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: | August 5, 2024 | By: | /s/ Carl R. Schweihs |
|||||||||||
Carl R. Schweihs |
||||||||||||||
Chief Financial Officer and Executive Vice President |
13 weeks ended |
26 weeks ended |
||||||||||||||||||||||
(in thousands, except per share data) | Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | |||||||||||||||||||
Revenue from services | $ | 396,230 | $ | 475,588 | $ | 799,083 | $ | 940,876 | |||||||||||||||
Cost of services | 291,807 | 345,097 | 595,274 | 687,272 | |||||||||||||||||||
Gross profit | 104,423 | 130,491 | 203,809 | 253,604 | |||||||||||||||||||
Selling, general and administrative expense | 97,018 | 121,282 | 203,955 | 243,927 | |||||||||||||||||||
Depreciation and amortization | 7,691 | 6,280 | 15,649 | 12,691 | |||||||||||||||||||
Goodwill and intangible asset impairment charge | 59,674 | 9,485 | 59,674 | 9,485 | |||||||||||||||||||
Loss from operations | (59,960) | (6,556) | (75,469) | (12,499) | |||||||||||||||||||
Interest and other income (expense), net |
1,741 | 578 | 3,340 | 1,592 | |||||||||||||||||||
Loss before tax expense |
(58,219) | (5,978) | (72,129) | (10,907) | |||||||||||||||||||
Income tax expense |
46,491 | 1,345 | 34,279 | 705 | |||||||||||||||||||
Net loss |
$ | (104,710) | $ | (7,323) | $ | (106,408) | $ | (11,612) | |||||||||||||||
Net loss per common share: | |||||||||||||||||||||||
Basic | $ | (3.45) | $ | (0.24) | $ | (3.46) | $ | (0.37) | |||||||||||||||
Diluted | $ | (3.45) | $ | (0.24) | $ | (3.46) | $ | (0.37) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 30,349 | 30,966 | 30,725 | 31,629 | |||||||||||||||||||
Diluted | 30,349 | 30,966 | 30,725 | 31,629 |
(in thousands) | Jun 30, 2024 | Dec 31, 2023 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 26,400 | $ | 61,885 | |||||||
Accounts receivable, net | 231,064 | 252,538 | |||||||||
Other current assets | 43,180 | 40,570 | |||||||||
Total current assets | 300,644 | 354,993 | |||||||||
Property and equipment, net | 92,100 | 104,906 | |||||||||
Restricted cash, cash equivalents and investments |
183,352 | 192,985 | |||||||||
Goodwill and intangible assets, net | 31,941 | 94,639 | |||||||||
Other assets, net | 115,656 | 151,860 | |||||||||
Total assets | $ | 723,693 | $ | 899,383 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable and other accrued expenses | $ | 36,107 | $ | 56,401 | |||||||
Accrued wages and benefits | 65,774 | 80,120 | |||||||||
Current portion of workers’ compensation claims reserve | 38,728 | 44,866 | |||||||||
Other current liabilities | 17,380 | 22,712 | |||||||||
Total current liabilities | 157,989 | 204,099 | |||||||||
Workers’ compensation claims reserve, less current portion | 139,251 | 151,649 | |||||||||
Other long-term liabilities | 88,689 | 85,762 | |||||||||
Total liabilities | 385,929 | 441,510 | |||||||||
Shareholders’ equity | 337,764 | 457,873 | |||||||||
Total liabilities and shareholders’ equity | $ | 723,693 | $ | 899,383 |
26 weeks ended |
|||||||||||
(in thousands) | Jun 30, 2024 | Jun 25, 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (106,408) | $ | (11,612) | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|||||||||||
Depreciation and amortization | 15,649 | 12,691 | |||||||||
Goodwill and intangible asset impairment charge | 59,674 | 9,485 | |||||||||
Provision for credit losses | 630 | 2,408 | |||||||||
Stock-based compensation | 4,844 | 5,294 | |||||||||
Deferred income taxes | 33,997 | (22) | |||||||||
Non-cash lease expense | 6,200 | 6,249 | |||||||||
Other operating activities | (3,118) | (1,099) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 21,061 | 43,915 | |||||||||
Income taxes receivable and payable | 430 | (3,039) | |||||||||
Other assets | 8,246 | 15,053 | |||||||||
Accounts payable and other accrued expenses | (18,849) | (26,968) | |||||||||
Accrued wages and benefits | (14,753) | (9,277) | |||||||||
Workers’ compensation claims reserve | (18,537) | (19,899) | |||||||||
Operating lease liabilities | (6,139) | (6,295) | |||||||||
Other liabilities | 1,011 | 3,980 | |||||||||
Net cash (used in) provided by operating activities |
(16,062) | 20,864 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (13,279) | (15,738) | |||||||||
Proceeds from business divestiture, net |
2,928 | — | |||||||||
Payments for company-owned life insurance | (4,000) | (2,347) | |||||||||
Purchases of restricted held-to-maturity investments | (10,180) | (9,955) | |||||||||
Maturities of restricted held-to-maturity investments | 19,220 | 15,613 | |||||||||
Net cash used in investing activities |
(5,311) | (12,427) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases and retirement of common stock | (16,986) | (34,200) | |||||||||
Net proceeds from employee stock purchase plans | 417 | 509 | |||||||||
Common stock repurchases for taxes upon vesting of restricted stock | (2,143) | (2,514) | |||||||||
