Q3 2020 TrueBlue Inc Earnings Call

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Presentations, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.

Please be advised that todays conference is being recorded if you require any further assistance. Please press star zero.

Thank you hand, the conference over to your speaker today Derrek Gafford CFO. Thank you. Please go ahead.

Good afternoon, everyone and thank you for joining today's call I'm joined by our Chief Executive Officer, Patrick Burrell.

Before we begin I want to remind everyone that today's call and slide presentation contain 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.

We encourage you to review the non-GAAP reconciliations in today's earnings release, or Trueblue Dot com under the Investor Relations section for.

For a complete understanding of these terms and the purpose.

Any comparisons made today are based on a comparison to the same period in the prior year unless otherwise stated.

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

With that I'll turn the call over to Patrick.

Thank you Derek and welcome everyone to today's call.

Total revenue for the third quarter was down 25%.

And we posted positive net income of $9 million or 25 cents per share.

We're very pleased that the company has returned to profitability we've.

We've taken the right actions to restore profitability and position the company for long term growth as the economy recovers.

During the third quarter, we saw steady improvements in our revenue trends across most of the industries and geographies we serve.

Our cost management actions continued to show meaningful results, which helps position us for stronger incremental profit margins when revenue growth returns.

Now, let's turn to our results by segment, starting with Peopleready people.

People ready is our largest segment, representing 61% of trailing 12 month revenue and 76% of segment profit.

People ready is a leading provider of on demand labor and skilled trades in the North American industrial staffing market we.

We service our clients via a national footprint of physical branch locations as well as our job stack mobile app.

People Reddys revenue was down 29% during the quarter and we saw intra quarter improvement with revenue down 27% in September versus down 32% in July.

People management is our second largest segment, representing 30% of trailing 12 month revenue and 15% of segment profit.

People management provides onsite industrial staffing and commercial driving services in the North American industrial staffing market.

The essence of a typical people management engagement in a supplying outsource workforce that involves multiyear multibillion dollar on site.

Our driver relationship.

These type of client engagements tend to be more resilient in a downturn.

Revenue for people management was down 8% during the quarter with topline down just 2% in September versus down 12% in July.

Turning to our third segment Peoplescout represents 9% of trailing 12 month revenue and 9% of segment profit.

Peoplescout as a global leader in filling permanent positions through our recruitment process outsourcing and managed service provider offerings.

Revenue was down 48% during the quarter versus down 53% in Q2.

Peoplescout results were particularly impacted by exposure to large travel and leisure client.

Now I'd like to six years and update you on our key strategies by segment, starting with people ready.

Our long term strategy of people ready to digitalize, our business model to gain market share.

Most of our competitors in this segment are smaller mom and Pops that don't have the scale or capital to deploy something like our job stack mobile app. So this along with our nationwide footprint is what makes us unique.

We began rolling out jobs back in 2017 to our associates and in 2018, we lost the client side of the App.

We now have digital fill rates north of 50% and more than 26000 clients using the app.

In Q3, 2020, we sold 726000 shift to be a job stack, representing a digital fill rate of 51%.

Our client user count ended the quarter at 26100.

37% versus Q3 2019.

In mid 2020, we introduced new digital Onboarding features that cut application time in half this.

This has led to some great operational results as we increase the ratio of associates put to work.

Versus all applicants.

Early results indicate a 20% increase in worker throughput.

This is exciting because as we move back to a supply constrained environment and increase in worker throughput will translate directly to revenue.

We believe we can further improve applicant throughput as we fine tune our processes.

Right now we're also very focused on driving heavy client user growth heavy user is a client who has 50 or more touches on jobs that could learn whether its entry in order ridener worker or proven time.

South stack heavy users have consistently posted better year over year growth rates compared to the rest of people ready.

The growth differential is north of 20 percentage points and that's held true.

Even in this market downturn.

This makes sense.

Since we have many clients who use multiple vendors and we can grow our business simply by growing our wallet share even if our clients total volumes as flat to down.

Our focus on heavy user growth is starting to pay off we doubled our heavy user mix since 2019 up from 11% of our businesses fiscal 2019.

22% for 2014 year to date.

Our positive strategic progress is obviously overshadowed by the macro environment at the moment, but.

So we continue invest in our digital strategy in Brazil. This approach will help people already emerged stronger than ever.

As our digital strategy continues to mature we're taking a look at areas within Peopleready, where we can reduce our service delivery costs in.

In 2020, we began testing a few different strategies.

