Group 1: Earnings Performance - TrueBlue reported a quarterly loss of $0.40 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, and compared to earnings of $0.03 per share a year ago, indicating a significant decline [1] - The company posted revenues of $370.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.53%, but down from $402.85 million in the same quarter last year [2] - TrueBlue has surpassed consensus EPS estimates two times over the last four quarters [2] Group 2: Stock Performance and Outlook - TrueBlue shares have declined approximately 47.1% since the beginning of the year, contrasting with the S&P 500's decline of only 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $368.34 million, and for the current fiscal year, it is -$0.37 on revenues of $1.48 billion [7] - The estimate revisions trend for TrueBlue is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Staffing Firms industry, to which TrueBlue belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TrueBlue's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $370 million, a decline of 8% year-over-year, but at the high end of the outlook range [13][4] - Gross margin was 23.3%, down 140 basis points, with lower workers' compensation costs contributing to a 130 basis point expansion [14] - The company reported a net loss of $14 million for the quarter, with adjusted net loss at $12 million and adjusted EBITDA at minus $4 million [16][18] Business Line Data and Key Metrics Changes - The People Solutions segment, which includes PeopleScout and the newly acquired HSP business, saw revenue decline by 2%, with HSP contributing 24 percentage points of inorganic growth [18] - PeopleReady revenue declined by 15%, including a 1% decline from the sale of the on-demand business in Canada [19] - PeopleManagement returned to growth with a 1% increase in revenue, driven by strong results from the commercial drivers business [20] Market Data and Key Metrics Changes - Client volumes continued to decline across most verticals, with the largest declines in hospitality and manufacturing [20] - Positive trends were observed in transportation, retail, and professional services, particularly driven by the centerline business [51] Company Strategy and Development Direction - The company is focusing on expanding its presence in high-growth and underpenetrated markets, particularly in healthcare staffing [6] - Strategic partnerships, such as with Omnia Partners, are being pursued to enhance growth opportunities [10] - The company is investing in digital transformation and proprietary technologies to improve user experience and operational efficiencies [9] Management's Comments on Operating Environment and Future Outlook - Management noted that evolving governmental policies have hindered business confidence, impacting the staffing industry [5] - Despite economic uncertainty, the long-term staffing outlook remains positive, with confidence in capturing market share and enhancing profitability [11][12] - The company expects revenue for the second quarter to range from a decline of 1% to an increase of 5% year-over-year [22] Other Important Information - The company finished the quarter with $23 million in cash and $58 million in debt, maintaining a total liquidity of $94 million [21] - The company is on track to increase its field sales representatives by 50% by the end of Q2 [10] Q&A Session Summary Question: How did each month look in the quarter? - Management indicated that PeopleManagement returned to growth in Q1, with positive trends continuing into April [25][26] Question: Any signs of how new field sales reps are performing? - The new PeopleReady field sales reps are performing better than the rest of the business, with sales enabled territories showing stronger performance [29][31] Question: How did HSP perform in Q1? - HSP's financial results were in line with expectations, delivering about $11 million in revenue for the quarter [38][42] Question: What are the trends in candidate availability? - The company is seeing expansions in fill rates, with rates reaching 90% in Q1 [64] Question: Are there any pricing pressures? - Pricing pressures are consistent with current market conditions, but the company is maintaining pricing discipline [65] Question: What is the outlook for revenue guidance across segments? - The midpoint for PeopleReady is minus 3%, PeopleManagement is plus 3%, and People Solutions is plus 29%, excluding HSP [56]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $370 