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TrueBlue Reports First Quarter 2024 Results
First Quarter 2024 Financial Highlights
Revenue decreased 13 percent to $403 million compared to prior year period Net loss of $2 million compared to net loss of $4 million in the prior year period SG&A improved by 13 percent Adjusted EBITDA(1) of -$3 million and adjusted net income of $1 million Zero debt, cash of $36 million and $140 million of borrowing availability $10 million in share repurchases with $45 million remaining under authorization
Commentary
"As anticipated, market conditions have remained challenging and we continue to manage through the current cycle with agility and discipline," said Taryn Owen, President and CEO of TrueBlue. "Our teams are staying highly engaged with clients, leveraging our flexible and short duration offerings as well as tapping into opportunities in high-growth and attractive end markets. Our commitment to growing sales by providing excellent service and responding to our clients' immediate and evolving needs ensures we are well-positioned to support them as their needs change or expand."
"We are also progressing our strategic priorities that will enable us to capture market share and enhance our long-term profitability," continued Ms. Owen. "We are advancing our digital transformation with the continued rollout of our new proprietary JobStack app, leveraging our expertise and expansive service offerings to expand in attractive end markets and simplifying our organizational structure to drive efficiencies and innovation through increased synergies. We are confident that combining our strategic priorities with our many strengths and assets will enable us to advance our mission to connect people and work while delivering long-term value."
Results
First quarter revenue was $403 million, a decrease of 13 percent compared to revenue of $465 million in the first quarter of 2023. Net loss per diluted share was $0.05 compared to net loss per diluted share of $0.13 in the prior year period. Adjusted net income(1) per diluted share was $0.03 compared to adjusted net loss per diluted share of $0.07 in the prior year period.
2024 Outlook
TrueBlue is providing certain forward-looking information to help investors form their own estimates, which can be found in the quarterly earnings presentation filed today.
Management will discuss first quarter 2024 results on a webcast at 2:00 p.m. PT (5:00 p.m. ET), today, Monday, May 6, 2024. The webcast can be accessed on the Investor Relations section of the TrueBlue website: investor.trueblue.com.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2023, TrueBlue served approximately 67,000 clients and connected approximately 464,000 people with work. Its PeopleReady segment offers on-demand, industrial staffing, PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions, and PeopleManagement offers contingent, on-site industrial staffing and commercial driver services. Learn more at www.trueblue.com.
(1)Refer to the financial statements accompanying this release for more information regarding non-GAAP terms.
Forward-looking statements and non-GAAP financial measures
This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in demand, and expected growth from our digital investments, all of which are subject to risks and uncertainties. Such statements are based on management's expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions which can be negatively impacted by factors such as rising interest rates, inflation, political instability, epidemics and global trade uncertainty, (2) our ability to maintain profit margins, (3) our ability to successfully execute on business strategies and further digitalize our business model, (4) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (5) our ability to attract and retain clients, (6) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit, and (9) the timing and amount of common stock repurchases, if any, which will be determined at management's discretion and depend upon several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company's most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC's website at www.sec.gov. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Any other references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.