It's too early to quantify potential savings, where we're developing the plan will cost savings will come from a mixture of both technology utilization and changing our go to market approach.

As we move down that path I want to emphasize that the value and importance of our branch network should not be underestimated.

We need to maintain a local presence in the communities, where we do business at the same time, we do see an opportunity to centralize more services and reorient job role is to improve our client focus delivery will continue to update you on this front has a plans evolve.

Turning to people management, our strategy is to focus on execution and grow our client base.

The initiatives, we have already implemented include sharpening our vertical market focus to target essential manufacturers and leverage our strength in ecommerce.

These are verticals that have held held up well relative to the decline in non essential goods, the traditional brick and mortar retailers.

We've also completed the integration of our staff management brand sales team.

Allowing the integrated team to offer a full portfolio of hourly and cost per unit solutions to clients.

These strategic initiatives are already paying off.

Even in the middle of this downturn year to date, new business wins and people management are up 13%.

Versus the prior year as we secure $70 million in annualized new business wins versus 62 million in the prior year.

Approximately half of new wins are in our Q3 run rate.

As the demand environment recovers, we'll be increasing sales resources and investing in client care programs to maintain our momentum.

Turning to Peoplescout, our strategy is to capture opportunities in an industry poised for growth.

Before koby struck we noticed a trend towards insourcing, but a handful of clients, bringing more recruitment functions in house.

Many of those in house teams have been reduced or eliminated during the pandemic and we expect a trend reversal back towards outsourcing as the economy recovers.

Our strategy leveraging our strong brand reputation.

As we are consistently ranked as a market leader by independent industry analyst and Peoplescout is traditionally the highest margin business within our portfolio.

Finally, I'd like to take a moment to touch on our balance sheet and capital allocation priorities, we do have a solid balance sheet.

Our credit facility provides ample liquidity and we ended Q3 with more cash than debt.

Before the pandemic hit we were generating substantial free cash flow and we're focused on returning capital to shareholders over the last five years, we've returned $169 million of capital to shareholders via share repurchases.

As we return to a more normalized environment investing in our organic business opportunities will remain our top priority, but will also expect to renew our focus on returning excess capital to shareholders.

I'll now pass the call over to Derek who will share greater detail around our financial results.

Thank you Patrick.

Total revenue for Q3, 2020 was 475 million.

Representing a decline of 25%.

We posted net income of $9 million or 25 cents per share.

And adjusted net income of 8 million or 24 cents per share.

While this quarter's bottomline results are lower than the prior year period, they are sizably better than the losses incurred in Q2. This year due to further improvement in our revenue and SGN a expense trends.

The Q3 year over year revenue decline was 14 percentage points better than the Q2 year over year revenue declines.

And the Q3 year over year SGN any decline was eight points better than the Q2 year over year SGN a decline.

Adjusted EBITDA was $18 million down.

Down from 39 million in Q3 2019.

But up from a loss of $5 million in Q2 2020.

Gross margin of 23.3% was down 300 basis points or.

Our staffing businesses contributed 230 basis points of compression with 180 basis points of pressure from negative bill and pay rate spreads.

And 50 basis points from mix and other items.

Peoplescout contributed another 70 basis points of compression, primarily due to client mix and lower volumes.

I'm going to spend a few moments stepping back from this quarters gross margin results and share our perspective on the ebb and flow of gross margin across an economic cycle.

During a recession.

The bill rates in our staffing businesses come under pressure as customers look to cut costs and staffing companies compete in a lower demand environment.

However, pay rates do not come under the same amount of pressure, which creates gross margin contraction.

And this particular recession pay rate inflation has accelerated to entice contingent employees given co that health concerns.

And due to the amount of federal unemployment benefits available.

Which for jobs on the lower end of the pay scale when combined with state unemployment benefits.

Can provide more take home pay then work assignments.

In the recruitment process outsourcing business gross.

Gross margin also comes under pressure, but this has more to do with volume than price.

As RPL cost of sales is mostly comprised of recruiting personnel costs.

While we were able to reduce recruiting cost by reducing head count there is a semi fixed component that creates negative operating leverage and the cost of sales for the RPL business as revenue declines.

Similar to the dynamic with the rest of our enterprise personnel costs that are reported in SGN expense.

As the economy recovers pricing power has historically swung back to the industrial staffing industry as demand for talent surges due to economic growth.

As well as a preference for more contingent labor due to the hesitation of businesses to hire permanent staff.

Associated with uncertainty about the sustainability of the recovery.

Likewise additional revenue volume has assisted the recovery of RPL gross margin.

