Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to TrueBlue Fourth Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

the to turn Financial Gafford, now Officer. will conference Derrek over Chief I you. Thank

You may begin.

Derrek Gafford

and for Cooper; thank I'm everyone, Taryn afternoon, Good you our and Operating Executive Owen. President joined joining Chief Officer, our Steve and Chief Officer, by call. today's

begin, everyone today's Before slide I call to statements. forward-looking contain want and remind we that presentation

described All assume statements. update are to any those forward-looking today's no These of statements. are and in or could to some results forward-looking to and risks and SEC subject which differ release obligation of uncertainties materially we uncertainties, risks in from and press filings, our actual revise in which our cause

non-GAAP for their purpose. to on the trueblue.com of or use We at a and when non-GAAP a results. these the to in terms earnings stated. financial encourage unless review the Relations Investor are complete release We under you today based otherwise comparison understanding prior period year, section presenting reconciliations measures Any our the in made comparisons same today's

a after be replay of on conclusion remarks website we a our will call. available prepared our the copy call, be soon transcript also of and at will and full audio the today's Lastly, providing

Okay.

to over let's the turn Now call Steve.

Steven Cooper

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

to additional people along our join going our In In has performance and Officer operating First, We served joined people for Owen has Taryn technology PeopleReady I brands, Taryn PeopleScout of as want and to to all President welcome new Taryn with Taryn technology in along us also XXXX. is plan PeopleScout our and Taryn of offer since and XXXX. operational insight strategies. Taryn responsible to XXXX, TrueBlue. President since XXXX the Chief with strategies. call. forward served into President this role, have of became as Operating

but also who unwavering fourth what the not as moment business marked to to within was reflect an people TrueBlue our possess discussing serve been of only environment. XXXX. by change, one Since I'm put a our clear going take June, to results, the to CEO The is in at commitment Before we returning work. and our has quarter on people strength year of clients the

the labor started clients support was growth. demand services high we as for needed As our to year, supplemental

As take fueled inflation, the a impact uncertainty, year progressed, of with hiring. combined interest the to approach buyers certain higher to wait-and-see rates leading economic

across Despite in However, performance many labor openings blue-collar remained historically X% with with XXXX, growth million slowing the of of past of are tight growth positions XX income has and operating the pleased the economy over I'm X%. with States, revenue specialize. months we market which XX which the for our United job in over

quarter. revenue were the Results onto slow. revenue We steady was begin segments Moving clients staff underlying to QX in At our results saw Total the business down $XXX PeopleScout, QX. to and across XXXX. we need permanent to compared for at at trends see the PeopleReady XX% for PeopleManagement million, started mixed. at

our staffing While the to lower focused and pricing revenue, across at segments in maintained due income decline operating Company. we were discipline remained margin costs on the and

of of segments. the Revenue is footprint XX%. both app. mobile service PeopleReady by our service total with market. to staffing We the supported industrial and our trades the via total segment of quarter consolidated physical revenue along in largest XX% branch American centers represents locations clients segment. leading XX profit. trailing Turning was North of a months' is a our XX% provider skilled labor It PeopleReady national for and down on-demand JobStack

Setting our a across historical during customers from for in this typical benefited revenue of creating the patterns. trends this post-COVID our with the as recall factor of If consistent quarter fourth a aside, labor a business, peak year. desperate the remained recovery you surge In themselves PeopleReady found sequential XXXX, demand year-over-year need headwind

is highest XX% positions XX% XX% through of Changes our in business. typically process revenue outsourcing of our representing recruitment which in play demand dynamic year. seeing is total lag declined hiring XX this for revenue permanent and total services segment leader normalized months' volumes. services. out trailing margin QX a by compounded segment We're staffing global RPO PeopleScout today, filling being is this traditional our more in PeopleScout profit. PeopleScout

outsourced total PeopleManagement an XX multiyear Revenue quarter. America. industrial engagement on-site segment North of services PeopleManagement X% and revenue down in involves steady and staffing throughout that multimillion-dollar commercial a supplying trends onsite and holding XX% the with profit. represents provides trailing revenue months' monthly typical is PeopleManagement in The of relationships. was total workforce XX% driver of QX essence driver

to our spend to next talking going strategies pass will our XXXX. Taryn about the priorities couple of operating and about few things a to then I'm minutes talk over for

and PeopleReady share States Our The the branch are companies smaller to unable invest to typically fragmented is to client regional but lack PeopleReady companies in digital network associate United the adoption and the where smaller XX,XXX-plus market strategy day more labor improve users. with only operates. XX% like made also at segment staffing with industrial bulk model business of over applications the market not temporary These an JobStack in expansive market is highly of efficiency. gain up digitize

