TBI - Earnings call transcript Q1 2021

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Operator

Hello. My name is Philip, and I will be your conference operator today. At this time, I’d like to welcome everyone to the First Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

your begin conference. may You

Derrek Gafford

and Good call. for today’s you joined afternoon, by Beharelle. everyone, I’m Patrick our joining Officer, thank Chief Executive

materially call to of subject to I everyone and uncertainties, forward-looking begin, to assume risks use comparisons purpose. all those and and measures no non-GAAP a our which understanding these the in in today’s our we differ based at period on press stated. Relations today’s trueblue.com terms forward-looking obligation statements, update or statements. These are statements. encourage we made contain results or review described forward-looking to from are could release, risks year, and actual section, slide and Any presenting are We We which financial in the Before of you SEC revise and the under any presentation earnings uncertainties, to filings, want same cause prior comparison some in a of non-GAAP release results. their that today the our remind to otherwise for unless complete today’s in reconciliations when Investor

over call, and Patrick. website available be Lastly, remarks a our of of to the a call. at after soon audio turn transcript and today’s call the I’ll our providing on full the replay will conclusion be prepared copy we will also that, With

Patrick Beharelle

million we first to the delivered loss Thank of today’s a in $XXX and net pleased in $X I report start prior had of year. quarter versus first million Derrek, to you, welcome the a the to year. income everyone strong of am quarter the We call.

income client excluding year of that and tax. in am million, $XXX net non-cash experienced performance, impairment new including net was a wins, a asset Growth, the management. charge, disciplined year-over-year. a both $X improving growth adjusted of million hardest adjusted pleased industry As included hit impairment last the we by and of first an adjusted on led last series I year, of cost reminder, those quarter EBITDA the charge basis,

I early more highlight to basis new as mainly the to logistics turning year, labor. interest win an using up wins time clients In we this the at same segment results, on and year, Before PeopleManagement, are $XX manufacturing, successes last want PeopleScout in are variable beginning retail. see and PeopleManagement to $XX increased in new from million million annualized

$XX the last We $X have seen where million growth from time similar annualized are year, same at million up PeopleScout, wins this year.

and variety of which New client is transportation, from healthcare very retail, industries, encouraging. coming growth a including is

versus growing or engagement multimillion-dollar typical PeopleManagement that X% multiyear, results and via is Now and locations PeopleReady. of staffing segment by of revenue second in QX. the XX-month was X% provider XX% let’s footprint branch a physical by well The pre-pandemic an driver outsourced representing of XX% revenue commercial clients provides PeopleReady industrial service reaching involves largest XX% North and XX% mobile market. supplying levels profit. onsite XX% is the up PeopleManagement turn is in to industrial essence of the largest during American our in a and in as staffing is XX-month PeopleReady services American is trailing workforce onsite trailing versus revenue of our as quarter We the with XX% PeopleManagement leading quarter trades PeopleReady’s profit. segment, on-demand labor our segment revenue down in segment down of the our representing JobStack North skilled market. industrial national relationships. QX. segment staffing starting of our PeopleManagement driving app. first

managed through XX-month XX% offerings. represents segment leader PeopleScout outsourcing down filling profit. XX% is X% PeopleScout QX. service permanent revenue third positions and our to a down in versus and Revenue global during quarter recruitment the of Turning of segment, in provider was trailing X% process our

our segment, you to update gears key strategies and by shift starting like with I’d Now on PeopleReady.

share Our service long-term our structure. strategy of at JobStack delivery PeopleReady efficiency market don’t to pops deploy and gain this that capital the business our scale cost are mobile like our have of mom the improve further to is Most segment digitalize competitors to model in app. and our or smaller something

footprint, us along makes is this, So with our what unique. nationwide

As client a JobStack in We clients using have we rates QX digital in filled of shifts In rate out fill north the to app. the associates XXXX, we our the XXXX we began now via digital side than and a app. rolling fill and reminder, XXXX, of XXX,XXX XX,XXX of XX% representing more launched JobStack, XX%.

