COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 28, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock Shares Outstanding (in shares) | 29,827,117 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000768899 | |
Current Fiscal Year End Date | --12-29 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 26,400 | $ 61,885 |
Accounts receivable, net of allowance of $849 and $2,005 | 231,064 | 252,538 |
Prepaid expenses and other current assets | 32,567 | 28,894 |
Income tax receivable | 10,613 | 11,676 |
Total current assets | 300,644 | 354,993 |
Property and equipment, net | 92,100 | 104,906 |
Restricted cash, cash equivalents and investments | 183,352 | 192,985 |
Deferred income taxes, net | 1,381 | 35,465 |
Goodwill | 24,914 | 84,114 |
Intangible assets, net | 7,027 | 10,525 |
Operating lease right-of-use assets, net | 50,241 | 49,819 |
Workers’ compensation claims receivable, net | 50,367 | 53,841 |
Other assets, net | 13,667 | 12,735 |
Total assets | 723,693 | 899,383 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 36,107 | 56,401 |
Accrued wages and benefits | 65,774 | 80,120 |
Income tax payable | 0 | 439 |
Current portion of workers’ compensation claims reserve | 38,728 | 44,866 |
Current operating lease liabilities | 11,976 | 11,902 |
Other current liabilities | 5,404 | 10,371 |
Total current liabilities | 157,989 | 204,099 |
Workers’ compensation claims reserve, less current portion | 139,251 | 151,649 |
Long-term deferred compensation liabilities | 37,502 | 35,205 |
Long-term operating lease liabilities | 49,848 | 49,434 |
Other long-term liabilities | 1,339 | 1,123 |
Total liabilities | 385,929 | 441,510 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity: | ||
Preferred stock, $0.131 par value, 20,000,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, no par value, 100,000,000 shares authorized; 29,959,143 and 31,245,732 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (20,549) | (20,712) |
Retained earnings | 358,312 | 478,584 |
Total shareholders’ equity | 337,764 | 457,873 |
Total liabilities and shareholders’ equity | $ 723,693 | $ 899,383 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 849 | $ 2,005 |
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) | 29,959,143 | 31,245,732 |
Common stock, shares outstanding (in shares) | 29,959,143 | 31,245,732 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 396,230 | $ 475,588 | $ 799,083 | $ 940,876 |
Cost of services | 291,807 | 345,097 | 595,274 | 687,272 |
Gross profit | 104,423 | 130,491 | 203,809 | 253,604 |
Selling, general and administrative expense | 97,018 | 121,282 | 203,955 | 243,927 |
Depreciation and amortization | 7,691 | 6,280 | 15,649 | 12,691 |
Goodwill and intangible asset impairment charge | 59,674 | 9,485 | 59,674 | 9,485 |
Income (loss) from operations | (59,960) | (6,556) | (75,469) | (12,499) |
Interest and other income (expense), net | 1,741 | 578 | 3,340 | 1,592 |
Income (loss) before tax expense | (58,219) | (5,978) | (72,129) | (10,907) |
Income tax expense (benefit) | 46,491 | 1,345 | 34,279 | 705 |
Net income (loss) | $ (104,710) | $ (7,323) | $ (106,408) | $ (11,612) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (3.45) | $ (0.24) | $ (3.46) | $ (0.37) |
Diluted (in dollars per share) | $ (3.45) | $ (0.24) | $ (3.46) | $ (0.37) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 30,349 | 30,966 | 30,725 | 31,629 |
Diluted (in shares) | 30,349 | 30,966 | 30,725 | 31,629 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | $ 221 | $ 506 | $ 163 | $ 253 |
Comprehensive income (loss) | $ (104,489) | $ (6,817) | $ (106,245) | $ (11,359) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 25, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (106,408) | $ (11,612) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 15,649 | 12,691 |
Goodwill and intangible asset impairment charge | 59,674 | 9,485 |
Provision for credit losses | 630 | 2,408 |
Stock-based compensation | 4,844 | 5,294 |
Deferred income taxes | 33,997 | (22) |
Non-cash lease expense | 6,200 | 6,249 |
Other operating activities | (3,118) | (1,099) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 21,061 | 43,915 |
Income taxes receivable and payable | 430 | (3,039) |
Other assets | 8,246 | 15,053 |
Accounts payable and other accrued expenses | (18,849) | (26,968) |
Accrued wages and benefits | (14,753) | (9,277) |
Workers’ compensation claims reserve | (18,537) | (19,899) |
Operating lease liabilities | (6,139) | (6,295) |
Other liabilities | 1,011 | 3,980 |
Net cash (used in) provided by operating activities | (16,062) | 20,864 |
Cash flows from investing activities: | ||
Capital expenditures | (13,279) | (15,738) |
Proceeds from business divestiture, net | 2,928 | 0 |
Payment to Acquire Life Insurance Policy, Investing Activities | (4,000) | (2,347) |
Purchases of restricted held-to-maturity investments | (10,180) | (9,955) |
Maturities of restricted held-to-maturity investments | 19,220 | 15,613 |
Net cash used in investing activities | (5,311) | (12,427) |
Cash flows from financing activities: | ||
Purchases and retirement of common stock | (16,986) | (34,200) |
Net proceeds from employee stock purchase plans | 417 | 509 |
Common stock repurchases for taxes upon vesting of restricted stock | (2,143) | (2,514) |
Other | (1,807) | (91) |
Net cash used in financing activities | (20,519) | (36,296) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | (557) | (20) |
Net change in cash, cash equivalents and restricted cash and cash equivalents | (42,449) | (27,879) |
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period | 99,306 | 135,631 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period | 56,857 | 107,752 |
Supplemental Disclosure of Cash Flow Information [Abstract] | ||
Interest | 498 | 453 |
Income taxes | (199) | 3,760 |
Operating lease liabilities | 7,635 | 7,793 |
Property and equipment purchased but not yet paid | 1,864 | 3,345 |
Divestiture non-cash consideration | 600 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 6,654 | $ 8,124 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
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 (“SEC”) 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 31, 2023. The results of operations for the twenty-six weeks ended June 30, 2024 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include a significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, changes in the carrying amount of net assets, sale or disposition of a significant portion of a reporting unit, or a sustained decrease in stock price. We monitor the existence of potential impairment indicators throughout the fiscal year. Goodwill We test for goodwill impairment at the reporting unit level. We consider our operating segments to be our reporting units for goodwill impairment testing. Our reporting units with remaining goodwill as of the first day of our fiscal second quarter were PeopleReady, Centerline, PeopleScout RPO and PeopleScout MSP. When evaluating goodwill for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the reporting unit is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds the carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value of the goodwill. