TrueBlue(TBI) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $492 million, a decrease of 12% compared to $558 million in Q4 2022, and a 15% decrease on a comparable 13-week basis [4]. - Full-year revenue for 2023 was $1.9 billion, down 15% from $2.3 billion in 2022 [4]. - Net loss per diluted share for Q4 2023 was $0.08, compared to net income of $0.21 per diluted share in Q4 2022; full-year net loss per diluted share was $0.45 compared to net income of $1.86 in 2022 [4]. - The company reported a net loss of $3 million in Q4 2023, with adjusted EBITDA of $5 million [6]. - Total company revenue for Q4 2023 was $492,171,000, a decrease of 11.7% compared to $557,695,000 in Q4 2022 [18]. - Adjusted EBITDA for Q4 2023 was $5,149,000, down 75.5% from $21,006,000 in Q4 2022 [22]. - Net income for Q4 2023 was a loss of $2,551,000, compared to a profit of $7,045,000 in Q4 2022 [21]. - Adjusted net income for Q4 2023 was $2,642,000, compared to $13,000,000 in Q4 2022, a decline of 79.7% [21]. - Total segment profit for Q4 2023 was $13,611,000, down 53.3% from $29,107,000 in Q4 2022 [18]. Segment Performance - PeopleReady segment revenue decreased to $285,185,000 in Q4 2023 from $314,580,000 in Q4 2022, a decline of 9.4% [18]. - PeopleManagement segment revenue was $159,782,000 in Q4 2023, down from $174,439,000 in Q4 2022, representing a decrease of 8.4% [18]. Expenses and Costs - Q4 2023 selling, general and administrative (SG&A) expense was $129,961,000, a decrease from $133,733,000 in Q4 2022 [23]. - Adjusted SG&A expense for Q4 2023 was $123,813,000, compared to $126,843,000 in Q4 2022, reflecting a reduction of 2.4% [23]. - SG&A expense as a percentage of revenue increased to 26.4% in Q4 2023 from 24.0% in Q4 2022 [23]. - Adjusted SG&A expense as a percentage of revenue rose to 25.2% in Q4 2023, up from 22.7% in Q4 2022 [23]. - Total SG&A expense for the fiscal year 2023 was $494,603,000, slightly down from $500,686,000 in 2022 [23]. - Adjusted SG&A expense for the fiscal year 2023 was $478,958,000, compared to $485,145,000 in 2022, indicating a decrease of 1.5% [23]. - The company incurred $1.8 million in workforce reduction costs during Q4 2023 [23]. - Executive leadership transition costs for the fiscal year 2023 totaled $5,788,000 [23]. - The company reported third-party processing fees related to hiring tax credits of $67,000 in Q4 2023 [23]. Organizational Strategy - TrueBlue served approximately 67,000 clients and connected about 464,000 people with work in 2023 [6]. - TrueBlue maintains zero debt, with cash of $62 million and $86 million of borrowing availability, which increased to approximately $140 million after renewing a 5-year credit facility [6]. - The company is focused on digital transformation and expansion into high-growth markets to enhance long-term profitability [3]. - Management anticipates stabilization in demand and growth from digital investments as part of their forward-looking strategy [8]. - TrueBlue's organizational strategy includes a simplified structure to drive efficiencies and secure long-term growth opportunities [3]. Fiscal Year Adjustments - The fiscal fourth quarter consisted of 14 weeks compared to 13 weeks in the prior year, impacting revenue comparisons [12]. - The fiscal year 2023 included adjustments to COVID-19 government subsidies amounting to $0.5 million [23].