We have an experienced team that has operated through these economic cycles.

And we have tested processes in place to ensure we seized the opportunity to improve our gross margin in the future.

Turning to estimate expense, we turned in another quarter of very strong results.

<unk> expense was down $40 million.

Or 31% compared to Q3 2019.

We also continued to challenge prior assumptions about the cost needed to run the business.

And invest in technology.

We're optimistic these actions will result in a more efficient service delivery model.

The opportunity for additional cost savings is greatest in our people ready business.

We see opportunity to further reduce the cost of our branch network, while maintaining the strength of our geographic footprint through a greater use of technology.

Centralizing work activities.

And re purpose seeing job growth.

We have made good progress in 2020 by centralizing certain recruiting activities and repurchasing certain job functions.

A necessary precursor to further reducing the cost of the branch network is a broader repurchasing of jobs to increase centralization.

Which can be accomplished through the normal course of employee attrition.

Client facing job functions must also be re purpose to ensure we continue to meet the surface expectations of our clients.

We will be testing. These plans throughout 2021 for 40 make large scale changes, which will also help us provide more clarity on the savings opportunity.

Turning to our tax rates.

Our effective tax rate was 30% in Q3.

Which is higher than what we had experienced in prior years as a result of this quarter's performance, reducing the net operating loss for the year.

This results in a reduction to our cares act carry back benefit expectation.

Resulting in some catch up expense this quarter.

Additional information on the components of our effective tax rate is available in our 10-Q filed today.

Turning to our segments Peopleready, our largest segment saw a 29% decline in revenue and segment profit was down 39%.

We saw a nice intra quarter revenue improvement was September down 27%.

30% to 32% in July.

With further improvement to a decline of 19% in October.

The improvement was broad based across most geographies and industries with construction manufacturing services and transportation industries, leading the way.

People management saw an 8% decline in revenue and segment profit was up 35%.

People management experience encouraging intra quarter revenue improvement.

With September down 2% compare.

Compared to 12% in July.

Month to date for October people management was up 1%.

How about half of the segment profit growth is attributable to cost management actions.

And half from unique costs in Q3 last year, creating a favorable comparison this year.

Turning to Peoplescout, we saw a 48% decline in revenue and segment profit was down 97%.

Inter quarter revenue did show improvement was September down, 40% compared to 52% in July.

As Patrick noted Peoplescout results were adversely impacted by exposure to travel and leisure clients.

Which made up roughly 25% of the prior year mix.

And revenue for this vertical was down 74% year over year.

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

Our balance sheet continues to shine, providing financial flexibility and stability.

Our credit facility provides ample liquidity.

And our debt position is at its lowest level since 2012.

We also repurchased 9% of our common stock at favorable prices earlier this year to boost shareholder return.

Year to date cash flow from operations was 99 million as compared to 53 million for Q3 and year to date last year with.

With the increase coming.

From the de leveraging of accounts receivable.

We've been a nice trajectory of reducing our total debt to capital in 2017 or total debt to capital was 18% in 2018, 12% in 2019, 6% and as of Q3 this year nearly zero.

Now I would like to take a few minutes to discuss certain forward looking information, we are providing to help investors form their own estimates.

This information and more can be found in the quarterly earnings presentation filed today.

For the fourth quarter of 2020, we.

We expect gross margin contraction of 250 to 190 basis points. This.

This is less contraction in comparison with Q3 due to favorable mix.

And less recruiting staff and our Peoplescout business given the current revenue volumes.

Our cost management dropped strategies are on track.

For the fourth quarter of 2020, we expect a year over year SGN, a reduction of $23 million to $27 million.

Which would result in $102 million to $106 million of savings in 2020.

All again this would produce a decrease in eschewed any expense of about 20% in 2020.

I'd also like to remind everyone that our business can generate an incremental operating margin of about 20% on incremental revenue.

Which can of course run much higher with gross margin expansion or further SDMA declines.

For capital expenditures, we expect about $7 million for the fourth quarter of 2020.

Which is net of approximately $4 million build out cost for our Chicago headquarters that are to be in reimbursed by our landlord.

Our outlook for fully diluted weighted shares outstanding for the fourth quarter of 2020 is $34.8 million.

With respect to our tax rate, we are not able to provide an effective income tax rate outlook due to the variability associated with the relatively lower pre tax income base and the semi fixed nature of the work opportunity tax credits.

It's also worth noting that the work opportunity tax credit expires at the end of this year.

Well this program has been in existence for decades.

And has always been renewed due to its appeal to both political parties.