user brick-and-mortar associates national is for and efficiencies. frictionless us the market. operational and local and on-demand clients us within provider industrial a a one-stop and makes driven provides combination experience shop what makes has and accounts JobStack staffing technology a leading The for the

digitalization our of the And JobStack, we We investing best in further appeal our traction less for and believe by staffing. it to will than increase be able complex as improve and is clients types other the associates. general market for has with labor opportunity

ability conditions. within capitalize find our labor PeopleScout our In industry PeopleScout, high share to on economic favorable strong in At and talent expertise achieved to has double-digit record hire RPO companies to a aim tight in as produced revenue market markets. annual brand XXXX, sought growth in volumes consistently is reputation the gain that to revenue

faster. big Affinix, success recruiting our for A better reason allowed place which the has talent us was platform to

our forward, and to plan hiring and further such diversify high-growth sectors we move life target technology. we As sciences as mix

track of make positive and Our possible. penetrating experience this Affinix record healthcare, depth

is offerings, higher-margin States solutions market increase to like on-site traditional supplement strategy and with PeopleManagement to United services commercial product geographically workforce staffing the our trucking and on-site expand within share.

call priorities would I the key to Now XXXX. turn on like some will discuss we who to specifics over as enter Taryn,

Taryn Owen

Thank you, Steve.

be here to underpinning to insight some priorities that on strategy. provide pleased I'm our key are today

on bigger approaching get into I I perspective Before how picture our are want to share some we the details, priorities.

platforms This candidates a journey remain expectations superior staffing we same At worker our frictionless our access and client been based business. jobs that are on to fast essential. on to and talent to and digitalize requirements with strategy multi-year is time, As Steve candidate a mentioned, people have we for and efficient to a for access business, associates the relationships recruiting clients, offer experience. and and our

those through our will and balance between the the remain and they our outsourced recruiters, vital By have need to access on-demand working to technology we that field in all enablement, service we clients members, striking resources building and solutions. a play and relationships team succeed. right hard are they the well-positioned talent Our help and teams role tools need salespeople relationship-driven ensure our to

So and TrueBlue. people primary the it technology focus will XXXX for remain should come as our no surprise that for

people a business. are We

So, high-performing attract learning is to order we emphasize enhance In top and our ensuring and to have to enrich program talent, engaged team build development. and retain and an a that continue priority. we and experience designed to employee

services in investments positions focused deliver new the staffing making also our are strengthen We maintain to customers levels our expect. and ability to sustainable

learning the We and business. augmenting are planning development paths across

training and angles, well For coupled the greater repeatable organization. emphasize to win all instance, sales training coverage. effective field-based and With driving our roles reactivation, interactions throughout in and business focus in ensuring an be this provide XXXX repeat training, important investments thoughtful development scalable sales positions a client targeted to approach and is as and in customer vertical will geographic are with we as

staffing At skilled account to new PeopleReady, we on in placing capitalize in are trades. managers demand markets

sales branch capacity our We are training our our and expanded sell services. with increasing managers also providing to

ongoing and and will towards term enabling sales At our the PeopleManagement, will we This the customers finally are ensure are activity are greater in return investments specialization PeopleScout, to market demand respond drivers. operational excellence. will enable us increasing continue sales These expansions to growth to that directed short to in to augmenting enable expand to vertical. for we well-positioned when at team healthcare we to topline our capture And growth. target share market

serve. we shifting to PeopleReady service Through Affinix better our recruiting invest imperative JobStack experiences technology. people. have attract support Now we differentiated in to and our PeopleScout platforms platform, continue we our clients, those to to brought workers and It application is

on focused associate near are we JobStack, With the the in experience term. improving

register work. will it upgrades application, to to making the to takes time are faster the and which We associates them to reduce get allow

entry, the improving quickly. be ease our paid more can are We time of associates so

And a dispatched of requirements. us product enhancements and they a conditional the will specific This subsequently certification functionality fulfilling as documentation allows prior associates associate increase are satisfaction wallet share. aimed lead higher which of retention to quantity our fill customer and and and supply. quality improve once met be accept finally, job to more dispatches. client requirements ultimately, we all introducing will They both of rate, to These such to the be position at to have improving

experience. recruiting including Affinix PeopleScout bring management process, our many interviewing meet pool candidate platform to quickly to marketing, seamless combines highly is and facets of tracking, for our qualified talent recruitment to recruiting a clients. expectations applicant Affinix candidate relationship the designed a

