Q1 2024 TrueBlue Inc Earnings Call
Operator: Greetings and welcome to the TrueBlue First Quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Greetings and welcome to the true Blue first quarter 'twenty 'twenty four earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Operator: As a reminder, this conference is being recorded. At this time, I'd like to remind everyone that today's call and slide presentations contain forward-looking statements, all of which are subject to risk and uncertainty, and management assumes no obligations to update or revise any forward-looking statement. These risks and uncertainties, some of which are described in today's press release and SEC filings, could cause actual results to differ materially from those in the forward-looking statement.
As a reminder, this conference is being recorded at this time I'd like to remind everyone that today's call and slide presentation contain forward looking statements.
All of which are subject to risks and uncertainties and management assumes no obligations to update or revise any forward looking statements. These risks and uncertainties. Some of which are described in today's press release and S. E. SEC filings could cause the actual results to differ materially from those in the forward.
Looking statements.
Operator: Management uses non-GAAP measures when presenting financial results. You are encouraged to review the non-GAAP reconciliations in today's earnings release or at TrueBlue.com under the Investor Relations section for a complete understanding of these terms and their purpose. Lastly, a copy of the company's prepared remarks will be provided on TrueBlue's investor website at the conclusion of today's call, and a full transcript and audio replay will be available soon after the call. It is now my pleasure to turn the call over to Taryn Owen, President and Chief Executive Officer.
Management uses non-GAAP measures when presenting financial results you're encouraged to review the non-GAAP reconciliations in today's earnings release or a true blue Dot com under the Investor Relations section for a complete understanding of these terms and their purpose.
Any comparisons made today are based on a comparison to the same period in the prior year unless otherwise stated lastly, a copy of the company's prepared remarks will be provided on true blues investors website at the conclusion of today's call and a full transcript and audio replay will be available soon after the call.
It is now my pleasure to turn the call over to Taryn Owen.
Taryn R. Owen: President and Chief Executive Officer.
Taryn R. Owen: Thank you, operator, and welcome everyone to today's call. I am joined by our Chief Financial Officer, Carl Schweihs. We appreciate you being here with us today. As we expected, the challenging market conditions we discussed on our last call continued in the first quarter. Revenue for the quarter was $403 million, down 13% compared to the prior year and right in line with our outlook as economic uncertainty continued to weigh on businesses, leading to reduced spend and curbed hiring trends.
Taryn R. Owen: Thank you operator, and welcome everyone to today's call.
Taryn R. Owen: I'm joined by our Chief Financial Officer, Carl twice.
Taryn R. Owen: We appreciate you being here with us today.
Taryn R. Owen: As we expected the challenging market conditions, we discussed on our last call continued in the first quarter.
Taryn R. Owen: Revenue for the quarter was $403 million down 13% compared to the prior year and right in line with our outlook as economic uncertainty continued to weigh on businesses, leading to reduced spend and curb hiring trends.
Taryn R. Owen: While current demand levels are subdued, we continue to manage through this market cycle with agility and discipline. Our teams are staying highly engaged with clients to address their current needs and ensure we are well positioned to support them as their needs change or expand. We're leveraging our flexible and short duration offerings for those clients that are hesitant to make long-term workforce commitments and tapping into opportunities and high growth and attractive in the market.
Taryn R. Owen: While current demand levels are subdued we continue to manage through this market cycle with agility and discipline.
Taryn R. Owen: Our teams are staying highly engaged with clients to address their current needs and ensure we are well positioned to support them as their needs change or expand.
Taryn R. Owen: We are leveraging our flexible and short duration offerings for those clients that are hesitant to make long term workforce commitments and tapping into opportunities in high growth and attractive end markets.
Taryn R. Owen: We are committed to growing sales by providing excellent service and responding to our clients' immediate and evolving needs. Alongside our commitment to meet the needs of the market today, we are progressing the strategic priorities we outlined last quarter, which will enable us to capture market share and enhance our long-term profitability. Positioning our contingent staffing business to compete in a digital future is a key component to our strategic plan. During the quarter, we continued the rollout of our new proprietary Jobstack app, which allows us to manage our roadmap and quickly address evolving user needs.