The timing can be lumpy.

Total benefits derived from this program were 11 million for fiscal 2019, and 6 million year to date in Q3 of this year.

While we have a lot more work to do to get back to where we were before cove. It hit we like the progress we have made.

We've taken the right actions to restore profitability.

And have done so without losing our operational strengths.

Or technology momentum.

It is challenging to think of new ways of running our business more efficiently.

Our balance sheet is strong.

Of most importance the spirit of our employees as high.

This experience has created an even deeper sense of teamwork and camaraderie amongst all of us.

And we are excited about the opportunities in front of us.

This concludes over prepared remarks, please open the call now for questions.

As a reminder to ask a question you will need to press star one on your telephone.

You withdraw your question press, the pound or hash key please standby will be compiled the GMI roster.

Your first question comes from Mark MACOM from Baird. Please go ahead.

Hey, good afternoon, Patrick and.

Derrick.

Nice progress in terms of the results wondering if you can talk a little bit about people ready and how broad based the.

The recovery was from month to month, particularly like how much of that was construction and were there any sort of regional patterns that you ended up seeing.

Hey, Mark Thanks for the question Derek here so.

So it was very broad based.

Now if we went and took a look like industry.

We saw progress in every industry.

If we take a look at what the year over year decline was.

Each of the industries and compare Q3 to Q2 with the exception of retail.

And it's only because retail we had a lot of search business in the second quarter.

But on an absolute basis retail is still our best industry the industry with the least amount of a decline in it.

And same goes for states, we could go in and take a look at all of our states and you know there is a little give and take here and there are some some cars by project work, but we saw improvements throughout the throughout the quarter.

And go state by State, but California, Texas, and Florida make up about 35%.

Of people ready is revenue only and we saw pretty consistent.

Prudent in all three of those states throughout the quarter and into the first three weeks of October as well.

Great.

Can you talk a little bit about.

Your your plans for MSG me, both from a short term perspective, and then if you could elaborate a little bit on the longer term.

You know opportunities it sounds like we are going to go through potentially some more centralization, particularly on the people ready side.

You know basically getting there through attrition.

You know as opposed to something that would be you know.

In terms of more dramatic, but just trying to understand like.

Based on where we where things sit now.

Where we think like S.G. M&A as a percentage of revenue could end up getting too on.

On the people ready side longer term as jumpstart continues to gain traction.

Yeah. Thanks for the question Mark So, let's let's break it down as you suggested tuck short term and longer term here.

Let's start with the short term just taking a look at where we stand on the third quarter and going into the fourth quarter.

So in the third quarter SDMA was down 31%.

About three points of that between three and four points, where some government subsidies so excluding that call it 28%.

Which is still higher than what our revenue decline was.

Generally that's not our intent is to have SG. They go down at that level.

So as we are looking into the fourth quarter. The guidance that we basically prepared is for SGN aid to be down about 20%.

Which if you take a look at where our trends are headed as we go into October at least for our staffing businesses.

You know were down in the teens, so just directionally aligned with with where revenues had a it's an important consideration for us because we want to continue to be aggressive on our cost discipline.

The same time as things start to recover and we built momentum we've.

We've got gross profit dollars here to look out for and that's really all about taking really good care of the customers that we got we don't want to lose any of those and as more volume comes in obviously, we have less people to spread around to take care of that as well as business development opportunities, but still a healthy decline and SGN expenses, you could probably trend that out.

To those into the first quarter despite.

Just based on your own own revenue.

Assumptions.

As we get around to the second quarter of course, we're going to anniversary a big amount of the fall off that we had from a revenue perspective, and then we did our cost cuts you know kind of weed.

We didn't space not the year, we went pretty heavy right up front so.

The majority of them not all of them started coming in in April.

So those would be a few things that I would just suggest that you take a look going forward into 2021, and then also be mindful that we did have some one time expenses in in 2020, which we've we've excluded from our adjusted EBITDA and adjusted net income calculations, which you can refer to.

Not to the broader question that you're asking it hey, let's tell me more about this peopleready piece and what this could really look like.

Overall for the company, we've cut over $100 million of S., United This year.

You know about I'd say a quarter of that is variable expenses, just going to come on with revenue bonuses.

Bad debt stays at the same percentage, but you get more revenue dollars things of that nature. There's.

There's another 25% there are costs are just not sustainable you know, where we made salary cuts or are we really we didn't you know we cut the matches the retirement programs and so forth that.

That leaves about the another half of a cost.

That we cut on the table to potentially keep out permanently.

