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: | February 21, 2024 | By: | /s/ Carl R. Schweihs |
|||||||||||
Carl R. Schweihs |
||||||||||||||
Chief Financial Officer and Executive Vice President |
Q4 2023 | Q4 2022 | 2023 | 2022 | ||||||||||||||||||||
14 weeks ended (1) |
13 weeks ended |
53 weeks ended (1) |
52 weeks ended |
||||||||||||||||||||
(in thousands, except per share data) | Dec 31, 2023 | Dec 25, 2022 | Dec 31, 2023 | Dec 25, 2022 | |||||||||||||||||||
Revenue from services | $ | 492,171 | $ | 557,695 | $ | 1,906,243 | $ | 2,254,184 | |||||||||||||||
Cost of services | 363,889 | 409,846 | 1,400,184 | 1,652,040 | |||||||||||||||||||
Gross profit | 128,282 | 147,849 | 506,059 | 602,144 | |||||||||||||||||||
Selling, general and administrative expense | 129,961 | 133,733 | 494,603 | 500,686 | |||||||||||||||||||
Depreciation and amortization | 6,946 | 7,258 | 25,821 | 29,273 | |||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | 9,485 | — | |||||||||||||||||||
Income (loss) from operations | (8,625) | 6,858 | (23,850) | 72,185 | |||||||||||||||||||
Interest and other income (expense), net |
1,223 | 133 | 3,205 | 1,231 | |||||||||||||||||||
Income (loss) before tax expense (benefit) |
(7,402) | 6,991 | (20,645) | 73,416 | |||||||||||||||||||
Income tax expense (benefit) | (4,851) | (54) | (6,472) | 11,143 | |||||||||||||||||||
Net income (loss) | $ | (2,551) | $ | 7,045 | $ | (14,173) | $ | 62,273 | |||||||||||||||
Net (loss) income per common share: | |||||||||||||||||||||||
Basic | $ | (0.08) | $ | 0.22 | $ | (0.45) | $ | 1.89 | |||||||||||||||
Diluted | $ | (0.08) | $ | 0.21 | $ | (0.45) | $ | 1.86 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 31,079 | 32,486 | 31,317 | 32,889 | |||||||||||||||||||
Diluted | 31,079 | 33,014 | 31,317 | 33,447 |
(in thousands) | Dec 31, 2023 | Dec 25, 2022 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 61,885 | $ | 72,054 | |||||||
Accounts receivable, net | 252,538 | 314,275 | |||||||||
Other current assets | 40,570 | 43,883 | |||||||||
Total current assets | 354,993 | 430,212 | |||||||||
Property and equipment, net | 104,906 | 95,823 | |||||||||
Restricted cash and investments | 192,985 | 213,734 | |||||||||
Goodwill and intangible assets, net | 94,639 | 109,989 | |||||||||
Other assets, net | 151,860 | 169,650 | |||||||||
Total assets | $ | 899,383 | $ | 1,019,408 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable and other accrued expenses | $ | 56,401 | $ | 76,644 | |||||||
Accrued wages and benefits | 80,120 | 92,237 | |||||||||
Current portion of workers’ compensation claims reserve | 44,866 | 50,005 | |||||||||
Other current liabilities | 22,712 | 23,989 | |||||||||
Total current liabilities | 204,099 | 242,875 | |||||||||
Workers’ compensation claims reserve, less current portion | 151,649 | 201,005 | |||||||||
Other long-term liabilities | 85,762 | 79,213 | |||||||||
Total liabilities | 441,510 | 523,093 | |||||||||
Shareholders’ equity | 457,873 | 496,315 | |||||||||
Total liabilities and shareholders’ equity | $ | 899,383 | $ | 1,019,408 |
53 weeks ended |
|||||||||||
(in thousands) | Dec 31, 2023 | Dec 25, 2022 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (14,173) | $ | 62,273 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 25,821 | 29,273 | |||||||||
Goodwill and intangible asset impairment charge | 9,485 | — | |||||||||
Provision for credit losses | 4,972 | 4,462 | |||||||||
Stock-based compensation | 13,907 | 9,687 | |||||||||
Deferred income taxes | (9,902) | 3,933 | |||||||||
Non-cash lease expense | 12,591 | 12,920 | |||||||||
Other operating activities | (3,831) | 7,862 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 56,761 | 34,765 | |||||||||
Income taxes receivable and payable | (1,317) | (2,665) | |||||||||
Operating lease right-of-use-asset | — | 118 | |||||||||
Other assets | 31,366 | (16,142) | |||||||||
Accounts payable and other accrued expenses | (19,210) | (1,501) | |||||||||
Accrued wages and benefits | (12,113) | (7,938) | |||||||||
