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 23, 2023 | By: | /s/ Derrek L. Gafford |
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Derrek L. Gafford |
||||||||||||||
Chief Financial Officer and Executive Vice President |
13 weeks ended |
39 weeks ended |
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(in thousands, except per share data) | Sep 24, 2023 | Sep 25, 2022 | Sep 24, 2023 | Sep 25, 2022 | |||||||||||||||||||
Revenue from services | $ | 473,196 | $ | 575,721 | $ | 1,414,072 | $ | 1,696,489 | |||||||||||||||
Cost of services | 349,023 | 419,802 | 1,036,295 | 1,242,194 | |||||||||||||||||||
Gross profit | 124,173 | 155,919 | 377,777 | 454,295 | |||||||||||||||||||
Selling, general and administrative expense | 120,715 | 124,351 | 364,642 | 366,953 | |||||||||||||||||||
Depreciation and amortization | 6,184 | 7,483 | 18,875 | 22,015 | |||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | 9,485 | — | |||||||||||||||||||
Income (loss) from operations | (2,726) | 24,085 | (15,225) | 65,327 | |||||||||||||||||||
Interest and other income (expense), net |
390 | 703 | 1,982 | 1,098 | |||||||||||||||||||
Income (loss) before tax expense (benefit) |
(2,336) | 24,788 | (13,243) | 66,425 | |||||||||||||||||||
Income tax expense (benefit) | (2,326) | 4,092 | (1,621) | 11,197 | |||||||||||||||||||
Net income (loss) | $ | (10) | $ | 20,696 | $ | (11,622) | $ | 55,228 | |||||||||||||||
Net (loss) income per common share: | |||||||||||||||||||||||
Basic | $ | 0.00 | $ | 0.64 | $ | (0.37) | $ | 1.67 | |||||||||||||||
Diluted | $ | 0.00 | $ | 0.63 | $ | (0.37) | $ | 1.65 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 30,932 | 32,434 | 31,397 | 33,023 | |||||||||||||||||||
Diluted | 30,932 | 32,818 | 31,397 | 33,511 |
(in thousands) | Sep 24, 2023 | Dec 25, 2022 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 47,113 | $ | 72,054 | |||||||
Accounts receivable, net | 276,233 | 314,275 | |||||||||
Other current assets | 36,260 | 43,883 | |||||||||
Total current assets | 359,606 | 430,212 | |||||||||
Property and equipment, net | 102,809 | 95,823 | |||||||||
Restricted cash and investments | 198,829 | 213,734 | |||||||||
Goodwill and intangible assets, net | 96,576 | 109,989 | |||||||||
Other assets, net | 157,211 | 169,650 | |||||||||
Total assets | $ | 915,031 | $ | 1,019,408 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable and other accrued expenses | $ | 48,879 | $ | 76,644 | |||||||
Accrued wages and benefits | 87,080 | 92,237 | |||||||||
Current portion of workers’ compensation claims reserve | 44,091 | 50,005 | |||||||||
Other current liabilities | 20,524 | 23,989 | |||||||||
Total current liabilities | 200,574 | 242,875 | |||||||||
Workers’ compensation claims reserve, less current portion | 173,361 | 201,005 | |||||||||
Other long-term liabilities | 84,470 | 79,213 | |||||||||
Total liabilities | 458,405 | 523,093 | |||||||||
Shareholders’ equity | 456,626 | 496,315 | |||||||||
Total liabilities and shareholders’ equity | $ | 915,031 | $ | 1,019,408 |
39 weeks ended |
|||||||||||
(in thousands) | Sep 24, 2023 | Sep 25, 2022 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (11,622) | $ | 55,228 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 18,875 | 22,015 | |||||||||
Goodwill and intangible asset impairment charge | 9,485 | — | |||||||||
Provision for credit losses | 3,254 | 3,352 | |||||||||
Stock-based compensation | 10,219 | 7,675 | |||||||||
Deferred income taxes | (3,344) | 2,046 | |||||||||
Non-cash lease expense | 9,449 | 9,694 | |||||||||
Other operating activities | (1,661) | 8,772 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 34,790 | 21,388 | |||||||||
Income taxes receivable and payable | (3,001) | 186 | |||||||||
Other assets | 26,795 | (564) | |||||||||
Accounts payable and other accrued expenses | (26,879) | (22,935) | |||||||||
Accrued wages and benefits | (5,156) | (10,277) | |||||||||
Workers’ compensation claims reserve | (33,558) | (4,304) | |||||||||
Operating lease liabilities | (9,498) | (9,673) | |||||||||
Other liabilities | 1,421 | (2,529) | |||||||||
Net cash provided by operating activities | 19,569 | 80,074 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (23,095) | (22,685) | |||||||||
Payments for company-owned life insurance | (2,347) | — | |||||||||
Proceeds from company-owned life insurance | 1,662 | — | |||||||||
Purchases of restricted held-to-maturity investments | (26,894) | (4,950) | |||||||||
Maturities of restricted held-to-maturity investments | 24,118 | 23,697 | |||||||||
Net cash used in investing activities | (26,556) | (3,938) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases and retirement of common stock | (34,178) | (60,939) | |||||||||
Net proceeds from employee stock purchase plans | 704 | 780 | |||||||||
