NOVEMBER 2019 Business Services Update - BGL · Price Appreciation 3-Year LTM 1-Month Brown Gibbons Lang & Company Human Resources Outsourcing Index(a) 72.8% 17.8%0 .2% NASDAQ 59.8%

Business ServicesUpdate

N OV E M B E R 2 0 1 9

2

7

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HUMAN RESOURCES OUTSOURCING

CONTACT CENTER SERVICES

FIXED ASSET MANAGEMENT

TA B L E O F C O N T E N T SPETER J. HILLMANAGING DIRECTORM 215.990.2725O [email protected]


NOVEMBER 2019

PUBLIC COMPANY OPERATING METRICS


2 B U S I N E S S S E R V I C E S U P D A T E | H U M A N R E S O U R C E S O U T S O U R C I N G

INDEX PERFORMANCEINDEX PERFORMANCE

Last Three Years Last Twelve Months

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Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19

BGL Human Resources Outsourcing NASDAQ S&P 500

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Oct-18 Jan-19 Apr-19 Jul-19 Oct-19

BGL Human Resources Outsourcing NASDAQ S&P 500

PPrriiccee AApppprreecciiaattiioonn 33--YYeeaarr LLTTMM 11--MMoonntthh

Brown Gibbons Lang & Company Human Resources Outsourcing Index(a) 72.8% 17.8% 0.2%NASDAQ 59.8% 13.5% 3.7%S&P 500 42.9% 12.0% 2.0%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Human Resources Outsourcing Index is comprised of all companies listed on the following two pages.


NOVEMBER 2019



RELATIVE VALUATION TRENDS


NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and Published Research Reports.

(1) As of close on 10/31/2019.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long- term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents.(3) As of June 30, 2019 e except RECN (August 24, 2019); RCMT (September 28, 2019); CTG (September 27, 2019); KFY (July 31, 2019); TBI (September 29, 2019); KELY.A (September 29, 2019).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data)EEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy TTiicckkeerr PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

CCoommmmeerrcciiaall SSttaaffiffinnggManpowerGroup Inc. (MAN) MAN $90.92 $5,360.8 $6,019.5 $21,060.1 $822.7 $7.97 0.29 x 7.3 x 11.4 x 16.1% 3.9%

TrueBlue, Inc. (TBI) TBI 22.90 861.9 921.2 2,427.9 123.1 1.75 0.38 x 7.5 x 13.1 x 26.7% 5.1%

Kelly Services, Inc. (KELY.A) KELY.A 24.01 939.1 1,001.3 5,432.5 125.6 1.80 0.18 x 8.0 x 13.3 x 18.0% 2.3%

MMeeaann $$22,,338877..33 $$22,,664477..33 $$99,,664400..22 $$335577..11 $$33..8844 00..2288 xx 77..66 xx 1122..66 xx 2200..33%% 33..88%%

MMeeddiiaann 993399..11 11,,000011..33 55,,443322..55 112255..66 11..8800 00..2299 xx 77..55 xx 1133..11 xx 1188..00%% 33..99%%

PPrrooffeessssiioonnaall SSttaaffiffinnggRobert Half International Inc. (RHI) RHI $57.27 $6,615.3 $6,616.4 $6,018.7 $686.6 $3.87 1.10 x 9.6 x 14.8 x 41.7% 11.4%

Kforce Inc. (KFRC) KFRC 40.91 881.0 927.0 1,456.0 90.7 2.48 0.64 x 10.2 x 16.5 x 29.3% 6.2%

Resources Connection, Inc. (RECN) RECN 14.65 469.2 543.5 722.7 58.5 0.95 0.75 x 9.3 x 15.4 x 39.0% 8.1%

Hudson Global, Inc. (HSON) HSON 0.00 - (27.9) 84.9 0.3 (0.79) NM NM 0.0 x 50.3% 0.4%

MMeeaann $$11,,999911..44 $$22,,001144..77 $$22,,007700..66 $$220099..00 $$11..6633 00..8833 xx 99..77 xx 1111..77 xx 4400..11%% 66..55%%

MMeeddiiaann 667755..11 773355..22 11,,008899..33 7744..66 11..7711 00..7755 xx 99..66 xx 1155..11 xx 4400..44%% 77..22%%

HHeeaalltthhccaarree SSttaaffiffinngg

AMN Healthcare Services, Inc. (AMN) AMN $58.76 $2,744.7 $3,427.2 $2,163.9 $234.3 $2.56 1.58 x 14.6 x 22.9 x 33.2% 10.8%

Cross Country Healthcare, Inc. (CCRN) CCRN 10.81 398.6 485.5 808.0 18.3 (2.14) 0.60 x NM NM 24.9% 2.3%