Taryn R. Owen: We are committed to growing sales by providing excellent service and responding to our clients' immediate and evolving needs.
Taryn R. Owen: Alongside our commitment to meet the needs of the market today, we are progressing the strategic priorities, we outlined last quarter, which will enable us to capture market share and enhance our long term profitability.
Taryn R. Owen: Positioning our contingent staffing business to compete in a digital forward future is a key component to our strategic plans.
Taryn R. Owen: During the quarter, we continued the rollout of our new proprietary jobs Shack, App, which allows us to control our roadmap and quickly address evolving user needs.
Taryn R. Owen: We are excited about the opportunities this real-time insight creates, allowing us to implement competitive enhancements faster and making it easier for our customers and associates to engage with us. We are on track to complete the rollout this year, which will represent a significant achievement in the digital transformation of our business as we remain focused on driving efficiencies and strengthening our market position through a differentiated experience that combines our technology with our expansive market presence and expertise.
Taryn R. Owen: We are excited about the opportunities this real time insight create allowing us to implement competitive enhancements faster and making it easier for our customers and associates to engage with us.
Taryn R. Owen: We are on track to complete the rollout this year, which will represent a significant achievement in the digital transformation of our business as we remain focused on driving efficiencies and strengthening our market position through a differentiated experience that combines our technology with our expansive market presence and expertise.
Taryn R. Owen: Expansion in high-growth, less cyclical, and under-penetrated end markets is a key strategic priority to capitalize on secular growth opportunities. We are leveraging our deep expertise, flexible solutions, and expansive service offerings to capture growth opportunities in attractive end markets, such as skilled trades and healthcare. Within Skilled Trades, we continue to excel in the renewable energy vertical with strong demand in the first quarter and a healthy pipeline for continued growth potential. As an RPO, we are encouraged to see our efforts gaining momentum with recent wins serving the healthcare market and diversifying into higher skilled positions.
Taryn R. Owen: Expansion in high growth less cyclical and Underpenetrated end markets is a key strategic priority to capitalize on secular growth opportunities.
Taryn R. Owen: We're leveraging our deep expertise flexible solutions and expansive service offerings to capture growth opportunities in attractive end markets, such as skilled trades and health care.
Taryn R. Owen: Within skilled trades, we continue to excel in the renewable energy vertical with strong demand in the first quarter and a healthy pipeline for continued growth potential.
Taryn R. Owen: Within our P. O. We are encouraged to see our efforts gaining momentum with recent wins, serving the health care market and diversifying into higher skilled placements.
Taryn R. Owen: These wins help us to increase our market presence and grow our experience to drive further growth opportunities in high-value and high-growth end markets. As we shared last quarter, another key element of our strategic plan is the simplification of our organizational structure to drive enhanced focus and profitability. During the quarter, we completed the sale of our on-demand labor business in Canada, which allows a greater focus on our U.S. staffing operations, where we are an industry leader.
Taryn R. Owen: These wins helped us to increase our market presence and grow our experience to drive further growth opportunities in high value and high growth end market.
Taryn R. Owen: As we shared last quarter. Another key element of our strategic plan is the simplification of our organizational structure to drive enhanced focus and profitability.
Taryn R. Owen: During the quarter, we completed the sale of our on demand labor business in Canada, which allows greater focus on our U S staffing operations, where we are an industry leader.
Taryn R. Owen: We also increased synergies within our staffing business through greater leverage of our technology assets across brands and consolidated leadership within our on-site business. Combining these actions with our cost discipline is already driving results with improved profitability for our people management segment this quarter despite the weakness in demand. In PeopleScout, we made strides in driving enhanced focus by streamlining our global leadership structure. We further eliminated silos amongst our project management and internal talent acquisition teams enterprise-wide to better leverage experience and synergies in driving innovation across the organization.
Taryn R. Owen: We also increased synergies within our staffing business through greater leverage of our technology assets across brands and consolidated leadership within our onsite business.
Taryn R. Owen: Combining these actions with our cost discipline is already driving results with improved profitability for our people management segment this quarter, despite the weakness in demand.
And people Scout, we made strides in driving enhanced focus by streamlining our global leadership structure.