And future experience, instrumental as look both continue prioritize update Affinix been the the for on progress in Affinix further forward, us to we growth. a on as with make providing to the has fronts future new look calls. client of expansions. candidate renewals I on wins, catalyst clients forward we and securing relevance an increase providing will

who call further Derrek financial the I'll pass over to details results. our now around share will

Derrek Gafford

Thank you, Taryn.

last XXXX million, QX year. XX% decrease QX $XXX to a revenue of Total for was compared

of mentioned, Steve need benefited recovery the in customers our prior As post-COVID desperate the from as period in demand peak the labor. left PeopleReady surge year for a

PeopleManagement percentage year, not year-over-year. X expected, the business. flat. revenue remaining our business underlying the The PeopleScout so repeat As trend, existing contributing did revenue experienced total third fourth decrease were extent, Company's results, quarter, point lesser our our the a did total four surge volume decline reflects lower which of to from points clients and quarter decline In revenue a this from XXXX

unit see a you we conditions supplemental the an stable with earlier PeopleReady demand year. short line in impact into trends typical We were see during January. nature of continued and duration PeopleReady patterns, weekly that job historical to sequential for has were quarter our revenue first the pleased business PeopleReady the first recall, the in reduction macroeconomic where this is typically As given to might from was meaningful business see assignments. fourth which

EBITDA EBITDA Net income adjusted margins income XXX changes driven net The by decline and declined profitability primarily revenue XXX declined XX% and and respectively. adjusted XX% declined decline, the was in points while basis PeopleManagement operational business. with which the in our associated business revenue the revenue than carry decline, margin a our and to larger PeopleScout higher mix drop deleveraging and businesses, PeopleReady within given

EBITDA XXXX XX of XX.X% margin due certain technology Adjusted adjusted income from excluded PeopleReady margin were our to was margin net down than points. less QX results. which basis Gross contracted costs, for

mentioned As which spread. expense, impact by in bill compensation margin, positive offset a was on business mix change a pay contracting and lower earlier, a gross workers' had partially

are positive are bill The on year we our fewer business. $X or favorable a prior combination decreased better to and SG&A results year management. reserves workplace The results efforts compared focused cost to of development as remain workers' on this injuries disciplined pay million pricing spread X% in last PeopleReady compensation year. due QX from

due operational revenue revenue the associated with SG&A increased of as to decline. percentage deleveraging a

X% exceeding Our hiring a with benefit effective credits the income income rate tax was pre-tax tax expense tax our of income. associated due to

decreased of to revenue our segment while XX%, decreased profit and segment XX% let's XX points. profit results margin Now, basis turn specific the down PeopleReady was segments.

trend benefited the revenue for As decline. two for points with PeopleReady's decline The total from was prior reflects year-over-year XX demand QX of decline surge unit which period, in for the we've remaining in line underlying XXXX. quarter, mentioned, a business roughly the which year points accounted of PeopleReady this revenue in the

decline grew favorable pay Pay revenue by The in which the were partially inflation and workers' operational offset segment related from expense rate deleveraging, in drop profit and spreads. came in points. the back the resulting bill pay PeopleReady bill margin rates continued yet moderated lower compensation of during a and spread X.X% be basis has XXXX, have grew Bill business positive rates spreads to pay half of while robust. XXX X.X%

profit segment while down XX percentage XX% and XX%, decreased profit decreased revenue margin PeopleScout segment points. was

some at environment. hiring volumes the business macroeconomic result RPO revert while saw a we clients levels reduced back quarter, others the During of to pre-COVID as

adjustment reserve bottom a operational the addition, adjustment made profit reserve we In decline, related and deleveraging. revenue line. which were and Segment to down to margin straight the revenue due dropped revenue

segment performing due patterns. in PeopleManagement margin The Monthly trends revenue to X%, margin decreased the and quarter segment was X% down XX and profit basis revenue profit the during revenue. while segment were line mainly in points. decline decreased in was with profit historical decrease steady related

with Now the $XX balance the through and the we flows. million million producing and let's sheet operations to flow million cash cash million $XX finished with of no business year, full-year leaving $XXX from strong We outstanding cash authorized. repurchases $XX The turn in returned cash flow debt. year during totaling share is and capital

on forward-looking provide additional to Now items. I'd like moment to take color a some

