TBI - Earnings call transcript Q4 2021

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Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the TrueBlue Fourth Quarter 2021 Earnings Call. [Operator Instructions]. Derrek Gafford, you may begin your conference.

Derrek Gafford

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

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

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

Patrick Beharelle

Thank today's and Derrek, you, welcome, for everyone, call.

year want many results, take year. reflect quarter I moment I was the to XXXX levels. discuss across fourth our extraordinary Before past on a an to

the levels, Revenue very turn solutions proud our been challenges services grew for associated demand recession. stronger commitment TrueBlue learn COVID, higher, how and our solid for Despite downturn. worker the year never and the to to our As ongoing from digital to workforce in XX% positioned growing pace us as emerge supply results. the to pandemic, deliver community live years to lower the for supply challenges. their chain flexible businesses adjustments world with I'm ongoing to The faster a this is including on solve two to of operating than has pre-pandemic together investments and disruptions, for to numerous recover previous continued

New be the client and in year, find to we prior PeopleScout as with will I've more PeopleReady existing throughout the PeopleManagement recovery were pandemic, drove Compared agile more the model. and we PeopleScout, have second at wins the to ourselves now and CEO TrueBlue, and client half, this growth. never in stronger, where momentum the my we efficient business. year about optimistic a more business of and fourth XXXX been of

and I QX compared to sector, EBITDA supply factors and same continue of $XX XXXX turn quarter, to driven pleased by million, million, $XX QX to X% our impressive of QX our of compared surpassed QX of results. fourth and wins the increase levels. XX%, customer Revenue These XXXX growth increase demand worker throughout XXXX. fourth $XX compared improved quarter let's an to was new million, and Now revenue PeopleReady's performance $XXX am results results. an million, quarter PeopleScout within strong announce versus produce produced accelerated pre-pandemic customer retail XXXX. up the to increase adjusted an to while

is a of trades and our a revenue by trailing recovered PeopleReady starting clients year. largest was segments, quarter branch performance workers' mobile the the fourth quarter. PeopleReady an XX% take revenue, the boosted of physical total during of Compared XX to XXXX, improvement this provider vertical. leading PeopleReady. JobStack our revenue our we which labor segment American industrial of as from third well Performance profit. quarter the within North the XX-month representing was our the the recovery national with service in improving the rate Let's of on-demand skilled results look X XX% trends of staffing as closer app. is of of of each and solid supply XX% footprint locations retail of Year-over-year market. up in via points at our total XX% segment, is We and PeopleReady

The industrial work. provides and an surge, For strong segment compared is of sales, to XX-point the engagement total to combined comparable PeopleManagement supply XXXX XX% the workers results were from XXXX. revenue in staffing market. recent supply, resulting PeopleManagement by PeopleManagement second we relationships. of X%, seasonal being involves our and by an profit. improvement services multiyear, a year-over-year, segment, trailing on-site to saw impacting though which work, XX% is during essence led and number the period same-site fourth outsourced XXX% revenue This North quarter, American impacted with increase declined total workforce of XX-month decrease increasing driver commercial project the September chain to representing typical applicants of in due in Retail negatively industrial X% a put lower December quarter. largest is PeopleManagement the by staffing our multimillion-dollar of exceeded several Even clients. that are and a primarily in ongoing supplying revenue disruptions, driving associates

XX% the to volumes the demand period PeopleScout customer wins. surpassing client year-over-year fourth existing and PeopleScout's total provider represents as leader our at by total growing recruitment Service results in through XX%. a filling XXXX XX-month and Turning segment quarter, XX% new Managed and outsourcing by to as PeopleScout in solutions. momentum XX% year-over-year of well during strong surge global trailing client driven positions Revenue revenue continued due permanent in our offering is profit. were third process PeopleScout segment. XX% comparable of of services growth

structure. our industrial to Now, are typically shift few to PeopleReady to cost delivery not starting the further market the important with strategies gain investment in of very U.S. our These made bulk our improve like share where to spend key competes, I'd companies and regional strategy up market on temporary companies. large staffing of our mobile The business with the like smaller update app. most day players and deploy digitalize gears labor PeopleReady, segment, is you PeopleReady. able At there efficiency service and by is of to required of smaller, the JobStack the type our something segment, market highly fragmented, model are

