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View All NewsTrueBlue Q2 revenue bolstered by Seaton acquisition
Industrial staffing provider TrueBlue Inc. (NYSE: TBI) reported second-quarter revenue rose 38.5% to $627.7 million, benefitting from its June 2014 acquisition of Seaton, one of the largest US staffing firms. However, revenue edged up only 1.4% year over year when excluding the $168.0 million in revenue from Seaton.
Second-quarter revenue was at the low end of $627 million to $642 million guidance the company released with its first-quarter report. In a conference call with investors, CEO Steve Cooper attributed the revenue shortfall primarily to one customer during the quarter. The shortfall has now dissipated and is not expected to impact the firm’s trends in the third quarter, he said.
Look for more acquisitions from TrueBlue going forward. CFO Derrek Gafford said strategic acquisitions will play a big role in TrueBlue’s growth strategy and the firm sees an ample pipeline of opportunities. International RPO is its top priority, followed by industrial staffing businesses specializing in skilled trades positions and light industrial acquisitions, respectively.
TrueBlue ranks eighth on Staffing Industry Analysts’ 2015 list of largest US staffing firms, and first on this year’s list of largest industrial staffing firms.
| (US$ thousands) | Q2 2015 | Q2 2014 | % growth |
| Revenue from services-Total company | $627,714 | $453,227 | 38.5% |
| Revenue from services-Legacy TrueBlue | $459,707 | $453,227 | 1.4% |
| Revenue from services-Seaton | $168,007 | - | - |
| Gross profit | $151,966 | $119,583 | 27.1% |
| Gross margin percentage | 24.2% | 26.4% | |
| Net income | $17,273 | $16,082 | 7.4% |
Quote
“During the quarter, we saw solid demand for both our legacy staffing and acquired brands,” said CEO Steve Cooper. “The addition of Staff Management|SMX, PeopleScout and HRX has grown TrueBlue’s client list by providing customers with workforce management and recruiting process outsourcing (RPO) solutions with worldwide capabilities.”
“We are seeing the benefits of our strategic acquisitions, which are complementing the demand for our core business,” Cooper said. “The end of the second quarter marked the one-year anniversary of the acquisition of Seaton, and as we look back at it a year later, we are extremely pleased with every aspect of the acquisition. PeopleScout, Staff Management|SMX and HRX met all performance expectations while adding top talent and expanding our technological capabilities.”
Guidance
TrueBlue estimates third-quarter revenue to range from $658 million to $673 million.
Share price and market cap
Shares in TrueBlue fell 10.57% in early afternoon trading today to $25.31. The company has a market cap of approximately $1.06 billion, according to Yahoo!