Trueblue (TBI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 16.7%-17% year-over-year to $396-$396.2 million, driven by economic uncertainty, client caution, and reduced business spend impacting hiring trends, with relative strength in renewables and commercial driving services.

• Net loss was $104.7-$105 million, primarily due to $45-$59.1 million in non-cash goodwill and intangible asset impairments and a $55 million valuation allowance on deferred tax assets.

• Adjusted EBITDA was $1 million, and adjusted net loss was $10.7-$11 million, reflecting significant cost management and non-recurring charges.

• SG&A expense was reduced by 20% to $97-$101 million, reflecting cost actions, organizational simplification, and permanent reductions.

• Management is focused on digital transformation, expansion into high-growth and less cyclical markets, and continued cost discipline.

Financial highlights

• Revenue: $396-$396.2 million, down from $475.6-$476 million year-over-year.

• Net loss: $104.7-$105 million, compared to $7-$7.3 million prior year; adjusted net loss per diluted share was $0.35 versus $0.11 year-over-year.

• Gross margin: 26.4%, down 100 basis points year-over-year.

• Adjusted EBITDA: $1 million, down from $11 million year-over-year.

• SG&A expense: $97-$101 million, down from $120-$121.3 million year-over-year.

Outlook and guidance

• Q3 2024 revenue expected to decline 14%-20% year-over-year, with guidance of $380-$405 million.

• Gross margin for Q3 2024 projected to decline 20–60 basis points year-over-year due to business mix.

• SG&A guidance for Q3 is $99-$103 million, including $2 million in workforce reduction costs.

• FY 2024 CapEx and depreciation each expected at $23–$27 million.

• Effective tax rate for FY 2024 expected at -35% to -40% due to valuation allowance.