revenue to of a XXXX. QX XXXX XX% The midpoint into our decline QX the XXXX, X% QX larger QX X% which in than XX% to outlook. XXXX is surge was bit on expected XXXX. based comparison, We of an it a decline of of of expect underlying the be is prior underlying decline QX demand revenue in QX of XXXX translates Similar also to a in period revenue facing

in This opportunities. inherent future the XXXX timing expectation our pessimistic more QX projects due in is with of revenue lumpiness of of energy a the view in growth business to primarily an year-over-year less than rather associated green

in As QX also due demand headwind face XXXX year. to the points the prior of we look will forward, surge a four

to net one highlight I income. adjustments will to our change also

on-premise the Software-as-a-Service certain comparability adjustment for cloud, purposes. was for transitioned an felt technologies helpful we As to we amortization

calculation. that has in we will add-back Now longer no this stabilized, cost including income as adjusted it somewhat an be net our

depreciation in continue calculation to in included adjusted given of it our technologies. on-premise SG&A for the these EBITDA place taking reported former However, are will and costs that be are

item before we last One wrap up.

to operate This for revenue which XXXX fiscal will the a million XX-week the for will it extra week $XX since provide calendar is will profit low have six annual fiscal versus year As XX million year on a $XX an additional to reminder, years point occurrence contribute but a we weekly five weeks, incremental of typical revenue. is as every year. year not a

additional outlook, on our see filed today. For details presentation earnings please our

please questions. This our the Operator, remarks. concludes prepared open call for now

Operator

with Please Northcoast first proceed. is Our from Thank you. [Operator Kartik question Instructions] Mehta Research.

Kartik Mehta

- management maybe apologize. Hi, good afternoon. guess, I I the Derrek or any just anyone team, on

just economic Just where economy I thoughts see of quarter, now, maybe or just outlook the I about kind on in know, your being you've relationship tight thoughts where of talked the fourth in kind and the market it think kind you the you labor wondering, forward? obviously. of And - thought going to I'm was

Steven Cooper

This Kartik. Steve. thanks, is Hi,

remarks, and about I we think rate his and it's we many impact hard we've in bull's question fast we've middle in seen this a the openings of grow are powerful going that's a how have. in interest also and eye of And the to that news how this in economy Derrek the where job has done. all this said But without in that slowing good seen business economy. as that

participating year's pretty are, for we months pretty good surge year PeopleReady those in for that to the the five time. two at has a economy figure that a That out - it that Derrek where at over of good spend of called and labor of happened. resources we balancing except in We're is confidence surge trying except or on quarter, prior where the it prior the that lot supply will So, for be a this right us about part right the our consistency the spot of gives four, trend consistent out. feeling pattern and been are

that out is Second in of. to hiring don't full a yet, come the word, hiring - with are some it's positions but know their is we there's that open, companies freeze caution a time and these I that know of is lot if there right are

spot yet that at ready know it. So through I a of to of, all if don't we're start we're equilibrium in growing we're

industrial business and watching I'll where with But our staffing what sits we're our about And say we're business carefully where pretty that. that's sits. RPO happy

rates anything goods interest year, up of wants the that. in and have movement Derrek later where the and So to activity to that we'll buying ends the definitely too. see hurt add

Derrek Gafford

going little add bit we're Kartik. too. I'll a to think softer conditions. that's XXXX, the approaching into business a planning do. We you macroeconomic question, it we're I'm with our there's glad that asked We're thing to looking prudent still caution, be

However, today, were about, feeling the we're we ago? we today to stand talking XXXX for are we a where future where well, how about if quarter

optimistic more were. incrementally are from We we where it about

the say that's relatively mean mentioned, going to but that's jobs down. the number been of up they rate Steve take that, job activity coming million. I then where hiring interest activity that a the strong given just hikes just has all jobs. report we at on tuned look on and the The and open stay strong saw the finished, went quarter As with XX if of result that you GDP and a inflation ADP

So important what year. economy it's we is to presented markets, challenges of just navigating of these which suggesting us this is see can its labor that been think have a the the some through way really part we from

there. So I think that's overall our right take

Kartik Mehta

is economy can cost an trailing helpful. last And of just you anticipating, faster guess, just on quickly adjust I that's No, quickly off kind unfortunate on SG&A, anybody incident if one question, you? would and how how the there starts is than and

Derrek Gafford

what it Well, in a on of severity we depend downturn. actually think experience the would I

