Q2 2024 TrueBlue Inc Earnings Call Transcript
Key Points
- TrueBlue Inc (TBI) has made significant progress in advancing its strategic priorities, including digital transformation and expansion into high-growth markets.
- The rollout of the new proprietary JobStack app is on track and has shown early success in improving usability and operational efficiency.
- The company has expanded its presence in attractive end markets such as skilled trades and healthcare, showing growth in renewable energy work and commercial driving services.
- TrueBlue Inc (TBI) has taken decisive cost actions, reducing SG&A by 20% and removing over $70 million in costs from its operating structure.
- The company maintains a solid balance sheet with no debt, $26 million in cash, and $130 million of borrowing availability, providing strong liquidity and flexibility for future growth.
- Revenue for the quarter was $396 million, down 17% compared to the prior year, driven by economic uncertainty and reduced business spend.
- Gross margin declined by 100 basis points to 26.4%, primarily due to unfavorable changes in revenue mix and pricing pressures.
- TrueBlue Inc (TBI) reported a net loss of $105 million for the quarter, including a non-cash goodwill and intangible asset impairment charge of $45 million.
- PeopleReady revenue decreased by 19%, with a segment profit margin down by 280 basis points, reflecting lower client volumes and increased revenue mix from lower-margin renewable energy work.
- PeopleScout revenue decreased by 31%, with a segment profit margin down by 640 basis points, driven by lower client volumes and economic challenges leading to reduced market demand.
Greetings and welcome to the TrueBlue second-quarter 2024 earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.
At this time, I want to remind everyone that today's call and slide presentation contain forward-looking statements, all of which are subject to risks and uncertainties, and management assumes no obligation to update or revise any forward-looking statements. These risks and uncertainties, some of which are described in today's press release and SEC filings, could cause actual results to differ materially from those in the forward-looking statements.
Management uses non-GAAP measures when presenting financial results. You are encouraged to review the non-GAAP reconciliations in today's earnings release, or at trueblue.com under the Investor Relations section, for a complete understanding of these terms and their purpose. Any comparisons made today are based on a comparison to the same period in the prior year, unless otherwise stated. Lastly, a copy of the company's prepared remarks will be provided on TrueBlue's investor website at the
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