COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 25, 2023 | Jul. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-14543 | |
Entity Registrant Name | TrueBlue, Inc. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1287341 | |
Entity Address, Address Line One | 1015 A Street | |
Entity Address, City or Town | Tacoma | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98402 | |
City Area Code | 253 | |
Local Phone Number | 383-9101 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | TBI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock Shares Outstanding (in shares) | 31,004,802 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000768899 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 49,653 | $ 72,054 |
Accounts receivable, net of allowance of $3,493 and $3,212 | 267,949 | 314,275 |
Prepaid expenses and other current assets | 22,825 | 32,530 |
Income tax receivable | 13,407 | 11,353 |
Total current assets | 353,834 | 430,212 |
Property and equipment, net | 100,277 | 95,823 |
Restricted cash and investments | 206,106 | 213,734 |
Deferred income taxes, net | 25,830 | 25,842 |
Goodwill | 85,049 | 93,784 |
Intangible assets, net | 13,161 | 16,205 |
Operating lease right-of-use assets, net | 52,961 | 50,823 |
Workers’ compensation claims receivable, net | 70,704 | 75,185 |
Other assets, net | 16,935 | 17,800 |
Total assets | 924,857 | 1,019,408 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 48,555 | 76,644 |
Accrued wages and benefits | 82,961 | 92,237 |
Income tax payable | 157 | 1,137 |
Current portion of workers’ compensation claims reserve | 44,840 | 50,005 |
Current operating lease liabilities | 12,268 | 11,963 |
Other current liabilities | 10,422 | 10,889 |
Total current liabilities | 199,203 | 242,875 |
Workers’ compensation claims reserve, less current portion | 186,271 | 201,005 |
Long-term deferred compensation liabilities | 31,031 | 26,213 |
Long-term operating lease liabilities | 52,408 | 50,601 |
Other long-term liabilities | 1,899 | 2,399 |
Total liabilities | 470,812 | 523,093 |
Commitments and contingencies (Note 8) | ||
Shareholders’ equity: | ||
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, no par value, 100,000 shares authorized; 30,996 and 32,730 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (19,765) | (20,018) |
Retained earnings | 473,809 | 516,332 |
Total shareholders’ equity | 454,045 | 496,315 |
Total liabilities and shareholders’ equity | $ 924,857 | $ 1,019,408 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 3,493 | $ 3,212 |
Preferred stock, par value (in dollars per share) | $ 0.131 | $ 0.131 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 30,996,000 | 32,730,000 |
Common stock, shares outstanding (in shares) | 30,996,000 | 32,730,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 475,588 | $ 569,253 | $ 940,876 | $ 1,120,768 |
Cost of services | 345,097 | 410,722 | 687,272 | 822,392 |
Gross profit | 130,491 | 158,531 | 253,604 | 298,376 |
Selling, general and administrative expense | 121,282 | 122,034 | 243,927 | 242,602 |
Depreciation and amortization | 6,280 | 7,245 | 12,691 | 14,532 |
Goodwill and intangible asset impairment charge | 9,485 | 0 | 9,485 | 0 |
Income (loss) from operations | (6,556) | 29,252 | (12,499) | 41,242 |
Interest and other income (expense), net | 578 | (110) | 1,592 | 395 |
Income (loss) before tax expense | (5,978) | 29,142 | (10,907) | 41,637 |
Income tax expense (benefit) | 1,345 | 5,129 | 705 | 7,105 |
Net income (loss) | $ (7,323) | $ 24,013 | $ (11,612) | $ 34,532 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.24) | $ 0.73 | $ (0.37) | $ 1.04 |
Diluted (in dollars per share) | $ (0.24) | $ 0.72 | $ (0.37) | $ 1.02 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 30,966 | 32,707 | 31,629 | 33,318 |
Diluted (in shares) | 30,966 | 33,149 | 31,629 | 33,832 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | $ 506 | $ (1,724) | $ 253 | $ (1,597) |
Comprehensive income (loss) | $ (6,817) | $ 22,289 | $ (11,359) | $ 32,935 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2023 | Jun. 26, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (11,612) | $ 34,532 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 12,691 | 14,532 |
Goodwill and intangible asset impairment charge | 9,485 | 0 |
Provision for credit losses | 2,408 | 2,572 |
Stock-based compensation | 5,294 | 4,487 |
Deferred income taxes | (22) | 2,117 |
Non-cash lease expense | 6,249 | 6,518 |
Other operating activities | (1,099) | 6,752 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 43,915 | 12,524 |
Income taxes receivable and payable | (3,039) | (3,549) |
Other assets | 15,053 | (8,486) |
Accounts payable and other accrued expenses | (26,968) | (10,629) |
Accrued wages and benefits | (9,277) | (14,638) |
Workers’ compensation claims reserve | (19,899) | 11,404 |
Operating lease liabilities | (6,295) | (6,441) |
Other liabilities | 3,980 | 1,407 |
Net cash provided by operating activities | 20,864 | 53,102 |
Cash flows from investing activities: | ||
Capital expenditures | (15,738) | (13,992) |
Payments for company-owned life insurance | (2,347) | 0 |
Purchases of restricted held-to-maturity investments | (9,955) | (4,950) |
Maturities of restricted held-to-maturity investments | 15,613 | 17,826 |
Net cash used in investing activities | (12,427) | (1,116) |
Cash flows from financing activities: | ||
Purchases and retirement of common stock | (34,200) | (60,939) |
Net proceeds from employee stock purchase plans | 509 | 536 |
Common stock repurchases for taxes upon vesting of restricted stock | (2,514) | (4,132) |
Other | (91) | (147) |
Net cash used in financing activities | (36,296) | (64,682) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (20) | (494) |
Net change in cash, cash equivalents and restricted cash | (27,879) | (13,190) |
Cash, cash equivalents and restricted cash, beginning of period | 135,631 | 103,185 |
Cash, cash equivalents and restricted cash, end of period | 107,752 | 89,995 |
Supplemental Disclosure of Cash Flow Information [Abstract] | ||
Interest | 453 | 452 |
Income taxes | 3,760 | 8,413 |
Operating lease liabilities | 7,793 | 7,925 |