I conditions. earlier, softer expecting about talked As we macroeconomic are

in relatively million sits rolling still at We XXXX. - lot out that's that line, outside the $XX for million took how of what we XXXX, guidance PeopleReady our of least close A annual that's the business. However, of up to cost structure. $XX on in of we put finished cost out SG&A

to of these takes more we've cutting for anymore to cut operations SG&A, keep the So really, it open. what in we're $X of down even there that dollars. slimmed business and if we're lose really so gross to we minimums going Yes profit concerned

look And the the business of so, conditions with economic just over not that's customers, of we're really complete pool amount us managing too. at for profit labor are cycle the and labor trying and tightness to it's maximize where this our for to

we've that things with through from people advancements people And know the happens still as need face-to-face, It's our technology, sold our customers. and customers' change most good needs and digital we perspective, that that our from a technology need adjustments, much service-wise made perspective, know know relationships a our year. need business, importantly, we processes

We stay that. to have close to

we're take So to being mindful not far. very too that

deeper we but Now, here darker that's another recession, to into a going our to at not look have in take as if get we that, plans - sit we're today.

Steven Cooper

because had question The we mentioned, the Kartik, Taryn the keep your - to SG&A outlook. our and we're believe I of and balance - staff we're we're keep we're that ready on the upswing. playing with fact of keep that in balance the and is the there to and the to card take appreciate strong people card as advantage line and trained ready Yes, that thoughts to question this first run playing

a cost on how branches how on variable how cost people fast react is those we if dependent at variable degree, running that that's we PeopleReady Your we a based and second that into recruiters our is PeopleScout, in branches. question it gets and - to model many happens. have at something different bad becomes many though really And built can some have our how -

variability that all a specialists lot programs on recruiters bonus also. these a and our model staffing we're So paying variable is all we then have of and of

for we will watch and we're But like we up this the now, bounce So back. be down and very we'll the card ready to on playing because ramp closely. want

Kartik Mehta

appreciate Perfect. I Thank it. you really so much.

Operator

Our Silber Markets. proceed. BMO with next Jeff question is Please Capital from

Jeffrey Silber

call wanted well. much. to Taryn as Thanks the so welcome just to I And

looks that were consensus my not the us publicly. not they ask question, It data estimate just the $X.XX, I closer like We $X.XX, actually Before mean an to incorrect wanted at had show, quarter. state to was for I services $X.XX. which $X.XX the something probably for

say you estimates. Because that the headlines report missed - consensus

corrected, just know to actually You it we're might wanted first. trying reported I this slightly, to that have but let everybody have

question...? moving Just to on my

Steven Cooper

Yes, it. you. appreciate thank Yes

Jeffrey Silber

Yes, to just seen what Can you've trends be that no great? it's in questions. talk worries, by possible and January? my segment, on to we moving If give about that'll intra-quarter

Derrek Gafford

talk let's it. Yes about

trends, pretty Our or PeopleManagement, the were consistent for monthly actually quarter. excuse all very three quarterly the me, throughout were quarterly trends the consistent segments. trends The

through there's quarter. really So the out nothing point to

the business. go as that continued Now into for January PeopleReady we

well going softening trends our that We've the got still expecting in compared be. in steady are we're there. up hold going monthly we're held fourth a underlying first little expectations, growth and quarter, that PeopleManagement are retail lower up business original digit to though, The clients that low a QX to where volumes basis on bit held they're just have single in retail to quite seeing holding was they're saying, the quarter quite in transportation some their in

But which of inventory, the carry promotions for on we basis. and was through first PeopleScout, that of into weekly bill don't some a quarter won't discounting

we the QX. saw As QX, in from looking in We're results at you in same about down about XX% trajectory were QX. our here

XX% Scout challenges. one half that client is I from decline, that People say that was of its Now, own will having

in though hold coming for for expecting revenue month. seeing the just this to to the first January. - about We're next delay our decline we're clients and till same of we're back going still outlook quarter for We're going We're month. amount hey, saying,

some is But we're I'll say not by there So that. that. surprised from softness also coming

following softness the It has surprise in not saw - business a second, this at area point. that talked in about PeopleReady the us to quarter, is and third seeing we holding Our we that steady perm leads. some

Jeff Silber

pandemic, further think my PeopleScout. recessions, That's a separately volatile we that prior volatility one in a in down you quickly. don't helpful. expect model, into brand Would of in we I Should fell during kind your out looking dig the right. and it broke segments? are but be All could but the if you If recovered bit fairly at I that this quarter most PeopleScout recession? heading three of had over revenues XX%

Derrek Gafford

surprised we really be as had XXXX. in had as if what would I anything volatile we Well,

Now, most business was forms a was mentioned, remember, that decline significant hospitality, of really segment that Airlines, around mix of third as when we just our and you know, that that of different in had that hospitality. you hammered. hotels, XXXX, got

