Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the TrueBlue First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Derrek Gafford, Chief Financial Officer. Derrek. you, Thank

begin. You may

Derrek Gafford

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

to want contain or risks revise to presentation all and I begin, and statements, we remind that assume and forward-looking subject today’s are some which update SEC we everyone of of release uncertainties, any could slide which call to obligation Before described and forward-looking statements. to press our These in those forward-looking results and actual uncertainties, in from in filings, risks cause today’s materially statements. are differ our no

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

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

Okay.

over the to turn call Let's Steve.

Steven Cooper

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

macroeconomic was we for the with that our our pleased right demand Given climate, are services expectation. line in

of conditions, nature is the project-based short the PeopleReady impact job services. first macroeconomic and of change one the in given Our from duration business to feel a the assignments, of its

underlying during since been trends have second After at steady first experiencing quarter last slowing the revenue year, the of the signs demand October. PeopleReady

some trimmed due demand trends PeopleManagement businesses this their and human uncertainty suit, during year many to our having despite macroeconomic slower quarter spending expected, clients open with we PeopleScout As capital the first clients positions. as followed

compared XXXX. structure the reduce the were in PeopleManagement to was action led line overall these with XX% to taking trends that million, ensure and demand. operating proactive costs in quarter revenue of Because to teams PeopleScout anticipated QX to swift down This $XXX late more

deliver Our of pricing bill/pay also in maintain spreads and quarter another able quarter business. the teams positive were PeopleReady to discipline throughout our

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

down was quarter XX%. the for Revenue

need our quarter remain surge XXXX, trends As in were a desperate year-over-year a during our aside, reminder, the headwind. post-COVID creating from recovery, customers the benefited in of PeopleReady business the historical typical revenue of patterns. this first sequential labor as demand across with factor Setting consistent a

segment, highest global PeopleScout segment in through revenue XX% representing our permanent PeopleScout at permanent in declined QX a margin openings recruitment positions our of XX-month filling and is XX% revenue a XX% profit. a total clients. reduction of job outsourcing result is of our of trailing process leader PeopleScout as services.

paused others some altogether. slow seen have We while have clients hiring activities

segment profit. driver workforce outsourced total provides QX. and North that of in driver is down months PeopleManagement commercial PeopleManagement multimillion-dollar of of typical essence services revenue on-site supplying involves XX% Revenue in The and industrial represents PeopleManagement on-site multiyear, XX an a XX% XX% was or engagement trailing staffing America. relationships.

on-site retail spending shifted. patterns volume clients less as e-commerce consumer have seen warehouses have at We the our for

talking I'm minutes spend a going strategies. few about to Now our

the improve digitalization. labor step the to PeopleReady and model the up of Our less States digitalize transaction made and with market staffing market gain opportunity of each has where day complex The than types fragmented is take of out highly industrial strategy for smaller friction United segment associates in other is and efficiency also This at of competitors staffing to PeopleReady the the business market is customers. share, primarily temporary best and operates.

applications in for When smaller staffing national combined the leading accounts. ability making within invest and the local branch with market. like shop JobStack. to our are lack us regional more network, competitors we a one-stop Our on-demand a provider digital expansive industrial brick-and-mortar

PeopleScout, RPO a capitalize a consistently that revenue ability in its our the strong and and market market is conditions. volumes in to service growth At a people double-digit platform. reputation PeopleScout aim Affinix, hire result economic our RPO to is of annual favorable space industry high within as gain leader in to the has on share recruiting produced

all Both enable types in us faster talent market of place conditions. to better

sectors plan we high forward, technology. and growth such target as new move us, we As for to life sciences

Our positive makes healthcare, record possible. depth of penetrating experience technology of this our track and

supplement steps to the higher-margin proper people for market the commercial be yet share. on-site customers We the product geographically serve and is believe on-site and workflow offerings well with increase in have work. fastest-growing as services of United a taken like traditional our connecting segments expand strong to we are in strong the our strategy as choice PeopleManagement’s preparation as of and trucking recovery staffing in nimble, States within to positioned well solutions some to be we supplier we

Now, I'll specifics to Taryn, turn will the on year. key who some priorities over call discuss this