XX% heavy count to on share a differential continue to the basis. time. are user per month, capabilities. continues whether non-users heavy revenue rest versus up user JobStack has client same of client telling post more reason users revenue approving a primary XXXX. worker XXXX, quarter QX QX focus. growth the rates are or heavy customer they the was client customer base. JobStack’s as competitors JobStack client heavy client This client touches differential heavy to due ended share entering growth over to be user is from by and unique growth moving XX,XXX, between largely users a compared to XX A users us at the order, better driven takeaways on is major PeopleReady In growth XX rating or wallet our year-over-year an percentage points Driving Our it’s

of mix heavy heavy XX% is growth from client focus overall in increased QX XX% Our client on XXXX more material our in becoming XXXX. to in user fiscal results. PeopleReady’s business user We our

to and provide our pilots strengthen to strategy pilots. presence and I digital centralized the us can customers the achieve market our to this the goal repurposed do communities end we how greater we our roles in serve are we will where of activities, approach our strength elements allow existing in of foundation to better the focus new work the Combining geographic has intended The place, with technology, use local clients. with With reach efficiency. business. mentioned quarter, launched footprint turned go-to-market altered the job and of At first two the an

While the still it progress by results, team. the we report made by to early are too is encouraged

will pilots We as to the front update progress. continue on this

is on our investments to PeopleManagement, target productivity. to grow vertical execution made client teams strategy sharpened focus to to our manufacturers sales and year, focus and Turning enhance Last base. our we in our essential

expand in initiatives our the have strategy more these footprint markets. With and geographic we underserved to local targeting by flight, broadened

the strong as We mentioned with first results seeing new quarter. growth during win are earlier

serve associate in improve our in better investing are programs and needs care we and Finally, customer retention. client effort an to

PeopleScout, reputation for an capture leverages growth. brand strong strategy the opportunities to our Turning in to industry poised

big our some Before we, at already within of companies fully trend clients earlier. team. industry to COVID our now as economy we outsourced the towards models there annualized will in-sourcing, opportunity move Many million on mix and increase results. teams To bringing I business seeing more a We call over more the I’ll in-house. the made to multiple pass the as experienced pandemic, financial functions detail recruitment delivering clients. by new believe have have are hybrid been existing eliminated efforts in-house with and this referenced capitalize along with new portfolio of who struck, by reduced during competitors, our recovers. we in sales share clients shown results trend, the wins and Derrek, the investments around $XX diversify are across sectors our a is our as wallet These adding share to greater or

Derrek Gafford

QX share, decline XX.X% of an million, representing QX million revenue Total $X.XX million a basis, the of was for Patrick. $X SG&A net compared a On included margin XXX tax. of to The adjusted compared $XX income in loss of income in of net million, charge increase million, $X.XX QX down expense. net which XXXX of net income million points. EBITDA you, per of of by $X adjusted adjusted of prior or EBITDA up Gross XXX% to basis an $XXX impairment was to per net points. $XXX we adjusted year, a increase non-cash XXXX was delivered or We XXX posted driven was Thank in increase was X%. XXXX. and decline a $XXX $X million, basis an margin share, Adjusted compared

Our basis XX healthcare gross costs. expected benefit of rates largely our a of with development to points In compression, in There higher drag out. bill points due basis reduction gross points rates related that point reserves. staffing offset also basis our PeopleScout for compensation would in other pay basis a offsetting XX also favorable sales like from contributed benefit I by basis our staffing mix points this, in XXX for expansion. Adjusting are overall XXX relation the margin in workers’ provided and businesses, trends nearly XX to contributed of businesses expense to of some to prior flat. was year margin points

improve. Turning to ensure well discipline strong SG&A in business our importance, XX%. way to a that another million, is Maintaining of delivered cost important, conditions doing our the quarter or economic preserves results strengths with but is expense positioned expense, it continue down we as of equal operational to $XX for is growth

lead the while are XXXX, further These of activities geographic of use will throughout and footprint. to to efficiencies maintaining projects greater XXXX. PeopleReady of strength occur job of centralizing also the if reduce network additional pilot technology, could successful, roles, costs through implementing repurposing our work and We the branch in pilots

income our income income. tax with credits a effective X% of a in our exceeding of QX rate job tax Our associated as tax result was the pre-tax benefit