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. We performed an interim impairment test as of the last day of the first fiscal quarter of 2024, as well as a qualitative assessment for our annual impairment test one day later, which did not result in impairment of goodwill for any reporting unit. During the second fiscal quarter of 2024, management determined that a triggering event had occurred as a result of additional decline in demand for our services, prolonged economic uncertainty, and a further decrease in our stock price. Therefore, we performed an additional interim impairment test as of the last day of fiscal May 2024. Refer to Note 6: Goodwill and Intangible Assets for additional details on the interim impairment test, valuation methodologies, and inputs used in the fair value measurements. Indefinite-lived intangible assets We have indefinite-lived intangible assets for trade names/trademarks related to businesses within our PeopleScout and PeopleManagement segments. We evaluate our indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, or sale or disposition of a significant portion of the business. We monitor the existence of potential impairment indicators throughout the fiscal year. When evaluating indefinite-lived intangible assets for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of the indefinite-lived intangible asset is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the indefinite-lived intangible asset is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, utilizes the relief from royalty method to determine the fair value of each of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. During the fiscal second quarter of 2024, we performed an impairment test for indefinite-lived intangible assets. Refer to Note 6: Goodwill and Intangible Assets for additional details on the impairment test, valuation methodologies, and inputs used in the fair value measurements. Government assistance As there is limited U.S. GAAP accounting guidance for for-profit business entities that receive government assistance, we have elected to analogize to International Financial Reporting Standards (“IFRS”), specifically International Accounting Standards (“IAS”) 20, Accounting for Government Grants and Disclosures of Government Assistance. Following IAS 20, we recognize government assistance on a systematic basis over the periods in which we recognize the related costs for which the grant is intended to compensate, but only when there is reasonable assurance we will comply with all conditions attached to the grant and there is reasonable assurance the assistance will be received. We have interpreted “reasonable assurance” to mean “probable,” as defined in loss contingencies guidance in U.S. GAAP. During the second fiscal quarter of 2024, management determined the reasonable assurance criteria was met for certain payroll tax credits for which recognition was previously deferred. As a result, $2.9 million and $7.6 million were recognized within cost of services and selling, general and administrative (“SG&A”) expense, respectively, on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 30, 2024. Also, this resulted in a reversal of previously accrued interest related to these benefits of $1.1 million, offset by recognition of related professional fees of $0.8 million, which were recorded within interest and other income (expense), net and SG&A expense, respectively, on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 30, 2024. As of June 30, 2024, we have $15.1 million within accrued wages and benefits on our Consolidated Balance Sheets related to deferred recognition of certain payroll tax credits, including accrued interest, until recognition becomes probable. Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 30, 2024 that had a material impact on our financial statements. Recently issued accounting standards and disclosure rules not yet adopted Segments In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ,” which requires disclosure of incremental segment information on an interim and annual basis, primarily regarding significant segment expenses and information used to assess segment performance. This ASU is effective for fiscal years beginning after December 15, 2023 (fiscal 2024 for TrueBlue), and interim periods beginning after December 15, 2024 (Q1 2025 for TrueBlue). Retrospective application is required for all periods presented. We are currently evaluating the impact of this ASU on our required disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) - Improvements to Income Tax Disclosures ,” which requires enhancements and further transparency to certain income tax disclosures, primarily to the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (fiscal 2025 for TrueBlue), on a prospective basis with retrospective application permitted. We are currently evaluating the impact of this ASU on our required disclosures. Climate In March 2024, the SEC issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. While the SEC issued an order to stay the final rule in April 2024 due to certain legal challenges, we continue to evaluate the impact of this new rule on our required disclosures. There are no other accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
DIVESTITURE
DIVESTITURE | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE | DIVESTITURE Effective February 26, 2024, we entered into a share purchase agreement (the “Agreement”) to sell Labour Ready Temporary Services, Ltd. (“PeopleReady Canada”) to Vertical Staffing Resources (“Vertical”) for a preliminary sale price of $4.3 million, plus contingent consideration of up to $2.5 million based on the achievement of the results of the business as specified in the Agreement. The sale price is subject to adjustment based on the closing working capital of the divested business. We received cash proceeds of $2.9 million, net of $0.8 million of transaction costs and $0.6 million held in escrow until finalization of the closing working capital and expiration of the indemnification period. We recognized a pre-tax gain on the divestiture of $0.7 million, which is included in interest and other income (expense), net on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the twenty-six weeks ended June 30, 2024. The operating results for PeopleReady Canada were reported in the PeopleReady reportable segment through the closing date, including $2.6 million in revenue. The divestiture of PeopleReady Canada did not represent a strategic shift with a major effect on the company's operations and financial results and, therefore was not reported as a discontinued operation, nor was it an individually significant component of the company. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2024 | |
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 30, 2024 (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 $ 26,400 $ 26,400 $ — $ — Restricted cash and cash equivalents 30,457 30,457 — — Cash, cash equivalents and restricted cash and cash equivalents (1) $ 56,857 $ 56,857 $ — $ — Municipal debt securities $ 28,834 $ — $ 28,834 $ — Corporate debt securities 69,537 — 69,537 — Agency mortgage-backed securities 11,843 — 11,843 — U.S. government and agency securities 957 — 957 — Restricted investments classified as held-to-maturity (2) $ 111,171 $ — $ 111,171 $ — December 31, 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 $ 61,885 $ 61,885 $ — $ — Restricted cash and cash equivalents 37,421 37,421 — — Cash, cash equivalents and restricted cash and cash equivalents (1) $ 99,306 $ 99,306 $ — $ — Municipal debt securities $ 31,804 $ — $ 31,804 $ — Corporate debt securities 74,912 — 74,912 — Agency mortgage-backed securities 13,235 — 13,235 — U.S. government and agency securities 962 — 962 — Restricted investments classified as held-to-maturity (2) $ 120,913 $ — $ 120,913 $ — (1) Cash, cash equivalents and restricted cash and cash equivalents include money market funds and deposits. (2) Refer to Note 4: Restricted Cash, Cash Equivalents 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 impairment tests for goodwill and indefinite-lived intangible assets during our fiscal second quarter of 2024. Refer to Note 6: Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, and inputs used in the fair value measurements. For our interim goodwill impairment test as of the last day of fiscal May 2024, the fair value of each reporting unit was estimated using an equal 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 $59.1 million associated with the PeopleReady reporting unit was impaired, and an impairment charge of $59.1 million was recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and twenty-six weeks ended June 30, 2024. For our indefinite-lived intangible asset impairment test performed during the fiscal second quarter of 2024, 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 $3.3 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 30, 2024. |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND INVESTMENTS | RESTRICTED CASH, CASH EQUIVALENTS AND INVESTMENTS The following is a summary of the carrying value of our restricted cash, cash equivalents and investments: (in thousands) June 30, December 31, Cash collateral held by insurance carriers $ 23,896 $ 23,598 Cash and cash equivalents held in Trust 5,816 12,703 Investments held in Trust 113,268 122,659 Company-owned life insurance policies 39,627 32,905 Other restricted cash and cash equivalents 745 1,120 Total restricted cash, cash equivalents and investments $ 183,352 $ 192,985 Held-to-maturity Restricted cash, cash equivalents 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 30, 2024 and December 31, 2023, were as follows: June 30, 2024 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 29,150 $ — $ (316) $ 28,834 Corporate debt securities 71,296 71 (1,830) 69,537 Agency mortgage-backed securities 11,823 53 (33) 11,843 U.S. government and agency securities 999 — (42) 957 Total held-to-maturity investments $ 113,268 $ 124 $ (2,221) $ 111,171 December 31, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 32,042 $ 4 $ (242) $ 31,804 Corporate debt securities 76,578 333 (1,999) 74,912 Agency mortgage-backed securities 13,039 196 — 13,235 U.S. government and agency securities 1,000 — (38) 962 Total held-to-maturity investments $ 122,659 $ 533 $ (2,279) $ 120,913 The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: June 30, 2024 (in thousands) Amortized cost Fair value Due in one year or less $ 26,153 $ 25,810 Due after one year through five years 74,731 73,005 Due after five years through ten years 6,207 6,145 Due after ten years 6,177 6,211 Total held-to-maturity investments $ 113,268 $ 111,171 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 30, 2024 and June 25, 2023, which are included in SG&A expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 30, June 25, June 30, June 25, Unrealized gains (losses) $ 303 $ 1,558 $ 2,722 $ 1,975 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
