Sign In  |  Register  |  About Santa Clara  |  Contact Us

Santa Clara, CA
September 01, 2020 1:39pm
7-Day Forecast | Traffic
  • Search Hotels in Santa Clara

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

TrueBlue Reports Second Quarter 2023 Results

TrueBlue (NYSE:TBI) today announced its second quarter results for 2023.

Second quarter revenue was $476 million, a decrease of 16 percent compared to revenue of $569 million in the second quarter of 2022. Net loss per diluted share was $0.24 compared to net income per diluted share of $0.72 in the second quarter of 2022. Second quarter adjusted net income1 per diluted share was $0.17 compared to adjusted net income per diluted share of $0.82 in the second quarter of 2022.

Included in the net loss for the second quarter is a non-cash goodwill and intangible asset impairment charge of $9 million after tax or $0.30 per diluted share.

“Our results reflect an environment of softening demand,” said Steve Cooper, CEO of TrueBlue. “Given the tight labor market, clients continue to focus on retaining employees, but they are also increasingly focused on reducing costs. As a result, clients are becoming more selective on which jobs they choose to fill.”

“We maintained pricing discipline in our staffing segments and took additional actions to reduce costs,” said Taryn Owen, President & COO of TrueBlue. “We remain highly engaged with our clients and are well positioned to support their current and future workforce needs.”

2023 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 second quarter 2023 results on a webcast at 2:30 p.m. PT (5:30 p.m. ET), today, Monday, Jul. 24, 2023. 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 2022, TrueBlue connected approximately 611,000 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, 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 attract sufficient qualified candidates and employees to meet the needs of our clients, (3) our ability to attract and retain clients, (4) our ability to maintain profit margins, (5) our ability to successfully execute on business strategies to further digitalize our business model, (6) 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, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, and (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. 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

 

26 weeks ended

(in thousands, except per share data)

Jun 25, 2023

 

Jun 26, 2022

 

Jun 25, 2023

 

Jun 26, 2022

Revenue from services

$

475,588

 

 

$

569,253

 

 

$

940,876

 

 

$

1,120,768

Cost of services

 

345,097

 

 

 

410,722

 

 

 

687,272

 

 

 

822,392

Gross profit

 

130,491

 

 

 

158,531

 

 

 

253,604

 

 

 

298,376

Selling, general and administrative expense

 

121,282

 

 

 

122,034

 

 

 

243,927

 

 

 

242,602

Depreciation and amortization

 

6,280

 

 

 

7,245

 

 

 

12,691

 

 

 

14,532

Goodwill and intangible asset impairment charge

 

9,485

 

 

 

 

 

 

9,485

 

 

 

Income (loss) from operations

 

(6,556

)

 

 

29,252

 

 

 

(12,499

)

 

 

41,242

Interest and other income (expense), net

 

578

 

 

 

(110

)

 

 

1,592

 

 

 

395

Income (loss) before tax expense

 

(5,978

)

 

 

29,142

 

 

 

(10,907

)

 

 

41,637

Income tax expense

 

1,345

 

 

 

5,129

 

 

 

705

 

 

 

7,105

Net income (loss)

$

(7,323

)

 

$

24,013

 

 

$

(11,612

)

 

$

34,532

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

Basic

$

(0.24

)

 

$

0.73

 

 

$

(0.37

)

 

$

1.04

Diluted

$

(0.24

)

 

$

0.72

 

 

$

(0.37

)

 

$

1.02

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

30,966

 

 

 

32,707

 

 

 

31,629

 

 

 

33,318

Diluted

 

30,966

 

 

 

33,149

 

 

 

31,629

 

 

 

33,832

TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands)

Jun 25, 2023

 

Dec 25, 2022

ASSETS

 

 

 

Cash and cash equivalents

$

49,653

 

$

72,054

Accounts receivable, net

 

267,949

 

 

314,275

Other current assets

 