Property and equipment purchased but not yet paid | 3,345 | 3,385 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 8,124 | $ 4,852 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 25, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 25, 2022. The results of operations for the twenty-six weeks ended June 25, 2023 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 25, 2023 that had a material impact on our financial statements. Recently issued accounting standards not yet adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 25, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Assets measured at fair value on a recurring basis Our assets measured at fair value on a recurring basis consisted of the following: June 25, 2023 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 49,653 $ 49,653 $ — $ — Restricted cash and cash equivalents 58,099 58,099 — — Cash, cash equivalents and restricted cash (1) $ 107,752 $ 107,752 $ — $ — Municipal debt securities $ 35,989 $ — $ 35,989 $ — Corporate debt securities 71,897 — 71,897 — Agency mortgage-backed securities 4,570 — 4,570 — U.S. government and agency securities 943 — 943 — Restricted investments classified as held-to-maturity (2) $ 113,399 $ — $ 113,399 $ — December 25, 2022 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 72,054 $ 72,054 $ — $ — Restricted cash and cash equivalents 63,577 63,577 — — Cash, cash equivalents and restricted cash (1) $ 135,631 $ 135,631 $ — $ — Municipal debt securities $ 42,431 $ — $ 42,431 $ — Corporate debt securities 76,097 — 76,097 — Agency mortgage-backed securities 48 — 48 — U.S. government and agency securities 949 — 949 — Restricted investments classified as held-to-maturity (2) $ 119,525 $ — $ 119,525 $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3: Restricted Cash and Investments for additional details on our held-to-maturity debt securities. Assets measured at fair value on a nonrecurring basis In addition to assets that are recorded at fair value on a recurring basis, annual and interim impairment tests may subject our reporting units with goodwill and other intangible assets to nonrecurring fair value measurement. We performed our annual impairment tests for goodwill and indefinite-lived intangible assets as of the first day of our fiscal second quarter of 2023. Refer to Note 5: Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, and inputs used in the fair value measurements. For our annual goodwill impairment test, the fair value of each reporting unit was estimated using a weighting of the income and market approaches, except for PeopleScout MSP, which relied only on the income approach. The various inputs to these fair value models are considered Level 3. As a result of the test, goodwill with a carrying value of $9.7 million associated with the PeopleScout MSP reporting unit was impaired, and an impairment charge of $8.9 million was recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 25, 2023. For our annual indefinite-lived intangible asset impairment test, the fair value of our trade names/trademarks were estimated utilizing the relief from royalty method. The various inputs to this fair value model are considered Level 3. As a result of the test, one of our trade names/trademarks with a carrying value of $3.9 million was written down to its fair value, and an impairment charge of $0.6 million was recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 25, 2023. |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 6 Months Ended |
Jun. 25, 2023 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND INVESTMENTS | RESTRICTED CASH AND INVESTMENTS The following is a summary of the carrying value of our restricted cash and investments: (in thousands) June 25, December 25, Cash collateral held by insurance carriers $ 30,064 $ 29,567 Cash and cash equivalents held in Trust 27,153 30,857 Investments held in Trust 117,206 123,678 Company-owned life insurance policies 30,801 26,479 Other restricted cash and cash equivalents 882 3,153 Total restricted cash and investments $ 206,106 $ 213,734 Held-to-maturity Restricted cash and investments include collateral that has been provided or pledged to insurance carriers for workers’ compensation and state workers’ compensation programs. Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in debt and asset-backed securities. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon (“Trust”). The amortized cost and estimated fair value of our held-to-maturity investments held in Trust, aggregated by investment category as of June 25, 2023 and December 25, 2022, were as follows: June 25, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 36,533 $ — $ (544) $ 35,989 Corporate debt securities 75,087 1 (3,191) 71,897 Agency mortgage-backed securities 4,586 — (16) 4,570 U.S. government and agency securities 1,000 — (57) 943 Total held-to-maturity investments $ 117,206 $ 1 $ (3,808) $ 113,399 December 25, 2022 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 42,892 $ 2 $ (463) $ 42,431 Corporate debt securities 79,736 4 (3,643) 76,097 Agency mortgage-backed securities 50 — (2) 48 U.S. government and agency securities 1,000 — (51) 949 Total held-to-maturity investments $ 123,678 $ 6 $ (4,159) $ 119,525 The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: June 25, 2023 (in thousands) Amortized cost Fair value Due in one year or less $ 31,087 $ 30,716 Due after one year through five years 86,119 82,683 Total held-to-maturity investments $ 117,206 $ 113,399 Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty. We have no significant concentrations of counterparties in our held-to-maturity investment portfolio. Company-owned life insurance policies We hold company-owned life insurance policies to support our deferred compensation liability. Unrealized gains and losses related to investments still held at June 25, 2023 and June 26, 2022, which are included in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Unrealized gains (losses) $ 1,558 $ (3,549) $ 1,975 $ (5,560) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 25, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table reflects changes in the carrying amount of goodwill during the period by reportable segment: (in thousands) PeopleReady PeopleScout PeopleManagement Total company Balance at December 25, 2022 Goodwill before impairment $ 106,304 $ 141,956 $ 81,092 $ 329,352 Accumulated impairment charge (46,210) (109,757) (79,601) (235,568) Goodwill, net 60,094 32,199 1,491 93,784 Impairment charge — (8,885) — (8,885) Foreign currency translation — 150 — 150 Balance at June 25, 2023 Goodwill before impairment 106,304 142,106 81,092 329,502 Accumulated impairment charge (46,210) (118,642) (79,601) (244,453) Goodwill, net $ 60,094 $ 23,464 $ 1,491 $ 85,049 We performed our annual impairment test as of the first day of our fiscal second quarter of 2023, for our reporting segments with remaining goodwill: PeopleReady; PeopleManagement Centerline; PeopleScout RPO; and PeopleScout MSP. The fair value of each reporting unit was estimated using a weighting of the income and market valuation approaches. The income approach applied a fair value methodology to each reporting unit based on discounted cash flows. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally-developed forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used in our most recent impairment test ranged from 13.0% to 13.5%. We also applied a market approach, which develops a value correlation based on the market capitalization of similar publicly traded companies, referred to as a multiple, to apply to the operating results of the reporting units. The primary market multiples to which we compare are revenue and earnings before interest, taxes, depreciation, and amortization. The income and market approaches were equally weighted in our most recent annual impairment test, except for PeopleScout MSP which relied only on the income approach. The combined fair values for all reporting units were then reconciled to our aggregate market value of our shares of common stock on the date of valuation, while considering a reasonable control premium. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Based on our most recent impairment test, all of our reporting units’ fair values were substantially in excess of their respective carrying values, except for PeopleScout MSP. As a result of our annual impairment test as of the first day of our fiscal second quarter of 2023, we concluded that the carrying amount of the PeopleScout MSP reporting unit exceeded its fair value and we recorded a non-cash goodwill impairment charge of $8.9 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 25, 2023. The PeopleScout MSP goodwill impairment was related to our revised internal revenue projections, which anticipate the recent declining trends will continue into future periods. These projections were updated based on our current macroeconomic outlook and a recent industry analysis, which indicates that our business will underperform due to a strategic lack of investment in technology within an increasingly competitive market. The remaining goodwill balance for the PeopleScout MSP reporting unit was $0.8 million as of June 25, 2023. Additionally, following performance of the annual impairment test we did not identify any events or conditions that make it more likely than not that an additional impairment may have occurred during the thirteen weeks ended June 25, 2023. Accordingly, no further impairment loss was recognized during the thirteen weeks ended June 25, 2023. Intangible assets Indefinite-lived intangible assets We held indefinite-lived trade names/trademarks of $5.4 million and $6.0 million as of June 25, 2023 and December 25, 2022, respectively, related to businesses within our PeopleScout and PeopleManagement segments. As a result of our annual impairment test as of the first day of our fiscal second quarter of 2023, we concluded that the carrying amount of a trade name/trademark related to the PeopleManagement segment exceeded its estimated fair value and we recorded a non-cash impairment charge of $0.6 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 25, 2023. The charge was primarily the result of an increase in the discount rate, as well as lower projected revenues given our current macroeconomic outlook. The remaining balance for this trade name/trademark was $3.3 million as of June 25, 2023. The fair value of the trade name/trademark related to the PeopleScout segment was substantially in excess of its carrying value of $2.1 million as of June 25, 2023, and therefore did not result in an impairment. Additionally, following performance of the annual impairment test we did not identify any additional events or conditions that make it more likely than not that an additional impairment may have occurred during the thirteen weeks ended June 25, 2023. Accordingly, no further impairment loss was recognized during the thirteen weeks ended June 25, 2023. Finite-lived intangible assets We did not identify any events or conditions that make it more likely than not that an impairment of our finite-lived intangible assets may have occurred during the twenty-six weeks ended June 25, 2023. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 25, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Accounts receivable allowance for credit losses The activity related to the accounts receivable allowance for credit losses was as follows: Twenty-six weeks ended (in thousands) June 25, June 26, Beginning balance $ 3,212 $ 6,687 Current period provision 2,408 2,572 Write-offs (2,130) (5,258) Foreign currency translation 3 (14) Ending balance $ 3,493 $ 3,987 Prepaid expenses and other current assets The balance of prepaid expenses and other current assets was made up of the following: (in thousands) June 25, December 25, Prepaid software agreements $ 8,869 $ 9,994 Other prepaid expenses 6,411 9,455 Other current assets 7,545 13,081 Prepaid expenses and other current assets $ 22,825 $ 32,530 Other current liabilities The balance of other current liabilities was made up of the following: (in thousands) June 25, December 25, Contract liabilities $ 3,825 $ 3,812 Other current liabilities 6,597 7,077 Other current liabilities $ 10,422 $ 10,889 |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 6 Months Ended |
Jun. 25, 2023 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
WORKERS' COMPENSATION INSURANCE AND RESERVES | WORKERS' COMPENSATION INSURANCE AND RESERVES We provide workers’ compensation insurance for our associates and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above our $5.0 million deductible limit, on a “per occurrence” basis. This results in our business being substantially self-insured. Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value. The discount rates used to estimate net present value are based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the self-insured claims. Payments made against self-insured claims are made over a weighted average period of approximately 6 years as of June 25, 2023. The weighted average discount rate was 2.2% and 2.0% at June 25, 2023 and December 25, 2022, respectively. The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) June 25, December 25, Undiscounted workers’ compensation reserve $ 250,269 $ 270,468 Less discount on workers’ compensation reserve 19,158 19,458 Workers’ compensation reserve, net of discount 231,111 251,010 Less current portion 44,840 50,005 Long-term portion $ 186,271 $ 201,005 Payments made against self-insured claims were $22.4 million and $21.5 million for the twenty-six weeks ended June 25, 2023 and June 26, 2022, respectively. Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the excess claims. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 17 years. The rates used to discount excess claims incurred during the twenty-six weeks ended June 25, 2023 and fifty-two weeks ended December 25, 2022 were 3.7% and 3.0%, respectively. The discounted workers’ compensation reserve for excess claims was $72.0 million and $76.7 million, as of June 25, 2023 and December 25, 2022, respectively. The discounted receivables from insurance companies, net of valuation allowance, were $70.7 million and $75.2 million as of June 25, 2023 and December 25, 2022, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 25, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT We have a revolving credit agreement with Bank of America, N.A., Wells Fargo Bank, N.A., PNC Bank, N.A., KeyBank, N.A. and HSBC Bank USA, N.A., which provides for a revolving line of credit of up to $300.0 million, and is currently set to mature on March 16, 2025 (“Revolving Credit Facility”). We have an option to increase the amount to $450.0 million, subject to lender approval. Included in the Revolving Credit Facility is a $30.0 million sub-limit for “Swingline” loans and a $125.0 million sub-limit for letters of credit. At June 25, 2023, $7.2 million was utilized by outstanding standby letters of credit, leaving $292.8 million unused under the Revolving Credit Facility, which is constrained by our most restrictive covenant making $202.1 million available for additional borrowing. At December 25, 2022, $7.2 million was utilized by outstanding standby letters of credit. Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed under the revolving line of credit in excess of the Swingline loans, based on the Secured Overnight Financing Rate, plus an adjustment of 0.10%, plus an applicable spread between 1.25% and 3.50%. Alternatively, at our option, we may pay interest based on a base rate plus an applicable spread between 0.25% and 1.50%. The base rate is the greater of the prime rate (as announced by Bank of America), or the federal funds rate plus 0.50%. The applicable spread is determined by the consolidated leverage ratio, as defined in the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, we are required to pay a variable rate of interest on funds borrowed under the Swingline loan based on the base rate plus applicable spread between 0.25% and 1.50%, as described above. A commitment fee between 0.25% and 0.50% is applied against the Revolving Credit Facility’s unused borrowing capacity, with the specific rate determined by the consolidated leverage ratio, as defined in the Revolving Credit Facility. Letters of credit are priced at a margin between 1.00% and 3.25%, plus a fronting fee of 0.50%. Obligations under the Revolving Credit Facility are guaranteed by TrueBlue and material U.S. domestic subsidiaries, and are secured by substantially all of the assets of TrueBlue and material U.S. domestic subsidiaries. The second amendment to our credit agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including, among others, financial covenants. The following financial covenants, as defined in the Revolving Credit Facility, were in effect as of June 25, 2023: • Consolidated leverage ratio less than 3.00, defined as our funded indebtedness divided by trailing twelve months consolidated EBITDA, as defined in the amended credit agreement. As of June 25, 2023, our consolidated leverage ratio was 0.10. • Consolidated fixed charge coverage ratio greater than 1.25, defined as the trailing twelve months bank-adjusted cash flow divided by cash interest expense. As of June 25, 2023, our consolidated fixed charge coverage ratio was 48.44. As of June 25, 2023, we were in compliance with all effective covenants related to the Revolving Credit Facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 25, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) June 25, December 25, Cash collateral held by workers’ compensation insurance carriers $ 24,209 $ 23,716 Cash and cash equivalents held in Trust 27,153 30,857 Investments held in Trust 117,206 123,678 Letters of credit (1) 6,077 6,077 Surety bonds (2) 20,725 20,806 Total collateral commitments $ 195,370 $ 205,134 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one Legal contingencies and developments We are involved in various proceedings arising in the normal course of conducting business. We believe the liabilities included in our financial statements reflect the probable loss that can be reasonably estimated and are immaterial. We also believe that the aggregate range of reasonably possible losses for the Company's exposure in excess of the amount accrued is expected to be immaterial to the Company. It remains possible that despite our current belief, material differences in actual outcomes or changes in management's evaluation or predictions could arise that could have a material effect on the Company's financial condition, results of operations or cash flows. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 25, 2023 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDER’S EQUITY | SHAREHOLDERS' EQUITY Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Common stock shares Beginning balance 31,507 33,608 32,730 34,861 Purchases and retirement of common stock (520) (907) (1,877) (2,234) Net issuance under equity plans, including tax benefits 9 (17) 143 57 Stock-based compensation — — — — Ending balance 30,996 32,684 30,996 32,684 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 487,893 483,170 516,332 508,813 Net income (loss) (7,323) 24,013 (11,612) 34,532 Purchases and retirement of common stock (1) (9,482) (24,613) (34,200) (60,939) Net issuance under equity plans, including tax benefits 57 51 (2,005) (3,597) Stock-based compensation 2,664 675 5,294 4,487 Ending balance 473,809 483,296 473,809 483,296 Accumulated other comprehensive loss Beginning balance, net of tax (20,271) (15,620) (20,018) (15,747) Foreign currency translation adjustment 506 (1,724) 253 (1,597) Ending balance, net of tax (19,765) (17,344) (19,765) (17,344) Total shareholders’ equity ending balance $ 454,045 $ 465,953 $ 454,045 $ 465,953 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 25, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for any discrete items that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate and, if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision and quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our full year pre-tax income and loss by jurisdiction, tax credits, government audit developments, changes in laws, regulations and administrative practices, and relative changes in expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Our effective income tax rate for the twenty-six weeks ended June 25, 2023 was (6.5)%. The difference between the statutory federal income tax rate of 21.0% and our effective tax rate was primarily due to a non-deductible goodwill impairment charge, and the federal Work Opportunity Tax Credit (“WOTC”). WOTC is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. Other differences between the statutory federal income tax rate and our effective tax rate result from state and foreign income taxes, certain non-deductible and non-taxable items, and tax effects of stock-based compensation. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 25, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) June 25, June 26, June 25, June 26, Net income (loss) $ (7,323) $ 24,013 $ (11,612) $ 34,532 Weighted average number of common shares used in basic net income (loss) per common share 30,966 32,707 31,629 33,318 Dilutive effect of non-vested stock-based awards — 442 — 514 Weighted average number of common shares used in diluted net income (loss) per common share 30,966 33,149 31,629 33,832 Net income (loss) per common share: Basic $ (0.24) $ 0.73 $ (0.37) $ 1.04 Diluted $ (0.24) $ 0.72 $ (0.37) $ 1.02 Anti-dilutive shares 967 322 1,020 457 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 25, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our operating segments and reportable segments are described below: Our PeopleReady reportable segment provides blue-collar, contingent staffing through the PeopleReady operating segment. PeopleReady provides on-demand and skilled labor in a broad range of industries that include construction, transportation, manufacturing, retail, hospitality and renewable energy. Our PeopleScout reportable segment provides high-volume, permanent employee recruitment process outsourcing, employer branding services and management of outsourced labor service providers through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • PeopleScout RPO : Outsourced recruitment of permanent employees on behalf of clients and employer branding services; and • PeopleScout MSP : Management of multiple third-party staffing vendors on behalf of clients. Our PeopleManagement reportable segment provides contingent labor and outsourced industrial workforce solutions, primarily on-site at the client’s facility, through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • PeopleManagement On-Site : On-site management and recruitment for the contingent industrial workforce of manufacturing, warehousing and distribution facilities; and • PeopleManagement Centerline : Recruitment and management of contingent and dedicated commercial drivers to the transportation and distribution industries. The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Revenue from services: Contingent staffing PeopleReady $ 275,318 $ 317,943 $ 527,946 $ 623,633 PeopleManagement 140,560 161,938 283,744 325,757 Human resource outsourcing PeopleScout 59,710 89,372 129,186 171,378 Total company $ 475,588 $ 569,253 $ 940,876 $ 1,120,768 The following table presents a reconciliation of segment profit to income (loss) before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Segment profit: PeopleReady $ 8,158 $ 20,325 $ 9,030 $ 36,544 PeopleManagement 2,250 4,228 2,048 7,207 PeopleScout 8,817 20,593 17,740 31,565 Total segment profit 19,225 45,146 28,818 75,316 Corporate unallocated expense (8,215) (6,531) (14,923) (13,829) Third-party processing fees for hiring tax credits (110) (162) (230) (324) Amortization of software as a service assets (952) (699) (1,820) (1,446) Goodwill and intangible asset impairment charge (9,485) — (9,485) — PeopleReady technology upgrade costs (174) (1,748) (206) (4,298) Other benefits (costs) (565) 491 (1,962) 355 Depreciation and amortization (6,280) (7,245) (12,691) (14,532) Income (loss) from operations (6,556) 29,252 (12,499) 41,242 Interest and other income (expense), net 578 (110) 1,592 395 Income (loss) before tax expense $ (5,978) $ 29,142 $ (10,907) $ 41,637 Asset information by reportable segment is not presented as we do not manage our segments on a balance sheet basis. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 25, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 25, 2022. The results of operations for the twenty-six weeks ended June 25, 2023 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. |
Recently adopted accounting standards and recently issued accounting pronouncements not yet adopted | Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 25, 2023 that had a material impact on our financial statements. Recently issued accounting standards not yet adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Our assets measured at fair value on a recurring basis consisted of the following: June 25, 2023 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 49,653 $ 49,653 $ — $ — Restricted cash and cash equivalents 58,099 58,099 — — Cash, cash equivalents and restricted cash (1) $ 107,752 $ 107,752 $ — $ — Municipal debt securities $ 35,989 $ — $ 35,989 $ — Corporate debt securities 71,897 — 71,897 — Agency mortgage-backed securities 4,570 — 4,570 — U.S. government and agency securities 943 — 943 — Restricted investments classified as held-to-maturity (2) $ 113,399 $ — $ 113,399 $ — December 25, 2022 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 72,054 $ 72,054 $ — $ — Restricted cash and cash equivalents 63,577 63,577 — — Cash, cash equivalents and restricted cash (1) $ 135,631 $ 135,631 $ — $ — Municipal debt securities $ 42,431 $ — $ 42,431 $ — Corporate debt securities 76,097 — 76,097 — Agency mortgage-backed securities 48 — 48 — U.S. government and agency securities 949 — 949 — Restricted investments classified as held-to-maturity (2) $ 119,525 $ — $ 119,525 $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3: Restricted Cash and Investments for additional details on our held-to-maturity debt securities. |
RESTRICTED CASH AND INVESTMEN_2
RESTRICTED CASH AND INVESTMENTS (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Restricted Cash and Investments [Abstract] | |
Schedule of restricted cash and investments | The following is a summary of the carrying value of our restricted cash and investments: (in thousands) June 25, December 25, Cash collateral held by insurance carriers $ 30,064 $ 29,567 Cash and cash equivalents held in Trust 27,153 30,857 Investments held in Trust 117,206 123,678 Company-owned life insurance policies 30,801 26,479 Other restricted cash and cash equivalents 882 3,153 Total restricted cash and investments $ 206,106 $ 213,734 |
Schedule of held-to-maturity investments | The amortized cost and estimated fair value of our held-to-maturity investments held in Trust, aggregated by investment category as of June 25, 2023 and December 25, 2022, were as follows: June 25, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 36,533 $ — $ (544) $ 35,989 Corporate debt securities 75,087 1 (3,191) 71,897 Agency mortgage-backed securities 4,586 — (16) 4,570 U.S. government and agency securities 1,000 — (57) 943 Total held-to-maturity investments $ 117,206 $ 1 $ (3,808) $ 113,399 December 25, 2022 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 42,892 $ 2 $ (463) $ 42,431 Corporate debt securities 79,736 4 (3,643) 76,097 Agency mortgage-backed securities 50 — (2) 48 U.S. government and agency securities 1,000 — (51) 949 Total held-to-maturity investments $ 123,678 $ 6 $ (4,159) $ 119,525 |
Schedule of held-to-maturity investments by contractual maturity | The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: June 25, 2023 (in thousands) Amortized cost Fair value Due in one year or less $ 31,087 $ 30,716 Due after one year through five years 86,119 82,683 Total held-to-maturity investments $ 117,206 $ 113,399 |
Schedule of unrealized gain (loss) on equity investments | Unrealized gains and losses related to investments still held at June 25, 2023 and June 26, 2022, which are included in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Unrealized gains (losses) $ 1,558 $ (3,549) $ 1,975 $ (5,560) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table reflects changes in the carrying amount of goodwill during the period by reportable segment: (in thousands) PeopleReady PeopleScout PeopleManagement Total company Balance at December 25, 2022 Goodwill before impairment $ 106,304 $ 141,956 $ 81,092 $ 329,352 Accumulated impairment charge (46,210) (109,757) (79,601) (235,568) Goodwill, net 60,094 32,199 1,491 93,784 Impairment charge — (8,885) — (8,885) Foreign currency translation — 150 — 150 Balance at June 25, 2023 Goodwill before impairment 106,304 142,106 81,092 329,502 Accumulated impairment charge (46,210) (118,642) (79,601) (244,453) Goodwill, net $ 60,094 $ 23,464 $ 1,491 $ 85,049 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for credit losses | The activity related to the accounts receivable allowance for credit losses was as follows: Twenty-six weeks ended (in thousands) June 25, June 26, Beginning balance $ 3,212 $ 6,687 Current period provision 2,408 2,572 Write-offs (2,130) (5,258) Foreign currency translation 3 (14) Ending balance $ 3,493 $ 3,987 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets The balance of prepaid expenses and other current assets was made up of the following: (in thousands) June 25, December 25, Prepaid software agreements $ 8,869 $ 9,994 Other prepaid expenses 6,411 9,455 Other current assets 7,545 13,081 Prepaid expenses and other current assets $ 22,825 $ 32,530 |