annualized up to January to with trends lower QX to periods. of X%, a our PeopleReady saw hit in trend X% March our compared pleased hardest markets. was California’s and in revenue QX Patrick while XXXX. XX% encouraging of and experienced one is March X% approximately of decline a million down in X% improved combination revenue our from pre-COVID, hit decline million in $X XX%. $XX a in Of of with in Non-residential expense, see were experienced XX%, was hospitality which a to a We decline was for of construction to saw increase intra-quarter down mentioned, geographies. revenue segments, improved new to the remainder year. these of Sequentially, declined X% was declined profit. XXXX. California saw time increased as Turning due million up market decline intra-quarter compared $X XX%, profit was PeopleManagement segment of improvement, hardest the XX% decline a also in to to expense. revenue segment $XX up PeopleScout same and increased XX% XX% QX expected over also million March to improve lower decline while profit expense. result XXXX, revenue revenue a PeopleReady recorded wins a of revenue business XX% compared of X%, January. the improvement, March PeopleManagement of in with in of largest QX some versus revenue XX%, versus drove our segment lower encouraging improved XX%

noted, leisure which new and the within about Patrick business XXXX hit in industries, encouraged QX went XX% from a of our the XX% hardest we March. over travel decline in As results are decline to wins of including by and a

in We seeing new optimistic are are also about we wins. signals the long-term these

are First, in-house from a to an shift interest signs an back outsourced there to model. model of clients from growing

remainder is Second, a and QX million recorded expected mentioned, and Patrick $XX million healthcare the business wins the the including approximately $XX annualized from of industries, was retail, Of new over in of coming year. million are $X wins of variety manufacturing.

Now balance flows. cash let’s and to the turn sheet

We Our balance outstanding unused the $XX quarter finished excellent an shape. in facility. no credit in with and cash, is million sheet debt,

largely from to cash due last While compared year, with was our associated to trends benefit better working QX flat from revenue flow less year. increased profitability capital operations this

revenue averaged average earnings historical presentation the filed This growth a XXXX. I’d This their quarterly few more we to like form can help and providing discuss to to forward-looking has about excludes the be the estimates. the to quarter the the certain information In Now regard take quarter are investors from topline, to XX%. information found in today. minutes second sequential own first

for to from basis Segment incurred approximately improvement XXX workforce second higher from XXX expect volumes Turning of mix coming to points points PeopleScout costs revenue drive reduction the of leverage basis at the basis XXXX. XXX to remainder the quarter, are gross with non-repeating in QX margin expansion we and points. expected operating

expansion of XXX basis the to margin basis gross expect points for We points full-year. XX

million everyone in $XXX reduction million and for we For XXXX actions XXXX. SG&A, for $XXX to expect million I’d cost quarter $XXX $XXX to April of anniversary second that like will most full-year. also to the we our of million remind

$XX about capital of build for in support Chicago expect our plan reimbursed the year. our expenditure million which costs out center, million expenditures, the capital $XX million $XX second be to for are For we by landlord. quarter Included and will for our much

provided filed presentation are details our in Additional earnings today.

weighted Our quarter outlook outstanding for of fully XXXX is for average XX.X second diluted the million. shares

our effective be million to and to income $XX from job credits, we tax tax expect $X to before to rate for XX%, tax We job benefit be about the expect million. the full-year, credits XX%

of With advantage during mix Please open solid a quarter to now the technology the the beyond. our feel This strong of opportunities balance are growth of first and and our call operational recovery positioned we prepared results, for we momentum concludes and well sheet remarks. strategies, take questions. a

Operator

the Vogel. from [Operator line Instructions] of question first Josh Your is

Joshua Vogel

but in recovery those are activity. prospects workforce, early, Thank so, the here. you. are and they vaccine afternoon, way? rollout I out meaningful reengage first which dropped results business are [indiscernible] you know sectors this is the My of the see guys. previously starting still Really seeing Good with and brighter in it's economy, question And impressive seeing happen? to who a you are to if

Patrick Beharelle

take don't question, the some at first then Josh. Thanks you that Yes. I'll short a for Derrek, add and color. why

