In This Article:
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Revenue: $370 million, a decline of 8% year-over-year.
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Gross Margin: 23.3%, down 140 basis points.
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Net Loss: $14 million for the quarter.
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Adjusted Net Loss: $12 million.
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Adjusted EBITDA: Minus $4 million.
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SG&A Reduction: Reduced by 12%.
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PeopleSolutions Revenue: Declined 2%, with 24-percentage-points of inorganic growth from HSP.
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PeopleReady Revenue: Declined 15%.
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PeopleManagement Revenue: Increased by 1%.
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Cash and Debt: $23 million in cash and $58 million in debt.
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Total Liquidity: $94 million.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TrueBlue Inc (NYSE:TBI) achieved revenue of $370 million for the quarter, reaching the high end of their outlook range.
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The company secured a new engagement with a global logistics company, replacing over 35 vendors and enhancing efficiencies.
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TrueBlue Inc (NYSE:TBI) is expanding its presence in high-growth and underpenetrated markets, particularly in healthcare, with the acquisition of Healthcare Staffing Professionals.
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The PeopleScout business has shown momentum with new business wins in professional roles across various industries.
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The Centerline commercial drivers business delivered its third consecutive quarter of double-digit revenue growth.
Negative Points
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Total revenue for the quarter declined by 8% year-over-year, reflecting subdued market demand.
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Gross margin decreased by 140 basis points due to changes in revenue mix and pricing pressures.
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The company reported a net loss of $14 million for the quarter, with no significant income tax benefit on US operations.
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PeopleReady revenue declined by 15%, with significant reductions in client volumes across most verticals.
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Economic uncertainty and evolving governmental policies continue to suppress the staffing industry, impacting business confidence.
Q & A Highlights
Q: How did each month of the quarter perform, and were there any noticeable trends? A: Taryn Owen, President and CEO, noted that PeopleManagement returned to growth in Q1 with annualized wins over $35 million. Positive trends were observed in PeopleReady, with efforts to drive growth by taking market share. Carl Schweihs, CFO, added that more geographies showed growth, with one-third of states returning to growth in March. PeopleReady exited March at minus 8%, and PeopleManagement at plus 4%, with similar trends continuing into April.
Q: How is the new strategy of adding field sales reps for PeopleReady performing? A: Taryn Owen stated that the first wave of new PeopleReady field sales reps joined in Q1, with plans to expand the sales team by 50% by the end of Q2. Carl Schweihs added that sales-enabled territories outperformed the rest of the business by several points in Q1, with this trend continuing into April.