TrueBlue Reports Fourth Quarter and Full-Year 2023 Results
- None.
- Revenue decreased by 12% in the fourth quarter of 2023 compared to the same period in 2022.
- Net loss of $3 million was reported for the fourth quarter of 2023.
- Full-year revenue decreased by 15% in 2023 compared to 2022.
- Net loss per diluted share was $0.45 for the full year of 2023.
Insights
The report from TrueBlue presents a notable 12 percent decline in quarterly revenue and a transition from net income to a net loss year-over-year. This shift is particularly concerning for stakeholders as it indicates not only a reduction in revenue but also an inability to maintain profitability despite a longer fiscal quarter. The company's mention of disciplined cost management suggests efforts to mitigate this downturn, yet the results imply that these measures were not sufficient to counteract the revenue decline.
TrueBlue's focus on renewable energy verticals is a strategic move, given the sector's growth potential. However, the financials reflect that the benefits of this focus have not yet materialized into financial stability or growth. The zero-debt position and healthy cash reserves are positive indicators, providing the company with a buffer to navigate market cycles and potentially invest in further growth initiatives.
The adjusted EBITDA and net income figures are critical for assessing the company's operational performance, excluding one-off items. While these figures are positive, they represent a significant decrease from the previous year, suggesting that core operations are under pressure. The renewal of the credit facility and increased borrowing availability could signal strategic investments or acquisitions in the pipeline, which may be necessary to pivot the company toward long-term profitability in the context of a soft market demand.
TrueBlue's performance reflects broader trends in the labor market, where hiring trends are impacted by reduced business spend. The company's acknowledgment of soft general market demand indicates an industry-wide challenge that may persist into the near future. TrueBlue's strategy to enhance digital transformation and focus on high-growth end markets is in line with the industry's move towards increased efficiency and technological integration.
The company's strategic pivot and organizational restructuring are aimed at capturing market share and improving profitability. However, the effectiveness of these strategies will depend on their execution and the company's ability to adapt to the evolving market conditions. Expansion in renewable energy and other high-growth verticals is a forward-thinking approach, but it requires careful monitoring to ensure that these investments lead to tangible results.
Investors and stakeholders should watch for signs of improvement in operational efficiency and market share gains in the coming quarters. TrueBlue's forward-looking statements and guidance will be instrumental in setting expectations and evaluating the company's trajectory amidst the challenges presented in the current economic climate.
The financial results of TrueBlue can be seen as a microcosm of the larger economic environment. The softening of market demand and reduced business spending are indicative of a broader economic slowdown, which may be attributed to cyclical downturns or structural changes in the economy. TrueBlue's strategy to manage costs and pursue digital transformation may be a necessary response to these macroeconomic pressures.
While the company has maintained a solid liquidity position with zero debt and substantial cash reserves, the decline in revenue and profitability raises questions about the broader economic resilience of the staffing industry. As TrueBlue seeks to navigate this environment, its ability to adapt to economic headwinds and leverage its strengths in growth markets like renewable energy will be crucial.
The company's results and forward-looking statements will be of interest to economists as they reflect on labor market dynamics, business investment patterns and the overall health of the service sector. The ability of businesses to pivot and innovate during economic downturns is often a key determinant of their long-term success and is a significant point of analysis for economic forecasting.
Strong performance in renewable energy and disciplined cost management delivered results at high end of company outlook
Fourth Quarter 2023 Financial Highlights
-
Revenue decreased 12 percent to
$492 million - Fiscal fourth quarter consisted of 14 weeks versus 13 weeks in the fiscal fourth quarter of 2022
- Revenue decreased 15 percent on a comparable 13-week basis
-
Net loss of
$3 million -
Adjusted EBITDA1 of
$5 million $3 million
-
Adjusted EBITDA1 of
-
Zero debt, cash of
$62 million $86 million -
Renewal of 5-year credit facility effective February 9, 2024 increased borrowing availability to approximately
$140 million
-
Renewal of 5-year credit facility effective February 9, 2024 increased borrowing availability to approximately
Commentary
“We are managing through this market cycle with agility and discipline,” said Taryn Owen, President and CEO of TrueBlue. “While general market demand remains soft with hiring trends impacted by reduced business spend, we are capitalizing on attractive verticals, such as renewable energy, and maintaining a high level of engagement with clients to ensure we are well positioned as conditions improve.”
“As we enter 2024, we are laser-focused on leveraging our inherent strengths to capture market share and managing our cost structure with discipline to enhance our long-term profitability,” continued Ms. Owen. “Key components to this strategy include advancement of our digital transformation, expansion in high-growth and under-penetrated end markets, and enhanced focus through a simplified organizational structure. These priorities position us to drive efficiencies and secure opportunities to deliver long-term, profitable growth.”