I kind So volatility. expect that wouldn't of

there Now business - little and year-over-year there's PeopleReady per the is in, more lumpy the customer lumpy total kind decline of the as is PeopleScout in a I say, itself to as times, - a bit surprised the business, on revenue proportions so but is see not can customers be of higher, be again because wouldn't near at revenues there many a is a to I'd really basis. revenue it that

Jeff Silber

really could I quick That's If sneak one Okay. helpful. in one. just

mentioned just You in that was the in PeopleScout reserve revenue a us? adjustment quantify quarter, for can you what

DerrekGafford

recognition revenue $X Sure. our revenue PeopleScout gets we straightforward. to and point, comes When pretty one, hiring that recognized. they is candidates turned candidates, business manager, We it maybe and select right around some million. about That for find over was go to

agreements estimated, certain we same turnover have around different built volumes said, that to that into annual those these. with things Now have do other that are volumes - ratios, customers be with

that revenue one seem refer the go made. little go particular as few go reserve of we've they what way. So to a adjustments just way. a to It's a This one form other some usually are always few all ones quarter, way, that we had that

XX I that talk time talked years we about we've first the if in another didn't is be this surprised wouldn't years. for So about this and it XX

Jeff Silber

right. so. much. Hope All Thanks so

Operator

Baird. Our proceed. next question is Mark with from Please Marcon

Mark Marcon

welcome And follow regards want some Yes. can wondering, terms you what that there, for one-time kind call. one lines? just to accounts client area, questions. those were what expertise anything back were just then other the Is just over-hiring half? of or that about like your post-COVID the did been bit they the of With seeing a more getting the PeopleScout, given to any you Taryn, of lost little and see Jeff's were to clients normal? along now players, it's large I'm a you on just that in I or in and up thing to describe temporary there have with

Taryn Owen

so in customer be customer for who the had you hiring business the the holiday retail the quarter. and their their quarter, We with volumes surge a it's here. large to during within much of this periods welcome. this Excited have declining Related to that business. during surges hope within the Thank season decline their customer other

things So had we a on. a of couple combination of going

they as they that people staff on many many And have hire with didn't secondly, as need sales First, on busy didn't to people. work are the floor.

And have so recruitment by supplements doing those some themselves. individual they

quarter So large drove what customer. this that's that decline in the with

Mark Marcon

be terminated there anything winding with And the of that then any And contracts or are Is fairly Are you Great. retained lines? or down it might seeing others? what customers? steady? along have you all those sort your of

Taryn Owen

overall, we're around say their customers that uncertainty Yes. about staffing short-term just our hearing needs. I sentiment really from would the is

buyers. were lot in seeing RPO a of And first-time customers in their getting with support They're so, specifically, really from interested hiring. activity

hiring have been decisions. However, to long-term make slower they

long a to able going and seeing shorter-term their support hiring our some we're volumes customers offerings like the through our what now, are term. needs where we're recruiter project some So work of to on demand while for rapidly their in with be they surge sort RPO

their trying have But have are But that in just and they to just this hiring what course right front volumes of support we year. really otherwise, through holds, sort hiring. like on Derrek They're down off with in of look the they're slowing are are their mentioned, current some as we and going going being needs hesitant, otherwise, business, them. them more trying to to that customers

Derrek Gafford

back still got one six Interestingly not all the three, is Yes. to comes our jobs. customers' those saying, That's customers, people business. where you're it's we're story hire We enough, things you a company, sure a sorry. people, it's PeopleScout in With this because good of is going good not go. have Mark, the about open don't it do. fears are this volumes hiring worst the down. going. they not these business, coming really two, They four, when let you to of months is some not for to At and your for people later, they're

more pause, spot are that to in saying, our where to our everybody and on where this are to are going to Everybody's we're delay has Everybody have so own headed by. they're just we're going going business talking of some hold, is get going to and we're to And is things and that's we're get many to employees. understand there going this going direction their by month to have to get that trying what seeing. customers we till

Taryn Owen

would And that were of the good accordingly. volumes they experiencing were is because turnover down in in more one add to just Yes. customers which bring I XXXX naturally really those had in plans many just never high hiring like place And they before. We experienced put our turnover down, that volume with bringing felt customers turnover that point. have

Mark Marcon

Because in decline revenue the presumably here year had of regards that ago. Should this seeing in given then, have in client that one large hiring level we the does the That's quarter? that having prior continue having the QX how think year about year, surge up mean quarter? color. not surge we retail - the comment And to first into a that one the just the it with should fourth great QX that same and that ended wouldn't