36,232

 

 

43,883

Total current assets

 

353,834

 

 

430,212

Property and equipment, net

 

100,277

 

 

95,823

Restricted cash and investments

 

206,106

 

 

213,734

Goodwill and intangible assets, net

 

98,210

 

 

109,989

Other assets, net

 

166,430

 

 

169,650

Total assets

$

924,857

 

$

1,019,408

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Accounts payable and other accrued expenses

$

48,555

 

$

76,644

Accrued wages and benefits

 

82,961

 

 

92,237

Current portion of workers’ compensation claims reserve

 

44,840

 

 

50,005

Other current liabilities

 

22,847

 

 

23,989

Total current liabilities

 

199,203

 

 

242,875

Workers’ compensation claims reserve, less current portion

 

186,271

 

 

201,005

Other long-term liabilities

 

85,338

 

 

79,213

Total liabilities

 

470,812

 

 

523,093

Shareholders’ equity

 

454,045

 

 

496,315

Total liabilities and shareholders’ equity

$

924,857

 

$

1,019,408

TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

26 weeks ended

(in thousands)

Jun 25, 2023

 

Jun 26, 2022

Cash flows from operating activities:

 

 

 

Net income (loss)

$

(11,612

)

 

$

34,532

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

12,691

 

 

 

14,532

 

Goodwill and intangible asset impairment charge

 

9,485

 

 

 

 

Provision for credit losses

 

2,408

 

 

 

2,572

 

Stock-based compensation

 

5,294

 

 

 

4,487

 

Deferred income taxes

 

(22

)

 

 

2,117

 

Non-cash lease expense

 

6,249

 

 

 

6,518

 

Other operating activities

 

(1,099

)

 

 

6,752

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

43,915

 

 

 

12,524

 

Income taxes receivable and payable

 

(3,039

)

 

 

(3,549

)

Other assets

 

15,053

 

 

 

(8,486

)

Accounts payable and other accrued expenses

 

(26,968

)

 

 

(10,629

)

Accrued wages and benefits

 

(9,277

)

 

 

(14,638

)

Workers’ compensation claims reserve

 

(19,899

)

 

 

11,404

 

Operating lease liabilities

 

(6,295

)

 

 

(6,441

)

Other liabilities

 

3,980

 

 

 

1,407

 

Net cash provided by operating activities

 

20,864

 

 

 

53,102

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(15,738

)

 

 

(13,992

)

Payments for company-owned life insurance

 

(2,347

)

 

 

 

Purchases of restricted held-to-maturity investments

 

(9,955

)

 

 

(4,950

)

Maturities of restricted held-to-maturity investments

 

15,613

 

 

 

17,826

 

Net cash used in investing activities

 

(12,427

)

 

 

(1,116

)

Cash flows from financing activities:

 

 

 

Purchases and retirement of common stock

 

(34,200

)

 

 

(60,939

)

Net proceeds from employee stock purchase plans

 

509

 

 

 

536

 

Common stock repurchases for taxes upon vesting of restricted stock

 

(2,514

)

 

 

(4,132

)

Other

 

(91

)

 

 

(147

)

Net cash used in financing activities

 

(36,296

)

 

 

(64,682

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(20

)

 

 

(494

)

Net change in cash, cash equivalents, and restricted cash

 

(27,879

)

 

 

(13,190

)

Cash, cash equivalents and restricted cash, beginning of period

 

135,631

 

 

 

103,185

 

Cash, cash equivalents and restricted cash, end of period

$

107,752

 

 

$

89,995

 

TRUEBLUE, INC.