So this, us with is a footprint, what staffing. provider industrial nationwide an makes along our with leading

client Our and to goal and JobStack and efficiencies, share associates is to through associate market application to XX% at XXXX, leading increased has converting value to and deliver to XX%, in out clients use controlling the QX operational in over differentiated our grown JobStack to ended XX,XXX, client-user and continue on versus to XXXX, heavy XXXX, up adoption users. our count clients focus to the associated experiences, quarter

or account XX of digital revenue, is centers a differentiated digital centralized fill rollout the U.S. to on order, via experience, XX%, shifts it's month, more increased service rates, strategy client growth effectively, a for quarter. XX% a a rating With and since filled We've more our service PeopleReady As reach touches XXX,XXX heavy our nearly every continued entering new reminder, a on-demand worker in compared or existing to clients XX% whether with XXXX. better our providing the focus. have Overall, Xx which major user ones users app JobStack per QX seen in approving has to time. also during

management operate for and our reminder, responsible increased versus the service includes creation week new hours typical accessibility, client approach of XX per of relationships. client go-to-market XX roles branch. for they a a acquisitions This repurpose managers, with hours as dedicated, are territory-based As job account the centers enhanced who existing

provide customer We structure will expect greater service. elevated sales and the new deliver focus a

While have service cost over additional past pilots expanded on to our two reduced, positions center reduction. by be X will we consolidating in a I'm the into resulting months, non-client-facing announce, excited net branches progress each. Based made

people. virtual view we skilled addition, model center center are trade and service step to our In these as a in testing customers the trades next a and opening actions journey. service We the support

were performance of existing metrics. long as time, achieve the expand to ones and a clients over variety meet as will We add and able operational of locations we new our needs

standard coverage in a levels of live, our and specific adjusting to have training to adequate to staffing We process run cost continuity annual center assurance service framework to operational Once service This excellence. quality of associates. ensure account advance rate the delivery million. developed a managers territories service to go and we rollout service million and expect $XX ensure portfolios ensure and is client complete, includes aligning clients for robust and savings rollout center $XX

Turning PeopleManagement. to

business focus to made manufacturers centers. execution our teams warehouse to base. we sharpened investments is on client development well Our target essential vertical focus Last And sales and distribution enhance to as grow our activities. and our as in strategy year,

footprint XX% geographic the initiatives implemented, PeopleManagement this of to new challenges. the secured $XX local have by underserved more to wins supply broadened versus prior-year our we markets. and helping annualized up year, With targeting expand more offset average, than chain recent comparable business strategy million X these

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

Turning to PeopleScout.

And companies the our models. the recruiting now leverages seeing to poised are strong return strategy in-house capture Our Many pandemic. eliminated outsourced reduced we for companies during brand hybrid fully reputation teams industry and to in opportunities growth. or their

clients. at teams workers to wallet of we ability to existing further, us capitalize sales made quickly, well investments our Our and to our hire obtained and clients volumes has share new positioned, large in expand

delivering with new annualized year million versus comparable million. of are results this average wins efforts the $XX of Our $XX X-year-prior

employers. address the January XX, to Biden administration's appropriate large for Court want the were the blocks Leading comply mandates. vaccine we with Finally, taking to quickly ruling, mandate up to I the On Supreme vaccine mandate. the steps

at the or are we to enacted will our state levels, in service vaccine clients. prepared event be such, federal, mandates As local the

and people the work Looking center forward, at strategy. the connecting TrueBlue remains of

improves greater excited people prospects now and industry I'll to work, will our financial the around business. results. about the and over of who Derrek, pass detail economy our to the return we share are the As call

Derrek Gafford

for at Strong QX and in strong QX compared demand, particularly retail XXXX, results. XXXX. This Thank growth worker PeopleScout. supply, you, improvements $XXX with million, XXXX sector, of along Total the results driven of to revenue the growth XX%, Patrick. growth PeopleReady overall by in to X%, QX representing and was compared PeopleReady drove was

increase increase million and as compared to compared points, benefited net basis Adjusted well of to XXXX. We an an as increase QX million, employee of million, While EBITDA client $XX growth margin QX revenue in of of increase net XXXX, $X.XX XXXX, growth an We base and per QX up $XX XXXX. of basis posted strong income XXXX. points, expansion to EBITDA from delivered QX gross clients, in million, demand contributed million, of $XX up XXXX basis to was Revenue million, the turnover XXXX, growth to compared XXXX, margin $XX $XX of an XXXX, QX up its share, XXX income to of or again by was and and QX PeopleScout margin QX XX.X%, compared in adjusted to compared compared expansion. $XX XXX growth margin gross Gross XXX with driven points. for and the

