BG Staffing, Inc (BGSF) has reported a 56.30 percent jump in profit for the quarter ended Mar. 26, 2017. The company has earned $1.30 million, or $0.15 a share in the quarter, compared with $0.83 million, or $0.11 a share for the same period last year.

Revenue during the quarter dropped 4.55 percent to $56.84 million from $59.55 million in the previous year period. Gross margin for the quarter expanded 164 basis points over the previous year period to 24.05 percent. Total expenses were 75.95 percent of quarterly revenues, down from 77.59 percent for the same period last year. This has led to an improvement of 164 basis points in operating margin to 24.05 percent.

However, the adjusted EBITDA for the quarter stood at $4.14 million compared with $4.51 million in the prior year period. At the same time, adjusted EBITDA margin contracted 29 basis points in the quarter to 7.29 percent from 7.58 percent in the last year period.

L. Allen Baker, Jr., president and chief executive officer, stated, "While revenues declined in Q1 '17 versus Q1 '16, bottom line numbers for the quarter are up. Further we expect the recent acquisition of Zycron to enhance our results for the year. The lower Adjusted EBITDA in Q1 '17 was primarily due to a decline in our Commercial segment in addition to significant investment in new offices for our highest margin segment, Multifamily. The investment in Multifamily is expected to result in revenue growth later this year."