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View All NewsTrueBlue CEO cites slower pace of demand; Q2 revenue lower, but net income up
TrueBlue Inc.’s (NYSE: TBI) revenue fell 4.2% in the second quarter, the Tacoma, Washington-based staffing provider reported Monday.
“We experienced a slower pace of demand this quarter attributable to lower volumes with the businesses of our clients,” CEO Patrick Beharelle said in a statement.
However, Beharelle noted net income rose. In addition, its PeopleReady division reported 980,000 shifts filled through its JobStack app in the second quarter.
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Revenue | $588,594 | $614,301 | -4.2% |
| Gross profit | $158,317 | $165,584 | -4.4% |
| Gross margin percentage | 26.9% | 27.0% | |
| Net income | $19,406 | $17,732 | 9.4% |
Revenue fell in TrueBlue’s PeopleReady and PeopleManagement business lines. PeopleManagement faced headwinds from the loss of Amazon’s Canadian business in the third quarter of last year and volume/price reductions at another retail client.
At PeopleScout, a provider of MSP and RPO services, revenue rose 13.4% but was down 4% on an organic basis.
Revenue by segment
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| PeopleReady | $369,261 | $377,460 | -2.2% |
| PeopleManagement | $153,530 | $178,839 | -14.2% |
| PeopleScout | $65,803 | $58,002 | 13.4% |
Guidance
TrueBlue forecast third-quarter revenue of $613 million to $638 million, representing a decline of 10% to 6%.
Share price and market cap
Shares in TrueBlue were down 13.24% to $19.53 as of 11:03 a.m. Eastern time; the company had a market cap of $903.8 million, according to FT.com.