points cost of spreads, the lower contributed than of margin higher due last of a to expense mix contributed sales remaining and to than basis expansion, Higher PeopleReady margin development PeopleReady magnitude taken pay sales growth costs, basis from basis compensation of staffing customer from mix, was XX higher PeopleManagement, our which points increased from which Our XXX prior-period comprised points XX%, mainly XX XX points carries revenue year. PeopleScout workers' basis reserves. basis XX% the bill from in mix. points XX of basis QX increasing SG&A of due segments actions expansion. the XXX points favorable favorable

decline reminder, in in the outpaced a which XX%, of QX cost the management SG&A our XXXX, XX% As actions for revenue a decline quarter. of produced

we As moderate. expect these we growth cost anniversary reductions, SG&A to

in improved running to more We a technology. the we company leverage points, and in revenue XXXX. QX in comparison to XXXX, with than percentage thanks improvements did how QX by we pandemic, XX are of prior SG&A, operate as the efficiently numerous basis

in XX% slightly expected was income higher effective was QX, lower than to tax credits. tax due rate Our which

that bill decreased a of as from growth the sales decline and PeopleReady quarter. costs increased retail are X%, drag approximately into the by being which revenue benefited which and industry growth points with PeopleManagement largely revenue temporarily sector surge business in supply PeopleScout contributed carry XX%, retail a growth we revenue XXX segment half wins basis accelerated XX%, as the not commercial expansion. expect to Revenue during from of points sales, percentage PeopleReady while performance well retail points. the by decrease of margin were pay of as Turning worker from basis of the sector. than new employee-related quarter. while do and higher function created basis across increased solid points and associated workers' combination to segment the X during compensation profit Revenue is XXXX profit XX margin margin and profit which about high the services or costs XX%, PeopleReady segment increased contraction. for well to points support percentage Segment profit trends positive and segments. supply of by increased carries profit favorable margin remodels. improved million The chain XXX impacted business, store due growth reinstated $X implementation rest lower offset in client, business year-over-year, spreads. was Same-site with is This XXX% disruptions, quarter, the retail retail new The XXXX. distribution-related most came same-site as first up segment segment in XX%, geographies. one cut up being were margin for X of of wins. revenue a our a higher demand sector negatively a during will headwind seasonal in and driven decreased subsectors costs which due the throughout the driving also growth margin over

volume leverage catching demand pre-pandemic to the higher approximately Operating the sales surged profit margin. points to Of year-over-year During to related was XX improvement segment year-over-year. quarter, percentage contributed in [indiscernible] from levels. increase, the XX% hiring clients up

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

balance sheet outstanding great the no finished with Our quarter We in is cash million in shape. and $XX debt.

be from income down this While XXXX net primarily we to as the cash operations but year, growth. employer deferred our lower were CARES in Act day of flow allowed that experienced an to sales taxes multiyear part with XXXX. of was than QX revenue X improvement and increased was payroll higher due of the is which days, a Days accounts to low, year, receivable compared associated outstanding last X repayment

additional repurchases, we and of authorized first during quarter, to the repurchased million of we over this year. also the next the intend The an During $XXX Directors X of $XX stock, complete was quarter million Board share common which $XX purchased years. million in

earnings SG&A providing are additional and within color I'd on to items Now information presentation. moment like the to two take forward-looking a provide depreciation we impacting in our

as clients technology improve to We service replace implement early our platform model. of stages costs, system $X the a our XX-year-old the at in digital in ability branches. continue. and system as us And we $XX interact such, which quarter, associates, Once the the our system year, to not better this expect first to roughly PeopleReady are prepare the this will these strategy also end year. full this redesigning and expect to implementation with the of by adjusted help adjusted complete, million In support do we we results. and platform. center depreciation operating is new technology costs for our will will and This investment the and that existing the net million from approximately with with are our business fewer run of In we excluding be us we accelerating connection new transition, internally-built income replaced them systems EBITDA are

be will for adjusted expect depreciation excluded depreciation accelerated The full million XXXX. accelerated We $X net year in income results. our from

outlook presentation for first see today. the XXXX, full additional please details For our on the our and filed quarter year earnings

head are As about into XXXX, business. optimistic we we the

to we the concludes high supply further are operating growth. Please in Question-and-Answer demand our workers technology This and open call customer and the able remarks. And for enable competitive strategies additional Our our meet improving, better now demand. efficiencies differentiation prepared are services creating sustainable to of with Session are questions.