And so when we're talking about people ready it's about.

Mixture of what we can.

Keep off the table.

And from coming back on.

It's also there's opportunity there we think to further reduce the cost.

When I talk about employee attrition, it's a bit of this a bit of a message to our employees were not planning on having a big layoff of any sorts and so what we need to do in 2021. This reduces a variety of testing because how this will work is as you know mark with American a metro market. We may have eight tend to.

All branches with you know three three and a half people in each branch versus another staffing companies that might just have one really big branch.

So to harness the savings that we need to do here.

We need to re purpose some more job roles and centralize some of those work activities some nationally in some locally and.

And we gain some efficiencies by doing that and I'll alongside also additional you know.

Efficiencies, we can get with technology.

And then as we close or consolidate branches. We also have to re purpose a lot of jobs that were customer facing you have some branch managers that are going to be much better on an operational setting maybe around recruiting are running something that centralized we have some that are more.

They just have more business development athleticism, they are great for the clients need to restructure those to face clients.

All the while we have a company that is built up.

An understanding of how to do business built around branches. We have systems that are based around that standard operating profit processes that are based around that and just a lot of deep seated culture around that does.

That's not to say, we can't do that change we can absolutely do it but as we go through we need to test it in pieces.

Because what we have to make sure is that the clients are not impacted at all why we do this change it's very doable, but we need to do some testing and we need to be thoughtful about it and what we're saying here is in 2021.

This broader re purposing of jobs and doing.

Centralization on a larger scale.

Don't expect a ton of that from us in 2021 about drop to the bottom line, we'll be experimenting but.

But well keep you apprised along the way, we'll we'll talk to you about it how it's going where we're investing where we're getting some some savings. What we are seeing ahead, we're just going to need some time in 2021 does that that out.

Great and then.

Got a short term question in.

I don't know if it's answerable.

But you Didnt give revenue guidance understandably.

But how are you thinking about you know whether the revenue trends that you've seen recently are sustainable or not you know, particularly in light of what seems to be a resurgence with the virus here in some concerns.

Yeah. That's a that's a good question I'm glad you asked that served to get your thoughts on this one.

You know when you take a look at our monthly revenue trends. What you have what we'll see is a pretty steady amount of improvement and when I'm talking about improvement, meaning that each month a year over year decline gets less.

We've had some months were from one month to another it's improved by six points Weve had some words, you know improved by a point or two.

The best that I can take a look at is we did have a resurgence of daily.

The average daily.

[noise] cases in July in the early part of August and we did see the rate of our improvement slow a bit and in August.

Hard to put your finger on how much of that stuff that's coated versus other dynamics in the economy, but we think it's reasonable to assume that has some impact.

So.

As those things surge, we could see it maybe slow the pace.

But we havent, yet seen anything where it has caused us to go backwards.

I really appreciate the color. Thank you.

Yeah.

As a reminder to ask a question press star one on your telephone keypad.

Your next question is from Josh Vogel from Sidoti and company. Please go ahead.

Thank you good afternoon, Derik and Patrick Thanks for taking my questions.

Apologies, if anything's redundant I did hop on late.

But I didn't catch the tail end of what you were you were saying that she kind of covered some questions I had around s. DNA, but I never quite sure on the gross margin and your guidance.

What's implied by the midpoint is fairly stable gross margin over the last three quarters and you cited you know bill pay spread pressure lower volumes and mix.

My question is we continue to see sequential improvements here off the Q2 trial do you expect those pressures to ease and we think that the gross margin could get back to those like 2018 levels.

Thanks for the question Josh.

I'll take that one and then have Patrick wants to add anything into it I'll, let Patrick Lee in on it. So what we do see in our guidance for Q4, if you want to call. It that we're giving some Alice Lucked outlook information is we're talking about.

You know a mid point of gross margin contraction of 220 to 230 basis points, that's less than what we experienced in Q3, a 300 basis points.

Some of that is you know we've had some mixed things working against us.

In the gross margin area and we feel like we're starting to you know, we'll have less of that focus in or less of that pressure going into Q4.

So you know our RPL business is.

The the revenue has improved a little bit towards the end of the quarter. We're anniversary ing a couple of clients issues. So it's coming down in terms of fourth quarter contraction versus third quarter.

Looking out.

What is typically a happened is as growth comes backs pricing power swings bath to industrial staffing yeah, we would expect to recapture some.

