Trueblue (TBI) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $492M, down 12% YoY; comparable 13-week revenue was $472M, down 15%, at the high end of outlook. Renewable energy strength and disciplined cost management partly offset soft, selective hiring demand.

• FY2023 revenue was $1.906B, down 15%; net loss was $14.2M versus net income of $62.3M in FY2022.

Financial highlights

• Q4 net loss was $2.6M, or $0.08 per diluted share, versus net income of $7.0M, or $0.21 per diluted share; adjusted net income was $2.6M, or $0.08 per diluted share.

• Q4 adjusted EBITDA was $5.1M versus $21.0M; gross profit was $128.3M versus $147.8M, and operating loss was $8.6M versus operating income of $6.9M.

• FY2023 net loss was $14.2M; adjusted net income was $8.7M, or $0.28 per diluted share, versus $78.8M, or $2.36 per diluted share, in FY2022.

• FY2023 reported revenue was $1.906B, down 15%; comparable 52-week revenue was $1.886B, down 16%.

Outlook and guidance

• Q1 2024 revenue guidance is $392M–$417M, down 16% to 10% YoY, assuming current market conditions continue; the comparison reflects a less challenging prior-year period.

• Q1 gross margin is expected to decline 210–170 bps YoY; SG&A is guided to $109M–$113M, with disciplined cost management supporting the decline.

• Q1 EBITDA adjustments are expected to be $2M, including ~ $1M in PeopleReady technology upgrade costs and ~ $1M in SaaS amortization.

• FY2024 CapEx guidance is $23M–$27M, depreciation is expected at $25M–$29M, and the tax rate is guided to 24%–28%, with $5M–$9M in expected job tax credits.