Derrek Gafford

dropped weighing Josh. meaningful anything say There applicants out that's one wouldn't ongoing go the X, a as benefits in extension The back that Well, those, seen for the and coming is go, the still challenges, yet. market. newer been through I particularly have and that's on benefits workforce, while. far Hi, one as a that September federal those of unemployment unemployment couple that's go we've the that – of of

a hour, than making easily $XX the at an job. be you can that's somebody For benefits unemployment be more could making

in, noticeable stimulus person is, that applicants of $X,XXX lies refer been checks a plus part number the This the people decline we to per the coming saw dependent, and we in second funnel in. what coming coming around The have with new as in. of at

down was about February. So March XX% to compared

have Now of last rebound our that couple we results. with seen weeks

back, So we've our just coming Josh, those primarily this point, mentioned. I say wouldn't at meaningful factors anything that in to do I seen two opinion

Joshua Vogel

helpful. you. That's Thank

have in other might and beneficial a talk you with to U.S. make employers, relevant. On about even they side, trouble of how enough working projected workers demand months growth that recently the there's more or help coming hiring certainly or lot with fast would

client could was and good just I You little bit numbers existing recently gave with wins. some around or pipeline business both of talk a wondering orders. their if clients, the about demand you around activity the size their

Patrick Beharelle

Patrick. Yes. is Josh, this

mentioned we're the planning so the least – Many conversations are their pretty we vaccination rising are around As underlying rates planning, doing earlier, needs and they in looking they're as pandemic at their does the the strong they clients right are past having – confidence around now recovery. hiring are economy.

wins that are lot we manufacturing, of in up picking wins, clearly a the is And new hospitality. verticals to related of we demand vast So are across seeing the majority supporting. transportation,

might pipelines are for the strong. As also those particularly you expect,

when difficult becomes view hire supply to is in in situation ourselves temporary, more that provides the noted, services like the our a the we there people for rightly now it like need is find ones where imbalance pronounced. demand more you become TrueBlue As that

onsite big making rates, look roles. And so now have our candidates been you to business, typically delivered pretty at fill is sure PeopleManagement are rates when clients our the right the our enough And holding through we've fill strong. challenge fill got that

short we of or we of of you that's help shorter in. the are XX% lot clients. more why rates a a environment PeopleReady. in little fill see bit exist notice which shorter We a out request definitely getting challenge those. are support in as notice a But we've a from for pullback good operating burst short assignments. of term, to bit And the in We is assignments pretty type the so, that running some range of see seen the firm little the We're a considering

normalize is are temporary headlines but imbalance think now. quickly. demand there's Poor, fairly right not it's there supply, and a a of temporary should a supply So tightening enough – bit we

spike the in mentioned, that our came Derrek right we April stimulus additional in up in, saw we saw As when dip back after applications March.

Joshua Vogel

Shifting tick-up? demand we Did see still of shift all getting happen get of as insights that. half the of [indiscernible]? you [back expect Thank in feel sense guidance. on based seasonal want kind of to the the as With the just the a at seeing you. what a to toward back to there year pandemic? – structural well I are sequential this in higher the to fluid out back [indiscernible] a end of QX has pent-up how or I to But appreciate demand kind in revenue, the Are you half] coming you is of going on trends just about situation. QX? year

Derrek Gafford

Josh. a we end upper Yes. is excluding outlook sequentially comparison the Thanks QX for QX, question, historical that Well, perspective, provided XXXX. is, just Josh to to provided referring we the in what the and our how outlook to builds of get the with revenue that

about that's XX%. roughly, So

think that the need get to demand. some midpoint put momentum upper it we To about of [indiscernible] we increased to XX%. from range coming I was additional on, just XX% range, the end X%

about great going. This with we've areas the our demand we business, momentum really where in needed would the had So we've is we've that along and PeopleReady. most, PeopleManagement got PeopleScout – more that

the business long of PeopleScout. as So we our long, a time far at – great showings was had strongest number new as wins in this a one QX of

place. in business with is new take to maybe So quarter, can wins actually thing a PeopleScout quarters our those them business the though get two

half revenue versus amount make but falls So QX, a that that back from should there the be PeopleScout our sizable QX a in in business. the won't from meaningful sequential build difference

on growth to got to we close continued execute And to in really March, just that PeopleReady, go For back our executing. strategy. it's need Josh. to keep We

cost right the made we've a from think I structure. adjustments

going are and focused on market well. customers teams to really really Our serving the

think strong So strategies we're the positioned I way. and execute under we've and well that to on initiatives really go just got

Joshua Vogel

was could QX Great. historical share just if can it I have the growth you but only from If QX have sneak fingertips, All right. to sequential more one in and you average QX, at what five-year your to and if QX you it? for

Derrek Gafford

I don't have one handy, that Josh.