Workers’ compensation claims reserve | (54,495) | (5,184) | |||||||||
Operating lease liabilities | (12,796) | (13,052) | |||||||||
Other liabilities | 7,688 | 1,692 | |||||||||
Net cash provided by operating activities | 34,754 | 120,503 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (31,276) | (30,626) | |||||||||
Payments for company-owned life insurance | (2,347) | — | |||||||||
Proceeds from company-owned life insurance | 1,662 | — | |||||||||
Purchases of restricted held-to-maturity investments | (34,110) | (18,031) | |||||||||
Maturities of restricted held-to-maturity investments | 33,749 | 27,712 | |||||||||
Net cash used in investing activities | (32,322) | (20,945) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases and retirement of common stock | (34,178) | (60,939) | |||||||||
Net proceeds from employee stock purchase plans | 856 | 980 | |||||||||
Common stock repurchases for taxes upon vesting of restricted stock | (4,161) | (4,480) | |||||||||
Other | (100) | (253) | |||||||||
Net cash used in financing activities | (37,583) | (64,692) | |||||||||
Change in cash, cash equivalents and restricted cash reclassified to assets held-for-sale |
(300) | — | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (874) | (2,420) | |||||||||
Net change in cash, cash equivalents, and restricted cash | (36,325) | 32,446 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 135,631 | 103,185 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 99,306 | $ | 135,631 |
Q4 2023 | Q4 2022 | 2023 | 2022 | ||||||||||||||||||||
14 weeks ended (1) |
13 weeks ended |
53 weeks ended (1) |
52 weeks ended |
||||||||||||||||||||
(in thousands) | Dec 31, 2023 | Dec 25, 2022 | Dec 31, 2023 | Dec 25, 2022 | |||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||
PeopleReady | $ | 285,185 | $ | 314,580 | $ | 1,096,318 | $ | 1,272,852 | |||||||||||||||
PeopleScout | 47,204 | 68,676 | 229,334 | 317,518 | |||||||||||||||||||
PeopleManagement | 159,782 | 174,439 | 580,591 | 663,814 | |||||||||||||||||||
Total company | $ | 492,171 | $ | 557,695 | $ | 1,906,243 | $ | 2,254,184 | |||||||||||||||
Segment profit (2): |
|||||||||||||||||||||||
PeopleReady | $ | 7,920 | $ | 22,467 | $ | 26,606 | $ | 87,743 | |||||||||||||||
PeopleScout | 2,910 | 2,499 | 26,922 | 44,771 | |||||||||||||||||||
PeopleManagement | 2,781 | 4,141 | 6,963 | 15,811 | |||||||||||||||||||
Total segment profit | 13,611 | 29,107 | 60,491 | 148,325 | |||||||||||||||||||
Corporate unallocated expense | (8,462) | (8,101) | (31,507) | (31,326) | |||||||||||||||||||
Total company Adjusted EBITDA (3) |
5,149 | 21,006 | 28,984 | 116,999 | |||||||||||||||||||
Third-party processing fees for hiring tax credits (4) | 67 | (108) | (253) | (594) | |||||||||||||||||||
Amortization of software as a service assets (5) | (1,233) | (810) | (4,117) | (2,985) | |||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | (9,485) | — | |||||||||||||||||||
PeopleReady technology upgrade costs (6) | (440) | (1,779) | (1,342) | (7,935) | |||||||||||||||||||
Executive leadership transition (7) | (3,296) | — | (5,788) | 1,422 | |||||||||||||||||||
Other adjustments, net (8) | (1,926) | (4,193) | (6,028) | (5,449) | |||||||||||||||||||
EBITDA (3) |
(1,679) | 14,116 | 1,971 | 101,458 | |||||||||||||||||||
Depreciation and amortization | (6,946) | (7,258) | (25,821) | (29,273) | |||||||||||||||||||
Interest and other income (expense), net |
1,223 | 133 | 3,205 | 1,231 | |||||||||||||||||||
Income (loss) before tax benefit (expense) |
(7,402) | 6,991 | (20,645) | 73,416 | |||||||||||||||||||
Income tax benefit (expense) | 4,851 | 54 | 6,472 | (11,143) | |||||||||||||||||||
Net income (loss) | $ | (2,551) | $ | 7,045 | $ | (14,173) | $ | 62,273 |
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. |
Q4 2023 | Q4 2022 | 2023 | 2022 | ||||||||||||||||||||
14 weeks ended (1) |
13 weeks ended |
53 weeks ended (1) |
52 weeks ended |
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(in thousands, except for per share data) | Dec 31, 2023 | Dec 25, 2022 | Dec 31, 2023 | Dec 25, 2022 | |||||||||||||||||||