Common stock repurchases for taxes upon vesting of restricted stock | (3,759) | (4,347) | |||||||||
Other | (96) | (203) | |||||||||
Net cash used in financing activities | (37,329) | (64,709) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (757) | (2,482) | |||||||||
Net change in cash, cash equivalents, and restricted cash | (45,073) | 8,945 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 135,631 | 103,185 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 90,558 | $ | 112,130 |
13 weeks ended |
|||||||||||
(in thousands) | Sep 24, 2023 | Sep 25, 2022 | |||||||||
Revenue from services: | |||||||||||
PeopleReady | $ | 283,187 | $ | 334,639 | |||||||
PeopleScout | 52,944 | 77,464 | |||||||||
PeopleManagement | 137,065 | 163,618 | |||||||||
Total company | $ | 473,196 | $ | 575,721 | |||||||
Segment profit (1): |
|||||||||||
PeopleReady | $ | 9,656 | $ | 28,732 | |||||||
PeopleScout | 6,272 | 10,707 | |||||||||
PeopleManagement | 2,134 | 4,463 | |||||||||
Total segment profit | 18,062 | 43,902 | |||||||||
Corporate unallocated expense | (8,122) | (9,396) | |||||||||
Total company Adjusted EBITDA (2) |
9,940 | 34,506 | |||||||||
Third-party processing fees for hiring tax credits (3) | (90) | (162) | |||||||||
Amortization of software as a service assets (4) | (1,064) | (729) | |||||||||
PeopleReady technology upgrade costs (5) | (696) | (1,858) | |||||||||
Executive leadership transition (6) |
(2,492) | — | |||||||||
Other adjustments, net (7) |
(2,140) | (189) | |||||||||
EBITDA (2) |
3,458 | 31,568 | |||||||||
Depreciation and amortization | (6,184) | (7,483) | |||||||||
Interest and other income (expense), net |
390 | 703 | |||||||||
Income (loss) before tax benefit (expense) |
(2,336) | 24,788 | |||||||||
Income tax benefit (expense) | 2,326 | (4,092) | |||||||||
Net income (loss) | $ | (10) | $ | 20,696 |
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,
–executive leadership transition,
–other adjustments, net, and
–tax effect of the adjustments 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 (benefit),
–interest and other (income) expense, 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,
–executive leadership transition,
–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,
–executive leadership transition,
–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 24, 2023 | Sep 25, 2022 | |||||||||
Net income (loss) | $ | (10) | $ | 20,696 | |||||||
Amortization of intangible assets | 1,276 | 1,484 | |||||||||
Amortization of software as a service assets (1) | — | 729 | |||||||||
Accelerated depreciation (2) | — | 602 | |||||||||
PeopleReady technology upgrade costs (3) | 696 | 1,858 | |||||||||
Executive leadership transition costs (4) |
2,492 | — | |||||||||
Other adjustments, net (5) |
2,140 | 189 | |||||||||
Tax effect of adjustments to net income (loss) (6) |
(1,717) | (1,264) | |||||||||
Adjusted net income | $ | 4,877 | $ | 24,294 | |||||||
Adjusted net income per diluted share | $ | 0.16 | $ | 0.74 | |||||||
Diluted weighted average shares outstanding | 31,239 | 32,818 | |||||||||
Margin / % of revenue: | |||||||||||
Net income (loss) | —% | 3.6% | |||||||||
Adjusted net income | 1.0% | 4.2% |
13 weeks ended |
|||||||||||
(in thousands) | Sep 24, 2023 | Sep 25, 2022 | |||||||||
Net income (loss) | $ | (10) | $ | 20,696 | |||||||
Income tax expense (benefit) | (2,326) | 4,092 | |||||||||
Interest and other (income) expense, net |
(390) | (703) | |||||||||
Depreciation and amortization | 6,184 | 7,483 | |||||||||
EBITDA | 3,458 | 31,568 | |||||||||
Third-party processing fees for hiring tax credits (7) |
90 | 162 | |||||||||
Amortization of software as a service assets (1) | 1,064 | 729 | |||||||||
PeopleReady technology upgrade costs (3) | 696 | 1,858 | |||||||||
Executive leadership transition costs (4) |
2,492 | — | |||||||||
Other adjustments, net (5) |
2,140 | 189 | |||||||||
Adjusted EBITDA | $ | 9,940 | $ | 34,506 | |||||||
Margin / % of revenue: | |||||||||||
Net income (loss) | —% | 3.6% | |||||||||
Adjusted EBITDA | 2.1% | 6.0% |
13 weeks ended |
|||||||||||
(in thousands) | Sep 24, 2023 | Sep 25, 2022 | |||||||||
Selling, general and administrative expense | $ | 120,715 | $ | 124,351 | |||||||
Third-party processing fees for hiring tax credits (7) |
(90) | (162) | |||||||||
Amortization of software as a service assets (1) | (1,064) | (729) | |||||||||
PeopleReady technology upgrade costs (3) | (696) | (1,858) | |||||||||
Executive leadership transition costs (4) |
(2,492) | — | |||||||||
Other adjustments, net (5) |
(1,320) | (189) | |||||||||
Adjusted SG&A expense | $ | 115,053 | $ | 121,413 | |||||||
% of revenue: | |||||||||||
Selling, general and administrative expense | 25.5% | 21.6% | |||||||||
Adjusted SG&A expense | 24.3% | 21.1% |