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 31, 2023 Goodwill before impairment $ 105,284 $ 142,191 $ 81,092 $ 328,567 Accumulated impairment charge (46,210) (118,642) (79,601) (244,453) Goodwill, net 59,074 23,549 1,491 84,114 Impairment charge (59,074) — — (59,074) Foreign currency translation — (126) — (126) Balance at June 30, 2024 Goodwill before impairment 105,284 142,065 81,092 328,441 Accumulated impairment charge (105,284) (118,642) (79,601) (303,527) Goodwill, net $ — $ 23,423 $ 1,491 $ 24,914 Annual impairment test We performed an interim impairment test as of the last day of the fiscal first quarter of 2024 as management determined that a triggering event had occurred as a result of continued decline for our services, overall economic uncertainty, and a sustained decrease in our stock price, which did not result in impairment of goodwill for any reporting unit. Given the proximity of our first quarter interim impairment measurement date to our annual goodwill impairment measurement date (first day of the fiscal second quarter), we performed a qualitative assessment to determine whether it was more likely than not that the fair value of any of our reporting units was less than the carrying value. We considered the current and expected future economic and market conditions and concluded it was unlikely the goodwill associated with our reporting units was impaired as of the first day of our fiscal second quarter. Interim impairment test During the fiscal second quarter of 2024, subsequent to our annual test as of the first day of our fiscal second quarter, management determined that a triggering event had occurred as a result of additional decline in demand for our services, prolonged economic uncertainty, and a further decrease in our stock price. Therefore, we performed an interim impairment test as of the last day of fiscal May 2024 for our reporting units with remaining goodwill. 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 of revenue and profitability, 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 13.5% to 14.5%. 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 used 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 PeopleReady. As a result of our May 2024 interim impairment test, we concluded that the carrying amount of the PeopleReady reporting unit exceeded its estimated fair value. Thus, we recorded a non-cash goodwill impairment charge of $59.1 million, representing the remaining goodwill balance for PeopleReady, 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 30, 2024. The goodwill impairment was primarily driven by recent performance of the PeopleReady reporting unit and the temporary industrial staffing industry since our annual impairment testing date, as well as a delay in the projected timing of recovery. Additionally, following performance of the interim impairment test as of the last day of fiscal May 2024 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 30, 2024. Accordingly, no further impairment charge was recognized during the thirteen weeks ended June 30, 2024. Indefinite-lived intangible assets We held indefinite-lived trade names/trademarks of $4.8 million and $5.4 million as of June 30, 2024 and December 31, 2023, respectively, related to businesses within our PeopleScout and PeopleManagement segments. During the fiscal second quarter of 2024, 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 30, 2024. The charge was primarily driven by recent revenue performance of the related business given a decline in demand and overall economic uncertainty. The remaining balance for this trade name/trademark was $2.7 million as of June 30, 2024. The fair value of the trade name/trademark related to the PeopleScout segment was substantially in excess of its carrying amount of $2.1 million as of June 30, 2024, and therefore did not result in an impairment. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
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 30, June 25, Beginning balance $ 2,005 $ 3,212 Current period provision 630 2,408 Write-offs (1,785) (2,130) Foreign currency translation (1) 3 Ending balance $ 849 $ 3,493 Prepaid expenses and other current assets The balance of prepaid expenses and other current assets was made up of the following: (in thousands) June 30, December 31, Prepaid software agreements $ 9,666 $ 8,435 Other prepaid expenses 6,023 9,355 Assets held-for-sale 11,785 4,845 Other current assets 5,093 6,259 Prepaid expenses and other current assets $ 32,567 $ 28,894 Assets held-for-sale On April 11, 2024, following an evaluation of our office space and business requirements, management, with approval from the Board of Directors, entered into an agreement to sell our Tacoma headquarters building for $15.0 million. The sale is expected to be finalized within one year, subject to customary closing conditions. As a result, during the fiscal second quarter ending June 30, 2024, we classified these assets as held-for-sale and ceased recording depreciation. As the estimated fair value of the disposal group, less costs to sell, exceeded its carrying value of $11.8 million, no impairment loss was recorded for the thirteen or twenty-six weeks ended June 30, 2024. Assets held-for-sale as of December 31, 2023 represented the assets included as part of the disposal group related to the eventual divestiture of Labour Ready Temporary Services, Ltd., which was finalized during the fiscal first quarter of 2024. Refer to Note 2: Divestiture for additional details. |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 6 Months Ended |
Jun. 30, 2024 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
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 5.5 years as of June 30, 2024. The weighted average discount rate was 2.6% and 2.4% at June 30, 2024 and December 31, 2023, 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 30, December 31, Undiscounted workers’ compensation reserve $ 195,364 $ 214,611 Less discount on workers’ compensation reserve 17,385 18,096 Workers’ compensation reserve, net of discount 177,979 196,515 Less current portion 38,728 44,866 Long-term portion $ 139,251 $ 151,649 Payments made against self-insured claims were $21.6 million and $22.4 million for the twenty-six weeks ended June 30, 2024 and June 25, 2023, 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 18 years. The rates used to discount excess claims incurred during the twenty-six weeks ended June 30, 2024 and fifty-three weeks ended December 31, 2023 were 4.5% and 4.1%, respectively. The discounted workers’ compensation reserve for excess claims was $51.2 million and $54.9 million as of June 30, 2024 and December 31, 2023, respectively. The discounted receivables from insurance companies, net of valuation allowance, were $50.4 million and $53.8 million as of June 30, 2024 and December 31, 2023, respectively. Workers’ compensation cost consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions’ premiums, insurance premiums and other miscellaneous expenses. Workers’ compensation cost of $4.8 million and $5.9 million was recorded in cost of services on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen weeks ended June 30, 2024 and June 25, 2023, respectively, and $10.1 million and $10.7 million for the twenty-six weeks ended June 30, 2024 and June 25, 2023, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT We have a revolving credit agreement with Bank of America, N.A., PNC Bank, N.A., HSBC Bank USA, N.A., Wells Fargo Bank, N.A., and Key Bank, N.A. dated as of February 9, 2024 (the “Revolving Credit Facility”). The Revolving Credit Facility provides for a revolving line of credit of up to $255.0 million, and matures on February 9, 2029. We have an option to increase the amount to $405.0 million, subject to lender approval. Included in the Revolving Credit Facility is a $25.0 million sub-limit for “Swingline” loans and a $25.0 million sub-limit for letters of credit. As of June 30, 2024, $6.2 million was utilized by outstanding standby letters of credit, leaving $248.8 million unused under the Revolving Credit Facility, which is constrained by our most restrictive covenant, making $132.5 million available for additional borrowing. As of December 31, 2023, $6.2 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 1.75% and 3.50%. Alternatively, at our option, we may pay interest based on a base rate plus an applicable spread between 0.75% and 2.50%. 