SEGMENT DATA

(Unaudited)

 

 

13 weeks ended

(in thousands)

Jun 25, 2023

 

Jun 26, 2022

Revenue from services:

 

 

 

PeopleReady

$

275,318

 

 

$

317,943

 

PeopleScout

 

59,710

 

 

 

89,372

 

PeopleManagement

 

140,560

 

 

 

161,938

 

Total company

$

475,588

 

 

$

569,253

 

 

 

 

 

Segment profit (1):

 

 

 

PeopleReady

$

8,158

 

 

$

20,325

 

PeopleScout

 

8,817

 

 

 

20,593

 

PeopleManagement

 

2,250

 

 

 

4,228

 

Total segment profit

 

19,225

 

 

 

45,146

 

Corporate unallocated expense

 

(8,215

)

 

 

(6,531

)

Total company Adjusted EBITDA (2)

 

11,010

 

 

 

38,615

 

Third-party processing fees for hiring tax credits (3)

 

(110

)

 

 

(162

)

Amortization of software as a service assets (4)

 

(952

)

 

 

(699

)

Goodwill and intangible asset impairment charge

 

(9,485

)

 

 

 

PeopleReady technology upgrade costs (5)

 

(174

)

 

 

(1,748

)

Other adjustments, net (6)

 

(565

)

 

 

491

 

EBITDA (2)

 

(276

)

 

 

36,497

 

Depreciation and amortization

 

(6,280

)

 

 

(7,245

)

Interest and other income (expense), net

 

578

 

 

 

(110

)

Income (loss) before tax expense

 

(5,978

)

 

 

29,142

 

Income tax expense

 

(1,345

)

 

 

(5,129

)

Net income (loss)

$

(7,323

)

 

$

24,013

 

(1)

We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit 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.

(3)

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.

(5)

Costs associated with upgrading legacy PeopleReady technology.

(6)

Other adjustments for the 13 weeks ended June 25, 2023 primarily include workforce reduction costs of $0.6 million ($0.2 million in cost of services and $0.4 million in selling, general and administrative expense). Other adjustments for the 13 weeks ended June 26, 2022 primarily include a benefit of $1.4 million from forfeited stock awards associated with the CEO transition that were expensed in prior years, partially offset by $0.8 million of costs incurred while transitioning to a new third party administrator for workers’ compensation.

TRUEBLUE, INC.

NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS

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 and

Adjusted net income per diluted share

 

Net income (loss) and net income (loss) per diluted share, excluding:

– amortization of intangibles,

– amortization of software as a service assets,

– goodwill and intangible asset impairment charge,

– accelerated depreciation,

– PeopleReady technology upgrade costs,

– other adjustments, net, and

– tax effect of each adjustment to U.S. GAAP.

 

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

– Used by management to assess performance and effectiveness of our business strategies.

– Provides a measure, among others, used in the determination of incentive compensation for management.

EBITDA and

Adjusted EBITDA

 

EBITDA excludes from net income (loss):

– income tax expense,

– interest expense and other income, net, and

– depreciation and amortization.

 

Adjusted EBITDA, further excludes:

– third-party processing fees for hiring tax credits,

– amortization of software as a service assets,

– goodwill and intangible asset impairment charge,

– PeopleReady technology upgrade costs,

– other adjustments, net.

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

– Used by management to assess performance and effectiveness of our business strategies.

– Provides a measure, among others, used in the determination of incentive compensation for management.

Adjusted SG&A expense

 

Selling, general and administrative expense excluding:

– third-party processing fees for hiring tax credits,

– amortization of software as a service assets,

– PeopleReady technology upgrade costs,

– other adjustments, net.

