TrueBlue(TBI) - 2024 Q4 - Annual Report

PART I Business TrueBlue, Inc. is a leading provider of specialized workforce solutions, operating through three primary business segments: PeopleReady, PeopleScout, and PeopleManagement, connecting approximately 336,000 people with work and serving about 55,000 clients in fiscal 2024, with a 2025 strategy focused on digital transformation, market expansion, and business model optimization - TrueBlue, Inc. is a leading provider of specialized workforce solutions, headquartered in Tacoma, Washington, and began operations in 1989[15] - In fiscal 2024, the company connected approximately 336,000 people with work and served approximately 55,000 clients across its three business segments: PeopleReady, PeopleScout, and PeopleManagement[16] - PeopleReady connected approximately 153,000 people with work and served approximately 54,000 clients in fiscal 2024, providing on-demand, contingent general and skilled labor across various industries, augmented by its JobStack mobile app[17][18] - PeopleScout, a global leader in RPO services, connected approximately 143,000 people with work in fiscal 2024, primarily in the U.S., Canada, the UK, and Australia, utilizing its proprietary Affinix technology platform[19][20][23] - PeopleManagement connected approximately 40,000 people with work in fiscal 2024, offering on-site contingent associate management (Staff Management | SMX, SIMOS) and dedicated commercial drivers (Centerline Drivers)[21][22][24] - The fiscal 2025 business strategy focuses on accelerating growth, enhancing long-term profitability through digital transformation, expansion into high-growth/less cyclical markets and high-value roles, and optimizing the business model for increased sales focus[27][28][31] - The ten largest clients accounted for 22.4% of total revenue in fiscal 2024, with no single client representing more than 10.0% of total company revenue[35] - As of December 29, 2024, TrueBlue employed approximately 4,200 full-time equivalent (FTE) employees globally, with 3,100 in North America, 800 in Asia Pacific, and 300 in Europe[38] Risk Factors The company faces significant risks including economic downturns impacting demand, technological disruption, challenges in obtaining workers' compensation insurance, client concentration, and difficulties in managing operational changes and acquisitions, alongside financial, legal, compliance, industry-specific, ESG, and cybersecurity threats - Demand for workforce solutions is highly dependent on economic conditions, with slowdowns (e.g., rising interest rates, recession fears, supply chain disruptions) leading to reduced client demand and negatively impacting revenues and profits[56][57][58] - Advances in technology, including automation, AI, and machine learning, may disrupt labor and recruiting markets, potentially reducing demand for services if the company fails to continuously invest in and implement new technologies[59][60][104] - The company is dependent on obtaining workers' compensation and other insurance coverage at commercially reasonable terms, with unexpected changes in claim trends or inability to secure coverage potentially impacting financial condition[62][63][64][65] - Revenue concentration with large clients and in certain industries poses a risk, as termination or reduction of services by major clients could materially affect revenues, profitability, and liquidity[66] - Cybersecurity vulnerabilities and incidents, including computer viruses, malware, and social engineering attacks, could lead to improper disclosure of confidential information, operational disruptions, and significant financial and reputational harm[96][97][98][99][100] Unresolved Staff Comments This section states that there are no unresolved staff comments from the SEC - Not applicable[113] Cybersecurity TrueBlue manages cybersecurity risks through a structured program aligned with NIST standards, involving regular assessments, monitoring, and incident response planning, with governance overseen by the Board's Innovation and Technology (I&T) Committee and no material incidents reported in the last three fiscal years - The company leverages cybersecurity technologies and established processes, procedures, and controls to identify, assess, and manage material cybersecurity risks, aligned with the National Institute of Standards and Technology (NIST) framework[114][116] - Ongoing activities include annual policy reviews, collaboration with legal on data protection laws, tabletop exercises, monthly phishing simulations, quarterly security awareness training, and leveraging a full suite of cybersecurity technology tools[117] - The Board's Innovation and Technology (I&T) Committee is responsible for cybersecurity oversight, receiving quarterly updates from the Chief Digital Officer (CDO) and Chief Information Security Officer (CISO)[123][124] - In the last three fiscal years, TrueBlue has not experienced any cybersecurity incidents that have materially impacted or are reasonably likely to materially impact its business strategy, results of operations, or financial condition[121] Properties TrueBlue primarily leases its PeopleReady branch spaces and other office facilities, with options to terminate most branch leases with 90 days' notice, and owns its Tacoma, Washington corporate headquarters, which is currently being marketed for sale - The company leases building space for all PeopleReady branches, except for two owned in Florida, and leases domestic and international office space for operations and support functions[125] - The Tacoma, Washington corporate headquarters, which is owned by the company, is currently being marketed for sale[125] Legal Proceedings This section refers to Note 9 of the consolidated financial statements for details on legal proceedings, commitments, and contingencies - Legal proceedings information is incorporated by reference from Note 9: Commitments and Contingencies, to the consolidated financial statements[126] Mine Safety Disclosures This section states that mine safety disclosures are not applicable to the company's operations - Not applicable[127] PART II Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities TrueBlue's common stock (TBI) is listed on the New York Stock Exchange, with approximately 29,707,861 shares outstanding as of February 12, 2025, and the company has not declared cash dividends but has an active share repurchase program, with $33.5 million remaining under authorization as of December 29, 2024 - TrueBlue, Inc. common stock is listed on the New York Stock Exchange under the ticker symbol TBI[129] - As of February 12, 2025, there were 29,707,861 shares of the registrant's common stock outstanding[6] - No cash dividends have been declared on common stock to date, and future dividend payments are subject to evaluation and credit agreement covenants[130] Common Stock Repurchases (Thirteen Weeks Ended December 29, 2024) | Period | Total number of shares purchased (1) | Weighted average price paid per share (2) | | :-------------------------------- | :----------------------------------- | :-------------------------------------- | | 09/30/2024 through 10/27/2024 | 896 | $7.71 | | 10/28/2024 through 11/24/2024 | 231 | $7.60 | | 11/25/2024 through 12/29/2024 | — | $— | | Total | 1,127 | $7.69 | - As of December 29, 2024, $33.5 million remains available for repurchase under the $100.0 million share repurchase program authorized on January 31, 2022[133] 5-Year Cumulative Total Return (2019-2024) | Total return analysis | 2019 | 2020 | 2021 | 2022 | 20