MMeeaann $$11,,557711..77 $$11,,995566..44 $$11,,448855..99 $$112266..33 $$00..2211 11..0099 xx 1144..66 xx 2222..99 xx 2299..11%% 66..55%%

MMeeddiiaann 11,,557711..77 11,,995566..44 11,,448855..99 112266..33 00..2211 11..0099 xx 1144..66 xx 2222..99 xx 2299..11%% 66..55%%

IITT SSttaaffiffinngg

ASGN Incorporated (ASGN) ASGN $63.59 $3,363.9 $4,373.2 $3,828.4 $406.9 $3.41 1.14 x 10.7 x 18.7 x 29.1% 10.6%

Computer Task Group, Incorporated (CTG) CTG 5.39 79.2 91.4 388.0 10.2 (0.21) 0.24 x 9.0 x NM 18.7% 2.6%

RCM Technologies, Inc. (RCMT) RCMT 3.01 39.0 70.3 197.8 8.0 0.29 0.36 x 8.8 x 10.5 x 24.8% 4.0%

MMeeaann $$11,,116600..77 $$11,,551111..77 $$11,,447711..44 $$114411..77 $$11..1166 00..5588 xx 99..55 xx 1144..66 xx 2244..22%% 55..88%%

MMeeddiiaann 7799..22 9911..44 338888..00 1100..22 00..2299 00..3366 xx 99..00 xx 1144..66 xx 2244..88%% 44..00%%

MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss






NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and PublishedResearch Reports.

(1) As of close on 10/31/2019.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of March 31, 2019 except except KFY (April 30, 2019); PAYX (May 31, 2019); EXPO (June 28, 2019); CRAI (June 29, 2019).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data)EEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

EExxeeccuuttiivvee SSeeaarrcchhKorn Ferry (KFY) $36.69 $2,053.8 $2,114.4 $1,945.0 $280.5 $3.26 1.09 x 7.5 x 11.3 x 28.0% 14.4%Heidrick & Struggles International, Inc. (HSII) 28.46 545.6 434.2 712.2 81.8 2.42 0.61 x 5.3 x 11.8 x 29.1% 11.5%

MMeeaann $$11,,229999..77 $$11,,227744..33 $$11,,332288..66 $$118811..11 $$22..8844 00..8855 xx 66..44 xx 1111..55 xx 2288..55%% 1133..00%%MMeeddiiaann 11,,229999..77 11,,227744..33 11,,332288..66 118811..11 22..8844 00..8855 xx 66..44 xx 1111..55 xx 2288..55%% 1133..00%%

HHRR OOuuttssoouurrcciinnggAutomatic Data Processing, Inc. (ADP) $162.23 $70,196.6 $71,676.3 $14,360.6 $3,567.7 $5.43 4.99 x 20.1 x 29.9 x 45.1% 24.8%Paychex, Inc. (PAYX) 83.64 29,938.5 30,295.0 3,901.7 1,603.9 2.92 7.76 x 18.9 x 28.6 x 68.3% 41.1%Willis Towers Watson Public Limited Company (WLTW 186.90 24,030.2 30,306.2 8,721.0 1,901.0 6.74 3.48 x 15.9 x 27.7 x 43.8% 21.8%TriNet Group, Inc. (TNET) 52.99 3,700.8 3,883.8 3,755.0 274.0 2.70 1.03 x 14.2 x 19.6 x 18.1% 7.3%Insperity, Inc. (NSP) 105.63 4,225.0 4,235.4 4,206.5 213.0 3.76 1.01 x 19.9 x 28.1 x 17.4% 5.1%

MMeeaann $$2266,,441188..22 $$2288,,007799..33 $$66,,998899..00 $$11,,551111..99 $$44..3311 33..6655 xx 1177..88 xx 2266..88 xx 3388..55%% 2200..00%%MMeeddiiaann $$2244,,003300..22 $$3300,,229955..00 $$44,,220066..55 $$11,,660033..99 $$33..7766 33..4488 xx 1188..99 xx 2288..11 xx 4433..88%% 2211..88%%

PPrrooffeessssiioonnaall && CCoonnssuullttiinnggFair Isaac Corporation (FICO) $304.04 $8,785.7 $9,509.9 $1,160.1 $283.2 $6.34 8.20 x NM NM 71.0% 24.4%FTI Consulting, Inc. (FCN) 108.87 3,977.8 4,195.7 2,255.5 334.8 5.52 1.86 x 12.5 x 19.7 x 35.4% 14.8%Exponent, Inc. (EXPO) 63.53 3,292.7 3,107.4 374.4 97.0 1.46 8.30 x NM NM 38.0% 25.9%CBIZ, Inc. (CBZ) 27.37 1,487.1 1,813.1 944.3 119.7 1.27 1.92 x 15.2 x 21.6 x 14.8% 12.7%Huron Consulting Group Inc. (HURN) 66.14 1,436.5 1,761.7 849.9 109.0 1.36 2.07 x 16.2 x NM 34.7% 12.8%CRA International, Inc. (CRAI) 49.25 381.2 534.8 440.9 41.9 2.75 1.21 x 12.8 x 17.9 x 30.1% 9.5%NTG Clarity Networks Inc. (NCI) 0.00 - 5.5 8.2 0.1 (0.01) 0.68 x NM 0.0 x 45.9% 0.8%

