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View All NewsTrueBlue revenue edges down but PeopleScout division up 26%
First-quarter revenue edged down 0.4% at TrueBlue Inc. (NYSE: TBI). However, gross margin improved and CEO Patrick Beharelle noted the company’s PeopleReady business, which provides industrial staffing, posted its fourth consecutive quarter of revenue growth.
Revenue in TrueBlue’s PeopleScout business, which provides MSP and RPO services, rose 25.7% to $67.4 million.
| (US$ thousands) | Q1 2019 | Q1 2018 | % change |
| Revenue | $552,352 | $554,388 | -0.4% |
| Gross profit | $148,376 | $143,268 | 3.6% |
| Gross margin percentage | 26.9% | 25.8% | |
| Net income | $8,276 | $8,755 | -5.5% |
PeopleScout led growth, while revenue fell in TrueBlue’s PeopleManagement division.
Revenue by segment
| (US$ thousands) | Q1 2019 | Q1 2018 | % change |
| PeopleReady | $326,868 | $316,835 | 3.2% |
| PeopleManagement | $158,044 | $183,892 | -14.1% |
| PeopleScout | $67,440 | $53,661 | 25.7% |
Beharelle noted “challenging” weather conditions but said bottom-line results still exceeded the firm’s expectations.
Quote
“We see a favorable market for human capital services and are pleased with both the progress and opportunity associated with our strategies,” Beharelle said. “Our JobStack and Affinix technologies are leading our business into a digital future. JobStack dispatches continue to increase and we are accelerating our deployment of Affinix. We remain focused on organic growth, disciplined cost management, and returning capital to shareholders.”
Guidance
TrueBlue forecast second-quarter revenue will range from $606 million to $623 million, a year-over-year decrease of 1.4% to a year-over-year increase of 1.4%.
Share price and market cap
Shares in TrueBlue were down 7.01% to $23.73 as of 11:37 a.m. Eastern time; the company had a market cap of $1.03 billion, according to FT.com.