Other | (1,807) | (91) | |||||||||
Net cash used in financing activities | (20,519) | (36,296) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
(557) | (20) | |||||||||
Net change in cash, cash equivalents, and restricted cash and cash equivalents |
(42,449) | (27,879) | |||||||||
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 |
$ | 56,857 | $ | 107,752 |
13 weeks ended |
|||||||||||
(in thousands) | Jun 30, 2024 | Jun 25, 2023 | |||||||||
Revenue from services: | |||||||||||
PeopleReady | $ | 223,409 | $ | 275,318 | |||||||
PeopleScout | 41,070 | 59,710 | |||||||||
PeopleManagement | 131,751 | 140,560 | |||||||||
Total company | $ | 396,230 | $ | 475,588 | |||||||
Segment profit (1): |
|||||||||||
PeopleReady | $ | 394 | $ | 8,158 | |||||||
PeopleScout | 3,430 | 8,817 | |||||||||
PeopleManagement | 3,395 | 2,250 | |||||||||
Total segment profit | 7,219 | 19,225 | |||||||||
Corporate unallocated expense | (6,150) | (8,215) | |||||||||
Total company Adjusted EBITDA (2) |
1,069 | 11,010 | |||||||||
Third-party processing fees for hiring tax credits (3) |
(90) | (110) | |||||||||
Amortization of software as a service assets (4) | (1,452) | (952) | |||||||||
Goodwill and intangible asset impairment charge | (59,674) | (9,485) | |||||||||
PeopleReady technology upgrade costs (5) | (39) | (174) | |||||||||
COVID-19 government subsidies, net (6) |
9,696 | — | |||||||||
Other adjustments, net (7) | (1,779) | (565) | |||||||||
EBITDA (2) |
(52,269) | (276) | |||||||||
Depreciation and amortization | (7,691) | (6,280) | |||||||||
Interest and other income (expense), net |
1,741 | 578 | |||||||||
Loss before tax expense |
(58,219) | (5,978) | |||||||||
Income tax expense |
(46,491) | (1,345) | |||||||||
Net loss | $ | (104,710) | $ | (7,323) |
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:
–amortization of intangibles,
–goodwill and intangible asset impairment charge,
–PeopleReady technology upgrade costs,
–COVID-19 government subsidies, net,
–other adjustments, net, and
–tax effect of the adjustments and deferred tax asset valuation allowance.
|
–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 expense,
–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,
–COVID-19 government subsidies, net 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, net 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) | Jun 30, 2024 | Jun 25, 2023 | |||||||||
Net loss |
$ | (104,710) | $ | (7,323) | |||||||
Amortization of intangible assets |
1,369 | 1,274 | |||||||||
Goodwill and intangible asset impairment charge |
59,674 | 9,485 | |||||||||
PeopleReady technology upgrade costs (1) |
39 | 174 | |||||||||
COVID-19 government subsidies, net (2) |
(9,696) | — | |||||||||
Other adjustments, net (3) |
1,779 | 565 | |||||||||
Tax effect of adjustments and deferred tax asset valuation allowance (4) |
40,855 | (677) | |||||||||
Adjusted net income (loss) |
$ | (10,690) | $ | 3,498 | |||||||
Adjusted net income (loss) per diluted share |
$ | (0.35) | $ | 0.11 | |||||||
Diluted weighted average shares outstanding | 30,349 | 31,185 | |||||||||
Margin / % of revenue: | |||||||||||
Net loss |
(26.4)% | (1.5)% | |||||||||
Adjusted net income (loss) |
(2.7)% | 0.7% |
13 weeks ended |
|||||||||||
(in thousands) | Jun 30, 2024 | Jun 25, 2023 | |||||||||
Net loss |
$ | (104,710) | $ | (7,323) | |||||||
Income tax expense |
46,491 | 1,345 | |||||||||
Interest and other (income) expense, net |
(1,741) | (578) | |||||||||
Depreciation and amortization |
7,691 | 6,280 | |||||||||
EBITDA |
(52,269) | (276) | |||||||||
Third-party processing fees for hiring tax credits (5) |
90 | 110 | |||||||||
Amortization of software as a service assets (6) |
1,452 | 952 | |||||||||
Goodwill and intangible asset impairment charge | 59,674 | 9,485 | |||||||||
PeopleReady technology upgrade costs (1) | 39 | 174 | |||||||||
COVID-19 government subsidies, net (2) |
(9,696) | — | |||||||||
Other adjustments, net (3) | 1,779 | 565 | |||||||||
Adjusted EBITDA |
$ | 1,069 | $ | 11,010 | |||||||
Margin / % of revenue: |
|||||||||||
Net loss |
(26.4)% | (1.5)% | |||||||||
Adjusted EBITDA |
0.3% | 2.3% |
13 weeks ended |
|||||||||||
(in thousands) | Jun 30, 2024 | Jun 25, 2023 | |||||||||
Selling, general and administrative expense |
$ | 97,018 | $ | 121,282 | |||||||
Third-party processing fees for hiring tax credits (5) | (90) | (110) | |||||||||
Amortization of software as a service assets (6) | (1,452) | (952) | |||||||||
PeopleReady technology upgrade costs (1) | (39) | (174) | |||||||||
COVID-19 government subsidies, net (2) |
6,803 | — | |||||||||
Other adjustments, net (3) | (1,608) | (390) | |||||||||
Adjusted SG&A expense |
$ | 100,632 | $ | 119,656 | |||||||
% of revenue: |
|||||||||||
Selling, general and administrative expense |
24.5% | 25.5% | |||||||||
Adjusted SG&A expense |
25.4% | 25.2% |