Taryn Owen

in client a point our provided off. are ongoing From careful with proof perspective, Steve. flexible PeopleReady, investments struck you, picture align people between technology in actions business big demand. quarter a people model. We the At our a for paying balance to the and our cost investments solid and of Thank value this

have effort made concerted the we a maintain staffing to levels in First, field.

and At within with trades. scalable a key In are the playing leveraged activity our tactics PeopleScout our underlying managers clients. business revenue addition, These skilled embedded steadiness role with cover model of in from lower the to have trends. we align account PeopleManagement, markets new we have our have to hiring enhanced training and sales our on-demand

that our to when as extremely there mode, we urgency we agility back we bring staying did just first to to effectiveness. And up expansion in same our be will the their during return quarter downturn, the down cost so they effort with and the meet with scaled scale with line and COVID We in late needs demand. an structure in are to close clients,

Now during like I our discussed on the updates last call. some provide priorities to would I

the our are are multi-year We midst in service essential will of attract in platforms support us people. and better help Investments our and transformation. a digital clients, workers our

Our application JobStack enable PeopleReady to differentiated platform us serve. to Affinix, those and PeopleScout we recruiting experiences provide

their on are overall we attracting more by With JobStack, experience. associates enhancing retaining and focused

both upgrades, on to will more customer registration increased lead which and simplifying ultimately We with increased client higher are and track process. will to of satisfaction retention, share. time lead rates entry faster and including wallet enhancements the These fill product associate various associate

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

the down allowing mentioned, agility hiring our us is flexibility up meet to needs. I to clients. our scale As of critical The fulfills this and to model business their need of Affinix

and While is our our business with technology are associates important an success. enabler, employees relationships clients, to essential our candidates,

our and every connect fulfill mission people and employees work each Our to day.

on and ensure team's concentration on that skills with tools, depth continue our the appropriate levels our enhancing to and people our calls. effectiveness. the solutions our all are team we right learning of maintaining future has to have sales By to they worked bring Our meet to a training and demand while to clients' I our priorities across business our to ability broaden needs staffing across development further and business, hard people cycles. the meet to our technology on forward the clients providing clients' positioned look updates activities

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

Derrek Gafford

was a of in Taryn. line with and outlook. you, XX% Thank $XXX revenue our QX Total for decrease million, XXXX

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

repeat surge year, decline the contributing X underlying revenue revenue total points As percentage expected, trend. of decline. X-point remaining this not company's the The reflects did

revenue macroeconomic patterns. pleased climate, trends see PeopleReady the to of business, revenue underlying historical sequential typical following trends are in another we with our quarter Given weekly steady

demand As length that of the job exactly we of during have short the is out macroeconomic project-based see to quarter, things signs last due first mentioned we our and business of how of and the XX over work nature played in uncertainty typically months. assignments slowing times the PeopleReady last

QX to demand of experience the last the million down the million of and adjusted income net million businesses suit primarily slowing followed first $XX $XX this million due $X quarter. and in in loss to year, versus while was to due EBITDA last decline. $X year, PeopleScout QX quarter, net PeopleReady PeopleManagement posted a from revenue this declined We

quarters experienced loss quarter, creating impact our QX the indicative The expectations reminder, year. pronounced a net not this profitability. seasonally is As on a this quarter lowest for remaining revenue of year-over-year more is our

better XX.X% from Gross basis by margin was XXX our development as as of disciplined business. workers' of driven up year well compensation was in prior The pricing results the PeopleReady reserves points. favorable expansion

rate Our PeopleReady inflation. between pay eighth quarter bill positive and business of spread its rate delivered consecutive

revenue. points people due seasonal by point to a business. as being or increased operational magnified PeopleReady primarily increased XXX in given which revenue due our mostly quarter X% in the first SG&A to revenue SG&A the percentage low of basis deleveraging million the $X investments dollars drop, is

adequate leaving year but too low our last year. from acquire to QX resources this year, some with we staffing new existing of and on strong in QX QX we bit without levels discussed calls, consistent last recession and prior maintain believe As relationships is reduced a headcount branches QX our XXXX, customers. the up with headcount of of customers PeopleReady during

