Second-quarter revenue rose 7.2% at TrueBlue Inc. (NYSE: TBI), but the industrial staffing, MSP and RPO firm posted a net loss of $63.7 million after it reported a noncash impairment charge of $99 million. The impairment was driven by changes at its largest customer, Amazon.

TrueBlue reported in April that Amazon planned to reduce the use of contingent labor at its warehouse fulfillment centers in the US and realign its use of contingent labor vendors. Amazon represented $354 million in revenue last year, 13% of total TrueBlue revenue.

The company also reported that, on an organic basis, second-quarter revenue fell 1%. TrueBlue got a boost from acquisitions. It acquired SIMOS Insourcing Solutions in December for $67.5 million in cash plus an earn-out of up to $22.5 million, and it acquired Aon Hewitt’s RPO business in January for $72 million in cash. Excluding the impacts acquisitions and Amazon, revenue rose 2%.

Acquisitions also boosted gross margin.

Quote

“Although we reported a net loss in the quarter due to the impairment, adjusted EBITDA results exceeded our expectation,” TrueBlue CEO Steve Cooper said. “Revenue trends have been mixed this year, but we have managed our costs and are pleased with how our teams have continued to improve the spread between our bill rates and pay rates. We are taking the right steps to preserve our profit margin and continue producing long-term growth for shareholders.”

Revenue by segment

Guidance

TrueBlue forecast third-quarter revenue to rise 5% to 7% on a year-over-year basis.

Share price and market cap

Shares in TrueBlue rose 11.65% to $22.90 in early afternoon trading. The company had a market cap of $888.78 million.