TrueBlue Inc (TBI) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

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  • Revenue: $370 million, a decline of 8% year-over-year.

  • Gross Margin: 23.3%, down 140 basis points.

  • Net Loss: $14 million for the quarter.

  • Adjusted Net Loss: $12 million.

  • Adjusted EBITDA: Minus $4 million.

  • SG&A Reduction: Reduced by 12%.

  • PeopleSolutions Revenue: Declined 2%, with 24-percentage-points of inorganic growth from HSP.

  • PeopleReady Revenue: Declined 15%.

  • PeopleManagement Revenue: Increased by 1%.

  • Cash and Debt: $23 million in cash and $58 million in debt.

  • 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

  • TrueBlue Inc (NYSE:TBI) achieved revenue of $370 million for the quarter, reaching the high end of their outlook range.

  • The company secured a new engagement with a global logistics company, replacing over 35 vendors and enhancing efficiencies.

  • TrueBlue Inc (NYSE:TBI) is expanding its presence in high-growth and underpenetrated markets, particularly in healthcare, with the acquisition of Healthcare Staffing Professionals.

  • The PeopleScout business has shown momentum with new business wins in professional roles across various industries.

  • The Centerline commercial drivers business delivered its third consecutive quarter of double-digit revenue growth.

Negative Points

  • Total revenue for the quarter declined by 8% year-over-year, reflecting subdued market demand.

  • Gross margin decreased by 140 basis points due to changes in revenue mix and pricing pressures.

  • The company reported a net loss of $14 million for the quarter, with no significant income tax benefit on US operations.

  • PeopleReady revenue declined by 15%, with significant reductions in client volumes across most verticals.

  • 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.