maintaining a While people have made at over last in staffing we the steady we this the investments quarters are economic in a had despite uncertainty additional underlying do our on two year time, role last making increasing. we trend not planning levels revenue investments believe

softened and took For our quarter, we've reduce path. costs. during PeopleScout taken and Revenues to the action different PeopleManagement, a we

yield of the services we flowing savings expect the in cost savings As a of remainder XXXX. cost through $XX the flow through million a to About of will SG&A. with remainder quarter over result,

rate line XX% income outlook. effective Our and tax our benefit was in of a with

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

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

compensation margin down rates decreased strong operational segment spreads and decreased came remained related XX have basis workers' basis drop points. spreads. revenue segment XX The in pay and decline of positive and and X.X% were revenue lower XX% partially pay expense X.X%, favorable from up was with Bill which profit rates profit profit by offset the pay bill up and PeopleScout segment spread while in a points. bill margin resulting deleveraging, XX%,

paused quarter We've As expected, macroeconomic declined responded clients seen while this have activities hiring clients volumes RPO taking hiring wait-and-see some environment. a others the their approach. slow as business to

profit previously the over the XX% to With actions goal reduction remainder of conditions. stable generate discussed, is margin macroeconomic cost of XX% to assuming a our segment XXXX,

due dropping the both to most services in revenue on-site and and PeopleManagement XXX margin was in and revenue and decline segment in deleveraging. mainly with segment the down transportation. XX%, segment client lower decrease operational uncertainty Demand to related break profit basis led commercial and driving retail volumes, profit economic was in The to notably margin associated points. profit as decreased even declined

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

million shape. great our with during stock Our totaling authorization. produced million and finished debt. cash operations balance million in The of in business $X common flow is outstanding the remaining We quarter $XX from repurchased the cash sheet We no $XX $XX under quarter leaving million.

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

year. of expect in XX% is challenging is to a posted tied the improvement improvement in year prior revenue XXXX, to this XX% XX% QX The We decline comparison. an decline which a less to QX

One wrap before last we thing up.

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

earnings to please on see details our presentation additional For website posted outlook, our today. our

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

Operator

Thank you.

Kartik from now Research. conducting [Operator be will a Mehta is Our your session. with question-and-answer Instructions] We question. question Please Northcoast with first proceed

Kartik Mehta

if and April the Maybe next your you quarter on you the Thanks. saw first start thoughts maybe weeks of out and the just what saw any few coming look the of quarter, of trends like changes?

Derrek Gafford

It's Derrek here. Kartik. Hi,

just touch bring and maybe the I'll them So the ease April let that trends, for monthly both then on together. me just into question to quarter,

QX in was within to similar trends monthly or of Everything X decline. that. the X So the very were XX% point

finished volatility So level. in that much not that, right and we around

PeopleReady Going and challenging surge about decline that year-over-year the challenging. here QX. less comparison though gets prior less being in all talked is into April, diminishing. really into in comparison We've at the about QX had year as we've That's that for our the we move QX, prior year

although might Now decline that's $X here about the less the monthly. really in side there or increase perspective, I up the revenue posted million will haven't $X sequential PeopleScout. our year-over-year while PeopleScout million. staffing One do that expect the house. dropping thing more, is of revenue be It's bill bring QX, for we for we to off we

was more dollars, profit It's the both was revenue, bottom PeopleScout for point. record XX% everywhere, of a year margin to segment a quarter last line due in high of QX

across more fronts, So that's providing a challenging notably the few revenue most on a comparison line.

might decline you in people QX. up closer XX% a scale So to see edge

Kartik Mehta

just if differences what end seeing markets, you're as the from any? markets, at your then, you And your end look perspective, in

Derrek Gafford

lot in bit to projects PeopleReady, in surge at run retail. said, QX. could here there well. had a high your of of this there's prior The is X of year a guess, on the in was I We for biggest in had period majority it of and had probably of you low depending business little with us area year-over-year comparison. with points, the the the Well, prior we that retail or one us XX% the points of given it year Probably about environment. some retail softening is that lot X the here, if for is as movers rate take That down in Sure. a do The retail. call

retail While well. consumer the spending up pretty is side on actually holding

with thing to some on the about where levels really talk customers, consistent retail, I inventory main increase a is slowdowns from the the you think inventory perspective our States. it's If United we're levels, broader which in across pretty seeing

on the side. and that's retail manufacturing So the

A is our energy business. point high

bullish about is about XX%. an Our is that million a about. energy energy rate up very and renewable business, It's business That's about increasing. and business $XX one an run we're that excited

that little color operational to give maybe you Taryn turn business that I'll over unit. So one and a more bit on that,