Operator

[Operator Instructions].

Capital question the line Your BMO Jeff from today first of comes with Silber Markets.

Jeff Silber

I'm remarks. billing about your if prepared rates talked not and in sure you wage

you're are? having on If wage you through don't that, that's And inflation in the discussing putting didn't, you of we if hear if the just trends what wondering, market? just the mind any some going difficulty I'm

Derrek Gafford

Jeff, you. I'll here. that welcome take today. It's for question Derrek

pay is inflation up from our a Pay XX.X% third that the in business, levels high We continue rate PeopleReady in see for rates quarter. for the saw step-up pay business. we fourth rate inflation to were our quarter, which the of XX.X%,

So of actually high is long we inflation it rate rate continue pay passed are a The level for rates, to pay see through us, our we as we're in getting inflation. doing. friend which bill as

went rates bill our QX, in fact, In XX.X%. up

of pay XX positive that So a points. bill spread basis call

although so getting far pay bill the supply to And our pay actually is as in imbalance due and as quarters the through. still, one well, pools high, And that advancing rates, with history, spread, this are there. our quite of passed labor out demand positive better we're

Jeff Silber

right. the find trying Are terms of to anything or All That's you great on pandemic? compared past before just the supply, to continuing so theme, months labor in to that find And doing people. try to to hear. over different few

Patrick Beharelle

Patrick. using question. this approach. much an is Jeff, very I'll that all-of-the-above take We're Yes,

So when retain we first people, got. the thing the think about have you've finding you to people is,

put we've got folks the We're of opportunities place marketing jobs. help in-app we've for so aware in And JobStack to retain app to programs workers. for using make

seen is, of couple And increased quarters. the so the what worker over number hours last per average of we've

we around is is, know back-to-work look back, and ready third then us for to had folks campaigns them that with we of them. out encouraging doing come second communicate place the workers. for And they're we're the folks there's that got in a them to new then we're been piece put reaching we've do and program, let those to call to that we're opportunities. If doing worked And The that thing former what rejuvenation previously. where market, out have we've workers,

grassroots have, our didn't recruiting we added pretty we've centralized We've We've that put support so pre-pandemic. well. effective in campaigns. incentives as And place some upped

supply, pronounced enhanced we've once in benefits so seen early more of the started And turn nice really a way, September. terms in unemployment in trend, favorable that worker a to ended

so seen the XX-point every as January. all trends at the September our quarter way slow, trends relentless a we've And got quarter, September improvement that's And December. a the from the throughout in supply month through steady, when We saw revenue look revenue stronger, continued along. improvement you went from to worker

And go. really So feeling long ways there's by still about good things. the we're a way, to

worker our We've the ended pre-pandemic at come If still that you yet 'XX. quarter of fourth levels to where compare we back. a kind of, quarter to more look got count, and in the lot workers

doing we're So some come But there's think still different. back. yet supply things pretty effective. think they're We to some I more

Jeff Silber

start could But right. sneak All say appreciate need as customary providing outlook. the if more. what just we in are revenue is on information really not amount in I see guidance gave of slide, to Great. your again? I one providing do revenue And you once the to you guidance, you

Derrek Gafford

Jeff, we'll revenue it's know if start Derrek I here. providing guidance. don't

things of the to been the going the don't actually need aware with far as that business, about I as came doing trends, here, and to. One to in while. opposed of. we're We've necessarily spending the giving guidance. unique be know time color more trying doing as to things driving for for enjoying guidance, talking that a specific where call But bottom and we versus where been the business we line if around haven't give to investors our is we've out been more we traditional topline what's

out our anomalies, information time not different mean, we're we're quarter though We're historical guidance, we're giving grabbing are first at it's like looking it. that pertains out putting I we're and it periods, providing arbitrarily there. taking you when historical though, periods. information. to And to we that As

And the to accelerate, was there's it's good investors. noted if last provide I too. So than there was different like very information for historical PeopleReady something trend, quarter, we that think, that, that's still, we'll starting

giving revenue specific on give the line topic need, So direction guidance. and objective the bottom translation would I we're XX% they I'll pan though, is about think, and XX% quarter historical true that for ahead what the would fourth trends giving the of we're with just that go first growth in Since less if hold company really accomplishing without year-over-year. than be, the top the everybody to the out quarter,

Operator

from Sidoti Josh the of next & Your comes with Vogel line question Company.

