• Total Revenue: $386 million, a decline of 22% year-over-year, with a 16% decline on a comparable 13-week basis.
• Gross Margin: 26.6%, up 50 basis points, with 170 basis points expansion from lower workers' compensation costs.
• SG&A Reduction: Reduced by 18%, with a 24% reduction on an adjusted basis.
• Net Loss: $12 million, including $2 million of income tax expense.
• Adjusted Net Loss: $1 million.
• Adjusted EBITDA: Positive $9 million.
• PeopleReady Revenue: Decreased 21% on a comparable 13-week basis, with a reported decline of 27%.
• PeopleScout Revenue: Decreased 30% on a comparable 13-week basis, with a reported decline of 31%.
• PeopleManagement Revenue: Decreased 2% on a comparable 13-week basis, with a reported decline of 9%.
• Cash and Debt: $23 million in cash, $8 million of debt, and $119 million of borrowing availability.
• Healthcare Staffing Professionals Acquisition: Purchased for $42 million, with potential additional $14 million consideration.
• First Quarter Revenue Outlook: Expected decline of 13% to 7%.
• SG&A Outlook: Expected to be $93 million to $97 million, an improvement of roughly $12 million compared to the prior year period.

• Warning! GuruFocus has detected 2 Warning Sign with TBI.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TrueBlue Inc (NYSE:TBI) expanded its role as a primary staffing provider for an international transportation and logistics company, demonstrating strong client relationships.
• The company achieved a critical milestone in its digital transformation with the launch of the proprietary JobStack app, enhancing customer value.
• TrueBlue Inc (NYSE:TBI) delivered strong performance in skilled markets such as commercial driving and energy work, outpacing the broader market.
• The acquisition of Healthcare Staffing Professionals (HSP) is expected to be immediately accretive, enhancing TrueBlue Inc (NYSE:TBI)'s presence in the healthcare sector.
• The PeopleScout team secured a significant contract with the UK Armed Forces, expanding TrueBlue Inc (NYSE:TBI)'s presence in the government sector.

Negative Points

• Total revenue for the quarter declined by 22%, with a 16% decline on a comparable 13-week basis, reflecting suppressed temporary labor and permanent hiring volumes.
• PeopleReady revenue decreased by 21% on a comparable 13-week basis, with lower client volumes across most verticals and geographies.
• PeopleScout revenue decreased by 30% on a comparable 13-week basis, impacted by reduced client volumes and a significant client loss.
• TrueBlue Inc (NYSE:TBI) reported a net loss of $12 million for the quarter, with minimal income tax benefit on US operations due to a valuation allowance.
• The company faces ongoing uncertainty and caution in the staffing industry, with reduced business spend and curbed hiring trends impacting demand.

Q & A Highlights

Q: Can you provide more details about the HSP acquisition and its expected revenue growth? A: Taryn Owen, President and CEO, explained that despite pressures in the healthcare staffing market, HSP has outperformed industry growth rates and offers long-term potential due to an aging population. HSP's strong client base in stable sectors like government and education provides resilience. Carl Schweihs, CFO, added that HSP is expected to generate $75 million to $85 million in revenue and $5 million to $7 million in EBITDA over the next 12 months.

Q: Could you elaborate on the UK Armed Forces contract and its potential impact? A: Taryn Owen highlighted that PeopleScout secured a significant contract to provide recruitment marketing for the UK Armed Forces. The contract spans seven years, with an option for a three-year extension, and is expected to become one of PeopleScout's top clients. The contract will contribute to PeopleScout's return to double-digit profit margins.

Q: Are there any regional differences in the PeopleReady business, and are you seeing signs of improvement? A: Carl Schweihs noted that while trends in California and Texas align with market expectations, Florida showed improved trends in Q4. Taryn Owen added that sequential revenue trends improved in February, with growth in southern border states, partly due to migration issues impacting demand positively.

Q: How is TrueBlue participating in disaster recovery efforts, and what impact does this have on business? A: Taryn Owen stated that PeopleReady is actively supporting disaster recovery in North Carolina, Florida, and California. They are working with multiple organizations for cleanup efforts and expect to play a role in restoration and rebuilding as construction plans progress.

Q: Can you discuss the progress and impact of the JobStack app rollout? A: Taryn Owen shared that the new proprietary JobStack app enhances operational efficiency and sales effectiveness. Key features include ReadyMatch technology for instant job-candidate matching, digital onboarding, and a referral program. These enhancements aim to drive revenue growth and improve customer experience.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.