Derrek Gafford

quarter, We're pretty QX the from PeopleScout for what we Yes. albeit decline to to a close business revenue in path. be different the had this expecting

that X% this about, about you be took points yes, and for one the XX if of customer customer. revenue more adjust talked at So, you excluding we decline we'd this

However, but going not we're first positive. more into from hearing clients, anything the more quarter, big

- getting slightly we're about you expecting a the to decline, revenue at what be getting so it's we're there just in QX. path And same through than saw different

Mark Marcon

if then we profile PeopleScout this Okay. continue expense within we about staffing the And - are how to TrueBlue going kind think should should along think path? division? How Great. business these internally of the for the of things about levels that

Taryn Owen

hiring the to PeopleScout down Yes. customers. news and of model The scale the volumes our up built great that at meet is to is

on that able flexible from bring model. And recruiter volume. choose of into and It's we so so reason It's perspective, a to them have level recruiting outsource staff that that scalability. we built scale a to are us do a that big hiring a the to we coordinator customers can the based

Derrek Gafford

So, important little big Taryn you the you of give gave I'll bit just picture, most geography. just a

won't So up just it in as make adjustments, to show also those SG&A. we our understand

Our recruiters in sales. of cost are our actually

demand it's keep Taryn what will the come the our as to talking that so needed to be of scale the gross down percentage taken in is profit actions whole. resources And recruiting business amount to as volumes about,

Mark Marcon

different you can like in different granularity Great. And seeing a PeopleReady regards give us end then in what you're just little regions, of terms more with bit to markets.

Just of little bit in softer. a terms what's going

more? for already had picking are that the seeing in changing are green Aside from what retailers are, the that shoots you that prepared to what and in mentioned of up any be either areas you us seems else margin, terms on

Steven Cooper

a there. from talk news we if geographic perspective, much there's Yes, not

to take the and and can at for trends a close them, aggregate PeopleReady states the You at take you the there, the just overall very it's business. look a look

if If you by industry, at take are areas services there pressure transportation the year-over-year look a taking retail. look most the see a and at trends where we bands, different you're some

higher hospitality declines, is still and leaders manufacturing reported. this been decline aggregate pack Those as percentage the for would than but be one that would - would much be Areas would below revenue growing energy and The experiencing that's that up better. year. be construction declines having the not us some space that be the are of holding we those green pressure

Taryn of more a our a an bright - us elaborate on but on. plan, little energy, was and area green been a Act. probably green bullish spot with bit lot incentives Canada's could a in energy that some the around Reduction we're for the spot That's There's, Inflation bright of that that's legislation passed pretty

Mark Marcon

the what this, now? terms Steve, being filled like then bit where stats updates is Any regards thinking in to JobStack to about regards you're, of And program a volume PeopleReady we how hold JobStack on office of percentage things with can the and you some with through of in centralization. little their put about terms sounds talk it or you're

Steven Cooper

taking worked but customers. take recognize off and XX that kick doing Yes, I'll we run of care Tuesday, two for it there us to that and days two little the of we and the care takes color what's business. out of for employees, to they're these and and When understand let two two for people that to blocking tackling the years Taryn add that for that, I'll a is this that importance branches,

to last where - things right It's focused very and in doing eight got local where your and contact was winning we're three of that add that great a seeing I tackling local accounts and at PeopleReady and sport on market in or you've local teams blocking them different are on two her leaders and are accounts. Taryn growing accounts. focused and the week branch managers really seven,

now. and it's So energy is where that's our very right possible

a is at of save to cost not that's Centralization the cost, And losing idea. a way great losing great some employees. but and revenue

have on are we time takes we more on, a power and good we bit. roll customers close, out good really reduction And the hit calling it there for that our we're quite Until our associates. what roll that for a for is to head. to So the with but the just of a didn't nail few out a

that are centers close company. our pause So one rest doing, we to and big we the they branches that's, stay steady of for went There's of to where service holding and area PeopleReady pretty and been, actually, that that will a bit. going the results these we're we've okay. to the ensure we're have do on are first branches We're going where focused and okay

got is, to our when centers. our the right So training having play we've did and the right do customers the not those better having reason technology and for faster in associates go programs and

So, bit we'll not going us drum beat come do lot you're hear until and Mark, that we're to but better. back a a to prepared it,

talk Let how with there. also doing And JobStack. will she we're give me about can color Taryn ask