In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this document and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
13 weeks ended
------------------------------------------------------------------------------------------------------------------
(in thousands, except per share data) Mar 31, 2024 Mar 26, 2023
------------------------------------------- ----------------------------------------------- -----------------------------------------------
Revenue from services $ 402,853 $ 465,288
Cost of services 303,467 342,175
------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
99,386 123,113
Gross profit
Selling, general and administrative expense 106,937 122,645
Depreciation and amortization 7,958 6,411
------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(15,509 ) (5,943 )
Loss from operations
Interest and other income (expense), net 1,599 1,014
------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(13,910 ) (4,929 )
Loss before tax benefit
Income tax benefit (12,212 ) (640 )
------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
$ (1,698 ) $ (4,289 )
Net loss
------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net loss per common share:
$ (0.05 ) $ (0.13 )
Basic
$ (0.05 ) $ (0.13 )
Diluted
Weighted average shares outstanding:
31,102 32,292
Basic
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) Mar 31, 2024 Dec 31, 2023
------------------------------------------------------------------------------------- ------------------------------ ------------------------------
ASSETS
Cash and cash equivalents $ 36,184 $ 61,885
Accounts receivable, net 244,184 252,538
Other current assets 35,035 40,570
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
315,403 354,993
Total current assets
Property and equipment, net 104,449 104,906
Restricted cash, cash equivalents and investments 187,969 192,985
Goodwill and intangible assets, net 92,864 94,639
Other assets, net 167,901 151,860
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
$ 868,586 $ 899,383
Total assets
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and other accrued expenses $ 43,623 $ 56,401
Accrued wages and benefits 81,008 80,120
Current portion of workers' compensation claims reserve 41,303 44,866
Other current liabilities 18,026 22,712
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
183,960 204,099
Total current liabilities
Workers' compensation claims reserve, less current portion 146,544 151,649
Other long-term liabilities 91,718 85,762
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
422,222 441,510
Total liabilities
Shareholders' equity 446,364 457,873
------------------------------------------------------------------------------------- -------------------- ---------- -------------------- ----------
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
13 weeks ended
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(in thousands) Mar 31, 2024 Mar 26, 2023
----------------------------------------------------------------------------------------------------- ----------------------------------------------- ------------------------------------------------------
Cash flows from operating activities:
$ (1,698 ) $ (4,289 )
Net loss
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
7,958 6,411
Depreciation and amortization
370 1,382
Provision for credit losses
2,102 2,630
Stock-based compensation
(12,206 ) (47 )
Deferred income taxes
3,036 3,140
Non-cash lease expense
(2,980 ) 20
Other operating activities
Changes in operating assets and liabilities:
8,292 31,025
Accounts receivable
975 (2,512 )
Income taxes receivable and payable
1,571 6,462
Other assets
(11,515 ) (11,937 )
Accounts payable and other accrued expenses
480 (11,143 )
Accrued wages and benefits
(8,669 ) (11,583 )
Workers' compensation claims reserve
(3,204 ) (3,316 )
Operating lease liabilities
1,249 2,908
Other liabilities
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Net cash (used in) provided by operating activities (14,239 ) 9,151
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Cash flows from investing activities:
(7,375 ) (8,081 )
Capital expenditures
2,928 --
Proceeds from business divestiture, net
(10,180 ) (2,305 )
Purchases of restricted held-to-maturity investments
15,546 2,010
Maturities of restricted held-to-maturity investments
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Net cash provided by (used in) investing activities 919 (8,376 )
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Cash flows from financing activities:
(10,067 ) (24,718 )
Purchases and retirement of common stock
220 315
Net proceeds from employee stock purchase plans
(2,012 ) (2,377 )
Common stock repurchases for taxes upon vesting of restricted stock
(1,803 ) (45 )
Other
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Net cash used in financing activities (13,662 ) (26,825 )
(604 ) 9
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
Net change in cash, cash equivalents, and restricted cash and cash equivalents (27,586 ) (26,041 )
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period 99,306 135,631
----------------------------------------------------------------------------------------------------- -------------------- ------- -------------------- -------------------- -------------- --------------------
TRUEBLUE, INC.
SEGMENT DATA
(Unaudited)
13 weeks ended
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(in thousands) Mar 31, 2024 Mar 26, 2023
--------------------------------------------------------- ----------------------------------------------- -----------------------------------------------
Revenue from services:
$ 222,661 $ 252,628
PeopleReady
46,332 69,476
PeopleScout
133,860 143,184
PeopleManagement
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
$ 402,853 $ 465,288
Total company
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Segment profit (loss) (1):
$ (5,058 ) $ 872
PeopleReady
4,879 8,923
PeopleScout
2,751 (202 )
PeopleManagement
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
2,572 9,593
Total segment profit
(6,052 ) (6,708 )
Corporate unallocated expense
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(3,480 ) 2,885
Total company Adjusted EBITDA (2)
(90 ) (120 )
Third-party processing fees for hiring tax credits (3)
(1,343 ) (868 )
Amortization of software as a service assets (4)
(385 ) (32 )
PeopleReady technology upgrade costs (5)
(2,253 ) (1,397 )
Other adjustments, net (6)
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(7,551 ) 468
EBITDA (2)
(7,958 ) (6,411 )
Depreciation and amortization
1,599 1,014
Interest and other income (expense), net
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(13,910 ) (4,929 )
Loss before tax benefit
12,212 640
Income tax benefit
--------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(1) We evaluate performance based on segment revenue and segment profit (loss). Segment profit (loss) includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit (loss) excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing. We evaluate performance based on segment revenue and segment profit (loss). Segment profit (loss) includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit (loss) excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing. (2) See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA. See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA. (3) These third-party processing fees are associated with generating hiring tax credits. These third-party processing fees are associated with generating hiring tax credits. (4) Amortization of software as a service assets is reported in selling, general and administrative expense. Amortization of software as a service assets is reported in selling, general and administrative expense. (5) Costs associated with upgrading legacy PeopleReady technology. Costs associated with upgrading legacy PeopleReady technology.
