TrueBlue(US:TBI)2025-11-03 21:13Revenue Growth - Total company revenue grew 12.8% to $431.3 million for the thirteen weeks ended September 28, 2025, driven by strong demand in skilled businesses and the acquisition of HSP contributing 3.7% to growth[116][122] - PeopleReady revenue grew 17.1% to $251.4 million for the thirteen weeks ended September 28, 2025, primarily due to growth in the energy industry[123] - PeopleManagement revenue increased 1.5% to $132.9 million for the thirteen weeks ended September 28, 2025, supported by strong demand in the commercial driving business[125] - PeopleSolutions revenue surged 27.9% to $47.0 million for the thirteen weeks ended September 28, 2025, with the acquisition of HSP contributing 38.6% to this growth[126] - Total company revenue grew 1.4% to $1.2 billion for the thirty-nine weeks ended September 28, 2025[122] Profitability - Gross profit as a percentage of revenue declined to 22.7% for the thirteen weeks ended September 28, 2025, down from 26.2% in the prior year, primarily due to a shift towards lower margin staffing businesses[117] - Gross profit for the thirteen weeks ended September 28, 2025, was $97,892,000, representing 22.7% of revenue, a decline of 350 basis points compared to the prior year[127] - For the thirty-nine weeks ended September 28, 2025, gross profit was $277,798,000, or 23.2% of revenue, down 250 basis points from the same period last year[128] - The PeopleReady segment reported revenue from services of $251,436,000 for the thirteen weeks ended September 28, 2025, with a segment profit of $8,099,000, improving by $5.1 million year-over-year[136] - The PeopleManagement segment achieved revenue from services of $132,863,000 for the thirteen weeks ended September 28, 2025, with a segment profit of $4,552,000, an increase of $1.3 million compared to the prior year[137] - The PeopleSolutions segment reported a profit decline of $2.2 million for the thirty-nine weeks ended September 28, 2025, attributed to revenue loss from a large hospitality client[140] Expenses - Selling, general and administrative (SG&A) expenses improved 8.2% to $91.7 million for the thirteen weeks ended September 28, 2025, due to operational cost management actions[118] - Selling, general and administrative (SG&A) expenses improved by 8.2% to $91,728,000 for the thirteen weeks ended September 28, 2025, and by 9.1% to $276,147,000 for the thirty-nine weeks ended September 28, 2025[129] - SG&A expense for fiscal Q4 2025 is projected to be between $91 million and $95 million, reflecting a decline due to cost management efforts[144] Net Loss and Cash Flow - Net loss was $1.9 million for the thirteen weeks ended September 28, 2025, an improvement from a net loss of $7.6 million in the prior year[120][121] - Net cash used in operating activities for the thirty-nine weeks ended September 28, 2025, was $(53,674) thousand, compared to $(23,189) thousand for the same period last year[151] - Net cash provided by financing activities during the thirty-nine weeks ended September 28, 2025, was $59,589 thousand, primarily due to draws on the Revolving Credit Facility[157] Liquidity and Capital Expenditures - Total liquidity as of September 28, 2025, was $95.0 million, consisting of cash and cash equivalents of $19.9 million and $75.2 million available under the revolving credit facility[120] - As of September 28, 2025, the company had $19.9 million in cash and cash equivalents and $68.2 million in outstanding debt[145] - The company expects capital expenditures and spending for software as a service assets to be between $17 million and $19 million for fiscal 2025[143] Future Outlook - Future growth is anticipated as client hiring volumes return, particularly in higher-skilled roles and attractive end markets such as healthcare and technology[126] - Revenue growth for fiscal Q4 2025 is expected to be between 4% and 10%, including approximately 4% inorganic growth from the acquisition of HSP[144] - Anticipated gross profit as a percentage of revenue is expected to decline between 410 and 370 basis points compared to the same period last year[144] Impairment and Valuation - A non-cash impairment charge of $0.2 million was recorded for the thirty-nine weeks ended September 28, 2025, related to a trademark in the PeopleManagement segment[131] - The goodwill balance for HSP as of September 28, 2025, was $17.3 million, with an estimated fair value exceeding its carrying value by approximately 5%[168] - The weighted average cost of capital for the most recent goodwill impairment test ranged from 14.5% to 16.5%[167] - All reporting units' fair values were substantially in excess of their carrying values, except for HSP, which had a fair value exceeding its carrying value by approximately 5%[168] Digital Transformation and Market Strategy - The company continues to focus on enhancing digital transformation and expanding in high-growth, under-penetrated end markets to capture market share[112] - The company continues to invest in technology platforms to enhance service delivery efficiency and transition to cloud-based solutions[147]