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TrueBlue revenue down 3% in fourth quarter, but PeopleReady returns to growth

February 08 2019

Fourth-quarter revenue fell 2.9% at TrueBlue Inc. (NYSE: TBI). However, CEO Patrick Beharelle noted the company’s PeopleReady business, which provides industrial staffing, returned to revenue growth.

In addition, revenue in TrueBlue’s PeopleScout business, which provides MSP and RPO services, rose 31.5%. The company also noted that total fourth-quarter revenue was roughly flat, up 0.3%, on an organic basis excluding PlaneTechs, which the company sold last March, and Amazon’s Canadian business, which ended last September.

Beharelle also noted some revenue and pricing headwinds ahead with certain clients.

(US$ thousands) Q4 2018 Q4 2017 % change
Revenue $650,147 $669,625 -2.9%
Gross profit $172,430 $167,745 2.8%
Gross margin percentage 26.5% 25.1%  
Net income $14,887 $16,427 -9.4%

PeopleScout led growth; however, revenue fell in TrueBlue’s PeopleManagement division.

Revenue by segment

(US$ thousands) Q4 2018 Q4 2017 % change
PeopleReady $399,116 $393,029 1.5%
PeopleManagement $184,324 $225,865 -18.4%
PeopleScout $66,707 $50,731 31.5%

Quote

“Looking forward to the first quarter of 2019, we expect some revenue and pricing headwinds with certain clients in PeopleManagement and PeopleScout,” Beharelle said. “Despite the near-term challenges, we believe that we have the right focus and strategies for long-term growth. We continue to see a positive demand environment for our services and expect increased demand for PeopleReady services in the first quarter.”

Full-year results

(US$ thousands) 2018 2017 % change
Revenue from services $2,499,207 $2,508,771 -0.4%
Gross profit $665,600 $634,473 4.9%
Gross margin percentage 26.6% 25.3%  
Net income/loss $65,754 $55,456 18.6%

Guidance

TrueBlue forecast first-quarter revenue of between $552.0 million and $569.0 million, a year-over-year decrease of 0.4% to a year-over-year increase of 2.6%.

Share price and market cap

Shares in TrueBlue were down 10.16% to $22.20 as of 12:39 p.m. Eastern time; the company had a market cap of $1.00 billion, according to FT.com.

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