Joshua Vogel

and seeing questions, to thank taking Okay. Well, forward year the looking No you progresses. the rest worries. the for guys certainly, of how

Patrick Beharelle

Thanks, Josh.

Operator

question Marcon. line Instructions] [Operator the of next from Mark is Your

Mark Marcon

guys. afternoon, Good Hey. results. Encouraging

parts little you What you seeing you wondering if figures Just latter sequentially, the – in drove think there? think are can things talk presentation, to a JobStack in how things about specific you JobStack. about just weekly and of trend bit of how as but are the of the do that's Just going? gave toward progressing and terms what we wondering some into April, quarter sequential going kind your

Patrick Beharelle

ahead the day-to-day have just in their Hey, and interactions to essentially intelligence digital we're engage Mark. are for in and heavy that lends share clients and with of create we in them in a competitive PeopleReady what being to Patrick. the with PeopleReady, is itself transform we clients. growth the PeopleReady. so with our the, are really our we the are longer rates and using don't about Many positions term moved. that platform that our of and JobStack seeing leveraging some which and business terms seeing start This tool term we to that and users, artificial And we pre-requirements essentially I'll advantage. it of associates is Maybe industry with how for go one. take we vision think types And filling well

higher are seeing If growth than those you more the XX using that rates heavy clients points than users, that not at are are JobStack. look we

on the the we've been And recent so in use in tool quarters getting use to of clients it heavy percentage what way. is focused that a

seen we've some And movement there. so pretty nice

users, in a year of PeopleReady revenue up in were this over We time. XX% coming are where about we from up ago that's heavy now terms X from stream points at our

of that Our expectation have the XX%. is number vicinity that we in by December,

more you of the there. business percentage so can has It do get with significant been the as and users. math heavy compelling starts more And engaged to PeopleReady's

well. that's degree and so efforts marketing sales And a where clients obviously, up our large are base on we to and as new signing we're out installed spending our

the clients of year heavy that's the XX% about that's are So over up focus and probably XX% biggest targeting using XX,XXX we've toward year-over-year. the user that by end in got that number tool, the

are that We significantly climb pretty number expecting to throughout year. the

some any of to you the JobStack. questions, are if to have detailed you'd more So Derrek, anything add… Happy or like on those headlines answer

Mark Marcon

when clearly perspective, the I pattern, PeopleReady mean is quarter from smaller and just So sequential a better QX. about than think obviously, we QX year-over-year a

of one just anything like, from the should that's there things. wondering is sequential look So we But at that a perspective.

what how like of – is that mentioned assignments, was we terms the short-term things at in When Did – the you up coming should the mentioned impacting of checks? rates of fill March think easy that? it all? You kind end JobStack? stimulus off to about that Or dynamic, how the

Patrick Beharelle

Yes.

saw supply a I terms JobStack of headwinds, terms X% X% definitely the having with in In moment, in and side the are as everyone in effort from PeopleReady leaving for getting are rates industry, there in perspective positions decline the aside decline mentioned of We fill for a of way, and we about that along put of a about by an in to amount of some filled. PeopleManagement. just earlier, Mark, terms

So there now. is clearly a right demand imbalance supply

couple weeks temporary. As earlier, bounce compared of fact, in flow And pretty the XX% we in to that April. a applicants. March I in mentioned, a mentioned in saw here very bounced about in of it's February we right saw applicant number in the big think decline Derrek back last I back

marketing to we're of sense XX/X opens us would say manner. JobStack, Related workers those them for back. But can bounce to it a them up new in terms make potentially. supply out position them. in hard a time of the side. do pretty woods on engage that we We saw push We're we any yet helps notifications just the to not how the nice So

a clients workers. just gives it to our engage way so with And us better and our

kind in about planning QX In users, being the on terms of most at we’re terms in JobStack, heavy XX% of by would now a XX% guidance just if I think year. any we're related of of and end simplistic to roughly the

to terms math much larger growth in it for portion of makes be those of a should higher in And start of some a can QX us how beyond. tailwind that our and up rates, total. do You nice with

Mark Marcon

I appreciate that.

for those becoming who And like you're that ramp sounds heavy aren't a converting reason to to a so because user, what's that. and on it starting what's – see the significant changed most nice is

the been what's So biggest improvement?

