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View All NewsTrueBlue revenue edges up 1% in second quarter with growth in PeopleScout, the MSP and RPO unit
TrueBlue Inc. (NYSE: TBI) reported revenue edged up 0.7% in the second quarter. Organic revenue increased by 2% when excluding the divested PlaneTechs business, which TrueBlue sold in March to Launch Technical Workforce Solutions for $11.4 million.
Separately, TrueBlue also announced that President and COO Patrick Beharelle is being promoted to the role of president and CEO.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue | $614,301 | $610,122 | 0.7% |
| Gross profit | $165,584 | $155,280 | 6.6% |
| Gross margin percentage | 27.0% | 25.5% | |
| Net income | $17,732 | $13,134 | 35.0% |
Revenue declined in TrueBlue’s PeopleManagement segment but edged up in its PeopleReady division. The company’s PeopleScout segment, which includes its RPO and MSP business lines, posted double-digit increase in revenue for the fourth consecutive quarter.
The revenue decline at PeopleManagement was attributed to lower production volume with select clients. The increase at PeopleReady was broad-based, driven by a consistent focus on business development activity.
Revenue by segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| PeopleReady | $377,460 | $370,712 | 1.8% |
| PeopleManagement | $178,839 | $192,887 | -7.3% |
| PeopleScout | $58,002 | $46,523 | 24.7% |
Amazon this month notified TrueBlue that it will take its Canadian business in-house effective this September, mirroring the shift it made in its US operations in 2016, Beharelle said in the second-quarter conference call with investors. Amazon is already a much smaller portion of TrueBlue’s business than it was in 2016, and no single client now represents more than 3% of total company revenue on a trailing-twelve-months basis, Beharelle said.
Quote
“We made strong progress advancing our key strategies,” said CEO Steve Cooper. “We acquired TMP Holdings in the United Kingdom, the world’s second largest RPO market. This acquisition increases our ability to win multi-continent engagements by adding a physical presence in Europe, referenceable clients and employer branding capabilities. On the technology front, JobStack, our PeopleReady mobile staffing technology, is transforming how people find work and how businesses find people. Affinix, our PeopleScout proprietary talent acquisition technology, is receiving praise from customers and a high level of interest from prospective clients.”
Guidance
TrueBlue estimates third-quarter revenue to range from $662 million to $677 million, a year-over-year increase of 0.2% to 2.5%.
Share price and market cap
Shares in TrueBlue rose 0.73% to $27.50 as of 12:48 p.m. Eastern time. The company had a market cap of $1.09 billion.