Canada markets closed
  • S&P/TSX

    20,490.36
    -111.74 (-0.54%)
     
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • DOW

    34,584.88
    -166.44 (-0.48%)
     
  • CAD/USD

    0.7832
    -0.0054 (-0.69%)
     
  • CRUDE OIL

    71.96
    -0.65 (-0.90%)
     
  • BTC-CAD

    61,349.32
    -101.18 (-0.16%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • GOLD FUTURES

    1,753.90
    -2.80 (-0.16%)
     
  • RUSSELL 2000

    2,236.87
    +3.96 (+0.18%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • NASDAQ

    15,043.97
    -137.96 (-0.91%)
     
  • VOLATILITY

    20.81
    +2.12 (+11.34%)
     
  • FTSE

    6,963.64
    -63.84 (-0.91%)
     
  • NIKKEI 225

    30,500.05
    +176.71 (+0.58%)
     
  • CAD/EUR

    0.6677
    -0.0021 (-0.31%)
     

TrueBlue Reports Second Quarter 2021 Results

  • Oops!
    Something went wrong.
    Please try again later.
·13 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Strong revenue growth across all segments delivers improving results

TACOMA, Wash., July 26, 2021--(BUSINESS WIRE)--TrueBlue (NYSE:TBI) today announced its second quarter results for 2021.

Second quarter revenue was $516 million, an increase of 44 percent compared to revenue of $359 million in the second quarter of 2020. Net income per diluted share was $0.45 compared to net loss per diluted share of $0.23 in the second quarter of 2020. Second quarter adjusted net income1 per diluted share was $0.47 compared to adjusted net loss per diluted share of $0.12 in the second quarter of 2020.

"The momentum from earlier in the year carried into the second quarter with strong revenue growth across all segments driven by new business wins and higher existing client volumes," said Patrick Beharelle, CEO of TrueBlue. "We are capitalizing on strong demand in the markets and industries we serve and driving improvement in our segment profit margins.

"I’m enthusiastic that our technology strategies will also make our service delivery costs more scalable resulting in a higher EBITDA1 margin during this economic expansion compared to the last cycle," Mr. Beharelle continued. "JobStack continues to be a competitive differentiator for our PeopleReady business as heavy client users show stronger growth compared to the rest of our customer base and now represent 46% of PeopleReady U.S. on-demand revenue. We are excited about the prospects for the remainder of the year and beyond."

2021 Outlook

TrueBlue is providing certain forward-looking information to help investors form their own estimates, which can be found in the quarterly earnings presentation filed today.

Management will discuss second quarter 2021 results on a webcast at 2:30 p.m. PT (5:30 p.m. ET), today, Monday, Jul. 26, 2021. The webcast can be accessed on TrueBlue’s website: www.trueblue.com.

About TrueBlue

TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2020, TrueBlue connected approximately 490,000 people with work. Its PeopleReady segment offers on-demand, industrial staffing, PeopleManagement offers contingent, on-site industrial staffing and commercial driver services, and PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions to a wide variety of industries. Learn more at www.trueblue.com.

1 See the financial statements accompanying the release and the company’s website for more information on non-GAAP terms.

Forward-looking statements

This document contains forward-looking statements relating to our plans and expectations, all of which are subject to risks and uncertainties. Such statements are based on management’s expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, (2) the continued impact of COVID-19 and related economic impact and governmental response, (3) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (4) our ability to attract and retain clients, (5) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (6) our ability to maintain profit margins, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) our ability to successfully execute on business strategies to further digitalize our business model, and (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Any other references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.

In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this document and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.

TRUEBLUE, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

13 weeks ended

26 weeks ended

(in thousands, except per share data)

Jun 27, 2021

Jun 28, 2020

Jun 27, 2021

Jun 28, 2020

Revenue from services

$

515,955

$

358,944

$

974,661

$

853,196

Cost of services

379,487

275,719

727,619

643,812

Gross profit

136,468

83,225

247,042

209,384

Selling, general and administrative expense

110,508

97,200

207,909

214,581

Depreciation and amortization

7,017

7,256

13,979

16,350

Goodwill and intangible asset impairment charge

175,189

Income (loss) from operations

18,943

(21,231

)

25,154

(196,736

)

Interest expense and other income, net

724

(412

)

1,299

(149

)

Income (loss) before tax expense (benefit)

19,667

(21,643

)

26,453

(196,885

)

Income tax expense (benefit)

3,783

(13,475

)

3,671

(38,223

)

Net income (loss)