MMeeaann $$22,,776655..88 $$22,,998899..77 $$886611..99 $$114400..88 $$22..6677 33..4466 xx 1144..22 xx 1144..88 xx 3388..66%% 1144..44%%MMeeddiiaann 11,,448877..11 11,,881133..11 884499..99 110099..00 11..4466 11..9922 xx 1144..00 xx 1188..88 xx 3355..44%% 1122..88%%

MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss

NOVEMBER 2019




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NOVEMBER 2019


HISTORICAL EBITDA MULTIPLES

Note: All per share results are reported on a fully-diluted basis.

10/2/2019 RReessoouurrcceess CCoonnnneeccttiioonn,, IInncc.. (RECN) reported first quarter net income of $4.9 million for fiscal year 2020 as compared to $5.7 million for the prior year period. Earnings per share were $0.15 versus $0.18 for the prior year period. Revenues for the quarter decreased to $172.2 million from $178.6 million for the same period in fiscal year 2019.

10/2/2019 PPaayycchheexx,, IInncc.. (PAYX) reported first quarter net income of $264.2 million for fiscal year 2020 as compared to $243.6 million for the prior year period. Earnings per share were $0.73 versus $0.67 for the prior year period. Revenues for the quarter increased to $992.0 million from $862.8 million for the same period in fiscal year 2019.

RECENT NEWS




SUMMARY OF SELECTED M&A TRANSACTIONS

AAnnnnoouunncceedd TTaarrggeett TTaarrggeett DDeessccrriippttiioonn AAccqquuiirreerr VVaalluuee

10/31/2019Tuition Program Management Business of GP Strategies

Provides performance improvement and learning solutions worldwide.

Bright Horizons Children's Centers, Inc.

$21.7

10/30/2019 Minori Solutions Co., Ltd. (TSE:3822)Provides software development and system operation management services

SCSK Corporation (TSE:9719) $191.2

10/28/2019 Cubiks Group Ltd Human resources consultancy company PSI Services LLC N/A

10/24/2019 Assign Group ABProvides consulting services regarding human resources to organizations

GlobalLogic Inc. N/A

10/24/2019Goldleaf Partners Employer Services, LLC

Provides employer services solutions for retirement, payroll, and employee benefits

Ascensus, LLC N/A

10/21/2019 Evalua International Ltd. Oy Offers survey and consulting services, and information systems

Terveystalo Oyj (HLSE:TTALO) N/A

10/11/2019 Su Temporal and Servi-OportunosOffers temporary staffing and outsourcing services

BANK W Holdings, LLC N/A

10/9/2019 BFP Staffing Inc.Offers temporary medical staffing services

Not Disclosed N/A

10/8/2019 Wray Castle LimitedProvides telecommunications training through online, distance learning, and classroom.

Wray Castle Group Limited N/A

10/3/2019 Premier Consulting Partners, LLCProvides human resources (HR) consulting/compliance

Relation Insurance, Inc. N/A

10/2/2019 Optimum Solutions, Inc.Offers Optimum Payroll, an in house payroll software system

Kronos Incorporated N/A

10/1/2019 Pay Pros Inc.Operates as a professional employer organization company

G&A Outsourcing, Inc. N/A

NOVEMBER 2019



7 B U S I N E S S S E R V I C E S U P D A T E | C O N T A C T C E N T E R S E R V I C E S

NOVEMBER 2019

INDEX PERFORMANCE


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Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19

BGL Contact Center Services NASDAQ S&P 500

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BGL Contact Center Services NASDAQ S&P 500


Brown Gibbons Lang & Company Contact Center Services Index(a) 39.6% 8.1% 1.7%NASDAQ 59.8% 13.5% 3.7%S&P 500 42.9% 12.0% 2.0%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Contact Center Services Index is comprised of all companies listed on the following page.





NOVEMBER 2019

NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and Published Research Reports.