Results
Fourth quarter revenue was
Full-year revenue was
2024 Outlook
TrueBlue is providing certain forward-looking information to help investors form their own estimates, which can be found in the quarterly earnings presentation filed today.
Management will discuss fourth quarter 2023 results on a webcast at 2:00 p.m. PT (5:00 p.m. ET), today, Wednesday, Feb. 21, 2024. The webcast can be accessed on the Investor Relations section of the TrueBlue website: investor.trueblue.com.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2023, TrueBlue served approximately 67,000 clients and connected approximately 464,000 people with work. Its PeopleReady segment offers on-demand, industrial staffing, PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions, and PeopleManagement offers contingent, on-site industrial staffing and commercial driver services. Learn more at www.trueblue.com.
1 Refer to the financial statements accompanying this release for more information regarding non-GAAP terms.
Forward-looking statements and non-GAAP financial measures
This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in demand, and expected growth from our digital investments, all of which are subject to risks and uncertainties. Such statements are based on management’s expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions which can be negatively impacted by factors such as rising interest rates, inflation, political instability, epidemics and global trade uncertainty, (2) our ability to maintain profit margins, (3) our ability to successfully execute on business strategies and further digitalize our business model, (4) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (5) our ability to attract and retain clients, (6) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit, and (9) the timing and amount of common stock repurchases, if any, which will be determined at management’s discretion and depend upon several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Any other references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.
In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this document and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with
TRUEBLUE, INC. |
||||||||||||||
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
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 |
(1) |
Our fiscal period ends on the Sunday closest to the last day of Dec. In fiscal years consisting of 53 weeks, the final quarter consists of 14 weeks, while in fiscal years consisting of 52 weeks, all quarters consist of 13 weeks. |
TRUEBLUE, INC. |
|||||
SUMMARY CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
(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 |
TRUEBLUE, INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
|
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 |
|
TRUEBLUE, INC. |
|||||||||||||||
SEGMENT DATA |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
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 |
|
(1) |
Our fiscal period ends on the Sunday closest to the last day of Dec. In fiscal years consisting of 53 weeks, the final quarter consists of 14 weeks, while in fiscal years consisting of 52 weeks, all quarters consist of 13 weeks. |
|
(2) |
We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing. |
|
(3) |
See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA. |
|
(4) |
These third-party processing fees are associated with generating hiring tax credits. |
|
(5) |
Amortization of software as a service assets is reported in selling, general and administrative expense. |
|
(6) |
Costs associated with upgrading legacy PeopleReady technology. |
|
(7) |
Cost associated with our CEO and CFO transitions, including accelerated vesting of stock awards and other separation related payments. |
|
(8) |
Other adjustments for the 14 and 53 weeks ended December 31, 2023 primarily include workforce reduction costs of |
TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS
In addition to financial measures presented in accordance with
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
|
|
– 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. |
1. |
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
||||||||||||||||
|
Q4 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
|||||
|
14 weeks ended (1) |
|
13 weeks ended |
|
53 weeks ended (1) |
|
52 weeks ended |
|||||||||
(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 |
% |
|
2. |
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
||||||||||||||||
|
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 |
|||||||||
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 |
% |
|
3. |
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
||||||||||||||||
|
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 |
|||||||||
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 |
% |
|
(1) |
Our fiscal period ends on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter consists of 14 weeks, while in fiscal years consisting of 52 weeks, all quarters consist of 13 weeks. |
|
(2) |
Amortization of software as a service assets is reported in selling, general and administrative expense. Note, amortization of software as a service assets was included as an adjustment to net income during transitory periods ending with fiscal 2022 and is only considered an adjustment to EBITDA going forward to be consistent with the treatment of depreciation and amortization. |
|
(3) |
Accelerated depreciation for the existing systems being replaced by the upgraded PeopleReady technology platform. |
|
(4) |
Costs associated with upgrading legacy PeopleReady technology. |
|
(5) |
Cost associated with our CEO and CFO transitions, including accelerated vesting of stock awards and other separation related payments. |
|
(6) |
Other adjustments for the 14 and 53 weeks ended December 31, 2023 primarily include workforce reduction costs of |
|
(7) |
Tax effect of the adjustments to |
|
(8) |
These third-party processing fees are associated with generating hiring tax credits. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221160802/en/
Investor Relations
InvestorRelations@trueblue.com
Source: TrueBlue
FAQ
What was the revenue decrease in the fourth quarter of 2023 for TrueBlue (NYSE:TBI)?
What was the net loss reported for the fourth quarter of 2023 by TrueBlue (NYSE:TBI)?
What was the full-year revenue decrease in 2023 for TrueBlue (NYSE:TBI)?
What was the net loss per diluted share for the full year of 2023 for TrueBlue (NYSE:TBI)?