Taryn R. Owen: We further eliminated silos amongst our project management and internal talent acquisition teams enterprise wide to better leverage experienced in synergies and driving innovation across the organization.
Taryn R. Owen: While we will continue to go to market under our current well-established brands, we are aligning our internal organization around two core specialties, commercial staffing and direct hire. When we talk about commercial staffing, this encompasses our on-demand and on-site industrial staffing services, as well as our skilled trades and commercial driving services. Direct hire includes our go-to-market brand PeopleScout, with its strong growth and margin prospects. Simplifying our organizational structure creates opportunities to drive efficiencies and bring our teams closer to our clients and associates, allowing us to reduce costs, eliminate silos, and better leverage our combined strengths to deliver long-term profitable growth.
Well, we will continue to go to market under our current well established brands. We are aligning our internal organization around two core specialties commercial staffing and direct hire.
Taryn R. Owen: When we talk about commercial staffing this encompasses our on demand and onsite industrial staffing services as well as our skilled trades and commercial driving services.
Taryn R. Owen: Direct hire includes our go to market brand people scout with its strong growth and margin prospects.
Taryn R. Owen: Simplifying our organizational structure creates opportunities to drive efficiencies and bring our teams closer to our clients and associates, allowing us to reduce costs eliminate silos and better leverage our combined strength to deliver long term profitable growth.
Taryn R. Owen: As we move forward, we remain laser-focused on leveraging our inherent strengths to capture market share and managing our cost structure with discipline to enhance our long-term profitability. While current market dynamics are challenging, the long-term staffing outlook remains positive. Structural staffing shortages and evolving workforce needs create compelling long-term opportunities for our business, and we are well positioned to capitalize on them with our competitive strengths, tremendous assets, and clear strategic priorities. We are excited about the opportunities ahead, and we are confident that we have the right people, technology, and resources to drive our strategic priorities forward, enhancing shareholder value, and advancing our mission to connect people and work. I will now pass the call over to Carl, who will share further details about our financial results and outlook.
Taryn R. Owen: As we move forward, we remain laser focused on leveraging our inherent strength to capture market share and managing our cost structure with discipline to enhance our long term profitability.
Taryn R. Owen: While current market dynamics are challenging the long term staffing outlook remains positive.
Taryn R. Owen: Structural staffing shortages and evolving workforce needs create compelling long term opportunities for our business and we are well positioned to capitalize with our competitive strength tremendous assets and clear strategic priorities.
Taryn R. Owen: We are excited about the opportunities ahead, and we are confident that we have the right people technology and resources to drive our strategic priorities forward enhancing shareholder value and advancing our mission to connect people and work.
Taryn R. Owen: I will now pass the call over to Carl who will share further details around our financial results and outlook.
Carl: Thank you Sir.
Carl R. Schweihs: Total revenue for the quarter was $403 million, a decline of 13%, and right in line with our outlook. As expected, weakness and demand trends continued in the first quarter with businesses focused on reducing costs and asking more from their existing teams, while economic pressures led to overall softness in markets. However, there were some pockets of strength.
Total revenue for the quarter was 403 million a decline of 13% and right in line with our outlook.
Carl: As expected weakness in demand trends continued in the first quarter with business is focused on reducing costs and asking more from your existing teams.
Carl: While economic pressures led to overall softness in market demand.
Carl: There are some pockets of strength.
Carl R. Schweihs: For example, we roughly doubled our renewable energy work again this quarter. This marks the seventh straight quarter of revenue growth in this vertical, and we expect continued success in this space with an attractive pipeline and our strong market position. Crowe's margin was 24.7%, down 180. The primary driver of the decline was unfavorable changes in revenue, both from increased renewable energy work, as well as the decline in our highest-margin business, PeopleScout
For example, we roughly doubled our renewable energy work again this quarter.
Carl: Marks the seventh straight quarter of revenue growth in this vertical and we expect continued success in this space with an attractive pipeline and our strong market position.
Carl: Gross margin was 24, 7% for the quarter down 180 basis points. The primary driver of the decline was unfavorable changes in revenue mix both from increased renewable energy work.