(1) As of close on 10/31/2019.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of September 30, 2019.(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data) MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnssEEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA ((44 )) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

OOnn--SShhoorree

Conduent Incorporated (CNDT) $6.18 $1,306.4 $3,080.4 $4,650.0 $518.0 ($7.22) 0.66 x 5.9 x NM 21.9% 11.1%

TTEC Holdings, Inc. (TTEC) 47.37 2,202.1 2,514.0 1,601.5 193.8 1.49 1.57 x 13.0 x 31.8 x 26.8% 12.1%

Sykes Enterprises, Incorporated (SYKE) 30.90 1,280.1 1,430.9 1,604.7 168.1 1.38 0.89 x 8.5 x 22.4 x 38.2% 10.5%

StarTek, Inc. (SRT) 6.50 250.1 530.7 669.9 39.9 (0.56) 0.79 x 13.3 x NM 16.2% 6.0%

MMeeaann $$11,,225599..77 $$11,,888899..00 $$22,,113311..55 $$222299..99 (($$11..2233)) 00..9988 xx 1100..22 xx 2277..11 xx 2255..88%% 99..99%%

MMeeddiiaann 11,,229933..33 11,,997722..44 11,,660033..11 118800..99 00..4411 00..8844 xx 1100..77 xx 2277..11 xx 2244..33%% 1100..88%%

OOffff--SShhoorree

Genpact Limited (G) $39.17 $7,446.7 $8,547.8 $3,415.1 $539.6 $1.55 2.50 x 15.8 x 25.3 x 35.7% 15.8%

WNS (Holdings) Limited (WNS) 61.84 3,066.0 3,162.2 851.0 161.4 2.21 3.72 x 19.6 x 28.0 x 37.5% 19.0%

ExlService Holdings, Inc. (EXLS) 69.63 2,374.0 2,438.3 969.4 130.1 1.45 2.52 x 18.7 x 48.2 x 33.8% 13.4%

MMeeaann $$44,,229955..66 $$44,,771166..11 $$11,,774455..22 $$227777..00 $$11..7744 22..9911 xx 1188..11 xx 3333..88 xx 3355..66%% 1166..11%%

MMeeddiiaann 33,,006666..00 33,,116622..22 996699..44 116611..44 11..5555 22..5522 xx 1188..77 xx 2288..00 xx 3355..77%% 1155..88%%






NOVEMBER 2019


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RECENT NEWS


10/17/2019 WWNNSS ((HHoollddiinnggss)) LLiimmiitteedd (NYSE:WNS) reported second quarter net income of $28.7 million for fiscal year 2020 as compared to $24.8 million for the prior year period. Earnings per share were $0.56 versus $0.48 for the prior year period. Revenues for the quarter increased to $226.2 million from $199.1 million for the same period in fiscal year 2019.

10/29/2019 EExxllSSeerrvviiccee HHoollddiinnggss,, IInncc.. (NasdaqGS:EXLS) reported third quarter net income of $19.0 million for fiscal year 2019 as compared to $15.2 million for the prior year period. Earnings per share were $0.55 versus $0.43 for the prior year period. Revenues for the quarter increased to $251.4 million from $231.1 million for the same period in fiscal year 2018.



1 0 B U S I N E S S S E R V I C E S U P D A T E | C O N T A C T C E N T E R S E R V I C E S



10/30/2019 YX Asset Recovery LimitedProvides business service of delinquent consumer debt collection for financial institutions

Shanghai Hengxiong Enterprise Management Consulting Limited Partnership

$42.5

10/28/2019 First Call Resolution, LLCProvides outsourced live agent call center, business process, and social networking solutions

TTEC Services Corporation $115.1

10/28/2019Beijing Watertek Information Technology Co., Ltd. (SZSE:300324)

Offers technical support and consulting services

Baoli Fuxin (Jiaxing) Equity Investment Partnership (Limited Partnership)

$70.5

10/23/2019 RAM Credit Information Sdn Bhd. Offers customer acquisition services Experian Malaysia Sdn. Bhd. N/A

10/16/2019Liq Participações S.A. (BOVESPA:LIQO3)

Provides customer relationship management and business process outsourcing solutions in Brazil.

ETS Participações e Investimentos S.A.

$240.8

10/9/2019 Profit Laboratory Co., Ltd.Offers direct mail delivery and advertising support services to restaurants

TENPOS HOLDINGS Co.,Ltd. (JASDAQ:2751)

$1.6

10/8/2019 Colligent Inkasso ABOffers services for property collection, commercial, foreign debt, and purchased debt

Ropo Capital $24.1

10/7/2019Quatrro Business Support Services Inc.

Provides platform based business process outsourcing (BPO) services

Trivest Partners, L.P.; Veronis Suhler Stevenson

N/A

NOVEMBER 2019



1 1 B U S I N E S S S E R V I C E S U P D A T E | F I X E D A S S E T M A N A G E M E N T

NOVEMBER 2019

INDEX PERFORMANCE




Brown Gibbons Lang & Company Fixed Asset Management Index(a) 43.7% 19.6% 1.6%NASDAQ 59.8% 13.5% 3.7%S&P 500 42.9% 12.0% 2.0%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Fixed Asset Management Index is comprised of all companies listed on the following page.