Joshua Vogel

very off you Derrek, January? and Derrek, prepared impressive out give if did -- I did I'm X saw year. segments, missed building that your on you Patrick last congrats sorry, that but trends for -- just remarks, it across you a I the question. in

Derrek Gafford

giving No, guidance. we didn't give it out because not we're

so And performance giving guidance, would information the during giving not quarter, problematic. be if about we're

can were trends about, of our that I we what translate averages say year-over-year for in watching into which growth However, definitely just quarter, would XX% I historical is, the those January. talked first provide we when

inconsistent in for the So would that be to seen historical that note anything make was trends opposition January, that we trends if we've something you. in the of for to we've outlook, there the out call in that would provided

Joshua Vogel

gears there the can quantify Is is to of your a something to much especially Switching if you thinking trying and digital JobStack? little model I'm just helpful. to provide? pre-pandemic, That's easy ballpark that bit. but the don't way And this today Is as lower leverage the know how in the I in about delivery commentary. you leverage think answer, is any capabilities -- versus cost and

Derrek Gafford

few there's XX points a quarter, our talk than we From ways basis QX that. that about could SG&A in this think Well, SG&A lower I of XXXX. different perspective, was an

And is is employee if what a revenue in business. a we running fourth difference, employee the per in perspective, our some XX%. take we from per that versus think, is XXXX revenue quarter, per our I levels XXXX, up biggest look revenue The the at look PeopleReady is ways a area, productivity take most makes where what the are, can other employee. this it, at

got bringing management, in builds and more as know, to not office think, property of meaning of cost, we good as to Josh. bring out the intellectual progress as I'll we've much also onboarding just applicant systems, scalable, that is add kind part we business, at we're That hands, it PeopleReady proprietary future. called faster, the thing lowering that thing we at is service off with some of we of -- done some you on that technology, We And are moving will the to systems, make our And about JobStack don't our front on We've think in can that systems. we've cost plans end of And technology the that PeopleReady, it our ship costs. -- to we old I want very the lower years. tracking proprietary the think the continuing technology is revenue in And things staffing back it's making in-house. investment our -- the that process, investment doing So would, another year. XX so. delivery more technology then the some note that's front one in keep on going our the be as I technology, in normally innovate hub-based next into

but only somewhat in innovation that really agility customers. more the increase continue we to which, of and all going of service sits appealing more the And digitalize brings on think, more front even it the the our technology in modern I structure, place way, PeopleReady, so for with to structure business And on, forward. top can cost we JobStack to not the offering that and more scalable to on by make is cost the think scalability our business of office dependent platforms

Joshua Vogel

do there the think the this XXXX. I'm looking we the what's success the what Obviously, expected helpful. expand actually, pilot. of when year delivery want with currently curious, just you XXXX, lot footnotes and as seeing I'm pilots? implementation a And have question how throughout market full seeing a be? to really do I'm -- that the I you -- as pilots network, branch That's model. this, ask to saying this expand is percent, to about you're now for about you big And expect

Patrick Beharelle

Patrick. Yes, Josh, this that is question. for Thanks

to everyone, market we're Just doing with centers. what of, remind the kind

non-client-facing hours And of is, hours adding and to XX. expanded strategy client-facing is, we're The a XX we've part first fewer thing more key from resources the resources.

things nonfinancial to of we're going bank to we clients And of From we're per side And also we're take and perspective, and the coverage like the financial things hours spreads training associates that we're steady commentary. growth of of things pleased so we're on quarters in numbers metrics at and couple sign strong more sort. And a and pay some metrics the the of of and in bill some number looking out progress. particularly we're the number to didn't the able of come gates, that providing and making. ran been And that first recruit, able momentum. average we're and of associate, there's We with on sort. of shared progress the retain and prepared really but we revenue some delivery financial that, consistent these, savings we're the those building

