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: | May 6, 2024 | By: | /s/ Carl R. Schweihs |
|||||||||||
Carl R. Schweihs |
||||||||||||||
Chief Financial Officer and Executive Vice President |
13 weeks ended |
|||||||||||
(in thousands, except per share data) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Revenue from services | $ | 402,853 | $ | 465,288 | |||||||
Cost of services | 303,467 | 342,175 | |||||||||
Gross profit | 99,386 | 123,113 | |||||||||
Selling, general and administrative expense | 106,937 | 122,645 | |||||||||
Depreciation and amortization | 7,958 | 6,411 | |||||||||
Loss from operations | (15,509) | (5,943) | |||||||||
Interest and other income (expense), net |
1,599 | 1,014 | |||||||||
Loss before tax benefit | (13,910) | (4,929) | |||||||||
Income tax benefit | (12,212) | (640) | |||||||||
Net loss | $ | (1,698) | $ | (4,289) | |||||||
Net loss per common share: | |||||||||||
Basic | $ | (0.05) | $ | (0.13) | |||||||
Diluted | $ | (0.05) | $ | (0.13) | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 31,102 | 32,292 | |||||||||
Diluted | 31,102 | 32,292 |
(in thousands) | Mar 31, 2024 | Dec 31, 2023 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 36,184 | $ | 61,885 | |||||||
Accounts receivable, net | 244,184 | 252,538 | |||||||||
Other current assets | 35,035 | 40,570 | |||||||||
Total current assets | 315,403 | 354,993 | |||||||||
Property and equipment, net | 104,449 | 104,906 | |||||||||
Restricted cash, cash equivalents and investments |
187,969 | 192,985 | |||||||||
Goodwill and intangible assets, net | 92,864 | 94,639 | |||||||||
Other assets, net | 167,901 | 151,860 | |||||||||
Total assets | $ | 868,586 | $ | 899,383 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable and other accrued expenses | $ | 43,623 | $ | 56,401 | |||||||
Accrued wages and benefits | 81,008 | 80,120 | |||||||||
Current portion of workers’ compensation claims reserve | 41,303 | 44,866 | |||||||||
Other current liabilities | 18,026 | 22,712 | |||||||||
Total current liabilities | 183,960 | 204,099 | |||||||||
Workers’ compensation claims reserve, less current portion | 146,544 | 151,649 | |||||||||
Other long-term liabilities | 91,718 | 85,762 | |||||||||
Total liabilities | 422,222 | 441,510 | |||||||||
Shareholders’ equity | 446,364 | 457,873 | |||||||||
Total liabilities and shareholders’ equity | $ | 868,586 | $ | 899,383 |
13 weeks ended |
|||||||||||
(in thousands) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (1,698) | $ | (4,289) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 7,958 | 6,411 | |||||||||
Provision for credit losses | 370 | 1,382 | |||||||||
Stock-based compensation | 2,102 | 2,630 | |||||||||
Deferred income taxes | (12,206) | (47) | |||||||||
Non-cash lease expense | 3,036 | 3,140 | |||||||||
Other operating activities | (2,980) | 20 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 8,292 | 31,025 | |||||||||
Income taxes receivable and payable | 975 | (2,512) | |||||||||
Other assets | 1,571 | 6,462 | |||||||||
Accounts payable and other accrued expenses | (11,515) | (11,937) | |||||||||
Accrued wages and benefits | 480 | (11,143) | |||||||||
Workers’ compensation claims reserve | (8,669) | (11,583) | |||||||||
Operating lease liabilities | (3,204) | (3,316) | |||||||||
Other liabilities | 1,249 | 2,908 | |||||||||
Net cash (used in) provided by operating activities |
(14,239) | 9,151 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (7,375) | (8,081) | |||||||||
Proceeds from business divestiture, net |
2,928 | — | |||||||||
Purchases of restricted held-to-maturity investments | (10,180) | (2,305) | |||||||||
Maturities of restricted held-to-maturity investments | 15,546 | 2,010 | |||||||||
Net cash provided by (used in) investing activities |
919 | (8,376) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases and retirement of common stock | (10,067) | (24,718) | |||||||||
Net proceeds from employee stock purchase plans | 220 | 315 | |||||||||
Common stock repurchases for taxes upon vesting of restricted stock | (2,012) | (2,377) | |||||||||
Other | (1,803) | (45) | |||||||||
Net cash used in financing activities | (13,662) | (26,825) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
(604) | 9 | |||||||||