million, a decline of 8% year-over-year, but at the high end of the outlook range [13][4] - Gross margin decreased to 23.3%, down 140 basis points, influenced by revenue mix changes and pricing pressures [14][15] - The company reported a net loss of $14 million for the quarter, with adjusted net loss at $12 million and adjusted EBITDA at minus $4 million [15][17] Business Line Data and Key Metrics Changes - The People Solutions segment, which includes PeopleScout and the newly acquired HSP business, saw a revenue decline of 2%, with HSP contributing 24 percentage points of inorganic growth [17] - PeopleReady revenue declined by 15%, impacted by reduced client volumes, particularly in hospitality and manufacturing [18] - PeopleManagement returned to growth with a 1% increase in revenue, driven by strong performance in the commercial drivers business [19] Market Data and Key Metrics Changes - The staffing industry continues to face subdued market demand due to evolving governmental policies and client caution [4][11] - Positive trends were noted in transportation, retail, and professional services, while softness persisted in manufacturing, construction, and hospitality [50][47] - The company expects revenue for Q2 2025 to range from a decline of 1% to an increase of 5% year-over-year, including a 5% contribution from HSP [21][56] Company Strategy and Development Direction - The company is focusing on expanding its presence in high-growth and underpenetrated markets, particularly in healthcare staffing [6][11] - Strategic partnerships, such as with Omnia Partners, are being pursued to enhance growth opportunities [10] - Continued investment in proprietary technologies like JobStack and AI utilization is aimed at improving operational efficiencies and user experience [9][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term staffing outlook despite current economic uncertainties [11][12] - The company is optimistic about capturing market share and enhancing profitability as demand rebounds [6][11] - Management noted that evolving workforce needs and structural staffing shortages present compelling opportunities for growth [12] Other Important Information - The company finished the quarter with $23 million in cash and $58 million in debt, maintaining a strong liquidity position [20] - The company is on track to increase its field sales representatives by 50% to enhance sales strategies [10] Q&A Session Summary Question: How did each month look in the quarter? - Management noted that PeopleManagement returned to growth in Q1, with positive trends continuing into April [25][26] Question: Any signs of success from new field sales reps? - The new PeopleReady field sales reps are performing better than the rest of the business, with positive trends continuing in April [30][31] Question: How did HSP perform in Q1? - HSP's performance was in line with expectations, delivering about $11 million in revenue for the quarter [38][39] Question: What are the growth expectations for HSP? - HSP is expected to continue performing in line with previous quarters, with a flat year-over-year revenue growth anticipated [40][41] Question: What are the trends post-Liberation Day? - Uncertainty continues to weigh on customers, leading to reduced hiring volumes and smaller scope deals [47][48] Question: Any benefits from reshoring American manufacturing? - Potential indirect impacts from tariffs could lead to more onshore manufacturing, which may benefit the business [53][54] Question: Can you break down the revenue guidance by segment? - Revenue guidance includes a midpoint of minus 1% to plus 5%, with specific segment expectations provided [55][56]

Forward-looking statements and non-GAAP financial measures This presentation 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 presenta ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20financial%20statements%20%28unaudited%29) Q1 2025 consolidated financial statements report revenue of $370.3 million, a net loss of $14.3 million, and total assets of $692.5 million [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $692.5 million, liabilities to $390.3 million, and shareholders' equity decreased to $302.2 million as of March 30, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | March 30, 2025 (in thousands) | December 29, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$692,471** | **$675,376** | | Total current assets | $281,047 | $277,093 | | Goodwill | $42,281 | $24,543 | | **Total