On August 5, 2024, TrueBlue Inc (TBI, Financial) released its 8-K filing detailing its second-quarter 2024 financial results. TrueBlue Inc is a provider of staffing and workforce management solutions, with segments including PeopleReady, PeopleManagement, and PeopleScout. The company generates maximum revenue from the PeopleReady segment.
Performance Overview
TrueBlue Inc (TBI, Financial) reported a revenue of $396 million for Q2 2024, a 17% decrease from $476 million in the same period last year. The net loss for the quarter was $105 million, significantly higher than the $7 million net loss reported in Q2 2023. This includes a non-cash goodwill and intangible asset impairment charge of $45 million after tax and a related valuation allowance charge of $55 million on deferred tax assets.
Financial Achievements and Challenges
Despite the challenging market conditions, TrueBlue Inc (TBI, Financial) managed to reduce its SG&A expenses by 20% to $97 million, compared to $121 million in the prior year period. The company also reported zero debt, with $26 million in cash and $132 million of borrowing availability. Additionally, TrueBlue repurchased $7 million in shares, with $38 million remaining under authorization.
“We are managing through the current market cycle with discipline and agility as economic uncertainty and client caution continue to weigh on the temporary staffing industry,” said Taryn Owen, President and CEO of TrueBlue.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $396 million | $476 million |
| Net Loss | $105 million | $7 million |
| Adjusted EBITDA | $1 million | $11 million |
Balance Sheet and Cash Flow
TrueBlue Inc (TBI, Financial) reported total assets of $723.7 million as of June 30, 2024, down from $899.4 million at the end of 2023. The company’s cash and cash equivalents stood at $26.4 million, a decrease from $61.9 million at the end of 2023. The total liabilities were $385.9 million, compared to $441.5 million at the end of 2023.
Segment Performance
The PeopleReady segment generated $223.4 million in revenue, down from $275.3 million in Q2 2023. PeopleScout and PeopleManagement segments also saw declines, with revenues of $41.1 million and $131.8 million, respectively, compared to $59.7 million and $140.6 million in the prior year period.
Analysis
The significant decline in revenue and increased net loss highlight the challenges TrueBlue Inc (TBI, Financial) faces amid economic uncertainty and client caution. However, the company’s efforts to reduce SG&A expenses and maintain a strong liquidity position are positive signs. The focus on digital transformation and expansion into skilled trades and healthcare markets could provide growth opportunities as market conditions improve.
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Explore the complete 8-K earnings release (here) from TrueBlue Inc for further details.