Some of this gross margin like we worked out and you know prior economic cycles as demand comes back. So I think the the contraction is its a normal part of the process that happens in a recession and then we've just got to make sure that we stay disciplined with our processes and we've got some new ones in place to make sure. We take advantage of this one thing.

Turn back around so.

That's that's our plan and how we see the gross margin perspective, both from a short term perspective, this year and as we look to as things start to turn around to get back to growth.

All right. Thanks, Thank you for the insights on that.

Can you maybe just talk about trends in dialogue.

On the collections front today with regard to essentially better payment terms and what your clients.

Maybe asked before today versus you know at the onset of the pandemic or even cheap you reported three months ago, just curious income.

Well no.

Patrick do you want to talk anything about that the conversations with clients and I can give a couple of factors, where we where we are numerically.

Yeah I wanted to just go back to the question you had earlier, Josh about the the margins as well just to add one point that that's.

Got to a Derek said is you know our people management business is our lowest margin business.

But it's a business that we're seeing.

Actually returned to growth on a year over year basis and growth from a profitability perspective, and as we've been selling new deals in their business. So we've seen some very healthy margins.

Oh come out of that business, both in the Cmos brand and the staff management brand. So.

We're feeling really good about that business and the pricing, we're able to to achieve there.

From a collections perspective, you know if you look at the last recession.

Or do you have so I went backwards on us by about five days.

And for this particular.

[music].

You know downturn, we've seen a movement of about one day unfavorably. So we've done a much better job.

This time around than we've seen in previous downturns in need and keeping our DSL and our collections.

Greetings good a position as possible. So we are working very closely with clients to make sure that we've.

We've got a handle on a on a relationship related to collections and I know its bearing out in the results.

Derek you could probably come a little bit more detail, but we're having good relationships with the clients who are doing a really good job of collecting the receivables.

I don't have more to say I think you covered it well.

All right great.

As we think about this so called the kishi recovery that has emerged.

Kind of curious where does your business fall today across the sectors that have largely recovered and begun hiring versus those that just don't seem to be coming back as of now.

Well I'll make a few comments in there and maybe you can you can cover some of the details here. If you look at our our Peoplescout business as an example, we feel pretty heavy.

Into airlines.

Hello, Hi.

Hospitality providers and you know, there's some real pain, there and I think it's not only going to be paying in the short term, but we think it's going to be a multiyear.

Level of paying if you look at our hospitality and transportation were down 11, 70 plus percent range.

Whereas.

You know within Peoplescout do manufacturing is down in the mid Fortys services were down around 50, or so so there's some that are performing better than others for.

For full time hiring if you look at our temp business.

Eating people management as an example, our retail business is actually up there.

Double digits year over year in Q3, so we saw a lot of business in the <unk>.

Supply chains of retailers.

You know manufacturing is down kind of high single digits.

And then if you look at the people ready business.

Not surprisingly hospitality has been hit the hardest.

Construction and retail less so and then our services clients are actually up on a year over year basis. So.

[music].

Okay shape is how I would describe it you know we've got sort of two speeds going on you've got to.

You know those businesses that are that are in demand bouncing back very strongly we.

We certainly seen it in the manufacturing part of our people managing the business.

In retail and then you look at it.

You know some of the others like hospitality and travel.

We think it's going to be late 2022, or third probably late 22 before we start to see a big turnaround those businesses, where the others are bouncing back quite a bit faster.

All right that's really helpful and just lastly, and again I apologize for hopping on late but did you disclose in your prepared remarks, what what the monthly.

Revenue trends you saw throughout the quarter and a in and in September.

I mean October.

Yeah, we've provided some information in our deck on this but I'm going to just hit a couple of a high point for you.

Josh so in.

In June in the in June we were down 35% as a company in July we were down 29%.

August 27.

On September 22.

I see now we don't have October numbers weekly numbers for our our appeal business, that's built on a monthly basis.

Let's see improvement continued with our staffing business, which makes up 90% of our revenue into October [noise].

On we're running in them in the mid teens in our staffing business.

For the first three weeks of October.

Alright, great well, Thanks, you guys, taking my questions.

And to ask a question press star one on your telephone keypad.

We have no further questions at this time I will turn the call back over to the presenters.

Thank you and thanks, everyone for attending our Q3 earnings call we look forward.

Speaking to all of you again for.

For our fourth quarter very strong I just want to say, thank you to all of our employees and associates, who work so hard.

During this pandemic there.

Really stepping up across the board to make sure that all of our candidates associates and clients get served well. So appreciate all that they're doing and look forward to a to our Q4 is calling it sure everyone stay safe have a great day everyone.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

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