QX, include Illinois, our types market pilots. of locations. got Peoria, pilots Bloomington-Normal, Decatur, So X expanded an branches of in to We've Downstate as rural Champagne, the example, those in

to piloting a we've those, and good started so And are off start. those

we'll plans months next all finalizing details. So first some to rollout be making the of and fully decisions rollout moving according to plan, a a And in XXXX. if half we're goes phase in QX be rolled the of phase and pilot out going over to and would couple from be

within so roughly a are terms are miles and of of XX the or branches, roughly of half secondary cities. half metro in In number major

likely the we move pleased will rollout going into, depending and kind center phase that QX. go with how progress, we're And really to locations, the branches the model. related of, and decisions ultimately the out, be many But market impact we're rural how some pilots so service to play really making a to on in a headlines are,

Joshua Vogel

insights. to Those one, bridge. just great And just are last trying

by to So on adjustment EPS. comp added envelope gross back math the $X.XX $X.XX, out margin gross million on the with profit that about quarter, the workers' in the $X -- from coming of

or So tailwind digitization the headwind type kind what guidance, you're I of seeing in want is won't XXXX, given on a delivery really workers' masking all likes? and there be type comp add the get in and -- what the with to of it's of in is model, to handle the leverage your full built what year? and

Patrick Beharelle

in that Yes. I'm because be up. points. the margins see expecting you'll it, QX, But go to gross glad question, call we're for our for Josh, down, year, expecting outlook gross maybe XX full basis you asked margins we're to

what's a prior-year on, say in is those that workers' on here's what's had good being year. clames. is by Many -- going we So favorable good, compensation driven when development of XXXX, I very

largely balance go So we one in of and lot being towards high-dollar we've that. and sheet, a claims, very we not are success put good and that a and have of is doing capital can employer-friendly, self-insured particularly had claims the advantages jurisdictions that closing that

And it has XXXX so percentage a really rate us. expense, is workers' revenue, the about percentage a for our compensation this X lower, -- point more of nearly, is run year, sustainable was XXXX. as than is rate happened what what Well, in

but year will be favorable workers' any development because the basis, expecting reserves. we rate overall go less structure, degradation a back on run So on just compensation in cost prior of to up, not

mention, down offset XXXX gross though, in So XX when basis XX.X% call about then that QX, while I topic, it, XX% we're margin, and XX% at, we're to QX. -- headwind points. in X talking gross X, about in should about to looking drop you we're point pay in it margin compensation XX.X% to also nearly point a XX favorable bill in to the gross margin, and on from bring basis expect spreads should and helping on workers' X

compensation, QX QX. that that do brought got And revenue X% compensation favorable what pronounced a down Now very headwind more gross in that 'XX. in QX in will workers' nearly XXXX some workers' margin of to development be will we because of is,

Operator

of Your Healy Research. line John the comes next question Northcoast from with

John Healy

I wanted -- question with to a gross the more. stick margin on little bit

Just one, slide we there. at in guys always performance, and put look the you the

the and I performance to just X, and to think, surprised it's bill gross margin really continues the in Slide staffing upside or pay rate X That there. performance. me bridging combination the

out that's I seems that's you're despite that the on? everyone level over verticals like last segment core I look tight later have how just a 'XX that less gross mixing the year, there a staffing for are and such then off lot you of higher, to standpoint. pressures about. continuing, 'XX, to labor clients gross couple market? something you the margin a in? just So a there's in just when the are do guys love margins Is in know like guys company? able competing right that's X move that going you how and wage the year basis, changed of it pulling talking a the competition and would Is there years, So And helping is of X or from evolved what's you hurting, like know, on

is it to XX.X%? of, do or level start than factors the longer-term of of viewpoint this So lower higher a move gross that just the kind moving Or margin, range longer-term of kind to, we there? mix level and

Derrek Gafford

let both try of take to Well, me those.

up the sizably. if we're very fourth the margins So were talking about gross staffing quarter,

of expansion our that staffing points from basis margin So came we XXX side. XXX gross basis the points had of

we back that's about we is But to points, when -- pay the working them, at time. the Revenue gross pay that's can Now fundamental bill I points. than expansion, compensation something now gross the market. about a a is about and which growing higher I'm we very, hard PeopleReady there carry. in get if imbalance that which us. reflecting that XX very mix PeopleReady is margin, don't If this supply basis of demand bill to drop, had being ends when then really And know can't points, basis a up come that and get XX we short question, and was we helpful part talk points. short bill our demand lower some margin. XX and fundamental how I That what basis think of there business, XXX spread, basis year-over-year, spreads, pay here it on. is added won't is about PeopleReady And spreads, PeopleManagement, Better energy-related which we're a that the is necessarily was your the or is is we the it margin lower faster at we'll workers' that so supply benefiting gross talked queue company,

will wage in PeopleScout the everyone think, I making so on for rates business going ultra-focused growth our paid higher gross faster right we PeopleReady And got It forward. opportunities have in right sure do that the getting be, we we've to are and And Difficulty]. more carry bill have which [Technical our business, margins.

