TrueBlue, Inc. (NYSE:TBI) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 30, 2018 • 05:00 pm ET

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TrueBlue, Inc. (NYSE:TBI) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the TrueBlue First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Mr. Derrek Gafford, CFO, you may begin your conference.

Executive
Derrek Gafford

Good afternoon everyone, and welcome to today's call. I'm here today with our Chief Executive Officer, Steve Cooper; and our Chief Operating Officer, Patrick Beharelle. Before we begin, I want to remind everyone that today's call and slide presentation will contain several forward-looking statements, all of which are subject to risks and uncertainties, and we assume no obligation to update or revise any forward-looking statements. These risks and uncertainties, some of which are described in today's press release and in our SEC filings, could cause actual results to differ materially from those in our forward-looking statements.

We use non-GAAP measures when presenting our financial results. Included as adjustments to net income are the gain from the sale of PlaneTechs, amortization of intangible assets, cloud-based software implementation costs, and adjustment of effective income tax rate to the ongoing expected rate of 16%. Adjustments to EBITDA include work opportunity tax credit processing fees, and cloud-based software implementation costs.

Please refer to the non-GAAP reconciliations in today's earnings release and on our Web site at trueblue.com under the Investor Relations section. Any comparisons made today are based on a comparison to the same period in the prior year, unless otherwise stated.

We made one change this quarter with respect to our segment disclosures. We are now using the term, Segment Profit in reference to the profitability of our segments, which aligns with the terminology we are now using within our internal management reporting. Segment profit is comparable to segment adjusted EBITDA numbers reported in the past.

Finally, as we did last quarter, we will be providing a copy of our prepared remarks on our Web site at the conclusion of today's call. And a full transcript and audio replay will also be available soon after the call.

I will now turn the call over to Steve.

Executive
Steve Cooper

Thank you, Derrek, and good afternoon everyone, and thank you for joining us today. I'm pleased to report we made great progress across multiple fronts to improve our business this past quarter, which resulted in delivering higher levels of profitability across all reported measurements this quarter.

Net income per share grew 100% to $0.22 for Q1, while revenue of $554 million was down 2% overall, organic growth in our PeopleScout business accelerated to 22% for the quarter. PeopleReady had 5% declines related mainly to our solar industry clients along with softness in certain US regional areas. And our PeopleManagement segment revenue performed as expected.

We continue to make progress in reducing our cost of services mainly associated with workers compensation and recruiting expense, which has resulted in our ninth consecutive quarter