$

15,884

$

(8,168

)

$

22,782

$

(158,662

)

Net income (loss) per common share:

Basic

$

0.46

$

(0.23

)

$

0.66

$

(4.39

)

Diluted

$

0.45

$

(0.23

)

$

0.65

$

(4.39

)

Weighted average shares outstanding:

Basic

34,818

35,077

34,746

36,166

Diluted

35,352

35,077

35,205

36,166

TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

Jun 27, 2021

Dec 27, 2020

ASSETS

Cash and cash equivalents

$

105,234

$

62,507

Accounts receivable, net

292,731

278,343

Other current assets

34,560

38,035

Total current assets

432,525

378,885

Property and equipment, net

82,079

71,734

Restricted cash and investments

224,649

240,534

Goodwill and intangible assets, net

120,274

123,802

Other assets, net

158,541

165,622

Total assets

$

1,018,068

$

980,577

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts payable and other accrued expenses

$

52,116

$

58,447

Accrued wages and benefits

136,675

122,657

Current portion of workers’ compensation claims reserve

60,032

66,007

Other current liabilities

25,715

21,856

Total current liabilities

274,538

268,967

Workers’ compensation claims reserve, less current portion

194,863

189,486

Other long-term liabilities

83,437

84,934

Total liabilities

552,838

543,387

Shareholders’ equity

465,230

437,190

Total liabilities and shareholders’ equity

$

1,018,068

$

980,577

TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

26 weeks ended

(in thousands)

Jun 27, 2021

Jun 28, 2020

Cash flows from operating activities:

Net income (loss)

$

22,782

$

(158,662

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

13,979

16,350

Goodwill and intangible asset impairment charge

175,189

Allowance for credit losses

2,094

5,923

Stock-based compensation

6,916

4,345

Deferred income taxes

652

(27,049

)

Non-cash lease expense

7,853

7,454

Other operating activities

(1,473

)

2,669

Changes in operating assets and liabilities:

Accounts receivable

(16,486

)

111,803

Income tax receivable

1,103

(7,291

)

Operating lease right-of-use-asset

6,135

Other assets

(2,495

)

4,682

Accounts payable and other accrued expenses

(6,952

)

(22,197

)

Other accrued wages and benefits

11,208

(10,809

)

Deferred employer payroll taxes

2,810

15,730

Workers’ compensation claims reserve

(598

)

(5,668

)

Operating lease liabilities

(6,729

)

(7,643

)

Other liabilities

6,563

(1,344

)

Net cash provided by operating activities

47,362

103,482

Cash flows from investing activities:

Capital expenditures

(19,868

)

(11,641

)

Purchases of restricted available-for-sale investments

(14

)

(1,739

)

Sales of restricted available-for-sale investments

452

2,581

Purchases of restricted held-to-maturity investments

(11,458

)

Maturities of restricted held-to-maturity investments

15,143

16,190

Net cash used in investing activities

(4,287

)

(6,067

)

Cash flows from financing activities:

Purchases and retirement of common stock

(52,346

)

Net proceeds from employee stock purchase plans

538

536

Common stock repurchases for taxes upon vesting of restricted stock

(2,686

)

(1,956

)

Net change in revolving credit facility

7,900

Other

(188

)

(1,344

)

Net cash used in financing activities

(2,336

)

(47,210

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

319

(736

)

Net change in cash, cash equivalents, and restricted cash

41,058

49,469

Cash, cash equivalents and restricted cash, beginning of period

118,612

92,371

Cash, cash equivalents and restricted cash, end of period

$

159,670

$

141,840

TRUEBLUE, INC.

SEGMENT DATA

(Unaudited)

13 weeks ended

(in thousands)

Jun 27, 2021

Jun 28, 2020

Revenue from services:

PeopleReady

$

299,316

$

209,151

PeopleManagement

152,356

118,661

PeopleScout

64,283

31,132

Total company

$

515,955

$

358,944

Segment profit (loss) (1):

PeopleReady

$

18,437

$

633

PeopleManagement

3,221

1,803

PeopleScout

10,857

(2,782

)

Total segment profit (loss)

32,515

(346

)

Corporate unallocated expense

(7,307

)

(4,929

)

Total company Adjusted EBITDA (2)

25,208

(5,275

)

Work Opportunity Tax Credit processing fees (3)

(30

)

Amortization of software as a service assets (4)

(646

)

(565

)

Workforce reduction costs (5)

(14

)

(11,011

)

COVID-19 government subsidies

2,296

3,104

Other adjustments, net (6)

(854

)

(228

)

EBITDA (2)

25,960

(13,975

)

Depreciation and amortization

(7,017

)

(7,256

)

Interest expense and other income, net

724

(412

)

Income (loss) before tax (expense) benefit

19,667

(21,643

)

Income tax (expense) benefit

(3,783

)

13,475

Net income (loss)

$

15,884

$

(8,168

)

(1)

We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing.