Well as the decline in our highest margin business people Scott.
Carl R. Schweihs: The increase in PeopleReady's renewable energy work reduced our total gross margin because of the pass-through travel costs involved in that business. However, outside of these costs, the underlying margin for renewable energy work is consistent with other large people-ready accounts, and the impact on total gross margin will normalize as we lapse low-volume comparable periods.
Carl: The increase in people ready renewable energy work reduced our total gross margin because of the pass through travel cost involved in that business.
Carl: Inside of these costs the underlying margin for renewable energy work is consistent with other large people ready accounts and the impact to total gross margin will normalize as we lapsed low volume comparable periods.
Carl R. Schweihs: We reduced SG&A by 13%, matching our revenue decline for the quarter. We are operating with discipline and focus in the areas we can control, as demonstrated by our actions to reduce costs and better align our cost structure with client demand. We are confident in our ability to manage through this market cycle with a focus on enhancing our profitability and ensuring we are well positioned as conditions improve. We reported a net loss of $2 million this quarter versus a net loss of $4 million last year.
Carl: We reduced SG&A by 13% matching our revenue declines for the quarter, we are operating with discipline and focus in the areas. We can control as demonstrated by our actions to reduce costs and better align our cost structure with client demand.
Carl: We are confident in our ability to manage through this market cycle with a focus on enhancing our profitability and ensuring we are well positioned as conditions improve.
Carl: We reported a net loss of 2 million this quarter versus a net loss of $4 million last year.
Carl R. Schweihs: Included in our results for the quarter was an income tax benefit of $12 million due to the favorable impact of the job tax credit. Adjusted net income was $1 million versus an adjusted net loss of $2 million last year, while adjusted EBITDA declined to minus $3 million versus positive $3 million last. Now, let's turn to the specifics of our segment.
Carl: <unk> in our results for the quarter was an income tax benefit of $12 million due to the favorable impact of job tax credits.
Carl: Adjusted net income was $1 million versus an adjusted net loss of $2 million last year.
Carl: Adjusted EBITDA declined to minus $3 million.
Carl: First positive $3 million last year.
Carl: Now, let's turn to the specifics of our segments.
Carl R. Schweihs: PeopleReady revenue decreased 12% and segment profit margin was down 260 basis points. Softness and demand trends continued in the first quarter as client volumes declined across most verticals and geographies, with the largest being in retail, hospitality, and services. General market decline was partially offset by continued growth in renewable energy, which roughly doubled for the quarter. From a margin perspective, the contraction was largely driven by lower operating leverage as revenue declined, as well as an increased revenue mix from renewable energy work, which includes more pass-through costs.
Carl: People ready revenue decreased 12% and segment profit margin was down 260 basis points.
Carl: Softness in demand trends continued in the first quarter as client volumes declined across most verticals and geographies with the largest being in retail hospitality and service industries.
Carl: The general market decline was partially offset by continued growth in renewable energy work, which roughly doubled for the quarter.
Carl: From a margin perspective, the contraction was largely driven by lower operating leverage as revenue declined as well as increased revenue mix from renewable energy work, which includes more pass through costs.
Carl R. Schweihs: After more than 10 quarters of a favorable spread between bill and pay rate inflation, we are beginning to see the type of pricing pressure we would expect in this type of economic environment, with bill rates up 5.8% and pay rates up 6.1%.
Carl: After more than 10 quarters of favorable spread between bill and pay rate inflation. We are beginning to see the type of pricing pressure. We would expect in this type of economic environment with bill rates up five 8% and pay rates up six 1%.
Carl R. Schweihs: This dynamic is normal for our industry as customers look to cut costs and staffing companies compete in a lower demand environment. We continue to demonstrate strong pricing discipline, and we expect this to improve as the business environment returns to growth and demand rebounds. PeopleScout revenue decreased 33%, and the segment profit margin was down 230 basis points. The decline in demand was driven by lower client volumes as businesses continue to face economic cost pressure, leading to curb hiring.
This dynamic is normal for our industry as customers look to cut costs and staffing companies compete in a lower demand environment.
Carl: We continue to demonstrate strong pricing discipline and we expect this to improve as the business environment returns to growth demand rebounds.