Other current liabilities | Other current liabilities The balance of other current liabilities was made up of the following: (in thousands) June 25, December 25, Contract liabilities $ 3,825 $ 3,812 Other current liabilities 6,597 7,077 Other current liabilities $ 10,422 $ 10,889 |
WORKERS' COMPENSATION INSURAN_2
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
Reconciliation of workers' compensation claims reserve | The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) June 25, December 25, Undiscounted workers’ compensation reserve $ 250,269 $ 270,468 Less discount on workers’ compensation reserve 19,158 19,458 Workers’ compensation reserve, net of discount 231,111 251,010 Less current portion 44,840 50,005 Long-term portion $ 186,271 $ 201,005 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of workers’ compensation collateral commitments | We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) June 25, December 25, Cash collateral held by workers’ compensation insurance carriers $ 24,209 $ 23,716 Cash and cash equivalents held in Trust 27,153 30,857 Investments held in Trust 117,206 123,678 Letters of credit (1) 6,077 6,077 Surety bonds (2) 20,725 20,806 Total collateral commitments $ 195,370 $ 205,134 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Shareholders' Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Common stock shares Beginning balance 31,507 33,608 32,730 34,861 Purchases and retirement of common stock (520) (907) (1,877) (2,234) Net issuance under equity plans, including tax benefits 9 (17) 143 57 Stock-based compensation — — — — Ending balance 30,996 32,684 30,996 32,684 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 487,893 483,170 516,332 508,813 Net income (loss) (7,323) 24,013 (11,612) 34,532 Purchases and retirement of common stock (1) (9,482) (24,613) (34,200) (60,939) Net issuance under equity plans, including tax benefits 57 51 (2,005) (3,597) Stock-based compensation 2,664 675 5,294 4,487 Ending balance 473,809 483,296 473,809 483,296 Accumulated other comprehensive loss Beginning balance, net of tax (20,271) (15,620) (20,018) (15,747) Foreign currency translation adjustment 506 (1,724) 253 (1,597) Ending balance, net of tax (19,765) (17,344) (19,765) (17,344) Total shareholders’ equity ending balance $ 454,045 $ 465,953 $ 454,045 $ 465,953 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) and diluted common shares | Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) June 25, June 26, June 25, June 26, Net income (loss) $ (7,323) $ 24,013 $ (11,612) $ 34,532 Weighted average number of common shares used in basic net income (loss) per common share 30,966 32,707 31,629 33,318 Dilutive effect of non-vested stock-based awards — 442 — 514 Weighted average number of common shares used in diluted net income (loss) per common share 30,966 33,149 31,629 33,832 Net income (loss) per common share: Basic $ (0.24) $ 0.73 $ (0.37) $ 1.04 Diluted $ (0.24) $ 0.72 $ (0.37) $ 1.02 Anti-dilutive shares 967 322 1,020 457 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Revenue from services: Contingent staffing PeopleReady $ 275,318 $ 317,943 $ 527,946 $ 623,633 PeopleManagement 140,560 161,938 283,744 325,757 Human resource outsourcing PeopleScout 59,710 89,372 129,186 171,378 Total company $ 475,588 $ 569,253 $ 940,876 $ 1,120,768 The following table presents a reconciliation of segment profit to income (loss) before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 25, June 26, June 25, June 26, Segment profit: PeopleReady $ 8,158 $ 20,325 $ 9,030 $ 36,544 PeopleManagement 2,250 4,228 2,048 7,207 PeopleScout 8,817 20,593 17,740 31,565 Total segment profit 19,225 45,146 28,818 75,316 Corporate unallocated expense (8,215) (6,531) (14,923) (13,829) Third-party processing fees for hiring tax credits (110) (162) (230) (324) Amortization of software as a service assets (952) (699) (1,820) (1,446) Goodwill and intangible asset impairment charge (9,485) — (9,485) — PeopleReady technology upgrade costs (174) (1,748) (206) (4,298) Other benefits (costs) (565) 491 (1,962) 355 Depreciation and amortization (6,280) (7,245) (12,691) (14,532) Income (loss) from operations (6,556) 29,252 (12,499) 41,242 Interest and other income (expense), net 578 (110) 1,592 395 Income (loss) before tax expense $ (5,978) $ 29,142 $ (10,907) $ 41,637 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 | Jun. 26, 2022 | Dec. 26, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 107,752 | $ 135,631 | $ 89,995 | $ 103,185 |
Restricted investments classified as held-to-maturity | 113,399 | 119,525 | ||
Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 35,989 | 42,431 | ||
Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 71,897 | 76,097 | ||
Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 4,570 | 48 | ||
U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 943 | 949 | ||
Fair value, recurring | Total fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 49,653 | 72,054 | ||
Fair value, recurring | Total fair value | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 58,099 | 63,577 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 107,752 | 135,631 | ||
Restricted investments classified as held-to-maturity | 113,399 | 119,525 | ||
Fair value, recurring | Total fair value | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 35,989 | 42,431 | ||
Fair value, recurring | Total fair value | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 71,897 | 76,097 | ||
Fair value, recurring | Total fair value | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 4,570 | 48 | ||
Fair value, recurring | Total fair value | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 943 | 949 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 49,653 | 72,054 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 58,099 | 63,577 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 107,752 | 135,631 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 113,399 | 119,525 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 35,989 | 42,431 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 71,897 | 76,097 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 4,570 | 48 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 943 | 949 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | $ 0 | $ 0 |
RESTRICTED CASH AND INVESTMEN_3
RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | Dec. 25, 2022 | |
Restricted Cash and Investments [Line Items] | |||||
Cash collateral held by insurance carriers | $ 30,064 | $ 30,064 | $ 29,567 | ||
Cash and cash equivalents held in Trust | 27,153 | 27,153 | 30,857 | ||
Investments held in Trust | 117,206 | 117,206 | 123,678 | ||
Company owned life insurance policies | 30,801 | 30,801 | 26,479 | ||
Other restricted cash and cash equivalents | 882 | 882 | 3,153 | ||
Restricted cash and investments | 206,106 | 206,106 | 213,734 | ||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 117,206 | 117,206 | 123,678 | ||
Gross unrealized gains | 1 | 1 | 6 | ||
Gross unrealized losses | (3,808) | (3,808) | (4,159) | ||
Fair value | 113,399 | 113,399 | 119,525 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 117,206 | 117,206 | 123,678 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 113,399 | 113,399 | 119,525 | ||
Unrealized gains (losses) on Investments | 1,558 | $ (3,549) | 1,975 | $ (5,560) | |
Municipal debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 36,533 | 36,533 | 42,892 | ||
Gross unrealized gains | 0 | 0 | 2 | ||
Gross unrealized losses | (544) | (544) | (463) | ||
Fair value | 35,989 | 35,989 | 42,431 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 36,533 | 36,533 | 42,892 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 35,989 | 35,989 | 42,431 | ||
Corporate debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 75,087 | 75,087 | 79,736 | ||
Gross unrealized gains | 1 | 1 | 4 | ||
Gross unrealized losses | (3,191) | (3,191) | (3,643) | ||
Fair value | 71,897 | 71,897 | 76,097 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 75,087 | 75,087 | 79,736 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 71,897 | 71,897 | 76,097 | ||
Agency mortgage-backed securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 4,586 | 4,586 | 50 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | (16) | (16) | (2) | ||
Fair value | 4,570 | 4,570 | 48 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 4,586 | 4,586 | 50 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 4,570 | 4,570 | 48 | ||
U.S. government and agency securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 1,000 | 1,000 | 1,000 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | (57) | (57) | (51) | ||
Fair value | 943 | 943 | 949 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 1,000 | 1,000 | 1,000 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 943 | 943 | $ 949 | ||
Restricted cash and investments | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 117,206 | 117,206 | |||
Fair value | 113,399 | 113,399 | |||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Due in one year or less | 31,087 | 31,087 | |||
Due after one year through five years | 86,119 | 86,119 | |||
Amortized cost of held-to-maturity investments | 117,206 | 117,206 | |||
Held-to-maturity securities, fair value [Abstract] | |||||
Due in one year or less | 30,716 | 30,716 | |||
Due after one year through five years | 82,683 | 82,683 | |||
Fair value | $ 113,399 | $ 113,399 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 25, 2023 | Mar. 27, 2023 | Dec. 25, 2022 | |
Goodwill [Line Items] | |||
Goodwill before impairment | $ 329,502 | $ 329,352 | |
Accumulated impairment loss | (244,453) | (235,568) | |
Goodwill, net | 85,049 | 93,784 | |
Goodwill impairment loss | (8,885) | ||
Foreign currency translation | 150 | ||
Minimum | |||
Goodwill [Line Items] | |||
Weighted average cost of capital | 13% | ||
Maximum | |||
Goodwill [Line Items] | |||
Weighted average cost of capital | 13.50% | ||
PeopleReady | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 106,304 | 106,304 | |
Accumulated impairment loss | (46,210) | (46,210) | |
Goodwill, net | 60,094 | 60,094 | |
Goodwill impairment loss | 0 | ||
Foreign currency translation | 0 | ||
PeopleScout | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 142,106 | 141,956 | |
Accumulated impairment loss | (118,642) | (109,757) | |
Goodwill, net | 23,464 | 32,199 | |
Foreign currency translation | 150 | ||
PeopleScout | MSP [Member] | |||
Goodwill [Line Items] | |||
Goodwill, net | 800 | ||
Goodwill impairment loss | (8,885) | ||
PeopleManagement | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 81,092 | 81,092 | |
Accumulated impairment loss | (79,601) | (79,601) | |
Goodwill, net | 1,491 | $ 1,491 | |
Goodwill impairment loss | 0 | ||
Foreign currency translation | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 25, 2023 | Mar. 27, 2023 | Dec. 25, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill impairment loss | $ (8,885) | ||
Goodwill | 85,049 | $ 93,784 | |
PeopleManagement | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill impairment loss | 0 | ||
Goodwill | 1,491 | 1,491 | |
Indefinite-lived trade names/trademarks | 3,300 | ||
Non-cash impairment charge | 600 | ||
PeopleScout | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 23,464 | 32,199 | |
Indefinite-lived trade names/trademarks | 2,100 | ||
Trade names/trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived trade names/trademarks | 5,400 | $ 6,000 | |
MSP [Member] | PeopleScout | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill impairment loss | (8,885) | ||
Goodwill | $ 800 | ||
Minimum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Weighted average cost of capital | 13% | ||
Maximum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Weighted average cost of capital | 13.50% |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Allowance for credit losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 25, 2023 | Jun. 26, 2022 | Dec. 25, 2022 | Dec. 26, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 3,493 | $ 3,987 | $ 3,212 | $ 6,687 |
Provision for credit losses | 2,408 | 2,572 | ||
Write-offs | (2,130) | (5,258) | ||
Foreign currency translation | 3 | (14) | ||
Ending balance | $ 3,493 | $ 3,987 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid software agreements | $ 8,869 | $ 9,994 |
Other prepaid expenses | 6,411 | 9,455 |
Other current assets | 7,545 | 13,081 |
Prepaid expenses and other current assets | $ 22,825 | $ 32,530 |
SUPPLEMENTAL BALANCE SHEET IN_5
SUPPLEMENTAL BALANCE SHEET INFORMATION - Other current liabilities (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract liabilities | $ 3,825 | $ 3,812 |
Other current liabilities | 6,597 | 7,077 |
Other current liabilities | $ 10,422 | $ 10,889 |
WORKERS' COMPENSATION INSURAN_3
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
Undiscounted workers’ compensation reserve | $ 250,269 | $ 270,468 |
Less discount on workers’ compensation reserve | 19,158 | 19,458 |
Workers' compensation reserve, net of discount | 231,111 | 251,010 |
Less current portion | 44,840 | 50,005 |
Long-term portion | $ 186,271 | $ 201,005 |
WORKERS' COMPENSATION INSURAN_4
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | Dec. 25, 2022 | |
Workers' Compensation Deductible Limit [Line Items] | |||||
Weighted average period for claim payments below deductible limit | 6 years | ||||
Payments made against self-insured claims | $ 22.4 | $ 21.5 | |||
Weighted average period for claim payments and receivables above deductible limit | 17 years | ||||
Workers' compensation reserve for excess claims | $ 72 | $ 72 | $ 76.7 | ||
Worker's compensation receivable for excess claims | 70.7 | 70.7 | $ 75.2 | ||
Workers compensation expense | $ 5.9 | $ 9.8 | 10.7 | $ 21.1 | |
Minimum | |||||
Workers' Compensation Deductible Limit [Line Items] | |||||
Workers' compensation claim deductible limit | $ 5 | ||||
Below limit | |||||
Workers' Compensation Deductible Limit [Line Items] | |||||
Workers' compensation discount | 2.20% | 2% | |||