(2)

See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA.

(3)

These third-party processing fees are associated with generating the Work Opportunity Tax Credits, which are designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates.

(4)

Amortization of software as a service assets is reported in selling, general and administrative expense.

(5)

Workforce reduction costs for the 13 weeks ended June 28, 2020 were primarily due to employee reductions as part of our cost management actions in response to COVID-19 ($3.0 million in cost of services and $8.0 million in selling, general and administrative expense).

(6)

Other adjustments for the 13 weeks ended June 27, 2021 primarily include redundant lease expense of $0.8 million incurred while transitioning into our new Chicago office. Other adjustments also include implementation costs for cloud-based systems of $0.1 million for all periods presented.

TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS

In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.

Non-GAAP measure

Definition

Purpose of adjusted measures

EBITDA and
Adjusted EBITDA

EBITDA excludes from net income (loss):

- interest expense and other income, net,

- income taxes, and

- depreciation and amortization.

Adjusted EBITDA, further excludes:

- Work Opportunity Tax Credit third-party processing fees,

- amortization of software as a service assets,

- workforce reductions costs,

- COVID-19 government subsidies, and

- other adjustments, net.

- Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

- Used by management to assess performance and effectiveness of our business strategies.

- Provides a measure, among others, used in the determination of incentive compensation for management.

Adjusted net income (loss)
and Adjusted net income
(loss) per diluted share

Net income (loss) and net income (loss) per diluted share, excluding:

- amortization of intangibles of acquired businesses,

- amortization of software as a service assets,

- workforce reduction costs,

- COVID-19 government subsidies

- other adjustments, net,

- tax effect of each adjustment to U.S. GAAP

- Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

- Used by management to assess performance and effectiveness of our business strategies.

1.

RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE
(Unaudited)

13 weeks ended

(in thousands, except for per share data)

Jun 27, 2021

Jun 28, 2020

Net income (loss)

$

15,884

$

(8,168

)

Amortization of intangible assets of acquired businesses

1,810

2,071

Amortization of software as a service assets (1)

646

565

Workforce reduction costs (2)

14

11,011

COVID-19 government subsidies

(2,296

)

(3,104

)

Other adjustments, net (3)

854

228

Tax effect of adjustments to net income (loss) (4)

(449

)

(6,706

)

Adjusted net income (loss)

$

16,463

$

(4,103

)

Adjusted net income (loss) per diluted share

$

0.47

$

(0.12

)

Diluted weighted average shares outstanding

35,352

35,077

2.

RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(Unaudited)

13 weeks ended

(in thousands)

Jun 27, 2021

Jun 28, 2020

Net income (loss)

$

15,884

$

(8,168

)

Income tax expense (benefit)

3,783

(13,475

)

Interest expense and other (income), net

(724

)

412

Depreciation and amortization

7,017

7,256

EBITDA

25,960

(13,975

)

Work Opportunity Tax Credit processing fees (5)

30

Amortization of software as a service assets (1)

646

565

Workforce reduction costs (2)

14

11,011

COVID-19 government subsidies

(2,296

)

(3,104

)

Other adjustments, net (3)

854

228

Adjusted EBITDA

$

25,208

$

(5,275

)

(1)

Amortization of software as a service assets is reported in selling, general and administrative expense.

(2)

Workforce reduction costs for the 13 weeks ended June 28, 2020 were primarily due to employee reductions as part of our cost management actions in response to COVID-19 ($3.0 million in cost of services and $8.0 million in selling, general and administrative expense).

(3)

Other adjustments for the 13 weeks ended June 27, 2021 primarily include redundant lease expense of $0.8 million incurred while transitioning into our new Chicago office. Other adjustments also include implementation costs for cloud-based systems of $0.1 million for all periods presented.

(4)

Total tax effect of each of the adjustments to U.S. GAAP net income (loss) using the expected income tax rate of 14 percent for 2021 and the effective income tax rate of 62 percent for Q2 2020.

(5)

These third-party processing fees are associated with generating the Work Opportunity Tax Credits, which are designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005503/en/

Contacts

Derrek Gafford, Executive Vice President and CFO
253-680-8214

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting