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TrueBlue(TBI) - 2025 Q1 - Earnings Call Transcript
2025-05-05 22:02
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]