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View All NewsTrueBlue: Clients conservative in use of services amid uncertainty , Q4 revenue falls 9%
TrueBlue Inc. (NYSE: TBI) reported on Wednesday that revenue fell 9.1% in the fourth quarter. Revenue was down across business lines at the firm, which is based in Tacoma, Washington, but has global operations.
“Clients were conservative in the use of our services during the fourth quarter in light of softness in their own business volumes and continued economic uncertainty, particularly in industries associated with physical goods,” CEO Patrick Beharelle.
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| Revenue | $591,040 | $650,147 | -9.1% |
| Gross profit | $150,343 | $172,430 | -12.8% |
| Gross margin percentage | 25.4% | 26.5% | |
| Net income | $8,715 | $14,887 | -41.5% |
TrueBlue noted its JobStack online platform has filled six million shifts since its inception. In the fourth quarter, JobStack filled 875,000 shifts, down from 877,000 in the fourth quarter of 2018.
Revenue by segment
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| PeopleReady | $364,801 | $399,116 | -8.6% |
| PeopleManagement | $171,344 | $184,324 | -7.0% |
| PeopleScout | $54,895 | $66,707 | -17.7% |
TrueBlue’s PeopleScout division provides RPO services; revenue fell 17.7% in this division. TrueBlue reported it plans to leverage expanded capabilities in the UK to compete for global opportunities.
PeopleReady provides general and skilled labor for industrial jobs, and revenue fell 8.6% in this segment. PeopleManagement provides contingent, on-site industrial staffing and commercial driver services.
Full-year results
| (US$ thousands) | 2019 | 2018 | % change |
| Revenue from services | $2,368,779 | $2,499,207 | -5.2% |
| Gross profit | $626,158 | $665,600 | -5.9% |
| Gross margin percentage | 26.4% | 26.6% | |
| Net income/loss | $63,073 | $65,754 | -4.1% |
Guidance
TrueBlue forecast total revenue to be down 9% to down 4% to between $503 million and $528 million in the first quarter.
Share price and market cap
Shares in TrueBlue were down 25.0% to $17.22 as of 11:28 a.m. Eastern time; the company had a market cap of $894.4 million, according to FT.com.