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BGL Fixed Asset Management NASDAQ S&P 500

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BGL Fixed Asset Management NASDAQ S&P 500




NOVEMBER 2019


NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and PublishedResearch Reports.

(1) As of close on 10/31/2019.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of September 30, 2019 except ABM (July 31, 2019); CPG (March 31, 2019); SW (August 31, 2019); ARMK (June 28, 2019); CTAS (August 31, 2019); UNF (August 31, 2019); RTO (June 30, 2019); BV (June 30, 2019); GFS (June 30, 2019).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data) MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss

EEqquuiittyy EEnntteerrpprriissee PPrriiccee// GGrroossss

CCoommppaannyy PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

FFaacciilliittyy MMaaiinntteennaannccee

Rollins, Inc. (ROL) $38.11 $12,478.8 $12,898.1 $1,954.1 $387.1 $0.62 6.60 x 33.3 x 61.3 x 50.8% 19.8%

Rentokil Initial plc (LSE:RTO) 5.88 10,821.2 12,622.5 3,297.8 608.7 (0.07) 3.83 x 20.7 x NM 80.2% 18.5%

Chemed Corporation (CHE) 393.91 6,306.2 6,542.9 1,873.7 296.7 12.60 3.49 x 22.0 x 31.3 x 31.3% 15.8%

EMCOR Group, Inc. (EME) 87.71 4,925.2 5,068.9 9,000.0 539.8 5.59 0.56 x 9.4 x 15.7 x 14.7% 6.0%

FirstService Corporation (TSX:FSV) 87.36 3,426.6 4,549.8 2,235.1 212.4 (6.67) 2.04 x 21.4 x NM 31.6% 9.5%

ABM Industries Incorporated (ABM) 36.46 2,421.5 3,297.7 6,499.3 309.3 1.33 0.51 x 10.7 x 27.4 x 11.1% 4.8%

BrightView Holdings, Inc. (BV) 17.80 1,866.2 3,030.9 2,361.7 257.4 0.08 1.28 x 11.8 x NM 26.8% 10.9%

Comfort Systems USA, Inc. (FIX) 50.41 1,844.9 2,133.3 2,484.1 204.1 2.83 0.86 x 10.5 x 17.8 x 19.6% 8.2%

SP Plus Corporation (SP) 44.17 981.5 1,778.7 902.0 119.3 2.18 1.97 x 14.9 x 20.3 x 24.6% 13.2%

Healthcare Services Group, Inc. (HCSG) 24.36 1,805.5 1,714.3 1,895.0 104.4 1.03 0.90 x 16.4 x 23.7 x 12.7% 5.5%

MMeeaann $$44,,668877..88 $$55,,336633..77 $$33,,225500..33 $$330033..99 $$11..9955 22..2200xx 1177..11xx 2288..22xx 3300..44%% 1111..22%%

MMeeddiiaann 22,,992244..00 33,,992233..88 22,,229988..44 227777..11 11..1188 11..6633xx 1155..77xx 2233..77xx 2255..77%% 1100..22%%

FFoooodd SSeerrvviicceess

Compass Group PLC (LSE:CPG) $26.59 $42,178.9 $46,983.0 $31,201.1 $2,930.1 $0.96 1.51 x 16.0 x 27.7 x 24.0% 9.4%

Sodexo S.A. (ENXTPA:SW) 109.91 15,989.6 18,607.3 24,146.5 1,616.8 4.95 0.77 x 11.5 x 22.2 x 14.6% 6.7%

Aramark (ARMK) 43.76 10,804.7 17,882.2 16,189.7 1,415.2 2.12 1.10 x 12.6 x 20.6 x 11.0% 8.7%

MMeeaann $$2222,,999911..11 $$2277,,882244..22 $$2233,,884455..88 $$11,,998877..44 $$22..6688 11..1133xx 1133..44xx 2233..55xx 1166..55%% 88..33%%

MMeeddiiaann 1155,,998899..66 1188,,660077..33 2244,,114466..55 11,,661166..88 22..1122 11..1100xx 1122..66xx 2222..22xx 1144..66%% 88..77%%

MMaannnneedd SSeeccuurriittyy SSeerrvviicceess

Securitas AB (OM: SECU B) $16.01 $5,840.8 $7,880.5 $11,139.9 $741.3 $0.90 0.71 x 10.6 x 17.8 x 17.5% 6.7%

