001-14543 | 91-1287341 | |||||||
(Commission File Number) |
(IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, no par value | TBI | New York Stock Exchange |
Item 2.02. | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number |
Exhibit Description | Filed Herewith | ||||||
99.1 | X | |||||||
99.2 | X | |||||||
99.3 | X | |||||||
104 | Cover page interactive data file - The cover page from this Current Report on Form 8-K is formatted as Inline XBRL | X |
TRUEBLUE, INC. | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | October 24, 2022 | By: | /s/ Derrek L. Gafford | |||||||||||
Derrek L. Gafford | ||||||||||||||
Chief Financial Officer and Executive Vice President |
13 weeks ended |
39 weeks ended |
||||||||||||||||||||||
(in thousands, except per share data) | Sep 25, 2022 | Sep 26, 2021 | Sep 25, 2022 | Sep 26, 2021 | |||||||||||||||||||
Revenue from services | $ | 575,721 | $ | 577,031 | $ | 1,696,489 | $ | 1,551,692 | |||||||||||||||
Cost of services | 419,802 | 430,529 | 1,242,194 | 1,158,148 | |||||||||||||||||||
Gross profit | 155,919 | 146,502 | 454,295 | 393,544 | |||||||||||||||||||
Selling, general and administrative expense | 124,351 | 118,748 | 366,953 | 326,657 | |||||||||||||||||||
Depreciation and amortization | 7,483 | 6,426 | 22,015 | 20,405 | |||||||||||||||||||
Income from operations | 24,085 | 21,328 | 65,327 | 46,482 | |||||||||||||||||||
Interest expense and other income, net | 703 | 581 | 1,098 | 1,880 | |||||||||||||||||||
Income before tax expense | 24,788 | 21,909 | 66,425 | 48,362 | |||||||||||||||||||
Income tax expense | 4,092 | 3,267 | 11,197 | 6,938 | |||||||||||||||||||
Net income | $ | 20,696 | $ | 18,642 | $ | 55,228 | $ | 41,424 | |||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.53 | $ | 1.67 | $ | 1.19 | |||||||||||||||
Diluted | $ | 0.63 | $ | 0.53 | $ | 1.65 | $ | 1.17 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 32,434 | 34,873 | 33,023 | 34,788 | |||||||||||||||||||
Diluted | 32,818 | 35,475 | 33,511 | 35,255 |
(in thousands) | Sep 25, 2022 | Dec 26, 2021 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 43,779 | $ | 49,896 | |||||||
Accounts receivable, net | 328,763 | 353,882 | |||||||||
Other current assets | 36,088 | 41,295 | |||||||||
Total current assets | 408,630 | 445,073 | |||||||||
Property and equipment, net | 92,324 | 88,090 | |||||||||
Restricted cash and investments | 208,659 | 221,026 | |||||||||
Goodwill and intangible assets, net | 110,741 | 116,749 | |||||||||
Other assets, net | 162,427 | 162,288 | |||||||||
Total assets | $ | 982,781 | $ | 1,033,226 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable and other accrued expenses | $ | 53,838 | $ | 77,172 | |||||||
Accrued wages and benefits | 89,899 | 100,173 | |||||||||
Current portion of workers’ compensation claims reserve | 55,574 | 61,596 | |||||||||
Other current liabilities | 23,759 | 19,605 | |||||||||
Total current liabilities | 223,070 | 258,546 | |||||||||
Workers’ compensation claims reserve, less current portion | 196,315 | 194,598 | |||||||||
Other long-term liabilities | 76,582 | 87,015 | |||||||||
Total liabilities | 495,967 | 540,159 | |||||||||
Shareholders’ equity | 486,814 | 493,067 | |||||||||
Total liabilities and shareholders’ equity | $ | 982,781 | $ | 1,033,226 |
39 weeks ended |
|||||||||||
(in thousands) | Sep 25, 2022 | Sep 26, 2021 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 55,228 | $ | 41,424 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 22,015 | 20,405 | |||||||||
Provision for credit losses | 3,352 | 2,881 | |||||||||
Stock-based compensation | 7,675 | 10,149 | |||||||||
Deferred income taxes | 2,046 | 445 | |||||||||
Non-cash lease expense | 9,694 | 11,173 | |||||||||
Other operating activities | 8,772 | (1,484) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 21,388 | (53,626) | |||||||||
Income taxes receivable and payable | 186 | 963 | |||||||||
Operating lease right-of-use-asset | — | 7,150 | |||||||||
Other assets | (564) | (7,003) | |||||||||
Accounts payable and other accrued expenses | (22,935) | 3,212 | |||||||||
Accrued wages and benefits | (10,277) | 24,278 | |||||||||
Deferred employer payroll taxes | — | (57,066) | |||||||||
Workers’ compensation claims reserve | (4,304) | 3,075 | |||||||||
Operating lease liabilities | (9,673) | (10,017) | |||||||||
Other liabilities | (2,529) | 4,598 | |||||||||
Net cash provided by operating activities | 80,074 | 557 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (22,685) | (28,772) | |||||||||
Purchases of restricted available-for-sale investments | — | (29) | |||||||||
Sales of restricted available-for-sale investments | — | 793 | |||||||||
Purchases of restricted held-to-maturity investments | (4,950) | — | |||||||||
Maturities of restricted held-to-maturity investments | 23,697 | 18,346 | |||||||||
Net cash used in investing activities | (3,938) | (9,662) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases and retirement of common stock | (60,939) | — | |||||||||
