TrueBlue, Inc. Q4 FY2024 earnings call

• 2024 was challenging but team navigated with agility; focused on short-duration/flexible solutions and client relationships.
• Achieved digital transformation milestone with JobStack app launch; proprietary tech like Affinix and JobStack driving innovation.
• Focused on expanding in high-growth markets, skilled trades, health care, and professional services; acquired Health care Staffing Professionals.
• Simplified organizational structure to create efficiencies and drive cross-selling.

PeopleReady: Revenue decreased 21% on a comparable 13-week basis, with reported revenue decline of 27%. Segment profit margin was up 80 basis points. PeopleScout: Revenue decreased 30% on a comparable 13-week basis, reported decline of 31%, segment profit margin down 220 basis points. PeopleManagement: Revenue decreased 2% on a comparable 13-week basis, reported decline of 9%, segment profit margin up 220 basis points.

• First quarter revenue decline expected 13% to 7%, including 1% headwind from Canada sale and 3% inorganic growth from HSP acquisition.
• SG&A expected $93 to $97 million, an improvement from prior year.

• Market uncertainty and caution in staffing industry with reduced business spend and curbed hiring trends.
• Pricing pressures consistent with market environment.
• Software depreciation impact on margins.
• Valuation allowance on U.S. deferred tax assets with no impact on operations, liquidity, or debt covenants.

Q: Congrats on HSP acquisition, details on revenue growth expectations?

A: HSP expected to produce segment profit $5 to $7 million over next 12 months, revenue $75-$85 million.

Q: PeopleReady regional differences and improvement?

A: California, Texas trends aligned; Florida improved in Q4; southern border states and some regions showing growth.

Q: Progress with JobStack rollout?

A: JobStack has ReadyMatch, digital onboarding, and customer/associate referral program to enhance efficiency and customer experience.