Taryn Owen

put Derrek. Sure. space, helped in in Certainly, the farms. particularly within fuel year government that for place this some have were Thanks, incentives us opportunities energy the renewable solar

as XX We're in experience. this that prior We tremendous with and just is the got over and over we've leader times a growing over here, look RFP decade week has pipeline. year, and we grown healthy. really been are It's our a volume responding to opportunities at XX each exit our wins new business a when space here But QX. of to pipeline every start we

for opportunity this bullish really on we're PeopleReady. So

Kartik Mehta

you just wonder much cost people to been not at the how quality one right-size make look play it's cuts, Derrek, And hard. I losing trying into last business, we will so question, since as

bit you So environment? a you not be if it a type the or as normal think normal and might do type this much conservative labor of around, of business a time recession was right-size little as

Derrek Gafford

making adjustments. we but and to our adjustments question. business. they quarter to When And PeopleScout we're we're make. growing, are were adjustments we some adjustments not of Yeah. I'm made that saw PeopleManagement, asked think we're hard us investing this growing, that when glad Those particularly those we're you make, for our in you here smart

economy whenever a reducing between growing mean of that action balance that from into better we see don't think dollars. profit pace, if made particular benefits we're work, we that, come any impacted recession. well, things any our while tough, our which this spring back QX, by cost that and trying hampering don't we're and of robust in will to doing make and us long-term people, type at won't all. a the took -- hold to that In back we'll we And structure ability the to the to cost strong ability we when But that starts is, the to some what I grow We think case, times do. more get after go gross like

PeopleReady a side, on taken we've the Over route. different

We have not cut positions there.

we at of what As we lot A XXXX. And a of and day, about QX we back matter but QX or last we were the in the too of we end and cut in XXXX where And a cut in still of stable are costs of lot at far. just fact, did those our costs XXX said, is with out headcount XXX business. QX. up look over year, the

We effectively. can't at branch the We managers. run branches people, with that two in we can't local without run branches markets want not in way least

we for well on customers. to much relationship know know is progress that as a to we’re good hold really as our that. business, with positioned that the and people going So And we’re how this want to keep interact and the stay on front, to business, ourselves long-term still to true digital making

taking Kartik. So things, look of we’re how that’s a kind at

Kartik Mehta

Thank thoughts. much you your for it. Appreciate very

Operator

you. Thank

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

Jeffrey Silber

enough. you on Thanks give kind a close the to are enough color so little That's of in us terms Derrek, segment bit much. data of revenues.

kind can PeopleScout, mentioned get PeopleReady of the for you color guidance? PeopleManagement XQ and think same both we I for

Derrek Gafford

embedded from in what as guidance? perspective far the that's we're a overall As expecting revenue

Jeffrey Silber

Yes, please.

Derrek Gafford

Yeah.

bet. You

to just I'm to ranges you to ranges. I'm some give and go numbers. midpoint the not ranges gave we going of So quote you. going the to

to PeopleScout around be down So XX%. down to and about to about PeopleManagement we'd down be (ph), PeopleReady XX% X% expect be

Jeffrey Silber

Okay.

you of appreciate workers' it's semi-annually I comp it. be I if terms in missed it some have me, should of, had and we us quarter, benefit forward? In a or recouping reserve. this I the remind you expect must a this Is when out, the -- going and Forgive it. update What something of gave you this reserve? you drove can quarterly this guess, should

Derrek Gafford

Well, every quarter. we actuary independent report get an

where a we keep prior well and a watchful should eye for decrease be reserve sizable workers' in in always Yes, we reserves, current be the years. should So year so compensation what as get we as doing on did the the prior both reserves years. to reserves

the at workers' take expect rest we put in of a sizable to bit we'd headwind some year, We up benefits XXXX. comp. back be of little of a from the half the look As a to there