Net change in cash, cash equivalents, and restricted cash and cash equivalents |
(27,586) | (26,041) | |||||||||
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period |
99,306 | 135,631 | |||||||||
Cash, cash equivalents and restricted cash and cash equivalents, end of period |
$ | 71,720 | $ | 109,590 |
13 weeks ended |
|||||||||||
(in thousands) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Revenue from services: | |||||||||||
PeopleReady | $ | 222,661 | $ | 252,628 | |||||||
PeopleScout | 46,332 | 69,476 | |||||||||
PeopleManagement | 133,860 | 143,184 | |||||||||
Total company | $ | 402,853 | $ | 465,288 | |||||||
Segment profit (loss) (1): |
|||||||||||
PeopleReady | $ | (5,058) | $ | 872 | |||||||
PeopleScout | 4,879 | 8,923 | |||||||||
PeopleManagement | 2,751 | (202) | |||||||||
Total segment profit | 2,572 | 9,593 | |||||||||
Corporate unallocated expense | (6,052) | (6,708) | |||||||||
Total company Adjusted EBITDA (2) |
(3,480) | 2,885 | |||||||||
Third-party processing fees for hiring tax credits (3) |
(90) | (120) | |||||||||
Amortization of software as a service assets (4) | (1,343) | (868) | |||||||||
PeopleReady technology upgrade costs (5) | (385) | (32) | |||||||||
Other adjustments, net (6) | (2,253) | (1,397) | |||||||||
EBITDA (2) |
(7,551) | 468 | |||||||||
Depreciation and amortization | (7,958) | (6,411) | |||||||||
Interest and other income (expense), net |
1,599 | 1,014 | |||||||||
Loss before tax benefit |
(13,910) | (4,929) | |||||||||
Income tax benefit | 12,212 | 640 | |||||||||
Net loss | $ | (1,698) | $ | (4,289) |
Non-GAAP measure | Definition | Purpose of adjusted measures | ||||||||||||
Adjusted net income (loss) and
Adjusted net income (loss) per diluted share
|
Net loss and net loss per diluted share, excluding:
–gain on divestiture,
–amortization of intangibles,
–PeopleReady technology upgrade costs,
–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 loss:
–income tax 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,
–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) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Net loss | $ | (1,698) | $ | (4,289) | |||||||
Gain on divestiture (1) | (745) | — | |||||||||
Amortization of intangible assets | 1,521 | 1,270 | |||||||||
PeopleReady technology upgrade costs (2) | 385 | 32 | |||||||||
Other adjustments, net (3) | 2,253 | 1,397 | |||||||||
Tax effect of adjustments to net income (loss) (4) | (888) | (702) | |||||||||
Adjusted net income (loss) |
$ | 828 | $ | (2,292) | |||||||
Adjusted net income (loss) per diluted share |
$ | 0.03 | $ | (0.07) | |||||||
Diluted weighted average shares outstanding | 31,380 | 32,292 | |||||||||
Margin / % of revenue: | |||||||||||
Net loss |
(0.4)% | (0.9)% | |||||||||
Adjusted net income (loss) |
0.2% | (0.5)% |
13 weeks ended |
|||||||||||
(in thousands) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Net loss | $ | (1,698) | $ | (4,289) | |||||||
Income tax benefit | (12,212) | (640) | |||||||||
Interest and other (income) expense, net |
(1,599) | (1,014) | |||||||||
Depreciation and amortization | 7,958 | 6,411 | |||||||||
EBITDA | (7,551) | 468 | |||||||||
Third-party processing fees for hiring tax credits (5) | 90 | 120 | |||||||||
Amortization of software as a service assets (6) | 1,343 | 868 | |||||||||
PeopleReady technology upgrade costs (2) | 385 | 32 | |||||||||
Other adjustments, net (3) | 2,253 | 1,397 | |||||||||
Adjusted EBITDA | $ | (3,480) | $ | 2,885 | |||||||
Margin / % of revenue: | |||||||||||
Net loss |
(0.4)% | (0.9)% | |||||||||
Adjusted EBITDA | (0.9)% | 0.6% |
13 weeks ended |
|||||||||||
(in thousands) | Mar 31, 2024 | Mar 26, 2023 | |||||||||
Selling, general and administrative expense | $ | 106,937 | $ | 122,645 | |||||||
Third-party processing fees for hiring tax credits (5) | (90) | (120) | |||||||||
Amortization of software as a service assets (6) | (1,343) | (868) | |||||||||
PeopleReady technology upgrade costs (2) | (385) | (32) | |||||||||
Other adjustments, net (3) | (2,157) | (1,189) | |||||||||
Adjusted SG&A expense | $ | 102,962 | $ | 120,436 | |||||||
% of revenue: | |||||||||||
Selling, general and administrative expense | 26.5% | 26.4% | |||||||||
Adjusted SG&A expense | 25.6% | 25.9% |