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 0.75% and 2.50%, as described above. A commitment fee between 0.35% 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 1.50% and 3.25%, plus a fronting fee of 0.25%. 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 Revolving Credit Facility 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 30, 2024: • 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 30, 2024, our consolidated fixed charge coverage ratio was 8.72. • Asset coverage ratio of greater than 1.00, defined as the ratio of (a) 60% of accounts receivable to (b) total debt outstanding less unrestricted cash in excess of $50.0 million, subject to certain minimums. Under this covenant we are limited to $25.0 million in aggregate share repurchases in any twelve-month period. As of June 30, 2024, our asset coverage ratio was 22.43. The following financial covenant, as defined in the Revolving Credit Facility, will replace the asset coverage ratio beginning the fiscal first quarter of 2026, or earlier at our discretion, subject to the terms of the agreement: • Consolidated leverage ratio less than 3.00, defined as our funded indebtedness divided by trailing twelve months consolidated EBITDA, as defined in the Revolving Credit Facility. As of June 30, 2024, we were in compliance with all effective covenants related to the Revolving Credit Facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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 30, December 31, Cash collateral held by workers’ compensation insurance carriers $ 18,030 $ 17,737 Cash and cash equivalents held in Trust 5,816 12,703 Investments held in Trust 113,268 122,659 Letters of credit (1) 6,077 6,077 Surety bonds (2) 20,725 20,725 Total collateral commitments $ 163,916 $ 179,901 (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. 30, 2024 | |
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 30, June 25, June 30, June 25, Common stock shares Beginning balance 30,554 31,507 31,246 32,730 Purchases and retirement of common stock (632) (520) (1,489) (1,877) Net issuance under equity plans, including tax benefits 37 9 202 143 Stock-based compensation — — — — Ending balance 29,959 30,996 29,959 30,996 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 467,133 487,893 478,584 516,332 Net income (loss) (104,710) (7,323) (106,408) (11,612) Purchases and retirement of common stock (1) (6,919) (9,482) (16,986) (34,200) Net issuance under equity plans, including tax benefits 66 57 (1,722) (2,005) Stock-based compensation 2,742 2,664 4,844 5,294 Ending balance 358,312 473,809 358,312 473,809 Accumulated other comprehensive income (loss) Beginning balance, net of tax (20,770) (20,271) (20,712) (20,018) Foreign currency translation adjustment before reclassification 221 506 1,136 253 Reclassified from accumulated other comprehensive income (loss) (2) — — (973) — Foreign currency translation adjustment 221 506 163 253 Ending balance, net of tax (20,549) (19,765) (20,549) (19,765) Total shareholders’ equity ending balance $ 337,764 $ 454,045 $ 337,764 $ 454,045 (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 and the related excise tax 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. (2) Foreign currency translation adjustments related to Labour Ready Temporary Services, Ltd. that were recognized through net income (loss) upon the divestiture of the business during the twenty-six weeks ended June 30, 2024. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
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 or loss by jurisdiction, tax credits, government audit developments, changes in laws, regulations and administrative practices, valuation allowances recorded on deferred tax assets, 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 or loss. 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 or loss is lower. We recognize deferred tax assets to the extent we believe it is more likely than not the asset will be realized. Quarterly, management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets, including future reversals of existing taxable temporary differences, projected taxable income, tax-planning strategies, carryback potential if permitted, and the results of recent operations. A significant piece of objective negative evidence is the existence of a three-year cumulative loss. Such objective negative evidence limits the ability of management to consider other subjective evidence, such as projected taxable income. When appropriate, we record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Based on our assessment performed as of June 30, 2024, we determined that a full valuation allowance was appropriate against our U.S. federal and state deferred tax assets. This resulted in an increase in our income tax expense of approximately $55 million for the twenty-six weeks ended June 30, 2024. Our conclusion was driven by actual U.S. pre-tax losses beginning in 2023, combined with the significant non-cash goodwill impairment charge of $59.1 million recorded during the twenty-six weeks ended June 30, 2024. Our effective income tax rate for the twenty-six weeks ended June 30, 2024 was (47.5)%. The difference between the statutory federal income tax rate of 21.0% and our effective tax rate was primarily due to the valuation allowance against our U.S. federal and state deferred tax assets. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
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 30, June 25, June 30, June 25, Net income (loss) $ (104,710) $ (7,323) $ (106,408) $ (11,612) Weighted average number of common shares used in basic net income (loss) per common share 30,349 30,966 30,725 31,629 Dilutive effect of non-vested stock-based awards — — — — Weighted average number of common shares used in diluted net income (loss) per common share 30,349 30,966 30,725 31,629 Net income (loss) per common share: Basic $ (3.45) $ (0.24) $ (3.46) $ (0.37) Diluted $ (3.45) $ (0.24) $ (3.46) $ (0.37) Anti-dilutive shares 1,530 967 1,399 1,020 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