And so guidance, if we're gross QX to up while this expecting QX gross be last you margin the our year. take a margin look about flat for at year, year we're over

Some compensation, as of of expect move positive that's still workers' because we through that's we -- diminish quarter. because but spreads of stay pay of some to some bill the

it expanded So that of Jeff, color on the gross compensation, gives you little and cover line margin to a in workers' whole. bit

Jeffrey Silber

I just sneak helpful. Okay. That's really And more. one can in if

M&A? last strength on You you Are the -- have a I be kind a slide especially sheet impressive, quarter. $XX of to market it's perspective, and more some allocation taking know about pick very going capital here bought some Any what's about this What potentially great. in million going in same? back advantage the environment. your of we shares From you should forward, in balance expect color again, would up the of maybe in

Derrek Gafford

Yeah.

got to say capital amount reinvesting that allocation on. of I priority first business. when of have CapEx. about And not this vast it is majority a cut when You the our the technology. That's And an bet. we've area is CapEx, healthy comes back we strategies, Well, in

more the is industry digitalized and business all Our becoming time.

differentiate going increase that. to to We operating efficiency. and the that and we’ve to but a marketplace committed leader leverage strong our take the in there. in a ourselves want We’re got, Both stay to of stay advantage to that we’re leader also

that’s number So one. job

focus full probably our that’s continuing Job the number there. our this side. stuff two a great particular and our lot would less acquisition moment. of digitalizing We This staffing on on think with hands at be we side, is the best the business business got return so

the ball side, a game. that’s On different RPO

acquisitions an of basis some deals, to that give and us in would presence We would niches some are on increase win interested in industries our potentially us different international that winning likelihood of greater different into multinational more deals. more a get doing deals

out right is shareholders advantageous pointed on you very we is at as our valued back to here, economically. at lastly, this company us, then particular important And And prices. return think capital now moment to especially

So buy back we $XX of million stock. did

the quarter see when also about the million. back the XX-Q of between bought We you close last another at the $XX look week, take a and we of end in

we in point of our see priorities Jeff. kind that’s capital at time, So how this

Jeffrey Silber

Okay. the for Thank you so much color.

Operator

Thank you.

proceed Mark comes Marcon Please next from Our with your with question question. Baird.

Mark Marcon

can and ease a people in translate afternoon, about the to some you with Wondering terms or improvements from Steve further Taryn, of the bit to And would a everybody. Good we for you job should little markers digitization stack? see business to talk what perspective. that the regards of more what think and strategy register

Steven Cooper

the friction Thanks, the it It's us, topic here. not Mark, important difficult. making question the between and transaction associates our taking of for ourselves out for so an

So think your in important what of the we're what on and middle is we right is working for bull's of digitization. the eye question

take transaction the as and order we not help still friction them want as be that but the it's workers important thing, to customer, of With able possible. appearing to out most to fast be

talk and know highest process me let a wanted to So somebody priority, kind chime of let easier, job about committed remains those friction first a I taking make our of pretty for but that to in can more we it a specifics, stay that. complicated it Taryn bit and you out this of have we to finding

Taryn Owen

an paid. the to for time get takes out, constant get contact at terms allowing associates around to maintain as look Mark, when on and our a and enhancements color. in associates Yeah. us has I'll you with mentioned, some register job just making, we it's them just taking faster, add of of some our it really JobStack allowed we're really that the some to and assignment friction reduces Certainly, customers of to which that

working time approval. is we're One other enhancements and the key of the to improve ease entry on of

can faster with to and So kind enhance again, get But that everything you us. to about our their in doing paid next of take assignment associates product be think the when ready it's an in that with us ensuring way engage and way which experience, in and want taking really effective to out that engage. about the our can that in friction associates they customers we're

Mark Marcon

Can little Taryn. that, bit you elaborate a on

that Just like the then how you does it some register? the long terms registration filled you in terms on give take percentage and in -- through of goal the any to have terms of what's updates person jobs in just metrics speed the you used like metrics average some side, us? JobStack of the How used to PeopleReady give us of were there do to typical of that

Taryn Owen

Yeah. Sure.