Liabilities** | **$390,254** | **$360,017** | | Total current liabilities | $156,324 | $160,125 | | Long-term debt | $57,800 | $7,600 | | **Total Shareholders' Equity** | **$302,217** | **$315,359** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Q1 2025 revenue decreased 8.1% to $370.3 million, leading to a net loss of $14.3 million or ($0.48) per share Consolidated Statement of Operations (in thousands, except per share data) | Metric | Thirteen weeks ended March 30, 2025 (in thousands) | Thirteen weeks ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Revenue from services | $370,254 | $402,853 | | Gross profit | $86,342 | $99,386 | | Income (loss) from operations | $(14,123) | $(15,509) | | Net income (loss) | $(14,348) | $(1,698) | | Diluted net income (loss) per share | $(0.48) | $(0.05) | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flows show $22.1 million used in operations, $24.0 million in investing, and $49.4 million provided by financing Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | Thirteen weeks ended March 30, 2025 (in thousands) | Thirteen weeks ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(22,115) | $(14,239) | | Net cash (used in) provided by investing activities | $(23,968) | $919 | | Net cash provided by (used in) financing activities | $49,369 | $(13,662) | | Net change in cash, cash equivalents and restricted cash | $3,056 | $(27,586) | [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20consolidated%20financial%20statements) Notes detail the $35.1 million HSP acquisition, increasing goodwill to $42.3 million, renaming PeopleScout, and increasing long-term debt to $57.8 million - Effective January 31, 2025, the company acquired Healthcare Staffing Professionals (HSP) for cash consideration of **$35.1 million**, intending to expand revenue in the healthcare market[25](index=25&type=chunk)[26](index=26&type=chunk) - The HSP acquisition added **$17.6 million in goodwill** and **$14.9 million in identifiable intangible assets**, leading to the renaming of the PeopleScout segment to PeopleSolutions[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - The company's revolving credit facility borrowing increased to **$57.8 million** as of March 30, 2025, up from **$7.6 million** at year-end 2024, primarily to fund the HSP acquisition[53](index=53&type=chunk)[54](index=54&type=chunk) - The company is substantially self-insured for workers' compensation, with a discounted reserve of **$122.9 million** as of March 30, 2025[46](index=46&type=chunk)[48](index=48&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) Management attributes Q1 2025 revenue decline to soft demand, with gross margin contracting to 23.3% and SG&A decreasing 11.5% [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2025 total revenue decreased 8.1% to $370.3 million, gross profit margin fell 140 basis points to 23.3%, and SG&A expenses reduced by 11.5% Revenue by Segment (in thousands) | Segment | Q1 2025 Revenue (in thousands) | Q1 2024 Revenue (in thousands) | Growth (Decline) % | | :--- | :--- | :--- | :--- | | PeopleReady | $189,305 | $222,661 | (15.0)% | | PeopleManagement | $135,532 | $133,860 | 1.2% | | PeopleSolutions | $45,417 | $46,332 | (2.0)% | | **Total Company** | **$370,254** | **$402,853** | **(8.1)%** | - Gross profit margin declined by **140 basis points to 23.3%**, driven by a **210 basis point contraction** from revenue mix shifts and **30 basis points** from pricing pressure, partially offset by a **130 basis point expansion** from lower workers' compensation costs[93](index=93&type=chunk) - SG&A expense decreased by **$12.3 million (11.5%)** due to operational cost management actions taken in response to declining demand[94](index=94&type=chunk) [Segment Performance](index=24&type=section&id=Segment%20Performance) Q1 2025 saw PeopleReady's loss improve, PeopleManagement's profit stable, and PeopleSolutions' profit fall sharply to $2.0 million Segment Profit (Loss) (in thousands) | Segment | Q1 2025 Profit (Loss) (in thousands) | Q1 2024 Profit (Loss) (in thousands) | | :--- | :--- | :--- | | PeopleReady | $(2,974) | $(5,058) | | PeopleManagement | $2,894 | $2,751 | | PeopleSolutions | $1,952 | $4,879 | [Future Outlook](index=25&type=section&id=Future%20Outlook) Q2 2025 revenue growth is projected between -1% and 5%, with gross profit margin declining 180-220 basis points and SG&A between $91 million and $95 million - Q2 2025 revenue growth is expected to be between **-1% and 5%** compared to the prior year, including **5% inorganic growth** from the HSP acquisition[105](index=105&type=chunk) - Gross profit as a percentage of revenue is anticipated to decline between **220 and 180 basis points** in Q2 2025[105](index=105&type=chunk) - SG&A expense for Q2 2025 is projected to be between **$91 million and $95 million**[105](index=105&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 30, 2025, total liquidity was $94.0 million, with $22.1 million cash used in operations, and $33.5 million available for share repurchases - The company had **$23.1 million in cash and cash equivalents** and **$57.8 million in debt outstanding** as of March 30, 2025[107](index=107&type=chunk) - Net cash used in operating activities was **$22.1 million** for the quarter[113](index=113&type=chunk) - The primary use of cash for investing activities was the acquisition of HSP, while financing activities were driven by draws on the Revolving Credit Facility to fund this acquisition[117](index=117&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) Market risk disclosures remain materially unchanged from the 2024 Annual Report on Form 10-K - Disclosures about market risk have not changed materially from the company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024[126](index=126&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20procedures) Disclosure controls and procedures were effective as of March 30, 2025, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 30, 2025[129](index=129&type=chunk) - No changes in internal control over financial reporting occurred during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[130](index=130&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20proceedings) The company is involved in various legal proceedings, with management believing any probable losses are immaterial and appropriately reflected - The company is involved in various legal proceedings in the normal course of business, but believes the liabilities are immaterial and the range of reasonably possible losses in excess of amounts accrued is also expected to be immaterial[62](index=62&type=chunk)[133](index=133&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20factors) Updated risk factors highlight demand dependence on economic conditions, acquisition integration challenges, and evolving regulations on sustainability and human capital - Demand for workforce solutions is highly dependent on the state of the economy, and a deterioration in economic conditions could lead to a prolonged decline in demand for the company's services[136](index=136&type=chunk)[137](index=137&type=chunk) - Acquisitions may be difficult to integrate, could result in incurring additional debt and contingent liabilities, and may not achieve expected growth[139](index=139&type=chunk)[140](index=140&type=chunk) - The business is subject to evolving regulations and stakeholder expectations regarding sustainability, human capital management, and data privacy, which could expose the company to increased costs and reputational risks[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20sales%20of%20equity%20securities%20and%20use%20of%20proceeds) No shares were repurchased under the program in Q1 2025, with $33.5 million remaining available for repurchase as of March 30, 2025 - No shares were repurchased as part of the publicly announced plan during the thirteen weeks ended March 30, 2025[144](index=144&type=chunk) - As of March 30, 2025, **$33.5 million** remains available for repurchase under the company's share repurchase program[146](index=146&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the fiscal first quarter of 2025[149](index=149&type=chunk) [Item 6. Index to Exhibits](index=33&type=section&id=Item%206.%20Index%20to%20exhibits) This section indexes all exhibits filed with Form 10-Q, including CEO and CFO certifications and Inline XBRL financial statements - The report includes certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[151](index=151&type=chunk)

TRUEBLUE REPORTS FIRST QUARTER 2025 RESULTS TACOMA, WASH. - May 5, 2025 -- TrueBlue (NYSE:TBI) today announced its first quarter results for 2025. First Quarter 2025 Financial Highlights Commentary "While subdued market demand continued in the first quarter as expected, I am proud of the resilience and dedication shown by the TrueBlue team, delivering revenue results near the high-end of our outlook range," said Taryn Owen, President and CEO of TrueBlue. "Evolving governmental policies have hindered busines ...