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: • On-Site : On-site management and recruitment for the contingent industrial workforce of manufacturing, warehousing and distribution facilities; and • 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 30, June 25, June 30, June 25, Revenue from services: Contingent staffing PeopleReady $ 223,409 $ 275,318 $ 446,070 $ 527,946 PeopleManagement 131,751 140,560 265,611 283,744 Human resource outsourcing PeopleScout 41,070 59,710 87,402 129,186 Total company $ 396,230 $ 475,588 $ 799,083 $ 940,876 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 30, June 25, June 30, June 25, Segment profit (loss): PeopleReady $ 394 $ 8,158 $ (4,664) $ 9,030 PeopleManagement 3,395 2,250 6,146 2,048 PeopleScout 3,430 8,817 8,309 17,740 Total segment profit 7,219 19,225 9,791 28,818 Corporate unallocated expense (6,150) (8,215) (12,202) (14,923) Third-party processing fees for hiring tax credits (90) (110) (180) (230) Amortization of software as a service assets (1,452) (952) (2,795) (1,820) Goodwill and intangible asset impairment charge (59,674) (9,485) (59,674) (9,485) PeopleReady technology upgrade costs (39) (174) (424) (206) COVID-19 government subsidies, net of fees 9,696 — 9,652 — Other benefits (costs) (1,779) (565) (3,988) (1,962) Depreciation and amortization (7,691) (6,280) (15,649) (12,691) Income (loss) from operations (59,960) (6,556) (75,469) (12,499) Interest and other income (expense), net 1,741 578 3,340 1,592 Income (loss) before tax expense $ (58,219) $ (5,978) $ (72,129) $ (10,907) Asset information by reportable segment is not presented as we do not manage our segments on a balance sheet basis. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ (104,710) | $ (7,323) | $ (106,408) | $ (11,612) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 (“SEC”) 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 31, 2023. The results of operations for the twenty-six weeks ended June 30, 2024 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include a significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, changes in the carrying amount of net assets, sale or disposition of a significant portion of a reporting unit, or a sustained decrease in stock price. We monitor the existence of potential impairment indicators throughout the fiscal year. Goodwill We test for goodwill impairment at the reporting unit level. We consider our operating segments to be our reporting units for goodwill impairment testing. Our reporting units with remaining goodwill as of the first day of our fiscal second quarter were PeopleReady, Centerline, PeopleScout RPO and PeopleScout MSP. When evaluating goodwill for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the reporting unit is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds the carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value of the goodwill. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. We performed an interim impairment test as of the last day of the first fiscal quarter of 2024, as well as a qualitative assessment for our annual impairment test one day later, which did not result in impairment of goodwill for any reporting unit. During the second fiscal quarter of 2024, management determined that a triggering event had occurred as a result of additional decline in demand for our services, prolonged economic uncertainty, and a further decrease in our stock price. Therefore, we performed an additional interim impairment test as of the last day of fiscal May 2024. Refer to Note 6: Goodwill and Intangible Assets for additional details on the interim impairment test, valuation methodologies, and inputs used in the fair value measurements. Indefinite-lived intangible assets We have indefinite-lived intangible assets for trade names/trademarks related to businesses within our PeopleScout and PeopleManagement segments. We evaluate our indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, or sale or disposition of a significant portion of the business. We monitor the existence of potential impairment indicators throughout the fiscal year. When evaluating indefinite-lived intangible assets for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of the indefinite-lived intangible asset is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the indefinite-lived intangible asset is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, utilizes the relief from royalty method to determine the fair value of each of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. During the fiscal second quarter of 2024, we performed an impairment test for indefinite-lived intangible assets. Refer to Note 6: Goodwill and Intangible Assets for additional details on the impairment test, valuation methodologies, and inputs used in the fair value measurements. |
Government assistance | Government assistance As there is limited U.S. GAAP accounting guidance for for-profit business entities that receive government assistance, we have elected to analogize to International Financial Reporting Standards (“IFRS”), specifically International Accounting Standards (“IAS”) 20, Accounting for Government Grants and Disclosures of Government Assistance. Following IAS 20, we recognize government assistance on a systematic basis over the periods in which we recognize the related costs for which the grant is intended to compensate, but only when there is reasonable assurance we will comply with all conditions attached to the grant and there is reasonable assurance the assistance will be received. We have interpreted “reasonable assurance” to mean “probable,” as defined in loss contingencies guidance in U.S. GAAP. |
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 30, 2024 that had a material impact on our financial statements. Recently issued accounting standards and disclosure rules not yet adopted Segments In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ,” which requires disclosure of incremental segment information on an interim and annual basis, primarily regarding significant segment expenses and information used to assess segment performance. This ASU is effective for fiscal years beginning after December 15, 2023 (fiscal 2024 for TrueBlue), and interim periods beginning after December 15, 2024 (Q1 2025 for TrueBlue). Retrospective application is required for all periods presented. We are currently evaluating the impact of this ASU on our required disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) - Improvements to Income Tax Disclosures ,” which requires enhancements and further transparency to certain income tax disclosures, primarily to the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (fiscal 2025 for TrueBlue), on a prospective basis with retrospective application permitted. We are currently evaluating the impact of this ASU on our required disclosures. Climate In March 2024, the SEC issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. While the SEC issued an order to stay the final rule in April 2024 due to certain legal challenges, we continue to evaluate the impact of this new rule on our required disclosures. There are no other 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. 30, 2024 | |
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 30, 2024 (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 $ 26,400 $ 26,400 $ — $ — Restricted cash and cash equivalents 30,457 30,457 — — Cash, cash equivalents and restricted cash and cash equivalents (1) $ 56,857 $ 56,857 $ — $ — Municipal debt securities $ 28,834 $ — $ 28,834 $ — Corporate debt securities 69,537 — 69,537 — Agency mortgage-backed securities 11,843 — 11,843 — U.S. government and agency securities 957 — 957 — Restricted investments classified as held-to-maturity (2) $ 111,171 $ — $ 111,171 $ — December 31, 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 $ 61,885 $ 61,885 $ — $ — Restricted cash and cash equivalents 37,421 37,421 — — Cash, cash equivalents and restricted cash and cash equivalents (1) $ 99,306 $ 99,306 $ — $ — Municipal debt securities $ 31,804 $ — $ 31,804 $ — Corporate debt securities 74,912 — 74,912 — Agency mortgage-backed securities 13,235 — 13,235 — U.S. government and agency securities 962 — 962 — Restricted investments classified as held-to-maturity (2) $ 120,913 $ — $ 120,913 $ — (1) Cash, cash equivalents and restricted cash and cash equivalents include money market funds and deposits. (2) Refer to Note 4: Restricted Cash, Cash Equivalents 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. 30, 2024 | |
Restricted Cash and Investments [Abstract] | |
Schedule of restricted cash and investments | The following is a summary of the carrying value of our restricted cash, cash equivalents and investments: (in thousands) June 30, December 31, Cash collateral held by insurance carriers $ 23,896 $ 23,598 Cash and cash equivalents held in Trust 5,816 12,703 Investments held in Trust 113,268 122,659 Company-owned life insurance policies 39,627 32,905 Other restricted cash and cash equivalents 745 1,120 Total restricted cash, cash equivalents and investments $ 183,352 $ 192,985 |
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 30, 2024 and December 31, 2023, were as follows: June 30, 2024 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 29,150 $ — $ (316) $ 28,834 Corporate debt securities 71,296 71 (1,830) 69,537 Agency mortgage-backed securities 11,823 53 (33) 11,843 U.S. government and agency securities 999 — (42) 957 Total held-to-maturity investments $ 113,268 $ 124 $ (2,221) $ 111,171 December 31, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 32,042 $ 4 $ (242) $ 31,804 Corporate debt securities 76,578 333 (1,999) 74,912 Agency mortgage-backed securities 13,039 196 — 13,235 U.S. government and agency securities 1,000 — (38) 962 Total held-to-maturity investments $ 122,659 $ 533 $ (2,279) $ 120,913 |
