TrueBlue(US:TBI)2025-08-04 22:02Financial Data and Key Metrics Changes - Total revenue for the quarter was $396 million, flat compared to the prior year, near the low end of the outlook range, with a four percentage point growth from the acquisition of HSP [17][18] - Gross margin decreased to 23.6%, down 280 basis points, primarily due to changes in revenue mix and certain software depreciation now reported in cost of services [18][19] - Adjusted net loss was $2 million, while adjusted EBITDA was $3 million [20] Business Line Data and Key Metrics Changes - PeopleReady revenue declined by 5%, driven by reduced client volumes across most verticals and geographies, but skilled businesses grew double digits for the quarter [21][22] - PeopleManagement grew for the second consecutive quarter with revenue up 2%, driven by strong results from the commercial drivers business [22][23] - People Solutions revenue grew by 20%, with HSP contributing 40 percentage points of inorganic growth, offsetting a 20% organic decline [23] Market Data and Key Metrics Changes - Improved on-demand trends were noted in California and Florida, indicating growing momentum as the quarter ended [22] - The company is expanding its presence in the energy sector, particularly in renewable energy and skilled labor, with ongoing infrastructure investments fueling demand [12][53] Company Strategy and Development Direction - The company aims to accelerate digital transformation, grow market share in high-growth end markets, and optimize sales functions while maintaining operational excellence [8][9] - A strategic partnership program has been launched to unlock new client acquisition channels and deepen enterprise client relationships [11] - The company has identified high-potential areas for long-term sustainable growth and has strategically invested to position itself ahead of secular tailwinds [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum and return to company-wide growth expected in the third quarter, driven by cost actions and strategic focus [15][31] - The outlook for the third quarter anticipates revenue growth of 5% to 11% year-over-year, including four percentage points from the acquisition of HSP [25] Other Important Information - The company has simplified its cost structure, achieving approximately $90 million in permanent SG&A savings from the 2022 base [9] - The company reported a net loss of $200,000 for the quarter, which included a noncash intangible asset impairment charge [20] Q&A Session Summary Question: Monthly trends and green shoots - Management noted double-digit growth in skilled businesses and signs of stabilization, with PeopleReady seeing low single-digit weekly sequential revenue growth throughout the quarter [31][32] Question: Unsolicited buyout offer from HireQuest - The board rejected the offer, focusing on maximizing shareholder value and positioning the company to take advantage of market drivers [34][35] Question: Sustaining revenue growth - Management is encouraged by momentum and stabilization, with clients beginning to experience positive trends [40][41] Question: Pricing competition trends - Pay rates increased by 1.2% and bill rates by 1.8%, leading to a 10 basis points improvement in margin, indicating disciplined pricing strategies [42][43] Question: Renewable energy business outlook - The renewable pipeline remains strong, with multiple new deals signed, and the company is focused on expanding into additional energy end markets [52][53]