TrueBlue, Inc. Q3 FY2024 earnings call

• Market conditions are challenging with revenue down 19% due to client caution and reduced hiring trends. Teams are focusing on short-duration and flexible solutions and new relationships. - Digital transformation: Successfully rolled out the proprietary JobStack app ahead of year-end goal, using real-time insights for enhancements. - Expansion in high-growth markets: Continued growth in commercial driving services, healthy renewable energy pipeline, and RPO into higher skilled placements. - Organizational simplification: Reduced SG&A by 17%, streamlining structure to align with demand and improve efficiencies.

PeopleReady revenue decreased 24%, including 2 points from the sale of the on-demand business in Canada, and segment profit margin was down 200 basis points. PeopleScout revenue decreased 31% with segment profit margin down 490 basis points, impacted by lower client volumes and loss of a large hospitality client. PeopleManagement revenue decreased 5% while segment profit margin was up 90 basis points, with double-digit growth in commercial driving services offsetting lower on-site client volumes. Revenue contribution details: PeopleReady, PeopleScout, and PeopleManagement each had their respective financial performances as described.

• Expected Q4 revenue decline: 24% to 18%, including headwinds from extra 14th week in prior year and sale of Canada on-demand business. - SG&A expected to be $98M to $102M, a reduction from prior year. - Profitability is expected to improve with the lean cost structure and efficiencies as demand rebounds.

• Market uncertainty causing reduced business spend and hiring trends. - Fluctuations in client volumes in renewable energy projects. - Immediate negative impact of hurricanes on operations, though potential net neutral/positive long-term from cleanup efforts.

Q: Feel for customer count movement, customer wins, retention?

A: Taryn Owen mentioned continued customer count growth in PeopleReady, nearly doubled new annualized wins in PeopleScout, and double-digit new wins year-to-date in PeopleManagement, positioning for growth when volumes return.

Q: Revenue growth by segment, bill pay spreads?

A: Carl Schweihs provided Q4 guidance on segment growth rates (TrueBlue, PeopleReady, etc.) and noted pay rates up 1.5%, bill rates up 0.2% in PeopleReady, leading to margin decline.

Q: Hurricane impacts, renewables business?

A: Taryn and Carl discussed hurricane cleanup efforts, quick resumption of operations, and strong renewables pipeline with new wins.

Q: Leverage, JobStack?

A: Carl Schweihs discussed incremental margin potential with revenue growth, and Taryn Owen talked about JobStack's successful rollout and initial positive momentum.

Q: Bright spots, industry sectors?

A: Taryn Owen highlighted renewables, skilled trucking, healthcare, and RPO into higher skilled placements as bright spots