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View All NewsTrueBlue revenue declines in Q4 despite increase in PeopleScout, which includes RPO & MSP
TrueBlue Inc. (NYSE: TBI) reported revenue fell 8.8% in its fiscal fourth quarter. However, the fourth quarter of 2016 had more days than the fourth quarter of 2017, and the year-over-year decrease in revenue was 1.6% on a comparable basis. And while revenue fell in the company’s PeopleReady and PeopleManagement segments, it rose in the company’s PeopleScout segment, which includes RPO and MSP business lines.
| (US$ thousands) | Q4 2017 | Q4 2016 | % change |
| Revenue | $669,625 | $734,951 | -8.9% |
| Gross profit | $167,745 | $180,887 | -7.3% |
| Gross margin percentage | 25.1% | 24.6% | |
| Net income | $16,427 | $18,087 | -9.2% |
Revenue by segment
| (US$ thousands) | Q4 2017 | Q4 2016 | % change | % change comparable period |
| PeopleReady | $393,029 | $431,388 | -8.9% | -0.7% |
| PeopleManagement | $225,865 | $257,848 | -12.4% | -6.3% |
| PeopleScout | $50,731 | $45,715 | 11.0% | 15.1% |
Quote
“The pace of business is rapidly evolving, particularly when it comes to talent acquisition and workforce management,” CEO and Director Steven Cooper said in a conference call with investors. “Widespread skills shortages, the need for just-in-time workforce adjustments, and a tight labor market in which workers can choose from many offers are making it increasingly difficult to get the right worker in the right position at the right time. Job candidates are also demanding greater flexibility, and are increasingly turning to technology to find the work they want, when they want it.”
Full-year results
| (US$ thousands) | 2017 | 2016 | % change |
| Revenue from services | $2,508,771 | $2,750,640 | -8.8% |
| Gross profit | $634,473 | $679,718 | -6.7% |
| Gross margin percentage | 25.3% | 24.7% | |
| Net income/loss | $55,456 | ($15,251) | nm |
Guidance
TrueBlue expects first-quarter revenue will range from a decline of 2% to an increase of 1%. The company estimates its historical effective income tax rate of 28% will drop to roughly 16% in fiscal 2018 and 2019 as a result of recent tax reform legislation.
Share price and market cap
Shares in TrueBlue rose 3.47% to $26.80 as of 1:38 p.m. Eastern time. The company had a market cap of $982.85 million.