G4S plc (LSE:GFS) 2.67 4,134.9 6,902.6 9,721.3 664.6 0.03 0.71 x 10.4 x 85.7 x 17.2% 6.8%

The Brink's Company (BCO) 84.96 4,250.1 5,980.3 3,655.1 407.5 1.32 1.64 x 14.7 x 64.2 x 23.0% 11.1%

The GEO Group, Inc. (GEO) 15.22 1,813.9 4,577.6 2,455.6 426.5 1.36 1.86 x 10.7 x 11.2 x 25.1% 17.4%

CoreCivic, Inc. (CXW) 15.26 1,817.4 3,634.0 1,965.1 447.5 1.58 1.85 x 8.1 x 9.7 x 28.7% 22.8%

Prosegur Compañía de Seguridad, S.A. (BME:PSG) 3.88 2,322.4 3,343.5 4,588.3 537.9 0.14 0.73 x 6.2 x 28.2 x 23.7% 11.7%

MMeeaann $$33,,336633..33 $$55,,338866..44 $$55,,558877..55 $$553377..66 $$00..99 11..2255xx 1100..11xx 3366..11xx 2222..55%% 1122..88%%


UUnniiffoorrmm // LLiinneenn RReennttaallss

Cintas Corporation (CTAS) $268.67 $27,807.3 $30,750.6 $7,005.5 $1,548.1 $8.40 4.39 x 19.9 x 32.0 x 45.7% 22.1%

UniFirst Corporation (UNF) 200.84 3,803.4 3,418.1 1,809.4 331.1 9.33 1.89 x 10.3 x 21.5 x 37.0% 18.3%

MMeeaann $$1155,,880055..33 $$1177,,008844..44 $$44,,440077..44 $$993399..66 $$88..8866 33..1144xx 1155..11xx 2266..88xx 4411..44%% 2200..22%%


EEnntteerrpprriissee VVaalluuee//





NOVEMBER 2019

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11.7x 12.0x 12.0x 12.1x 11.9x11.3x

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10/30/2019 DocFile Systems LLCProvides medical document filing and order management services

10/29/2019 Yellowstone Landscape, Inc.Commercial landscaping design, maintenance, and installation services

Harvest Partners, LP N/A

ScanSTAT Technologies, LLC N/A

10/28/2019 EM Food Services PTE., LtdEngages in providing food and drink services

Newrest Group Services SAS N/A

10/23/2019 Box-it South East Ltd. Provides document management servicesOffsite Archive Storage and Integrated Services Holdings Limited

N/A

10/23/2019 DCBA, LLC Offers landscape architectural services LJA Engineering, Inc. N/A

10/22/2019Kellermeyer Bergensons Services, LLC

Offers contract-cleaning including janitorial services

Cerberus Capital Management, L.P. N/A

10/15/2019 Powerhouse Retail Services, LLCProvides construction, rollouts, and facility maintenance services

Lincolnshire Management, Inc. N/A

10/9/2019BBMG Mangrove Environment Protection Technology Co., Ltd.

Engages in providing disposal and recycling activities for industrial waste.

Tangshan Jidong Cement Co.,Ltd. (SZSE:000401)

$252.4

10/2/2019 HD Landscape ABOffers landscaping, property management, and civil engineering services in Sweden

Green Landscaping Group AB (publ) (OM:GREEN)

N/A

10/2/2019 Best Food Logistics LimitedOperates as a food service distributor for food and non-food companies

Booker Group PLC N/A




RECENT NEWS

NOVEMBER 2019


10/16/2019 HHeerriittaaggee--CCrryyssttaall CClleeaann,, IInncc (HCCI) reported third quarter net income of $6.0 million for fiscal year 2019 as compared to $6.3 million for the prior year period. Earnings per share were $0.25 versus $0.27 for the prior year period. Revenues for the quarter increased to $104.8 million from $99.7 million for the same period in fiscal year 2018.

10/22/2019 HHeeaalltthhccaarree SSeerrvviicceess GGrroouupp,, IInncc.. (HCSG) reported third quarter net income of $18.3 million for fiscal year 2019 as compared to $26.1 million for the prior year period. Earnings per share were $0.25 versus $0.35 for the prior year period. Revenues for the quarter decreased to $455.6 million from $505.5 million for the same period in fiscal year 2018.

10/23/2019 RRoolllliinnss,, IInncc.. (ROL) reported third quarter net income of $44.1 million for fiscal year 2019 as compared to $66.6 million for the prior year period. Earnings per share were $0.13 versus $0.20 for the prior year period. Revenues for the quarter increased to $556.5 million from $487.7 million for the same period in fiscal year 2018.