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 30, 2024 (in thousands) Amortized cost Fair value Due in one year or less $ 26,153 $ 25,810 Due after one year through five years 74,731 73,005 Due after five years through ten years 6,207 6,145 Due after ten years 6,177 6,211 Total held-to-maturity investments $ 113,268 $ 111,171 |
Schedule of unrealized gain (loss) on equity investments | Unrealized gains and losses related to investments still held at June 30, 2024 and June 25, 2023, which are included in SG&A expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 30, June 25, June 30, June 25, Unrealized gains (losses) $ 303 $ 1,558 $ 2,722 $ 1,975 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 31, 2023 Goodwill before impairment $ 105,284 $ 142,191 $ 81,092 $ 328,567 Accumulated impairment charge (46,210) (118,642) (79,601) (244,453) Goodwill, net 59,074 23,549 1,491 84,114 Impairment charge (59,074) — — (59,074) Foreign currency translation — (126) — (126) Balance at June 30, 2024 Goodwill before impairment 105,284 142,065 81,092 328,441 Accumulated impairment charge (105,284) (118,642) (79,601) (303,527) Goodwill, net $ — $ 23,423 $ 1,491 $ 24,914 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 30, June 25, Beginning balance $ 2,005 $ 3,212 Current period provision 630 2,408 Write-offs (1,785) (2,130) Foreign currency translation (1) 3 Ending balance $ 849 $ 3,493 |
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 30, December 31, Prepaid software agreements $ 9,666 $ 8,435 Other prepaid expenses 6,023 9,355 Assets held-for-sale 11,785 4,845 Other current assets 5,093 6,259 Prepaid expenses and other current assets $ 32,567 $ 28,894 |
WORKERS' COMPENSATION INSURAN_2
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 30, December 31, Undiscounted workers’ compensation reserve $ 195,364 $ 214,611 Less discount on workers’ compensation reserve 17,385 18,096 Workers’ compensation reserve, net of discount 177,979 196,515 Less current portion 38,728 44,866 Long-term portion $ 139,251 $ 151,649 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 30, December 31, Cash collateral held by workers’ compensation insurance carriers $ 18,030 $ 17,737 Cash and cash equivalents held in Trust 5,816 12,703 Investments held in Trust 113,268 122,659 Letters of credit (1) 6,077 6,077 Surety bonds (2) 20,725 20,725 Total collateral commitments $ 163,916 $ 179,901 (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. 30, 2024 | |
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 30, June 25, June 30, June 25, Common stock shares Beginning balance 30,554 31,507 31,246 32,730 Purchases and retirement of common stock (632) (520) (1,489) (1,877) Net issuance under equity plans, including tax benefits 37 9 202 143 Stock-based compensation — — — — Ending balance 29,959 30,996 29,959 30,996 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 467,133 487,893 478,584 516,332 Net income (loss) (104,710) (7,323) (106,408) (11,612) Purchases and retirement of common stock (1) (6,919) (9,482) (16,986) (34,200) Net issuance under equity plans, including tax benefits 66 57 (1,722) (2,005) Stock-based compensation 2,742 2,664 4,844 5,294 Ending balance 358,312 473,809 358,312 473,809 Accumulated other comprehensive income (loss) Beginning balance, net of tax (20,770) (20,271) (20,712) (20,018) Foreign currency translation adjustment before reclassification 221 506 1,136 253 Reclassified from accumulated other comprehensive income (loss) (2) — — (973) — Foreign currency translation adjustment 221 506 163 253 Ending balance, net of tax (20,549) (19,765) (20,549) (19,765) Total shareholders’ equity ending balance $ 337,764 $ 454,045 $ 337,764 $ 454,045 (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 and the related excise tax 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. (2) Foreign currency translation adjustments related to Labour Ready Temporary Services, Ltd. that were recognized through net income (loss) upon the divestiture of the business during the twenty-six weeks ended June 30, 2024. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 30, June 25, June 30, June 25, Net income (loss) $ (104,710) $ (7,323) $ (106,408) $ (11,612) Weighted average number of common shares used in basic net income (loss) per common share 30,349 30,966 30,725 31,629 Dilutive effect of non-vested stock-based awards — — — — Weighted average number of common shares used in diluted net income (loss) per common share 30,349 30,966 30,725 31,629 Net income (loss) per common share: Basic $ (3.45) $ (0.24) $ (3.46) $ (0.37) Diluted $ (3.45) $ (0.24) $ (3.46) $ (0.37) Anti-dilutive shares 1,530 967 1,399 1,020 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 30, June 25, June 30, June 25, Revenue from services: Contingent staffing PeopleReady $ 223,409 $ 275,318 $ 446,070 $ 527,946 PeopleManagement 131,751 140,560 265,611 283,744 Human resource outsourcing PeopleScout 41,070 59,710 87,402 129,186 Total company $ 396,230 $ 475,588 $ 799,083 $ 940,876 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 30, June 25, June 30, June 25, Segment profit (loss): PeopleReady $ 394 $ 8,158 $ (4,664) $ 9,030 PeopleManagement 3,395 2,250 6,146 2,048 PeopleScout 3,430 8,817 8,309 17,740 Total segment profit 7,219 19,225 9,791 28,818 Corporate unallocated expense (6,150) (8,215) (12,202) (14,923) Third-party processing fees for hiring tax credits (90) (110) (180) (230) Amortization of software as a service assets (1,452) (952) (2,795) (1,820) Goodwill and intangible asset impairment charge (59,674) (9,485) (59,674) (9,485) PeopleReady technology upgrade costs (39) (174) (424) (206) COVID-19 government subsidies, net of fees 9,696 — 9,652 — Other benefits (costs) (1,779) (565) (3,988) (1,962) Depreciation and amortization (7,691) (6,280) (15,649) (12,691) Income (loss) from operations (59,960) (6,556) (75,469) (12,499) Interest and other income (expense), net 1,741 578 3,340 1,592 Income (loss) before tax expense $ (58,219) $ (5,978) $ (72,129) $ (10,907) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Government Assistance [Line Items] | |
Percentage of fair value in excess of carrying amount | 20% |
Deferred recognition of certain benefits | $ 15.1 |
Cost of Sales | |
Government Assistance [Line Items] | |
Payroll tax credits and reversal of accrued interest related to those benefits | 2.9 |
Selling, General and Administrative Expenses | |
Government Assistance [Line Items] | |
Payroll tax credits and reversal of accrued interest related to those benefits | 7.6 |
Professional fees | (0.8) |
Nonoperating Income (Expense) | |
Government Assistance [Line Items] | |
Payroll tax credits and reversal of accrued interest related to those benefits | $ 1.1 |
DIVESTITURE (Details)
DIVESTITURE (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 26, 2024 | Jun. 30, 2024 | Jun. 25, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from business divestiture, net | $ 2,928 | $ 0 | |
PeopleReady Canada | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Preliminary sales price | $ 4,300 | ||
Contingent consideration | 2,500 | ||
Proceeds from business divestiture, net | 2,900 | ||
Transaction costs | 800 | ||
Amount held in escrow | 600 | ||
Pre-tax gain on divestiture | 700 | ||
Revenue | $ 2,600 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 25, 2023 | Dec. 25, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 56,857 | $ 99,306 | $ 107,752 | $ 135,631 |
Restricted investments classified as held-to-maturity | 111,171 | 120,913 | ||
Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 28,834 | 31,804 | ||
Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 69,537 | 74,912 | ||
Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 11,843 | 13,235 | ||
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 | 957 | 962 | ||
Fair value, recurring | Total fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 26,400 | 61,885 | ||
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 | 30,457 | 37,421 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 56,857 | 99,306 | ||
Restricted investments classified as held-to-maturity | 111,171 | 120,913 | ||
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 | 28,834 | 31,804 | ||
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 | 69,537 | 74,912 | ||