TRUEBLUE, INC.
In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.
Non-GAAP measure Definition Purpose of adjusted measures
-------------------------------------------- -------------------- ------------------------------------------------------------------ -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted net income (loss) and Net loss and net loss per diluted share, excluding: - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.
Adjusted net income (loss) per diluted share - gain on divestiture,
- amortization of intangibles, - Used by management to assess performance and effectiveness of our business strategies.
- PeopleReady technology upgrade costs,
- other adjustments, net, and - Provides a measure, among others, used in the determination of incentive compensation for management.
- tax effect of the adjustments to U.S. GAAP.
-------------------------------------------- -------------------- ------------------------------------------------------------------ -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------
EBITDA and EBITDA excludes from net loss: - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.
Adjusted EBITDA - income tax benefit,
- interest and other (income) expense, net, and - Used by management to assess performance and effectiveness of our business strategies.
- depreciation and amortization.
- Provides a measure, among others, used in the determination of incentive compensation for management.
Adjusted EBITDA, further excludes:
- third-party processing fees for hiring tax credits,
- amortization of software as a service assets,
- PeopleReady technology upgrade costs,
- other adjustments, net.
-------------------------------------------- -------------------- ------------------------------------------------------------------ -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------
1. RECONCILIATION OF U.S. GAAP NET LOSS TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE
(Unaudited)
13 weeks ended
--------------------------------------------------------------------------------------------------------------------------------
(in thousands, except for per share data) (in thousands, except for per share data) (in thousands, except for per share data) Mar 31, 2024 Mar 26, 2023
-------------------------------------------------- -------------------------------------------------- -------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------
Net loss Net loss Net loss $ (1,698 ) $ (4,289 )
Gain on divestiture (1) Gain on divestiture (1) Gain on divestiture (1) (745 ) --
Amortization of intangible assets Amortization of intangible assets Amortization of intangible assets 1,521 1,270
PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) 385 32
Other adjustments, net (3) Other adjustments, net (3) Other adjustments, net (3) 2,253 1,397
Tax effect of adjustments to net income (loss) (4) Tax effect of adjustments to net income (loss) (4) Tax effect of adjustments to net income (loss) (4) (888 ) (702 )
-------------------------------------------------- -------------------------------------------------- -------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 828 $ (2,292 )
Adjusted net income (loss) Adjusted net income (loss) Adjusted net income (loss)
-------------------------------------------------- -------------------------------------------------- -------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 0.03 $ (0.07 )
Adjusted net income (loss) per diluted share Adjusted net income (loss) per diluted share Adjusted net income (loss) per diluted share
Diluted weighted average shares outstanding Diluted weighted average shares outstanding Diluted weighted average shares outstanding 31,380 32,292
Margin / % of revenue: Margin / % of revenue: Margin / % of revenue:
(0.4) (0.4) % (0.9) (0.9) (0.9) %
Net loss Net loss Net loss
2. RECONCILIATION OF U.S. GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA RECONCILIATION OF U.S. GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA
(Unaudited) (Unaudited)
13 weeks ended
--------------------------------------------------------------------------------------------------------------------
(in thousands) (in thousands) (in thousands) Mar 31, 2024 Mar 26, 2023
------------------------------------------------------ ------------------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------ ------------------------------------------------
Net loss Net loss Net loss $ (1,698 ) $ (4,289 )
Income tax benefit Income tax benefit Income tax benefit (12,212 ) (640 )
Interest and other (income) expense, net Interest and other (income) expense, net Interest and other (income) expense, net (1,599 ) (1,014 )
Depreciation and amortization Depreciation and amortization Depreciation and amortization 7,958 6,411
------------------------------------------------------ ------------------------------------------------------------------ ------------------------------------------------------ -------------------- -------- -------------------- -------------------- -------- --------------------
(7,551 ) 468
EBITDA EBITDA EBITDA
Third-party processing fees for hiring tax credits (5) Third-party processing fees for hiring tax credits (5) Third-party processing fees for hiring tax credits (5) 90 120