Core Insights - The labor market is facing talent shortages, shifting candidate expectations, and increased competition, making employer branding crucial for recruitment success [1] - Despite 80% of HR leaders acknowledging the influence of employer branding on recruiting, only 8% have a dedicated budget for it [1] - The Outthink Index provides standardized metrics to help HR leaders enhance their employer brand across various industries [1][4] Outthink Index Features - The Outthink Index allows employers to leverage data for optimizing their employer brand's value, providing insights on brand performance relative to competitors and industry standards [2][9] - It offers comprehensive benchmarking across nine key areas, including job application accessibility and communication of company culture [9] - Employers can gain competitive insights to identify strengths and areas for improvement, guiding branding strategies and recruitment marketing decisions [9] PeopleScout Overview - PeopleScout, a subsidiary of TrueBlue, has 30 years of experience in employer branding and offers data-driven insights and personalized consultation [4][6] - The company provides scalable talent solutions, including Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP) services [6][7] - PeopleScout utilizes technology, machine learning, and AI to enhance decision-making and exceed client expectations [6][7]

Core Insights - TrueBlue and OMNIA Partners have formed a strategic partnership aimed at providing optimized workforce solutions to private sector businesses, focusing on cost savings and operational efficiency [1][5] - The partnership allows OMNIA Partners to offer tailored staffing and workforce solutions through TrueBlue, enhancing procurement strategies for its members [3][4] Group 1: Partnership Overview - The partnership is designed to help private sector companies reduce expenses while maintaining effective operations by leveraging OMNIA Partners' procurement strategies [2] - TrueBlue's extensive presence and proprietary technology will support OMNIA Partners in delivering customized workforce solutions to its members [4][5] Group 2: Company Profiles - OMNIA Partners is recognized as the largest purchasing organization for various sectors, providing a wide range of procurement solutions and partnerships [6] - TrueBlue, known as The People Company®, focuses on connecting job seekers with opportunities and delivering scalable workforce solutions across industries [7]

Core Insights - TrueBlue's PeopleReady Skilled Trades (PRST) has been appointed as the Official Professional Staffing and Labor Provider for the Independent Electrical Contractors (IEC), addressing the urgent need for skilled labor in the electrical industry [1][3] - The partnership aims to provide immediate access to qualified workers while also focusing on long-term workforce development initiatives [1][4] Group 1: Staffing Solutions - PRST has a history of connecting skilled tradespeople with high-demand opportunities across various industries, including electrical, carpentry, plumbing, welding, and energy installations [2] - The electrical industry is facing a severe skilled labor shortage, with demand for qualified electricians outpacing supply, prompting IEC contractors to seek reliable staffing solutions [2][3] Group 2: Workforce Development - The collaboration between PRST and IEC enhances the value delivered to IEC members by providing effective sourcing of skilled labor, which is a pressing challenge in the electrical industry [3] - PRST will offer tailored staffing solutions to IEC members, ensuring that critical projects remain on schedule despite labor constraints [3][4] Group 3: Educational Contributions - Beyond staffing, PRST will provide valuable industry insights to IEC members, including educational content on hiring best practices, trends, and staffing strategies through various platforms [4] - The partnership aligns with IEC's mission to train and place the next generation of electricians in meaningful careers, reinforcing its commitment to workforce development [4][7]

Core Insights - PeopleScout has achieved the designation of a Leader in all six categories of NelsonHall's 2025 NEAT Vendor Evaluation for Recruitment Process Outsourcing (RPO) for the seventh consecutive time, reinforcing its position as a global leader in talent solutions [1][2][3] Company Overview - PeopleScout, a brand of TrueBlue (NYSE: TBI), specializes in providing workforce solutions, including Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP), and talent advisory services [8][9] - The company utilizes its proprietary Affinix® platform, which incorporates AI-driven recruitment, predictive analytics, and machine learning to enhance hiring processes [7] Strengths and Offerings - PeopleScout's modular Amplifiers™ offerings and tech advisory services allow it to support clients at various stages of their outsourcing journey, optimizing existing infrastructure investments [2][7] - The company emphasizes a data-driven approach to workforce strategy, helping clients navigate talent shortages and evolving workforce expectations [4][7] - PeopleScout's deep talent advisory expertise includes insights into employer branding, recruitment marketing, and workforce strategy development [7] Industry Impact - The recognition from NelsonHall highlights PeopleScout's commitment to delivering talent solutions that drive significant business impact, positioning it as a trusted advisor for organizations looking to enhance their workforce strategies [3][4]