TrueBlue(TBI) - 2024 Q4 - Annual Results

Financial Highlights and Business Overview Fourth Quarter & Full-Year 2024 Performance TrueBlue reported significant revenue declines and widening net losses for Q4 and full-year 2024, driven by lower revenue and impairment charges | Metric | Q4 2024 | Q4 2023 | Change | Full-Year 2024 | Full-Year 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $386M | $492M | -22% | $1.6B | $1.9B | -18% | | Net Loss | ($12M) | ($3M) | -300% | ($126M) | ($14M) | -800% | | Net Loss per Diluted Share | ($0.40) | ($0.08) | -400% | ($4.17) | ($0.45) | -827% | | Adjusted Net (Loss)/Income per Diluted Share | ($0.02) | $0.08 | -125% | ($0.46) | $0.28 | -264% | - On a comparable basis, Q4 revenue decreased by 16% (13-week vs 13-week) and full-year revenue decreased by 17% (52-week vs 52-week)[4] - Despite the revenue drop, Q4 Adjusted EBITDA increased to $9 million from $5 million in the prior year period, and SG&A expense improved by 18% to $107 million[6] Management Commentary & Strategic Priorities Management described 2024 as a transformative year, focusing on strategic priorities for future growth amidst challenging market conditions - CEO Taryn Owen noted that market conditions remain challenging, with customers awaiting improved market confidence before making significant workforce adjustments[3] - Key strategic priorities for long-term profitability include: - Advancing digital transformation with an enhanced user experience - Expanding into high-growth end-markets and high-value roles - Optimizing the business model to drive sales focus and accelerate growth[3] 2025 Outlook & Recent Developments TrueBlue started 2025 with the strategic acquisition of Healthcare Staffing Professionals, Inc. (HSP) to expand into the healthcare market, and is providing forward-looking guidance - On January 31, 2025, TrueBlue acquired Healthcare Staffing Professionals, Inc. (HSP), a provider of temporary and permanent healthcare staffing solutions, for $42 million[3][6] - The company ended the period with $23 million in cash, $8 million in debt, and $119 million of borrowing availability[6] Consolidated Financial Statements Consolidated Statements of Operations (Income Statement) The company's revenue declined significantly in 2024, leading to a substantial increase in operating loss and a widened net loss, primarily due to a significant impairment charge | (in thousands) | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | | Revenue from services | $1,567,393 | $1,906,243 | | Gross profit | $406,393 | $506,059 | | Goodwill and intangible asset impairment charge | $59,674 | $9,485 | | Loss from operations | ($92,775) | ($23,850) | | Net loss | ($125,748) | ($14,173) | | Diluted net loss per share | ($4.17) | ($0.45) | Consolidated Balance Sheets As of December 29, 2024, TrueBlue's total assets, liabilities, and shareholders' equity all decreased significantly, primarily due to reductions in cash, receivables, and goodwill | (in thousands) | Dec 29, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,536 | $61,885 | | Total current assets | $277,093 | $354,993 | | Goodwill and intangible assets, net | $30,406 | $94,639 | | Total assets | $675,376 | $899,383 | | Total current liabilities | $160,125 | $204,099 | | Long-term debt | $7,600 | $0 | | Total liabilities | $360,017 | $441,510 | | Total shareholders' equity | $315,359 | $457,873 | Consolidated Statements of Cash Flows For the 52 weeks ended December 29, 2024, the company experienced a net cash outflow from operating activities, a sharp reversal from the prior year, primarily due to the significant net loss | (in thousands) | 52 weeks ended Dec 29, 2024 | 53 weeks ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($17,058) | $34,754 | | Net cash used in investing activities | ($2,453) | ($32,322) | | Net cash used in financing activities | ($17,087) | ($37,583) | | Net change in cash, cash equivalents, and restricted cash | ($38,206) | ($36,325) | Segment Performance Segment Revenue All three of TrueBlue's segments experienced revenue declines in 2024, with PeopleReady, PeopleScout, and PeopleManagement all reporting reduced top-line performance | Revenue (in thousands) | Full-Year 2024 | Full-Year 2023 | Change | | :--- | :--- | :--- | :--- | | PeopleReady | $868,549 | $1,096,318 | -20.8% | | PeopleScout | $156,643 | $229,334 | -31.7% | | PeopleManagement | $542,201 | $580,591 | -6.6% | | Total company | $1,567,393 | $1,906,243 | -17.8% | Segment Profit Segment profit varied in 2024, with PeopleReady and PeopleScout declining significantly, while PeopleManagement's profit more than doubled, leading to an overall decrease in total segment profit | Segment Profit (in thousands) | Full-Year 2024 | Full-Year 2023 | Change | | :--- | :--- | :--- | :--- | | PeopleReady | $5,783 | $26,606 | -78.3% | | PeopleScout | $12,152 | $26,922 | -54.9% | | PeopleManagement | $15,119 | $6,963 | +117.1% | | Total segment profit | $33,054 | $60,491 | -45.4% | Non-GAAP Financial Measures & Reconciliations Reconciliation of Net Loss to Adjusted Net Income (Loss) After adjusting the GAAP net loss for items like goodwill impairment and tax effects, the company reported an adjusted net loss for fiscal year 2024, a reversal from adjusted net income in 2023 | (in thousands) | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | | Net loss (GAAP) | ($125,748) | ($14,173) | | Goodwill and intangible asset impairment charge | $59,674 | $9,485 | | Tax effect of adjustments and deferred tax asset valuation allowance | $40,540 | ($4,920) | | Adjusted net (loss) income (Non-GAAP) | ($13,894) | $8,725 | Reconciliation of Net Loss to EBITDA and Adjusted EBITDA The company's Adjusted EBITDA for fiscal year 2024 significantly decreased from 2023, with the Adjusted EBITDA margin falling to 0.7% from 1.5% | (in thousands) | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | | Net loss (GAAP) | ($125,748) | ($14,173) | | EBITDA (Non-GAAP) | ($63,214) | $1,971 | | Adjusted EBITDA (Non-GAAP) | $11,167 | $28,984 | Reconciliation of SG&A to Adjusted SG&A GAAP SG&A expenses decreased in 2024, and after adjustments, Adjusted SG&A remained flat as a percentage of revenue for both 2024 and 2023, indicating cost control in line with falling revenues | (in thousands) | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | | SG&A expense (GAAP) | $410,870 | $494,603 | | Adjusted SG&A expense (Non-GAAP) | $393,786 | $478,958 | | Adjusted SG&A as % of revenue | 25.1% | 25.1% |