10/23/2019 FFiirrssttSSeerrvviiccee CCoorrppoorraattiioonn (TSX:FSV) reported third quarter net income of $19.9 million for fiscal year 2019 as compared to $25.8 million for the prior year period. Earnings per share were $0.50 versus $0.70 for the prior year period. Revenues for the quarter increased to $672.3 million from $506.4 million for the same period in fiscal year 2018.

10/23/2019 TThhee BBrriinnkk''ss CCoommppaannyy (BCO) reported third quarter net income of $5.4 million for fiscal year 2019 as compared to $17.4 million for the prior year period. Earnings per share were $0.10 versus $0.34 for the prior year period. Revenues for the quarter increased to $928.4 million from $852.4 million for the same period in fiscal year 2018.

10/23/2019 WWaassttee MMaannaaggeemmeenntt,, IInncc.. (WM) reported third quarter net income of $495.0 million for fiscal year 2019 as compared to $499.0 million for the prior year period. Earnings per share were $1.16 versus $1.16 for the prior year period. Revenues for the quarter increased to $3,967.0 million from $3,822.0 million for the same period in fiscal year 2018.

10/23/2019 UUnniiFFiirrsstt CCoorrppoorraattiioonn (UNF) reported net income of $179.1 million for fiscal year 2019 as compared to $163.9 million for the prior year. Earnings per share were $9.33 versus $8.21 for the prior year. Revenues for the year increased to $1,809.4 million from $1,696.5 million for fiscal year 2018.

10/24/2019 CCoommffoorrtt SSyysstteemmss UUSSAA,, IInncc.. (FIX) reported third quarter net income of $36.2 million for fiscal year 2019 as compared to $38.5 million for the prior year period. Earnings per share were $0.98 versus $1.02 for the prior year period. Revenues for the quarter increased to $706.9 million from $594.5 million for the same period in fiscal year 2018.




RECENT NEWS

NOVEMBER 2019


10/28/2019 WWaassttee CCoonnnneeccttiioonnss,, IInncc.. (WCN) reported third quarter net income of $159.1 million for fiscal year 2019 as compared to $150.8 million for the prior year period. Earnings per share were $0.60 versus $0.57 for the prior year period. Revenues for the quarter increased to $1,412.4 million from $1,281.1 million for the same period in fiscal year 2018.

10/29/2019 CChheemmeedd CCoorrppoorraattiioonn (CHE) reported third quarter net income of $58.9 million for fiscal year 2019 as compared to $51.2 million for the prior year period. Earnings per share were $3.56 versus $3.06 for the prior year period. Revenues for the quarter increased to $480.6 million from $444.2 million for the same period in fiscal year 2018.

10/29/2019 EEMMCCOORR GGrroouupp,, IInncc.. (EME) reported third quarter net income of $81.8 million for fiscal year 2019 as compared to $79.4 million for the prior year period. Earnings per share were $1.45 versus $1.35 for the prior year period. Revenues for the quarter increased to $2,287.7 million from $2,047.0 million for the same period in fiscal year 2018.

10/29/2019 AAddvvaanncceedd DDiissppoossaall SSeerrvviicceess,, IInncc.. (ADSW) reported third quarter net income of $3.6 million for fiscal year 2019 as compared to ($4.9) million for the prior year period. Earnings per share were $0.04 versus ($0.06) for the prior year period. Revenues for the quarter increased to $419.5 million from $400.6 million for the same period in fiscal year 2018.

10/30/2019 RReeppuubblliicc SSeerrvviicceess,, IInncc.. (RSG) reported third quarter net income of $298.3 million for fiscal year 2019 as compared to $263.4 million for the prior year period. Earnings per share were $0.93 versus $0.81 for the prior year period. Revenues for the quarter increased to $2,646.9 million from $2,565.7 million for the same period in fiscal year 2018.

10/30/2019 SSPP PPlluuss CCoorrppoorraattiioonn (SP) reported third quarter net income of $14.2 million for fiscal year 2019 as compared to $13.5 million for the prior year period. Earnings per share were $0.64 versus $0.60 for the prior year period. Revenues for the quarter increased to $237.2 million from $187.3 million for the same period in fiscal year 2018.

10/30/2019 CClleeaann HHaarrbboorrss,, IInncc.. (CLH) reported third quarter net income of $36.4 million for fiscal year 2019 as compared to $31.1 million for the prior year period. Earnings per share were $0.65 versus $0.55 for the prior year period. Revenues for the quarter increased to $891.7 million from $843.2 million for the same period in fiscal year 2018.

10/30/2019 UUSS EEccoollooggyy,, IInncc.. (ECOL) reported third quarter net income of $13.1 million for fiscal year 2019 as compared to $13.4 million for the prior year period. Earnings per share were $0.59 versus $0.61 for the prior year period. Revenues for the quarter increased to $167.4 million from $151.4 million for the same period in fiscal year 2018.