Above Limit | |||||
Workers' Compensation Deductible Limit [Line Items] | |||||
Workers' compensation discount | 3.70% | 3% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Millions | Mar. 30, 2023 | Mar. 16, 2020 USD ($) | Jun. 25, 2023 USD ($) | Dec. 25, 2022 USD ($) |
Revolving Credit Facility [Line Items] | ||||
Leverage ratio, threshold | 3 | |||
Debt instrument, leverage ratio | 0.10 | |||
Fixed charge coverage ratio, threshold | 1.25 | |||
Debt instrument, fixed charge coverage ratio | 48.44 | |||
Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 300 | |||
Maximum borrowing capacity subject to lender approval | $ 450 | |||
Remaining borrowing capacity | $ 292.8 | |||
Line of credit facility, maximum borrowing capacity, additional borrowings | 202.1 | |||
Revolving Credit Facility | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Additional debt instrument base rate | 0.50% | |||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.10% | |||
Revolving Credit Facility | Minimum | ||||
Revolving Credit Facility [Line Items] | ||||
Unused capacity commitment fee percentage | 0.25% | |||
Revolving Credit Facility | Minimum | LIBOR | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Revolving Credit Facility | Minimum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Facility | Maximum | ||||
Revolving Credit Facility [Line Items] | ||||
Unused capacity commitment fee percentage | 0.50% | |||
Revolving Credit Facility | Maximum | LIBOR | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Revolving Credit Facility | Maximum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Swingline loan | ||||
Revolving Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 30 | |||
Letters of credit outstanding | $ 7.2 | $ 7.2 | ||
Swingline loan | Minimum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Swingline loan | Maximum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Letter of credit | ||||
Revolving Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 125 | |||
Letter of credit | LIBOR | ||||
Revolving Credit Facility [Line Items] | ||||
Additional letters of credit base rate | 0.50% | |||
Letter of credit | Minimum | LIBOR | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1% | |||
Letter of credit | Maximum | LIBOR | ||||
Revolving Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.25% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2023 | Dec. 25, 2022 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 24,209 | $ 23,716 |
Cash and cash equivalents held in Trust | 27,153 | 30,857 |
Investments held in Trust | 117,206 | 123,678 |
Letters of credit | 6,077 | 6,077 |
Surety bonds | 20,725 | 20,806 |
Total collateral commitments | $ 195,370 | $ 205,134 |
Surety bonds annual fee limit as a percentage of bond amount | 2% | |
Surety bonds required cancellation notice | 60 days | |
Minimum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 1 year | |
Maximum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 4 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | Dec. 25, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 32,730 | ||||
Ending balance (in shares) | 30,996 | 30,996 | |||
Beginning balance | $ 496,315 | ||||
Net income (loss) | $ (7,323) | $ 24,013 | (11,612) | $ 34,532 | |
Change in accounting standard cumulative-effect adjustment | 473,809 | 473,809 | $ 516,332 | ||
Foreign currency translation adjustment | 506 | (1,724) | 253 | (1,597) | |
Ending balance, net of tax | $ 454,045 | $ 465,953 | $ 454,045 | $ 465,953 | |
Common stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 31,507 | 33,608 | 32,730 | 34,861 | |
Purchases and retirement of common stock (in shares) | (520) | (907) | (1,877) | (2,234) | |
Net issuances under equity plans, including tax benefits (in shares) | 9 | (17) | 143 | 57 | |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 | |
Ending balance (in shares) | 30,996 | 32,684 | 30,996 | 32,684 | |
Beginning balance | $ 1 | $ 1 | $ 1 | $ 1 | |
Ending balance, net of tax | 1 | 1 | 1 | 1 | |
Retained earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 487,893 | 483,170 | 516,332 | 508,813 | |
Net income (loss) | (7,323) | 24,013 | (11,612) | 34,532 | |
Purchases and retirement of common stock | (9,482) | (24,613) | (34,200) | (60,939) | |
Net issuance under equity plans, including tax benefits | 57 | 51 | (2,005) | (3,597) | |
Stock-based compensation | 2,664 | 675 | 5,294 | 4,487 | |
Ending balance, net of tax | 473,809 | 483,296 | 473,809 | 483,296 | |
Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (20,271) | (15,620) | (20,018) | (15,747) | |
Foreign currency translation adjustment | 506 | (1,724) | 253 | (1,597) | |
Ending balance, net of tax | $ (19,765) | $ (17,344) | $ (19,765) | $ (17,344) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended |
Jun. 25, 2023 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate | (6.50%) |
Statutory federal income tax rate | 21% |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (7,323) | $ 24,013 | $ (11,612) | $ 34,532 |
Weighted average number of common shares used in basic net income per common share (in shares) | 30,966 | 32,707 | 31,629 | 33,318 |
Dilutive effect of non-vested stock-based awards (in shares) | 0 | 442 | 0 | 514 |
Weighted average number of common shares used in diluted net income (loss) per common share | 30,966 | 33,149 | 31,629 | 33,832 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.24) | $ 0.73 | $ (0.37) | $ 1.04 |
Diluted (in dollars per share) | $ (0.24) | $ 0.72 | $ (0.37) | $ 1.02 |
Anti-dilutive shares (in shares) | 967 | 322 | 1,020 | 457 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 475,588 | $ 569,253 | $ 940,876 | $ 1,120,768 |
Segment profit | 19,225 | 45,146 | 28,818 | 75,316 |
Third-party processing fees for hiring tax credits | (110) | (162) | (230) | (324) |
Amortization of software as a service assets | (952) | (699) | (1,820) | (1,446) |
Goodwill and intangible asset impairment charge | (9,485) | 0 | (9,485) | 0 |
PeopleReady technology upgrade costs | (174) | (1,748) | (206) | (4,298) |
Other benefits (costs) | (565) | 491 | (1,962) | 355 |
Depreciation and amortization | (6,280) | (7,245) | (12,691) | (14,532) |
Income (loss) from operations | (6,556) | 29,252 | (12,499) | 41,242 |
Interest and other income (expense), net | 578 | (110) | 1,592 | 395 |
Income (loss) before tax expense | (5,978) | 29,142 | (10,907) | 41,637 |
PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 8,158 | 20,325 | 9,030 | 36,544 |
PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 2,250 | 4,228 | 2,048 | 7,207 |
PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 8,817 | 20,593 | 17,740 | 31,565 |
Corporate unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Corporate unallocated expense | (8,215) | (6,531) | (14,923) | (13,829) |
Contingent staffing | PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 275,318 | 317,943 | 527,946 | 623,633 |
Contingent staffing | PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 140,560 | 161,938 | 283,744 | 325,757 |
Human resource outsourcing | PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 59,710 | $ 89,372 | $ 129,186 | $ 171,378 |