Patrick Beharelle

Well, cases, a detail, has of imagine a it's a for in scenario Mark, too a requirement. some a client requirements where get into job. Without number much

as need a at recent to recent example, hepatitis you're you shot, in you C cafeteria hospital, need a to an if working have the a have tetanus So shot.

been pre-qualified the for of didn't so to jobs You of goes pre-requirements. we having because every number have assignment where to eligible to as in different fields physicians the every track of JobStack of by that fields every role. send those that some And out for complications requirements. we the need worker can What's someone been cases, we've quarter need on that of don't – had over time the for the requirements adding reduce JobStack we because isn't aren’t happening want we to all to fields – put

workers. with we're up workers. hesitancy an phone, is pre-requirements and data biggest Mark, second calling the it with that's to many it continue picking them until with sharing comfortable so second as the those success lift second the we'll been And and for why up the through seeing our time the with getting to and are making got phone we've reason getting of the one clients for as orders phone for work all opposed out getting approving branch not is their is and is, thing because biggest and picking comfortable comfortable just placing more challenge, matters those them stories some on of or that's important like So people the people just our order

Mark Marcon

really PeopleManagement And then, you terms in wins all both Patrick, PeopleScout. the of mentioned nice and

For were Thanks. you them, whether could and in-sourced or characterize? going or they're say now those companies majority PeopleScout, outsourcing? – they of to or the like either PeopleManagement service How new they're to brand would wins, using they that back basically had you not

Patrick Beharelle

little different case, about about half PeopleScout between were wins Mark. things of PeopleManagement. buyers, we one pretty the a first is we're and PeopleScout's In the time It's that excited had

RPO lot that So with had of goes We're it's an what starting being reversal see never the seeing XXXX we're in to just kind trends pre-pandemic. in were out, half in-sourcing PeopleScout were a theme first that buyers of some that a wins had before. of sentiment engagement reversed time so that

that's It we The services. from where other a time user first half were pronounced takeaways board. on isn't that engagements of it's the In takeaways site a brought head new or on been competitors. won were PeopleManagement's staffing case, PeopleScout most as of

Mark Marcon

back any that of of the in And relative big terms you to seeing country you're terms then, about can just faster come what others? in have broadly. just there Great. regionally talk areas discrepancies Are across

Patrick Beharelle

Why cover all probably fingertips. Derrek we got details the that? have don't He's at his

Derrek Gafford

Mark, that about Well, regionally about we prepared we're of one that really talked is excited in comments, California. State

So down about one – we about far don't I that rebound – State dropped in of as it trend. throughout know, probably as somewhere decline has our biggest averaged, California's revenue of struggles of call XXXX. California let's probably a been between March, And as X% California. into about the saw got points to PeopleReady than worse decline about we on average overall XX

I to flat close to We've like Florida got largest making March and third other well, pretty Florida actually just market. really Those seen size. growth our revenue overall close in places as the particular, the our PeopleReady nice two well. became of those So as mentioned two because decline. are largest to in Texas progress markets March. by

Mark Marcon

there probably any any speaking, any elements have Are over particular either have potentially revenue was boost dislocation getting you, been have clients about – transparent? Great. could is terms hey, in that the – because there that less there been a client years one-time of basically the there you or the you some better, or sort a in as themselves less there one anything some currently viewed are or some being, quarter others, with but have that of bumpy and is from predictable everyone is economy that

Derrek Gafford

contribution from There those. of customer We have then call wasn't would them. a really make any just anniversary of we've don't significant. out there projects times when all perspective, large And We do happen anything of approach like kind sure have anything. Yes. that size because those want XX% quarter, our any they of we this we a had where that to to aware revenue. you're customer been And to

see and XX and of have today, here with of for XX there. been that We've everything got we couple – a got total company then us falls X% over call revenue. customers are years it we've as So pretty X% a rapidly one that's that each else off

far this that not is as aware from to a happens. But the out always to can bring no and anomalies any I'm there Business be any as there there. customers of something project quarter's happens attention results. contribution in with rumblings So customer big that your

Mark Marcon

much. very you Thank Great.

