—
|
|
$
|
18,525
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
109,775
|
|
Richard L. Baum, Jr.
|
$
|
59,375
|
|
$
|
35,763
|
|
$
|
18,525
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
113,663
|
|
Douglas E. Hailey
|
$
|
59,375
|
|
$
|
35,763
|
|
$
|
18,525
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
113,663
|
|
Paul A. Seid
|
$
|
39,375
|
|
$
|
35,763
|
|
$
|
18,525
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
93,663
|
|
*
|
The amounts reflect the dollar amounts recognized for financial statement reporting purposes in accordance with FASB ASC Topic 718. The assumptions used in the calculation of these amounts are included in Note 14 Share-based Compensation to the audited consolidated financial statements included in this Annual Report on Form 10-K.
|
•
|
each person, or group of affiliated persons, known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;
|
•
|
each of our named executive officers and directors; and
|
•
|
all our executive officers and directors as a group.
|
Name of Beneficial Owner
|
|
Shares of
Common Beneficially Stock Owned |
|
Percent of
Common Stock Beneficially Owned |
||
|
|
|
|
|
|
|
Dan Hollenbach
|
|
78,097
|
(1)
|
|
*
|
|
Beth Garvey
|
|
135,605
|
(2)
|
|
1.3
|
%
|
L. Allen Baker, Jr.
|
|
55,785
|
(3)
|
|
*
|
|
Douglas E. Hailey
|
|
83,332
|
(4)
|
|
*
|
|
Richard L. Baum, Jr.
|
|
67,182
|
(5)
|
|
*
|
|
C. David Allen, Jr.
|
|
6,750
|
(6)
|
|
*
|
|
Paul A. Seid
|
|
59,707
|
(7)
|
|
*
|
|
All executive officers and directors as a group (7 total)
|
|
486,458
|
|
|
4.6
|
%
|
Michael N. Taglich (10)
|
|
353,451
|
(8)
|
|
3.4
|
%
|
Robert F. Taglich (10)
|
|
376,265
|
(9)
|
|
3.6
|
%
|
BlackRock, Inc. (11)
|
|
684,743
|
(12)
|
|
6.1
|
%
|
*
|
Less than 1%.
|
(1)
|
Includes 74,347 shares of common stock issuable upon exercise of stock options and 2,500 shares of unvested restricted common stock.
|
(2)
|
Includes 107,500 shares of common stock issuable upon exercise of stock options and 2,500 shares of unvested restricted common stock.
|
(3)
|
Shares of common stock held by a trust.
|
(4)
|
Includes 23,748 and 1,613 shares of common stock issuable upon exercise of stock options and warrants, respectively, and 2,500 shares of unvested restricted common stock.
|
(5)
|
Includes 12,250 shares of common stock issuable upon exercise of stock options, 44,544 shares of common stock held by a private investment company controlled by Mr. Baum, 5,388 shares of common stock held by a family trust and 2,500 shares of unvested restricted common stock.
|
(6)
|
Includes 2,500 shares of unvested restricted common stock.
|
(7)
|
Includes 12,250 shares of common stock issuable upon exercise of stock options and 2,500 shares of unvested restricted common stock.
|
(8)
|
Includes 21,540 shares of common stock issuable upon exercise of warrants to purchase shares of common stock, and 12,204 shares of common stock held by Mr. Taglich as custodian for third parties.
|
(9)
|
Includes 18,020 shares of common stock issuable upon exercise of warrants to purchase shares of common stock.
|
(10)
|
The address of Michael N. Taglich and Robert F. Taglich is c/o Taglich Brothers, Inc., 790 New York Avenue, Suite 209, Huntington, New York 11743.
|
(11)
|
The address of BlackRock, Inc. is SS East 52nd Street, New York, New York 10055.
|
(12)
|
Includes 670,628 shares over which BlackRock, Inc. or its subsidiaries have sole voting power and 684,743 shares over which such entities have sole disposition power.