You can are investing see largely the that's also dollars. where we technology

a having future And the higher two today. think, they that as growth opportunity of mix business go for units, do of business than do those result a margin in the I there's So higher. to

Patrick Beharelle

time, showing the I out a that time, probability leveraging got business think one just match that thing level into identify how add highest the jobs, up can successfully years have of using science science to to data the completing we future, and get associates which, take look of next the learning. we to kind machine our of couple there's opportunities, to paid. job, over course, of learning that, is I'd more data other you over to We with and and machine some

we're for going pick And fewer showing assignments, And a efficient to there opportunities, call-offs highest-probability engage disappointing up which there's JobStack the is, we to industry will TrueBlue, and sort. fewer so because and the that margins and of workers be and going the incorporating customers help workers things how in some term, get our not tool. will completing be within our but sense more lot my in that, long forward, just

John Healy

Or the are Is think $XX you think of then the continue that year? on what capital are got this to prioritizing kind you do how And and allocation. guys be in that is something side active buyback quarter, business tech will doing, things. and the the of, to activity the I on of But more about guys know the being a there? just, I capital you million. given returning aggressive on, more fair maybe you doing amount kind just

Derrek Gafford

we Yes. It's to going plan more in, that John. be forward, active an area

Act, of our deferred with our of third getting had amount revenue $XX repay. of receivable capital important into CARES we year stocking that really a then million we back base. past the this accounts under going us, had growth, quarter was for payroll So the for XXXX, approximately need we taxes us. out sizable And that to of had up We

us flows, in behind and business more that. the excess more we Now, and capital we're a do be with cash position those capital allocating producing where will two to have strong back shareholders to

a $XX purchased We back to of authorized, filed additional Board We we in January, QX $XXX million our more, million. share $XX yes, total in back in QX. plan those. bought a million purchase So XXbX-X $XX for did, of repurchase. million We

that something we plan that's over complete the So years. to next X

we're but little XXXX the So in we've half sure hit, intact, yes, repurchases balance on of absent believe the that now. sheet XXXX, making share a first we been is past

So plan that us you seeing more from on going in should area, forward.

Operator

comes with Your the from line Mark Marcon next of Baird. question

Mark Marcon

Just the I'm good matched consolidation wondering, can doing and what like were you with and do, results bit wouldn't the the can you're relative Dallas regards ended QX? if the you indexed the quantify little much them, doing. an how service the But how be talk wondering a Chicago of in to markets? and pilot to of you out seeing Otherwise, basis, offices programs about -- more they did encouraging. centers, better on much that you Obviously, up

Patrick Beharelle

on We're leave keeping to appreciate including our ourselves. not we're is that just to the give Unfortunately, and Mark. that's to I pilots going you a very it to question. decided encouraged and one. addition rural Thanks, Patrick. expand This that I'm the in markets. why at this detailed answer we I'd

So we're going out giving -- but not details. those be to

Mark Marcon

Okay.

up you your regards retail repeatable? To that's to anticipation the you? in success the of up terms In that that with really utilizing think what's seeing from do ended QX, client picked they what extent

Patrick Beharelle

Yes.

were has cleaning name outlets, would fitting was everyone that perspective this the things retailer It doing client's rooms. and and we retail successful out from our cleaning perspective. in a know, their was their large very a from their like So stores, a project,

to Mark. it seasonal it degree, -- So a a was was large though, project,

expect would did like year. -- next spikes we that have do we in service business we will the or year in So with QX sorry, again, delivered, continue it that later this and some last year, QX them to good probably

So I expect similar something later QX, in year. this

Mark Marcon

comment Great. sort then, and ended what little absenteeism Okay. up from a puts of you takes the you during in quarter? seeing And bit, can terms of