amount jobs are all filled PeopleReady two-thirds of are the of So filled that the think jobs app, when our about that of we at experience. through about through

at we've We customers time. XX,XXX associates engaging have any of and up utilizing given the to app, our had XX%

remains remained for pretty us. So -- that's consistent

the of terms just reduce takes number associate us. with for steps of it get looking In registered registration, to to we're an

So jobs, jobs quickly. minutes do take requirements. for required an looking very it want associate the a of through able we really -- process. appropriate you of an for get with think register job on the to get kind preemployment engaged any what that us less, assignment to about be to when on But being and with them customer. are want to out and them register is quickly particular qualifications depends associate go for able in or We ideally an and And to what kind XX

Mark Marcon

holding patterns your national been and the are with have normal widely flat. macro wondering Great. macro bit side, just worse. that of do kind getting a it's perspective? on a particularly from How lot seem basis week-by-week data And to where great then, hear points Because you I'm consistent of be disseminated trends, perspective, think and the seasonal we PeopleReady a little do historical you our a -- from a that to on

worst seen it we've And about of so, are do the that? how you or thinking think you

Derrek Gafford

Hi, Derek Mark. I'll It's that take here. one.

have what all amount to talk you If our increasing to of is there an customers customers, uncertainty. our say,

that is of negative Some press. to accumulation of an data A too, are points down. it those about of a has themselves of lot it do edging lot with

any years, Over have there's I don't we we in the this last recession, one that's been think fact, if XX anticipated. been --

seen been it makes accumulates has some a other the industry lot out of did you grow things consumer. and So and showed the and negative. an that on when was at all coming And there metrics. confidence. the but at last decent year, investment clip, investment negative. back Business uncertainty up I've a of considered, pretty news impact all there's economy half from it in it's a never take our grow look business When is

the cloud. are those So

our customers to them that talent I really still tight. weather that. of if their bright confidence expect getting some from the employees continuing sun think pools the to remain they're are employees. They're and on spot, holding breaks, this job market. The Most employees holding way, their is to a forecast and is are on the spend. They're

which tight as there our a of has is a customers you I our and comes most lay if layoffs. what recession the it for of just is down consumer has off, pools business impact we're widespread at know, of with a people job spending every recession severe a most because cascading anticipating mentioned aren't And where labor to investment. reluctance that to because job The customers that. lot then on and layoffs

But years. through what the we our XX we've past we're shallow what or into we're of not. from it worst to if Mark, over do to relatively hearing know, don't be I the customers, get something, if seen expecting for So in this most recessions are

Mark Marcon

update Great. what regards side? And you're side, the then with PeopleReady can seeing you on give us on an construction the

Derrek Gafford

-- Construction of more actually a one resilient been Yeah. has the little industries.

energy, already part down about it was a that which So quite nicely in construction, year. we're XX% optimistic overall, business, talked to Taryn of so construction bread residential, and -- last and growing about that has for your being excluding been kind of commercial X%, that us, and was renewable slight down the butter, our of to piece you which when of QX comes improvement to

Mark Marcon

on That's could to couple years? the great hear. And big the business part get to next over the side, of that how renewables of

Derrek Gafford

Well, it's hard amount for is last huge. were that this. through us year to of give incentives say, investment the but on put a to But that and number

is got lot a to this pipeline in of We've experience Our continuing grow. industry.

times can there. incentives of the is that's been level when can out from it. something industry there legs lots see that we This of This So have this with where had multiple is are years have reinvestment and other we've in behind the that peaks. something coming

So a it, I hard QX. that for grew number to you in -- in us but tell we here XX% can give

Our QX segment in that is for a similar to about guidance particular amount. grow

now seeing what Mark. good, So pretty we're right looks

Mark Marcon

That’s hear. Thank you. great to

Steven Cooper

Yeah. as the Mark. about I'll the own the hesitate for not to I as don't size our talk ever opportunity of opportunity that's prepared throw of I growing, just the environment preparedness, can't on are this. like that, been believe we've or size an we

solid. up match I you and real two So think it's the

Operator

Thank you.

with Please question Marc from is Riddick Sidoti proceed with & Company. next question. Our your

Marc Riddick

everyone. evening, Hi. Good

Derrek Gafford

Hey, Marc.