Taryn Owen

said component of it - JobStack great JobStack, has Steve maintain to digital our experience absolutely. that talk that Yes, well. and has associates labor as helping relationship We're the to critical constant we service contact and are about just squarely our you know, now keeping JobStack right strong. customers providing focused I'll ensure in business with associates. to us our operating PeopleReady clients through connect allowed market a a really us with our been tight

that through the got point. this JobStack to app increase got engaged client of as XX,XXX using about XX% We've associates app clients are at adoption continues the well. and We've our

And the Derrek operations us achieve certainly in we earlier in that us enabled were that remove XXXX. points. it's cost So some of also those dollars helping able with it's to about connection talked efficiencies the from to

Mark Marcon

terrific. you. That's Thank

Operator

is question next from Sidoti. Please Our Instructions] Riddick proceed. with Marc [Operator

Marc Riddick

Hi, everyone. good evening

Steven Cooper

Hi Marc.

Derrek Gafford

Marc. Hi

Marc Riddick

to echo it's forward you with everyone's welcome call comments Taryn, hear And the forward. to to and I good want looking on working you and going

Taryn Owen

Thank you.

Marc Riddick

trends. complicated management touch talked We've wondering certainly, bit. good have about talk wanted about flow nice a if was sheet and little I bit to times. in prioritization. you - a cash to little a a quite bit the the I it's And cash balance

bit then have are if about could there a maybe was this And of I little year. talk follow-ups? couple a your wondering - thoughts I So where for

Derrek Gafford

a we that. capital has are we're our balance to for not economically, we Taking such strong very look lot where comes strategy, well might it but a at go changed, sheet. a got glad prepared when well, Yes things

business that's on business. do it to to of needed capital a something concern with pull we if the So not ours longevity support of the and the

a checkmark put that behind one. So

in acquiring would to at comes and is continue we're And business we're there business candidates to interested just distraction it they're with progress think right and a to acquisitions, workforce. return to this with our pull now businesses. that. customers, - our We relevance acquisitions our not our any best with increase another that's opportunity biggest pleased think out right relevance staffing digitalize less our in our into be really the increase opportunity and into with now really that When we

that some in. can story, enhance doing but particularly more firms our there and see interested - would Opportunity out really digital testing were going them and buying that be we're a strategies in with just we wise we're that staffing different if maybe out something can isn't rank what technology

areas to a comes it that's different with in there presence life a RPO business, bigger we'd like sciences RPO that very interested Now in. the when be story, technology business getting the or is

two we're more having with positions We They filling that those, What really science have actually and and and more credibility a of is have or many us we're street them. deals. firms specialization technology from technology - helps two perspective adding about firms clients. our the landing in logo presence life talking

continued and repurchase stock we that interested stock be to we've comes in, to it like program. our something be When do that's in repurchase to opportunistic

really say where to I'll three on are all our three. of that's those changed spend broad from So those nothing our categories but we money, want that, and has

Marc Riddick

any if there's, the or I you great. about there's there a been a talk rates can hesitancy, could Okay, been the I seeing with And but if then well? as and little maybe anything we're and pricing understand about client in any you what noticeable bit environment seeing changes the or if impact. was you're whether bit wondering little not businesses touch what and

Derrek Gafford

business. supplemental a is are I these pricing smaller business, really are think their project. from perspective, our In Well, jobs the oftentimes PeopleReady standout PeopleReady our

us the job to the going so that's units I all and in for we to business some business audit. on and just And reprice spreads. I our time was is on I here we call. looking really back dynamic one are was doing came great this positive have bill get at looking history a pay the before

it. has even XXX close basis spreads years that the back that one - positive had bill year at PeopleReady came pay here and been for was I to points. There went XX the nothing

based on that the we're So, We to really delivering that value and the is customers. we're good the contributing think a business pricey value. really

imbalance presenting eating some the supply-demand As what and are far quality of we're that. of as

they've before, more us even to than candidates. and Our folks needing trying ever needed are, good us find

in comments to Taryn, We that pass and The PeopleScout. find Taryn PeopleManagement coming it's that tight. through to over or about to know I are don't I'll add how the and pricing. know. anything want maybe if to you make markets any

Taryn Owen

able we're rates making and sentiment sure their had on to the the We've our just bill success echo Derrek. built right then get I to great associates, to Yes, get I'll the just rates behalf. pay job your

Marc Riddick

Great. Thank very much. you

Operator

our will end that session. question-and-answer And

evening. we participation your So for conference. have wonderful a Thank may today's you conclude and

TrueBlue (TBI) 1 Feb 232022 Q4 Earnings call transcript