Operator

is question the next Jeff line Silber. of Your from

Jeffrey Silber

impact to you me the on wage forgive about going so this. what's talked go But potential rates can and supply and you you talk from about back I billing about spreads? much. wanted inflation discussion to on Thank or early guys constraints if

Derrek Gafford

of when really talking challenge assignment. came Jeff. our something Well, bill during business know, of projects pay the a lot a a contract. take about you it that short things, spread PeopleManagement challenge not the spend XXXX. we rate on of to business, more job it Hi, when came one. of is Less of duration Yes. of time as much the Many to short-term PeopleReady these because our but are I'll

rates And seeing we QX throughout outpacing we so at take what bill pay XXXX, look QX, about and points. if a by were I percentage three rates had

bill percentage quarter, one the rates we As rates first by bill outpacing rates had me, about – gap that into point. pay excuse moved narrowed. We

gross last saw moving the into market. recover that particularly as the to on positive payer start rate to staffing is happens the swing get year like bit. So to anticipates bill start more been erosion outlook year. gap meaning talked by we we as happen, the business year spreads get and that back that margin. quite it's pricing some our then for what and a down and to think that, then closing get cut PeopleReady continue margin deeper the back gross we pay will growth, we of typically in on some continue our And bill we'll a ours, about We've industrial to power take What

Jeffrey Silber

Okay, fantastic.

my I You actually took question, so that. appreciate follow-up

it Anything out gave of would or revenue some your taking this to us the segments historical quarter. sequential of place items different line XQ used call the for from historical in trends, current a the framework growth to You guidance to be see sense just for as makes trends specific XQ the quarter? kind by in kind

Derrek Gafford

I don't have call anything out. really to particular

indicative the to of back stay of has course, outside of the older increased pretty XXXX, work. outside think PeopleReady because is variability most that get the for historical The mix sequential trends, us. one the I sequentially those business years, are of

that can you QX. a You revenue XX% sequentially anticipate to We see do if of year to this lift year. happen QX up given would by still compare

outs So there, Jeff. no key call

historical want sequential just while think year – it's comparisons we get here. to I giving versus helpful QX QX last comparison. at the prior least guidance, not that did trend year, because sequential helpful a not And QX, we're from of are from revenue

Jeffrey Silber

infrastructure finally, that benefit I've early, know of from? I company questions but there appreciate might And your way announced I been And President framework. that think still in his you do number a since there's it's anything has Okay, plan. Biden getting

Derrek Gafford

to projects But works presence, XX% of business we staffing, or the a be the industry. some that we our wouldn't a got and we on Many those union eye lot it's too not would that we think participate while it When goodness on, projects in – we company. difficult there the think people if comes how we've just blue-collar would that would it benefit, majority. serving onsite think there are for with is have our ascertain about it where construction. place is conceptually, Well, public our construction, much of to be industrial you of

all them, industries So those we of those and goods, suit the transporting are that are center sectors serve. speak warehousing that who industry manufacturing to the

as some could nice there So be to result we [indiscernible] benefits business it. possibly of think a our

Jeffrey Silber

helpful. That's Great. really Okay. Thanks much. so

Patrick Beharelle

one I that as to which just well, thing add would think you said, solar. I'll Derrek, would what to be in around addition

pretty suspect on projects. nicely we out, in got solar the depending I benefit of would lot And how would a from shakes bill the referenceable that more solar we've So clients strong sector. position,

Jeffrey Silber

much. Thank you That's really helpful. so again

Operator

Instructions] there time. further no at [Operator And questions this are

Patrick Beharelle

just In with forward employees, attending. our next great look the have I'd operator. at We our and the like call earnings of their throughout associates for the thank clients a pandemic everyone. our everyone speaking you and and to Well, quarterly for to thank efforts you rest thank closing, week

Operator

today's you conference. for Thank does That participating. conclude

disconnect. now may You

TrueBlue (TBI) 27 Apr 212021 Q1 Earnings call transcript