Net income (loss) | $ | (2,551) | $ | 7,045 | $ | (14,173) | $ | 62,273 | |||||||||||||||
Amortization of intangible assets | 1,355 | 1,265 | 5,175 | 5,746 | |||||||||||||||||||
Amortization of software as a service assets (2) | — | 810 | — | 2,985 | |||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | 9,485 | — | |||||||||||||||||||
Accelerated depreciation (3) | — | — | — | 1,658 | |||||||||||||||||||
PeopleReady technology upgrade costs (4) | 440 | 1,779 | 1,342 | 7,935 | |||||||||||||||||||
Executive leadership transition costs (5) | 3,296 | — | 5,788 | (1,422) | |||||||||||||||||||
Other adjustments, net (6) | 1,926 | 4,193 | 6,028 | 5,449 | |||||||||||||||||||
Tax effect of adjustments to net income (loss) (7) | (1,824) | (2,092) | (4,920) | (5,811) | |||||||||||||||||||
Adjusted net income |
$ | 2,642 | $ | 13,000 | $ | 8,725 | $ | 78,813 | |||||||||||||||
Adjusted net income per diluted share | $ | 0.08 | $ | 0.39 | $ | 0.28 | $ | 2.36 | |||||||||||||||
Diluted weighted average shares outstanding | 31,450 | 33,014 | 31,590 | 33,447 | |||||||||||||||||||
Margin / % of revenue: | |||||||||||||||||||||||
Net income (loss) | (0.5)% | 1.3% | (0.7)% | 2.8% | |||||||||||||||||||
Adjusted net income | 0.5% | 2.3% | 0.5% | 3.5% |
Q4 2023 | Q4 2022 | 2023 | 2022 | ||||||||||||||||||||
14 weeks ended (1) |
13 weeks ended |
53 weeks ended (1) | 52 weeks ended |
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(in thousands) | Dec 31, 2023 | Dec 25, 2022 | Dec 31, 2023 | Dec 25, 2022 | |||||||||||||||||||
Net income (loss) | $ | (2,551) | $ | 7,045 | $ | (14,173) | $ | 62,273 | |||||||||||||||
Income tax expense (benefit) |
(4,851) | (54) | (6,472) | 11,143 | |||||||||||||||||||
Interest and other (income) expense, net |
(1,223) | (133) | (3,205) | (1,231) | |||||||||||||||||||
Depreciation and amortization | 6,946 | 7,258 | 25,821 | 29,273 | |||||||||||||||||||
EBITDA | (1,679) | 14,116 | 1,971 | 101,458 | |||||||||||||||||||
Third-party processing fees for hiring tax credits (8) | (67) | 108 | 253 | 594 | |||||||||||||||||||
Amortization of software as a service assets (2) | 1,233 | 810 | 4,117 | 2,985 | |||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | 9,485 | — | |||||||||||||||||||
PeopleReady technology upgrade costs (4) | 440 | 1,779 | 1,342 | 7,935 | |||||||||||||||||||
Executive leadership transition costs (5) | 3,296 | — | 5,788 | (1,422) | |||||||||||||||||||
Other adjustments, net (6) | 1,926 | 4,193 | 6,028 | 5,449 | |||||||||||||||||||
Adjusted EBITDA | $ | 5,149 | $ | 21,006 | $ | 28,984 | $ | 116,999 | |||||||||||||||
Margin / % of revenue: | |||||||||||||||||||||||
Net income (loss) | (0.5)% | 1.3% | (0.7)% | 2.8% | |||||||||||||||||||
Adjusted EBITDA | 1.0% | 3.8% | 1.5% | 5.2% |
Q4 2023 | Q4 2022 | 2023 | 2022 | ||||||||||||||||||||
14 weeks ended (1) |
13 weeks ended |
53 weeks ended (1) | 52 weeks ended |
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(in thousands) | Dec 31, 2023 | Dec 25, 2022 | Dec 31, 2023 | Dec 25, 2022 | |||||||||||||||||||
Selling, general and administrative expense | $ | 129,961 | $ | 133,733 | $ | 494,603 | $ | 500,686 | |||||||||||||||
Third-party processing fees for hiring tax credits (8) | 67 | (108) | (253) | (594) | |||||||||||||||||||
Amortization of software as a service assets (2) | (1,233) | (810) | (4,117) | (2,985) | |||||||||||||||||||
PeopleReady technology upgrade costs (4) | (440) | (1,779) | (1,342) | (7,935) | |||||||||||||||||||
Executive leadership transition costs (5) | (3,296) | — | (5,788) | 1,422 | |||||||||||||||||||
Other adjustments, net (6) | (1,246) | (4,193) | (4,145) | (5,449) | |||||||||||||||||||
Adjusted SG&A expense | $ | 123,813 | $ | 126,843 | $ | 478,958 | $ | 485,145 | |||||||||||||||
% of revenue: | |||||||||||||||||||||||
Selling, general and administrative expense | 26.4% | 24.0% | 25.9% | 22.2% | |||||||||||||||||||
Adjusted SG&A expense | 25.2% | 22.7% | 25.1% | 21.5% |