Net proceeds from employee stock purchase plans | 780 | 754 | |||||||||
Common stock repurchases for taxes upon vesting of restricted stock | (4,347) | (3,035) | |||||||||
Other | (203) | (270) | |||||||||
Net cash used in financing activities | (64,709) | (2,551) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,482) | (613) | |||||||||
Net change in cash, cash equivalents, and restricted cash | 8,945 | (12,269) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 103,185 | 118,612 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 112,130 | $ | 106,343 |
13 weeks ended |
|||||||||||
(in thousands) | Sep 25, 2022 | Sep 26, 2021 | |||||||||
Revenue from services: | |||||||||||
PeopleReady | $ | 334,639 | $ | 349,056 | |||||||
PeopleManagement | 163,618 | 157,789 | |||||||||
PeopleScout | 77,464 | 70,186 | |||||||||
Total company | $ | 575,721 | $ | 577,031 | |||||||
Segment profit (1): |
|||||||||||
PeopleReady | $ | 28,732 | $ | 24,690 | |||||||
PeopleManagement | 4,463 | 2,360 | |||||||||
PeopleScout | 10,707 | 9,778 | |||||||||
Total segment profit | 43,902 | 36,828 | |||||||||
Corporate unallocated expense | (9,396) | (7,667) | |||||||||
Total company Adjusted EBITDA (2) |
34,506 | 29,161 | |||||||||
Third-party processing fees for hiring tax credits (3) | (162) | (419) | |||||||||
Amortization of software as a service assets (4) | (729) | (670) | |||||||||
PeopleReady technology upgrade costs (5) | (1,858) | — | |||||||||
COVID-19 government subsidies | — | 92 | |||||||||
Other adjustments, net (6) | (189) | (410) | |||||||||
EBITDA (2) |
31,568 | 27,754 | |||||||||
Depreciation and amortization | (7,483) | (6,426) | |||||||||
Interest expense and other income, net | 703 | 581 | |||||||||
Income before tax expense | 24,788 | 21,909 | |||||||||
Income tax expense | (4,092) | (3,267) | |||||||||
Net income | $ | 20,696 | $ | 18,642 |
Non-GAAP measure | Definition | Purpose of adjusted measures | ||||||||||||
Adjusted net income and Adjusted net income per diluted share |
Net income and net income per diluted share, excluding:
–amortization of intangibles,
–amortization of software as a service assets,
–accelerated depreciation,
–PeopleReady technology upgrade costs,
–COVID-19 government subsidies,
–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:
–income taxes,
–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,
–PeopleReady technology upgrade costs,
–COVID-19 government subsidies, and
–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,
–COVID-19 government subsidies, and
–other adjustments, net.
|
–Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. |
13 weeks ended |
|||||||||||
(in thousands, except for per share data) | Sep 25, 2022 | Sep 26, 2021 | |||||||||
Net income | $ | 20,696 | $ | 18,642 | |||||||
Amortization of intangible assets | 1,484 | 1,506 | |||||||||
Amortization of software as a service assets (1) | 729 | 670 | |||||||||
Accelerated depreciation (2) | 602 | — | |||||||||
PeopleReady technology upgrade costs (3) | 1,858 | — | |||||||||
COVID-19 government subsidies | — | (92) | |||||||||
Other adjustments, net (4) | 189 | 410 | |||||||||
Tax effect of adjustments to net income (5) | (800) | (372) | |||||||||
Adjusted net income | $ | 24,758 | $ | 20,764 | |||||||
Adjusted net income per diluted share | $ | 0.75 | $ | 0.59 | |||||||
Diluted weighted average shares outstanding | 32,818 | 35,475 | |||||||||
Margin / % of revenue: | |||||||||||
Net income | 3.6% | 3.2% | |||||||||
Adjusted net income | 4.3% | 3.6% |
13 weeks ended |
|||||||||||
(in thousands) | Sep 25, 2022 | Sep 26, 2021 | |||||||||
Net income | $ | 20,696 | $ | 18,642 | |||||||
Income tax expense | 4,092 | 3,267 | |||||||||
Interest expense and other (income), net | (703) | (581) | |||||||||
Depreciation and amortization | 7,483 | 6,426 | |||||||||
EBITDA | 31,568 | 27,754 | |||||||||
Third-party processing fees for hiring tax credits (6) | 162 | 419 | |||||||||
Amortization of software as a service assets (1) | 729 | 670 | |||||||||
PeopleReady technology upgrade costs (3) | 1,858 | — | |||||||||
COVID-19 government subsidies | — | (92) | |||||||||
Other adjustments, net (4) | 189 | 410 | |||||||||
Adjusted EBITDA | $ | 34,506 | $ | 29,161 | |||||||
Margin / % of revenue: | |||||||||||
Net income | 3.6% | 3.2% | |||||||||
Adjusted EBITDA | 6.0% | 5.1% |
13 weeks ended |
|||||||||||
(in thousands) | Sep 25, 2022 | Sep 26, 2021 | |||||||||
Selling, general and administrative expense | $ | 124,351 | $ | 118,748 | |||||||
Third-party processing fees for hiring tax credits (6) | (162) | (419) | |||||||||
Amortization of software as a service assets (1) | (729) | (670) | |||||||||
PeopleReady technology upgrade costs (3) | (1,858) | — | |||||||||
COVID-19 government subsidies | — | 92 | |||||||||
Other adjustments, net (4) | (189) | (410) | |||||||||
Adjusted SG&A expense | $ | 121,413 | $ | 117,341 | |||||||