Patrick Beharelle

by the I -- instances and of was December. frame. particularly manageable or though, time quarter we it could drag XX-point saw recently. in concerns and We of a X-point in was through it's in in December about since. PeopleManagement it's peaked been sick bit, definitely It driven off sick situation. sort be absenteeism, the a a take might drag frame, seen saw time very and it calling quite -- about Yes, they at We've the spike late higher that late one. ease that definitely Obviously, in that But Omicron, at a a easing December November, November, folks with off business

situation. manageable very a So

Mark Marcon

late-notice absenteeism what do orders, And -- to think in it helping, filling of ended terms in extent client terms for you up absentees Great. in base? of in your

Patrick Beharelle

because about. sites. a business have about at clearly talking those talking drag depends PeopleManagement, on it was we're If we're it we what Well, exclusivity

at right that's not to people we're if that's the refill so just revenue are And able away, last off calling minute, and lost. those

a sort bag, having clients of PeopleReady obviously, the a mixed having lot of side, we -- calling were On lots off. folks where were

And in measuring spike side. good so from supply a they really perspective. and -- way a demand in we challenge, a of PeopleReady don't a so there was And have the it

pretty saw QX that of starts, of QX, and the of We out clients of industries, widespread XXXX. it's in of a headwinds were materials a issue, solar the -- a seeing And mentioned which a and Derrek of saw challenges. chain we couple put supply part QX, specific think, can then won't they PeopleReady number in in delayed, be people, a into folks need. QX particularly One your out of in but recruit clients. relevant, So get where XXXX Lots across started, the our and stops there'll QX. lot and smaller definitely of have that in thing was manufacturing hundred in our alternative QX geographies We're business energy, all had will where type in will order that and we they part question, hard and installations to that's, around a similar wasn't other those is supply disruption, and chain go like that of I them PeopleManagement.

And so to them off. then they'll we work for X call days, and have

that 'XX, related of bright telling clients themselves issue the to the supply they first-half this to type of chain. believe us more side, are out in more a back is things sort expect the half XXXX of On and

absenteeism the So much a was than for bigger us issue. issue that

Mark Marcon

And are RFPs you've color. Obviously, winning seeing terms over that What percentage the are that the a months? on PeopleScout, quite year, ended few. in talk what over the then little fourth Appreciate quarter. seen you course of the last the involved up the about you were a in, can seeing, you of pipeline? in And you bit you recent

Patrick Beharelle

historically. year, Well, really bit in from than good $XX had more annualized seen, wins, sales We PeopleScout, a had million we quite a perspective. which Mark, a we've is

in wins on our the and we million average, nearly X-year annually in had X at look you If average, XXXX. years, $XX that prior of Xx

recruiting the And a folks In we're bank. lot haven't buyers, of of a outsourced types takes is first-time of usually forms. One one before. seeing form it that terms big RFPs their that two seeing, we're of

contract, a was So and bid. large a that's good basis, that we multiyear their start. XX,XXX a on It a signed very hires, QX and off in to really time, competitive for an we over that rolled had out sign retailer very annual first QX, in up

had All that one. industry the were number part had as of We of the well. ones that other major players in a won of we

what recruiting. we second But we help. on type types, all need saying, recruiter seeing, to of boy, engagements smaller "I don't where are The are outsource clients we're demand, my of that call want

the in the variety And supplemental we history small so so we've of XXXX. of won need resources." And ever won than deals in PeopleScout we've more some

XX%, that's tended win of feeling QX. north we really run So saw about and rate. go in terms to We've of a inconsistent when QX after we're we And win not rates, what deal. in good with our

work engagements, are because oftentimes, that's of smaller direction. and know. engaging goes for start in more in is is buyers, also small, competitor, in-house, us lots lots that in-house first-time out which you of as of that then the a more way, So Mark, great ourselves And lot and a our clients our biggest prove of we

that's great And in we as view it trying boy, an PeopleScout who XXXX. in-house team. a displace year So for that to was strongest competitors for doing the

Operator

further call questions Patrick no I this over the like to are time. back There at would Beharelle. to turn

Patrick Beharelle

and for of Well, work call the that thanks thanks, and today, to everyone, speaking look for they XXXX. joining that to great associates the XXXX all did in We with doing TrueBlue the they're in hope to time. forward XXXX. I you earnings you thank in and speaking again with forward look We appreciate call and all you in May, early on stay all you all again the for it. your safe, QX

Operator

concludes for conference today's call. attending. you Thank This

disconnect. You may now

TrueBlue (TBI) 3 Feb 222021 Q4 Earnings call transcript