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: | July 24, 2023 | By: | /s/ Derrek L. Gafford | |||||||||||
Derrek L. Gafford | ||||||||||||||
Chief Financial Officer and Executive Vice President |
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 |
(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 |
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 |
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 |
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. |
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% |
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% |
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% |