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE

(Unaudited)

 

 

13 weeks ended

(in thousands, except for per share data)

Jun 25, 2023

 

Jun 26, 2022

Net income (loss)

$

(7,323

)

 

$

24,013

 

Amortization of intangible assets

 

1,274

 

 

 

1,495

 

Amortization of software as a service assets (1)

 

 

 

 

699

 

Goodwill and intangible asset impairment charge

 

9,485

 

 

 

 

Accelerated depreciation (2)

 

 

 

 

540

 

PeopleReady technology upgrade costs (3)

 

174

 

 

 

1,748

 

Other adjustments, net (4)

 

565

 

 

 

(491

)

Tax effect of adjustments to net income (loss) (5)

 

1,203

 

 

 

(749

)

Adjusted net income

$

5,378

 

 

$

27,255

 

 

 

 

 

Adjusted net income per diluted share

$

0.17

 

 

$

0.82

 

 

 

 

 

Diluted weighted average shares outstanding

 

31,185

 

 

 

33,149

 

 

 

 

 

Margin / % of revenue:

 

 

 

Net income (loss)

 

(1.5

)%

 

 

4.2

%

Adjusted net income

 

1.1

%

 

 

4.8

%

2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(Unaudited)

 

 

13 weeks ended

(in thousands)

Jun 25, 2023

 

Jun 26, 2022

Net income (loss)

$

(7,323

)

 

$

24,013

 

Income tax expense

 

1,345

 

 

 

5,129

 

Interest and other (income) expense, net

 

(578

)

 

 

110

 

Depreciation and amortization

 

6,280

 

 

 

7,245

 

EBITDA

 

(276

)

 

 

36,497

 

Third-party processing fees for hiring tax credits (6)

 

110

 

 

 

162

 

Amortization of software as a service assets (1)

 

952

 

 

 

699

 

Goodwill and intangible asset impairment charge

 

9,485

 

 

 

 

PeopleReady technology upgrade costs (3)

 

174

 

 

 

1,748

 

Other adjustments, net (4)

 

565

 

 

 

(491

)

Adjusted EBITDA

$

11,010

 

 

$

38,615

 

 

 

 

 

Margin / % of revenue:

 

 

 

Net income (loss)

 

(1.5

)%

 

 

4.2

%

Adjusted EBITDA

 

2.3

%

 

 

6.8

%

3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE

(Unaudited)

 

 

13 weeks ended

(in thousands)

Jun 25, 2023

 

Jun 26, 2022

Selling, general and administrative expense

$

121,282

 

 

$

122,034

 

Third-party processing fees for hiring tax credits (6)

 

(110

)

 

 

(162

)

Amortization of software as a service assets (1)

 

(952

)

 

 

(699

)

PeopleReady technology upgrade costs (3)

 

(174

)

 

 

(1,748

)

Other adjustments, net (4)

 

(390

)

 

 

491

 

Adjusted SG&A expense

$

119,656

 

 

$

119,916

 

 

 

 

 

% of revenue:

 

 

 

Selling, general and administrative expense

 

25.5

%

 

 

21.4

%

Adjusted SG&A expense

 

25.2

%

 

 

21.1

%

(1)

 

Amortization of software as a service assets is reported in selling, general and administrative expense. Note, amortization of software as a service assets was included as an adjustment to net income during transitory periods ending with fiscal 2022 and is only considered an adjustment to EBITDA going forward to be consistent with the treatment of depreciation and amortization.

(2)

 

Accelerated depreciation for the existing systems being replaced by the upgraded PeopleReady technology platform.

(3)

 

Costs associated with upgrading legacy PeopleReady technology.

(4)

Other adjustments for the 13 weeks ended June 25, 2023 primarily include workforce reduction costs of $0.6 million ($0.2 million in cost of services and $0.4 million in selling, general and administrative expense). Other adjustments for the 13 weeks ended June 26, 2022 primarily include a benefit of $1.4 million from forfeited stock awards associated with the CEO transition that were expensed in prior years, partially offset by $0.8 million of costs incurred while transitioning to a new third party administrator for workers’ compensation.

(5)

Total tax effect of each of the adjustments to U.S. GAAP net income using the effective income tax rate for the respective periods.

(6)

These third-party processing fees are associated with generating hiring tax credits.

 

Contacts

Derrek Gafford, Executive Vice President and CFO

253-680-8214

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SantaClara.com & California Media Partners, LLC. All rights reserved.