10/31/2019 PPrroosseegguurr CCoommppaaññííaa ddee SSeegguurriiddaadd,, SS..AA.. (BME:PSG) reported third quarter net income of $34.7 million for fiscal year 2019 as compared to $35.3 million for the prior year period. Earnings per share were $0.03 versus $0.06 for the prior year period. Revenues for the quarter increased to $1,042.5 million from $817.8 million for the same period in fiscal year 2018.

10/31/2019 SStteerriiccyyccllee,, IInncc.. (SRCL) reported third quarter net income of ($59.2) million for fiscal year 2019 as compared to $23.5 million for the prior year period. Earnings per share were ($0.65) versus $0.20 for the prior year period. Revenues for the quarter decreased to $833.1 million from $854.9 million for the same period in fiscal year 2018.

10/31/2019 CCaasseellllaa WWaassttee SSyysstteemmss,, IInncc.. (CWST) reported third quarter net income of $12.4 million for fiscal year 2019 as compared to $22.3 million for the prior year period. Earnings per share were $0.26 versus $0.50 for the prior year period. Revenues for the quarter increased to $198.5 million from $172.8 million for the same period in fiscal year 2018.

GLOBAL BUSINESS SERVICES

FOCUS AREAS

WHO WE ARE

• Independent investment banking and financial advisory services for the global middle market since 1989

• Investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate brokerage offices in Atlanta, Cleveland, Denver, San Antonio, and San Diego

• Founding member and exclusive U.S. partner of Global M&A Partners, Ltd., the world’s leading partnership of independent investment banking firms, which gives our clients access to experience and capital in more than 30 countries worldwide

• Deep industry experience in: Business Services, Consumer, Diversified Industrials, Environmental & Industrial Services, Healthcare & Life Sciences, Healthcare Real Estate, Metals & Metals Processing, Real Estate, and Transportation & Logistics

• Comprehensive suite of financial advisory services, including guidance and support for acquisitions, divestitures, capital markets, financial restructurings, and other strategic consulting

• Document management• Food services• HVAC management• Janitorial• Landscaping• Manned security• Signage• Snow removal• Uniform/linen rental• Waste disposal


• Business process outsourcing• Debt collection• Direct mail• Fulfillment• Inbound customer service• Market research• Marketing services• Outbound customer

acquisition• Technical support


• Background employment checks• Benefits administration• Distance learning• Employee training• Human Resources consulting• Payroll processing• Permanent placement• Professional Employer Organization (PEO)• Temporary staffing


The information contained in this publication was derived from proprietary research conducted by a division or owned or affiliated entity of Brown Gibbons Lang & Company LLC. Any projections, estimates or other forward-looking statements contained in this publication involve numerous and significant subjective assumptions and are subject to risks, contingencies, and uncertainties that are outside of our control, which could and likely will cause actual results to differ materially. We do not expect to, and assume no obligation to update or otherwise revise this publication or any information contained herein. Neither Brown Gibbons Lang & Company LLC, nor any of its officers, directors, employees, affiliates, agents or representatives makes any representation or warranty, expressed or implied, as to the accuracy, completeness or fitness of any information contained in this publication, and no legal liability is assumed or is to be implied against any of the aforementioned with respect thereto. This publication does not constitute the giving of investment advice, nor a part of any advice on investment decisions and nothing in this publication is intended to be a recommendation of a specific security or company, nor is any of the information contained herein intended to constitute an analysis of any company or security reasonably sufficient to form the basis for any investment decision. Brown Gibbons Lang & Company LLC, its affiliates and their officers, directors, employees or affiliates, or members of their families, may have a beneficial interest in the securities of a specific company mentioned in this publication and may purchase or sell such securities in the open market or otherwise. Nothing contained in this publication constitutes an offer to buy or sell or the solicitation of an offer to buy or sell any security.

LEADING INDEPENDENT FIRM COMPREHENSIVE CAPABILITIES

For questions about content and circulation, please contact editor, Rebecca Dickenscheidt, at [email protected] or 312.513.7476.

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DEDICATED LEADERSHIP

P E T E R J . H I L LManaging DirectorBusiness Services

• Leads BGL’s Business Services practice

• Over 25 years of investment banking and corporate finance experience

• Former Managing Director and Head of Business Services at Mufson Howe Hunter & Company, Stifel, and Legg Mason

• Investment banking positions at Barclays Capital and Lehman Brothers

• B.A., Middlebury College

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NOVEMBER 2019 Business Services Update - BGL · Price Appreciation 3-Year LTM 1-Month Brown Gibbons Lang & Company Human Resources Outsourcing Index(a) 72.8% 17.8%0 .2% NASDAQ 59.8%