Revenues flat at year-end 2018 for TrueBlue
TrueBlue has released its fourth quarter and full-year results for 2018. Full-year revenue was $2.5 billion, which was flat compared to 2017. Net income per diluted share was $1.63, an increase of 22%, compared to $1.34 in 2017. Adjusted net income per diluted share1 was $2.28, an increase of 31%, compared to $1.74 in 2017.
Fourth quarter revenue was $650m, a decrease of 3%, compared to revenue of $670m in the fourth quarter of 2017. Net income per diluted share was $0.37, a decrease of 8%, compared to $0.40 in the fourth quarter of 2017. Adjusted net income per diluted share was $0.61, an increase of 20%, compared to $0.51 in the fourth quarter of 2017.
“Our 2018 results showed meaningful improvement in many parts of our business,” said Patrick Beharelle, CEO of TrueBlue. “PeopleReady, our largest segment, returned to revenue growth, and PeopleScout, our highest margin segment, delivered double-digit revenue growth. Our focus on lowering cost of services helped produce our third consecutive year of gross margin expansion, and we utilized a significant portion of cash flow to repurchase shares.
“During the year, TrueBlue made substantial progress on several strategic initiatives as well. We divested PlaneTechs, which further concentrated our focus on more profitable, higher-growth markets. We also acquired TMP Holdings LTD, increasing PeopleScout’s ability to compete for more global business. On the digital front, we dispatched 3 million shifts via JobStackTM and achieved impressive user ratings. AffinixTM, PeopleScout’s proprietary talent acquisition platform, generated high interest among customers and received industry accolades for its compelling innovation.”
Derrek Gafford, chief financial officer, added, “Our fourth quarter results were in-line with our outlook for both revenue and earnings per share. Effective cost management helped produce a 3 percent increase in gross profit. We continue to see opportunity in the marketplace and believe that our team has the right focus on business development, pricing and costs to deliver profitable growth in 2019.”
Beharelle commented, “Looking forward to the first quarter of 2019, we expect some revenue and pricing headwinds with certain clients in PeopleManagement and PeopleScout.
“Despite the near-term challenges, we believe that we have the right focus and strategies for long-term growth. We continue to see a positive demand environment for our services and expect increased demand for PeopleReady services in the first quarter.”
TrueBlue estimates revenue for the first quarter of 2019 will range from $552m to $569m. The company also estimates net income per diluted share will range from $0.07 to $0.11 and adjusted net income per diluted share will range from $0.22 to $0.27.
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