|
•
|
the nature of the related person’s interest in the transaction;
|
•
|
the material terms of the transaction, including the amount involved and type of transaction;
|
•
|
the importance of the transaction to the related person and to the Company;
|
•
|
whether the transaction would impair the judgment of a director or executive officer to act in our best interest and the best interest of our stockholders; and
|
•
|
any other matters the Audit Committee deems appropriate.
|
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Audit Fees (1)
|
|
$
|
266,992
|
|
|
$
|
266,659
|
|
Audit-Related Fees (2)
|
|
71,300
|
|
|
46,602
|
|
||
Tax Fees
|
|
—
|
|
|
—
|
|
||
All Other Fees
|
|
—
|
|
|
—
|
|
||
Total
|
|
$
|
338,292
|
|
|
$
|
313,261
|
|
(1)
|
Audit fees consist principally of fees for the audit of our consolidated financial statements and Sarbanes-Oxley audit over internal controls, review of our interim consolidated financial statements, and audit services related to our acquisitions.
|
(2)
|
These fees consist principally of fees related to the preparation of SEC registration statements, acquisition due diligence, and U.S. Department of Labor filings.
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
|
BG STAFFING, INC.
|
|
|
|
|
|
By:
|
/s/ Beth Garvey
|
|
Name: Beth Garvey
|
|
|
Title: President and Chief Executive Officer
|
/s/ Beth Garvey
|
President and Chief Executive Officer
|
Beth Garvey
|
(Principal Executive Officer)
|
|
|
/s/ Dan Hollenbach
|
Chief Financial Officer and Secretary
|
Dan Hollenbach
|
(Principal Financial and Accounting Officer)
|
|
|
/s/ L. Allen Baker, Jr.
|
Chairman of the Board
|
L. Allen Baker, Jr.
|
|
|
|
/s/ Douglas E. Hailey
|
Director
|
Douglas E. Hailey
|
|
|
|
/s/ Richard L. Baum, Jr.
|
Director
|
Richard L. Baum, Jr.
|
|
|
|
/s/ Paul A. Seid
|
Director
|
Paul A. Seid
|
|
|
|
/s/ C. David Allen, Jr.
|
Director
|
C. David Allen, Jr.
|
|
Exhibit No.
|
|
Description
|
2.1
|
|
|
2.2
|
|
|
2.3
|
|
|
2.4
|
|
|
2.5
|
|
|
2.6
|
|
|
2.7
|
|
|
2.8
|
|
|
2.9
|
|
|
2.10
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2*
|
|
|
10.1**
|
|
|
10.2**
|
|
|
10.3**
|
|
|
10.4**
|
|
|
10.5**
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.09
|
|
|
10.10**
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13**
|
|
|
10.14**
|
|
|
10.15**
|
|
|
10.16
|
|
|
21.1*
|
|
|
23.1*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1†
|
|
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
**
|
Management contract or compensatory plan or arrangement.
|
†
|
This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
|
Name of Subsidiary
|
|
Jurisdiction of Formation
|
BG Personnel, LP
|
|
Texas
|
BG Staffing, LLC
|
|
Delaware
|
B G Staff Services, Inc.
|
|
Texas
|
BG Finance and Accounting, Inc.
|
|
Delaware
|
BG California Finance & Accounting Staffing, Inc.
|
|
Delaware
|
BG California IT Staffing, Inc.
|
|
Delaware
|
BG California Multifamily Staffing, Inc.
|
|
Delaware
|
EdgeRock Technologies Holdings, Inc.
|
|
Delaware
|
EdgeRock Technologies, LLC
|
|
Massachusetts
|
Date:
|
March 12, 2020
|
/s/ Beth Garvey
|
|
|
Beth Garvey
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date:
|
March 12, 2020
|
/s/ Dan Hollenbach
|
|
|
Dan Hollenbach
|
|
|
Chief Financial Officer and Secretary
|
|
|
(Principal Financial Officer)
|
Date:
|
March 12, 2020
|
/s/ Beth Garvey
|
|
|
Beth Garvey
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
/s/ Dan Hollenbach
|
|
|
Dan Hollenbach
|
|
|
Chief Financial Officer and Secretary
|
|
|
(Principal Financial Officer)
|