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View All NewsTrueBlue revenue falls 9%, but within guidance
TrueBlue Inc. (NYSE: TBI) reported revenue fell 9.3% in its fiscal second quarter to $610.1 million, within the guidance of $600 million to $615 million the company released with its first-quarter report.
Revenue fell 5% when excluding Amazon, the company’s largest customer. TrueBlue previously announced cutbacks in the scope of services it would provide Amazon, which contributed $7.6 million in revenue in the quarter ended July 2 compared with $37.2 million in the second quarter of 2016.
The company reported net income of $13.1 million in the second quarter compared to a net loss of $63.7 million in the prior-year period; however, the second quarter of 2016 included a noncash impairment charge of $99 million driven by changes at Amazon.
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Revenue | $610,122 | $672,612 | -9.3% |
| Gross profit | $155,280 | $169,924 | -8.6% |
| Gross margin percentage | 25.5% | 25.3% | |
| Net income/loss | $13,134 | -$63,735 | nm |
TrueBlue transitioned to three go-to-market brands during the fourth quarter and now reports results in three segments instead of two. Staffing services is divided into two segments:
- PeopleReady: Branch-based staffing business comprised of the former Labor Ready, Spartan Staffing and COP brands.
- People Management: Staff Management, Plaintext, Centerline and SIMOS brands, which predominantly operate from customers’ worksites.
- PeopleScout: Recruitment process outsourcing and managed service provider businesses.
Revenue by segment
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| PeopleReady | $370,712 | $406,274 | -8.8% |
| PeopleManagement | $192,887 | $219,344 | -12.1% |
| PeopleScout | $46,523 | $46,994 | -1.0% |
Quote
“Our strategic focus emphasizes pricing discipline over simply expanding market share,” CEO Steve Cooper said. “Combined with our reduction of operating expenses, this is the right approach given the modest demand environment.”
Cooper continued, “We are pleased with our expanding presence in high-growth, high-margin recruitment process outsourcing and productivity-based solutions. We are equally excited about our mobile strategy, which creates a competitively differentiated service offering to drive future growth.”
Guidance
TrueBlue expects fiscal Q3 revenue to range from $645 million to $660 million.
Share price and market cap
Shares in TrueBlue fell 15.99% to $21.47 in late morning trading today. The company had a market cap of $809.656 million, according to Yahoo.