Amortization of software as a service assets (6) Amortization of software as a service assets (6) Amortization of software as a service assets (6) 1,343 868
PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) 385 32
Other adjustments, net (3) Other adjustments, net (3) Other adjustments, net (3) 2,253 1,397
------------------------------------------------------ ------------------------------------------------------------------ ------------------------------------------------------ -------------------- -------- -------------------- -------------------- -------- --------------------
$ (3,480 ) $ 2,885
Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA
------------------------------------------------------ ------------------------------------------------------------------ ------------------------------------------------------ -------------------- -------- -------------------- -------------------- -------- --------------------
Margin / % of revenue: Margin / % of revenue: Margin / % of revenue:
(0.4) % (0.9) %
Net loss Net loss Net loss
3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE
(Unaudited) (Unaudited)
13 weeks ended
----------------------------------------------------------------------------------------------------------------------------
(in thousands) (in thousands) (in thousands) Mar 31, 2024 Mar 26, 2023
------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------ ---------------------------------------------------- ----------------------------------------------------
Selling, general and administrative expense Selling, general and administrative expense Selling, general and administrative expense $ 106,937 $ 122,645
Third-party processing fees for hiring tax credits (5) Third-party processing fees for hiring tax credits (5) Third-party processing fees for hiring tax credits (5) (90 ) (120 )
Amortization of software as a service assets (6) Amortization of software as a service assets (6) Amortization of software as a service assets (6) (1,343 ) (868 )
PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) PeopleReady technology upgrade costs (2) (385 ) (32 )
Other adjustments, net (3) Other adjustments, net (3) Other adjustments, net (3) (2,157 ) (1,189 )
------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------ -------------------- ------------ -------------------- -------------------- ------------ --------------------
$ 102,962 $ 120,436
Adjusted SG&A expense Adjusted SG&A expense Adjusted SG&A expense
------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------ -------------------- ------------ -------------------- -------------------- ------------ --------------------
% of revenue: % of revenue: % of revenue:
26.5 % 26.4 %
Selling, general and administrative expense Selling, general and administrative expense Selling, general and administrative expense
(1) Gain on divestiture of PeopleReady's Canadian staffing business, sold late February 2024. Gain on divestiture of PeopleReady's Canadian staffing business, sold late February 2024. (2) Costs associated with upgrading legacy PeopleReady technology. Costs associated with upgrading legacy PeopleReady technology. (3) Other adjustments for the 13 weeks ended March 31, 2024 and March 26, 2023 primarily include workforce reduction costs of $1.9 million ($0.1 million in cost of services and $1.8 million in selling, general and administrative expense) and $1.2 million ($0.2 million in cost of services and $1.0 million in selling, general and administrative expense), respectively. Other adjustments for the 13 weeks ended March 31, 2024 and March 26, 2023 primarily include workforce reduction costs of $1.9 million ($0.1 million in cost of services and $1.8 million in selling, general and administrative expense) and $1.2 million ($0.2 million in cost of services and $1.0 million in selling, general and administrative expense), respectively. (4) Tax effect of the adjustments to U.S. GAAP net loss. The tax effect includes the application of our statutory rate of 26% to all taxable / deductible adjustments. Note, prior periods were reported using the effective rate for the respective period and have been recast to conform to the current presentation for comparability. Please refer to the reconciliations on the financial results page under the investor relations section of our website for additional information on comparable historical periods. Tax effect of the adjustments to U.S. GAAP net loss. The tax effect includes the application of our statutory rate of 26% to all taxable / deductible adjustments. Note, prior periods were reported using the effective rate for the respective period and have been recast to conform to the current presentation for comparability. Please refer to the reconciliations on the financial results page under the investor relations section of our website for additional information on comparable historical periods. (5) These third-party processing fees are associated with generating hiring tax credits. These third-party processing fees are associated with generating hiring tax credits.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506007486/en/
SOURCE: TrueBlue
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Investor Relations InvestorRelations@trueblue.com
COMTEX_451974679/1006/2024-05-06T16:05:00