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 | 11,843 | 13,235 | ||
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 | 957 | 962 | ||
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 | 26,400 | 61,885 | ||
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 | 30,457 | 37,421 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 56,857 | 99,306 | ||
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 | 111,171 | 120,913 | ||
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 | 28,834 | 31,804 | ||
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 | 69,537 | 74,912 | ||
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 | 11,843 | 13,235 | ||
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 | 957 | 962 | ||
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 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment loss | $ (59,074) | |||||
Goodwill and intangible asset impairment charge | $ (59,674) | $ (9,485) | (59,674) | $ (9,485) | ||
Goodwill | 24,914 | 24,914 | $ 84,114 | |||
PeopleReady | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment loss | (59,100) | (59,074) | ||||
Goodwill | 0 | 0 | $ 59,100 | 59,074 | ||
PeopleManagement | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment loss | 0 | |||||
Indefinite-lived trade names/trademarks | 2,700 | 2,700 | $ 3,300 | |||
Goodwill | 1,491 | $ 1,491 | $ 1,491 | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 600 |
RESTRICTED CASH AND INVESTMEN_3
RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | Dec. 31, 2023 | |
Restricted Cash and Investments [Line Items] | |||||
Cash collateral held by insurance carriers | $ 23,896 | $ 23,896 | $ 23,598 | ||
Cash and cash equivalents held in Trust | 5,816 | 5,816 | 12,703 | ||
Investments held in Trust | 113,268 | 113,268 | 122,659 | ||
Company owned life insurance policies | 39,627 | 39,627 | 32,905 | ||
Other restricted cash and cash equivalents | 745 | 745 | 1,120 | ||
Restricted cash and investments | 183,352 | 183,352 | 192,985 | ||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 113,268 | 113,268 | 122,659 | ||
Gross unrealized gains | 124 | 124 | 533 | ||
Gross unrealized losses | (2,221) | (2,221) | (2,279) | ||
Fair value | 111,171 | 111,171 | 120,913 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 113,268 | 113,268 | 122,659 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 111,171 | 111,171 | 120,913 | ||
Unrealized gains (losses) on Investments | 303 | $ 1,558 | 2,722 | $ 1,975 | |
Municipal debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 29,150 | 29,150 | 32,042 | ||
Gross unrealized gains | 0 | 0 | 4 | ||
Gross unrealized losses | (316) | (316) | (242) | ||
Fair value | 28,834 | 28,834 | 31,804 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 29,150 | 29,150 | 32,042 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 28,834 | 28,834 | 31,804 | ||
Corporate debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 71,296 | 71,296 | 76,578 | ||
Gross unrealized gains | 71 | 71 | 333 | ||
Gross unrealized losses | (1,830) | (1,830) | (1,999) | ||
Fair value | 69,537 | 69,537 | 74,912 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 71,296 | 71,296 | 76,578 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 69,537 | 69,537 | 74,912 | ||
Agency mortgage-backed securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 11,823 | 11,823 | 13,039 | ||
Gross unrealized gains | 53 | 53 | 196 | ||
Gross unrealized losses | (33) | (33) | 0 | ||
Fair value | 11,843 | 11,843 | 13,235 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 11,823 | 11,823 | 13,039 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 11,843 | 11,843 | 13,235 | ||
U.S. government and agency securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 999 | 999 | 1,000 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | (42) | (42) | (38) | ||
Fair value | 957 | 957 | 962 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 999 | 999 | 1,000 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 957 | 957 | $ 962 | ||
Restricted cash and investments | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 113,268 | 113,268 | |||
Fair value | 111,171 | 111,171 | |||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Due in one year or less | 26,153 | 26,153 | |||
Due after one year through five years | 74,731 | 74,731 | |||
Due after five years through ten years | 6,207 | 6,207 | |||
Due after ten years | 6,177 | 6,177 | |||
Amortized cost of held-to-maturity investments | 113,268 | 113,268 | |||
Held-to-maturity securities, fair value [Abstract] | |||||
Due in one year or less | 25,810 | 25,810 | |||
Due after one year through five years | 73,005 | 73,005 | |||
Due after five years through ten years | 6,145 | 6,145 | |||
Due after ten years | 6,211 | 6,211 | |||
Fair value | $ 111,171 | $ 111,171 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2024 | May 26, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ (59,074) | ||||
Foreign currency translation | (126) | ||||
Goodwill before impairment | $ 328,441 | 328,441 | $ 328,567 | ||
Accumulated impairment loss | (303,527) | (303,527) | (244,453) | ||
Goodwill, net | 24,914 | 24,914 | 84,114 | ||
Minimum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital | 13.50% | ||||
Maximum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital | 14.50% | ||||
PeopleReady | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | (59,100) | (59,074) | |||
Foreign currency translation | 0 | ||||
Goodwill before impairment | 105,284 | 105,284 | 105,284 | ||
Accumulated impairment loss | (105,284) | (105,284) | (46,210) | ||
Goodwill, net | 0 | 0 | $ 59,100 | 59,074 | |
PeopleScout | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | 0 | ||||
Foreign currency translation | (126) | ||||
Goodwill before impairment | 142,065 | 142,065 | 142,191 | ||
Accumulated impairment loss | (118,642) | (118,642) | (118,642) | ||
Goodwill, net | 23,423 | 23,423 | 23,549 | ||
PeopleManagement | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | 0 | ||||
Foreign currency translation | 0 | ||||
Goodwill before impairment | 81,092 | 81,092 | 81,092 | ||
Accumulated impairment loss | (79,601) | (79,601) | (79,601) | ||
Goodwill, net | $ 1,491 | $ 1,491 | $ 1,491 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | May 26, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 24,914 | $ 84,114 | ||
PeopleManagement | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 1,491 | 1,491 | ||
Indefinite-lived trade names/trademarks | 2,700 | $ 3,300 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 600 | |||
PeopleScout | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 23,423 | $ 23,549 | ||
Indefinite-lived trade names/trademarks | $ 2,100 | |||
Minimum | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Weighted average cost of capital | 13.50% | |||
Maximum | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Weighted average cost of capital | 14.50% |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
PeopleManagement | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived trade names/trademarks | $ 2,700 | $ 3,300 | |
Impairment of Intangible Assets (Excluding Goodwill) | 600 | ||
PeopleScout | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived trade names/trademarks | 2,100 | ||
Trade names/trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived trade names/trademarks | $ 4,800 | $ 5,400 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Allowance for credit losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 25, 2023 | Dec. 31, 2023 | Dec. 25, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 849 | $ 3,493 | $ 2,005 | $ 3,212 |
Provision for credit losses | 630 | 2,408 | ||
Write-offs | (1,785) | (2,130) | ||
Foreign currency translation | (1) | 3 | ||
Ending balance | $ 849 | $ 3,493 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid software agreements | $ 9,666 | $ 8,435 |
Other prepaid expenses | 6,023 | 9,355 |
Assets held-for-sale | 11,785 | 4,845 |
Other current assets | 5,093 | 6,259 |
Prepaid expenses and other current assets | $ 32,567 | $ 28,894 |
SUPPLEMENTAL BALANCE SHEET IN_5
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - Assets held-for-sale - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Tacoma Headquarters - USD ($) $ in Millions | Jun. 30, 2024 | Apr. 11, 2024 |
Long-Lived Assets Held-for-Sale [Line Items] | ||
Preliminary sales price | $ 15 | |
Carrying value of held-for-sale assets | $ 11.8 |