Marc Riddick

as thinking could the saw as the and about bit the quarter of prepared far the second what -- I you talk all, what and as the forward-looking think be? into can spreads in one spreads to, how forward in mention you're presentation thank your wondering remarks. little you was commentary then far have wondering And how of that certainly as pay was made that I figures first commentary, the of year resilient follow-up. if I bill wanted I maybe you So you positive for and for bill pay remainder last there. I a

Derrek Gafford

for that Yeah. Marc. Thanks question,

was points here QX. pay spread the rates and basis rates between bill XX So in

Our the XX basis points. entire year outlook for is

of we're some that little So gives of throughout how phase idea kind things to a expecting the year. you bit down

We game. expect spreads remain we're that's to bill happen, pay expecting because job If different to whole that a widespread were not cuts. positive ball

tightening expect bill because the clear with a some we're we've going pretty Look, for be just to pay value The our Labor We're themselves Fed we're really we're It's really our business. still to some has our us for policies, showing that, reason pay to And in happen providing That in spreads that restrictive belt quickly. the is finding customers. little good bit. a good the spreads. more are got in. it the of is about able would we with policy. their find really environment bill PeopleReady And clients. tight. that been said, diminishing talent think economics we And monetary

to So play it expect of out year, we would rest see that's of kind this Marc. the how

of people we're market. we is, thing This also point. right sure compensated to but to want business, to other make providing, have don't the out make we in price -- want is value some going for our everything place. And be we at we The the that turn ourselves the that we sure want to

when to technology cheapest any the to it the want shoulders right capture We have we right our above be sure means, ballpark still point, the comes a come in we're investments. we in don't rest pricing to the things rebounding at town head economy. to with turn opportunities And don't want the when to by price that that but and be make

Marc Riddick

those of there's some of there remiss those if the not quarters sort bit well And as kind as sort where the if those of certainly, leadership key of far I of to in couple of was important filled was new areas that roles. because we be of and so toward I then other congratulations areas sort who need appointments. still you're are leadership of sort that that wondering would little announcements some process a to of as talk of I been process and appointments and in are you various sort just sort could if acknowledge as maybe over end may weeks maybe are Excellent. of few ago, a and to in wondering last But be about

Steven Cooper

customer been announced they're were about and question. I'm to that we before in and roles. they of Well, we it's ago, the her operations-focused just and for to here, prepared these Marc, announced weeks about I ask, three see to meet much you have were objectives an one And multiple They ready, her, ago. few promoted. are really a all operations. weeks us it report Taryn three been helping well easy couple inside, excited trained, not her experienced, going positions roles people the talk a that but very excites promotions thank to know And here

it's talk coming these I But think to it's best yeah, people. from her about exciting. three really

the So question for you there. thank

Taryn Owen

to Marc. you, talk happy Really Thank Yeah. about this.

So President operations. aspects of XX our Kristy since experience brings been the experience the most promoted has in Betori of of years of the in Willis since with served Director as in transformation Head industry. been digital She Rick's promoted is President XXXX across was Americas. XXXX, recently the both Operations. to as our TrueBlue and Sales of has of to been broad units, all staffing PeopleScout. PeopleReady. business Managing Kristy recently has PeopleScout and PeopleReady -- serving Rick and He with

and PeopleReady Officer served promoted Chief the been with And Sabetti Communications TrueBlue. to Communications and and Officer PeopleScout then since she Senior for us and President Caroline Vice TrueBlue. the for was Marketing has as for She's XXXX, Chief the Marketing of as

excited three or more as roles. be organization these couldn't the they we for So on take these individuals for

Marc Riddick

Excellent. Thank you very much.

Operator

you. further Steve closing no back to questions are over like this There I at comments. the turn to for time. floor Thank Cooper would

Steven Cooper

call. you questions and in Thank you. at next time and in principles appreciate we TrueBlue your interest these talked look this shareholder and the to forward you and today dialing point on we've committed sure We on our about your to updating remain in

Operator

teleconference. concludes today's This

your disconnect may your time. You Thank this at participation. for you lines

TrueBlue (TBI) 24 Apr 232023 Q1 Earnings call transcript