WORKERS' COMPENSATION INSURAN_3
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
Undiscounted workers’ compensation reserve | $ 195,364 | $ 214,611 |
Less discount on workers’ compensation reserve | 17,385 | 18,096 |
Workers' compensation reserve, net of discount | 177,979 | 196,515 |
Less current portion | 38,728 | 44,866 |
Long-term portion | $ 139,251 | $ 151,649 |
WORKERS' COMPENSATION INSURAN_4
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | Dec. 31, 2023 | |
Workers' Compensation Deductible Limit [Line Items] | ||||||
Weighted average period for claim payments below deductible limit | 5 years 6 months | |||||
Payments made against self-insured claims | $ 21.6 | $ 22.4 | ||||
Weighted average period for claim payments and receivables above deductible limit | 18 years | |||||
Workers' compensation reserve for excess claims | $ 51.2 | $ 51.2 | $ 54.9 | |||
Worker's compensation receivable for excess claims | 50.4 | 50.4 | $ 53.8 | |||
Workers compensation expense | 4.8 | $ 5.9 | $ 10.1 | $ 10.7 | ||
Minimum | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation claim deductible limit | $ 5 | |||||
Below limit | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation discount | 2.40% | 2.60% | ||||
Above Limit | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation discount | 4.10% | 4.50% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Feb. 09, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Revolving Credit Facility [Line Items] | |||
Debt instrument, fixed charge coverage ratio | 8.72 | ||
Asset coverage ratio | 22.43 | ||
Accounts receivable threshold | 60% | ||
Restricted cash threshold | $ 50 | ||
Aggregate share repurchase limit | $ 25 | ||
Consolidated leverage ratio | 3 | ||
Minimum | |||
Revolving Credit Facility [Line Items] | |||
Fixed charge coverage ratio, threshold | 1.25 | ||
Asset coverage ratio | 1 | ||
Revolving Credit Facility | |||
Revolving Credit Facility [Line Items] | |||
Remaining borrowing capacity | $ 248.8 | ||
Line of credit facility, maximum borrowing capacity, additional borrowings | $ 132.5 | ||
Revolving Credit Facility | Amended and Restated Revolving Credit Agreement | |||
Revolving Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 255 | ||
Increase limit | 405 | ||
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 | 0.35% | ||
Revolving Credit Facility | Minimum | LIBOR | |||
Revolving Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Revolving Credit Facility | Minimum | Base rate | |||
Revolving Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
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 | 2.50% | ||
Swingline loan | |||
Revolving Credit Facility [Line Items] | |||
Letters of credit outstanding | $ 6.2 | $ 6.2 | |
Swingline loan | Amended and Restated Revolving Credit Agreement | |||
Revolving Credit Facility [Line Items] | |||
Maximum borrowing capacity | 25 | ||
Swingline loan | Minimum | Base rate | |||
Revolving Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Swingline loan | Maximum | Base rate | |||
Revolving Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Letter of credit | Amended and Restated Revolving Credit Agreement | |||
Revolving Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 25 | ||
Letter of credit | LIBOR | |||
Revolving Credit Facility [Line Items] | |||
Additional letters of credit base rate | 0.25% | ||
Letter of credit | Minimum | LIBOR | |||
Revolving Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
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. 30, 2024 | Dec. 31, 2023 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 18,030 | $ 17,737 |
Cash and cash equivalents held in Trust | 5,816 | 12,703 |
Investments held in Trust | 113,268 | 122,659 |
Letters of credit | 6,077 | 6,077 |
Surety bonds | 20,725 | 20,725 |
Total collateral commitments | $ 163,916 | $ 179,901 |
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | Dec. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 31,245,732 | ||||
Ending balance (in shares) | 29,959,143 | 29,959,143 | |||
Beginning balance | $ 457,873 | ||||
Net income (loss) | $ (104,710) | $ (7,323) | (106,408) | $ (11,612) | |
Change in accounting standard cumulative-effect adjustment | 358,312 | 358,312 | $ 478,584 | ||
Foreign currency translation adjustment before reclassification | 221 | 506 | 1,136 | 253 | |
Reclassification from accumulated other comprehensive income (loss) | 0 | (973) | 0 | 0 | |
Foreign currency translation adjustment | 221 | 506 | 163 | 253 | |
Ending balance, net of tax | $ 337,764 | $ 454,045 | $ 337,764 | $ 454,045 | |
Common stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 30,554,000 | 31,507,000 | 31,246,000 | 32,730,000 | |
Purchases and retirement of common stock (in shares) | (632,000) | (520,000) | (1,489,000) | (1,877,000) | |
Net issuances under equity plans, including tax benefits (in shares) | 37,000 | 9,000 | 202,000 | 143,000 | |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 | |
Ending balance (in shares) | 29,959,000 | 30,996,000 | 29,959,000 | 30,996,000 | |
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 | 467,133 | 487,893 | 478,584 | 516,332 | |
Net income (loss) | (104,710) | (7,323) | (106,408) | (11,612) | |
Purchases and retirement of common stock | (6,919) | (9,482) | (16,986) | (34,200) | |
Net issuance under equity plans, including tax benefits | 66 | 57 | (1,722) | (2,005) | |
Stock-based compensation | 2,742 | 2,664 | 4,844 | 5,294 | |
Ending balance, net of tax | 358,312 | 473,809 | 358,312 | 473,809 | |
Accumulated other comprehensive income (loss) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (20,770) | (20,271) | (20,712) | (20,018) | |
Ending balance, net of tax | $ (20,549) | $ (19,765) | $ (20,549) | $ (19,765) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate | (47.50%) |
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. 30, 2024 | Jun. 25, 2023 | Jun. 30, 2024 | Jun. 25, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (104,710) | $ (7,323) | $ (106,408) | $ (11,612) |
Weighted average number of common shares used in basic net income per common share (in shares) | 30,349 | 30,966 | 30,725 | 31,629 |
Dilutive effect of non-vested stock-based awards (in shares) | 0 | 0 | 0 | 0 |
Weighted average number of common shares used in diluted net income (loss) per common share | 30,349 | 30,966 | 30,725 | 31,629 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (3.45) | $ (0.24) | $ (3.46) | $ (0.37) |
Diluted (in dollars per share) | $ (3.45) | $ (0.24) | $ (3.46) | $ (0.37) |
Anti-dilutive shares (in shares) | 1,530 | 967 | 1,399 | 1,020 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 25, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 25, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of aggregated reportable segments | segment | 1 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 396,230 | $ 475,588 | $ 799,083 | $ 940,876 |
Segment profit | 7,219 | 19,225 | 9,791 | 28,818 |
Third-party processing fees for hiring tax credits | (90) | (110) | (180) | (230) |
Amortization of software as a service assets | (1,452) | (952) | (2,795) | (1,820) |
PeopleReady technology upgrade costs | (39) | (174) | (424) | (206) |
Other benefits (costs) | (1,779) | (565) | (3,988) | (1,962) |
Depreciation and amortization | (7,691) | (6,280) | (15,649) | (12,691) |
Income (loss) from operations | (59,960) | (6,556) | (75,469) | (12,499) |
Interest and other income (expense), net | 1,741 | 578 | 3,340 | 1,592 |
Income (loss) before tax expense | (58,219) | (5,978) | (72,129) | (10,907) |
Goodwill and intangible asset impairment charge | (59,674) | (9,485) | (59,674) | (9,485) |
COVID-19 government subsidies, net | 9,696 | 0 | 9,652 | 0 |
PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 394 | 8,158 | (4,664) | 9,030 |
PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 3,395 | 2,250 | 6,146 | 2,048 |
PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 3,430 | 8,817 | 8,309 | 17,740 |
Corporate unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Corporate unallocated expense | (6,150) | (8,215) | (12,202) | (14,923) |
Contingent staffing | PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 223,409 | 275,318 | 446,070 | 527,946 |
Contingent staffing | PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 131,751 | 140,560 | 265,611 | 283,744 |
Human resource outsourcing | PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 41,070 | $ 59,710 | $ 87,402 | $ 129,186 |