Carl: People, Scott revenue decreased 33% and segment profit margin was down 230 basis points. The decline in demand was driven by lower client volumes as businesses continue to face economic cost pressures leading to current hiring trends.
Carl: Businesses are seeing less churn in their employee base and many remain uncertain around their workforce needs, making them more selective in the roles they choose to Phil for some hiring volumes have declined to a level, where they're relying more heavily on internal resources to fill jobs. All of these factors are playing into the reduced market demand.
Carl R. Schweihs: Businesses are seeing less turnover in their employee base, and many remain uncertain about their workforce needs, making them more selective in the roles they choose to fill. For some, hiring volumes have declined to a level where they are relying more heavily on internal resources to fill jobs.
Carl R. Schweihs: All these factors are playing into reduced market demand. The margin contraction was driven by lower operating leverage as revenue declined. People management revenue decreased 7%, while segment profit margin was up 220 basis points.
Carl: The margin contraction was driven by lower operating leverage as revenue declined.
Carl: People management revenue decreased 7% while segment profit margin was up 220 basis points.
Carl R. Schweihs: The decline in demand was primarily within on-site services driven by lower retail client volumes consistent with the macro conditions evident in that vertical. Meanwhile, we're encouraged to see our commercial driving services return to growth in the quarter. People Management Segment Profit Margin expanded due to disciplined cost management actions to better align our cost structure with clients. Now, let's turn to the ballot.
Carl: The decline in demand was primarily within onsite services, driven by lower retail client volumes consistent with the macro conditions evident in that vertical.
Carl: Meanwhile, we're encouraged to see our commercial driving services returned to growth in the quarter people management segment profit margin expanded due to disciplined cost management actions to better align our cost structure with client demand.
Speaker Change: Now, let's turn to the balance sheet.
Carl R. Schweihs: We finished the quarter with no debt, $36 million in cash, and $140 million of borrowing available. We repurchased $10 million of common stock during the quarter, leaving $45 million remaining under our authorization. Our balance sheet is in excellent shape, providing a strong liquidity position and great flexibility to support future growth opportunities. Turning to our outlook for the second quarter of 24, We expect a revenue decline of 16 to 10%. This includes a one point drag on total company revenue growth due to the sale of our on-demand business in Canada.
For the quarter with no debt $36 million in cash and $140 million of borrowing availability.
Speaker Change: We repurchased $10 million of common stock during the quarter, leaving $45 million remaining under our authorization.
Speaker Change: Our balance sheet is in excellent shape, providing a strong liquidity position and great flexibility to support future growth opportunities.
Speaker Change: Turning to our outlook for the second quarter of 24 weeks.
Speaker Change: We expect a revenue decline of 16% to 10%.
Speaker Change: This includes a one point drag on total company revenue growth due to the sale of our on demand business in Canada.
Carl R. Schweihs: While there are signs of improvement in certain end markets, such as transportation and manufacturing, we have yet to see an indication as to when the overall demand trends will turn. Our outlook reflects a continuation of current market trends in the second quarter against a less challenging prior-year comparison. We expect a $10 million COVID-19 government subsidy benefit in the second quarter from the resolution of a payroll tax matter, with $3 million flowing through cost of sales and $7 million in SG&A.
Speaker Change: There are signs of improvement in certain end markets, such as transportation and manufacturing, we have yet to see an indication as to when the overall demand trends will turn.
Speaker Change: Our outlook reflects a continuation of current market trends in the second quarter against the less challenging prior year comparison.
Speaker Change: We expect a 10 million COVID-19 government subsidy benefit in the second quarter from the resolution of a payroll tax matter with $3 million flowing through cost of sales and $7 million in SG&A.
Carl R. Schweihs: Keep in mind, with the seasonality of our business, we typically see our highest volumes in the second half of the year. While we expect improved revenue and operating leverage in the second quarter, our lean cost structure will drive additional margin improvement as we move through the year. It's also important to note that our effective tax rate is highly sensitive in periods of low profitability, where tax credits can drive significant losses. We expect a statutory income tax rate before job tax credits of 24 to 28% for the year, with job tax credits of $4 to $8 million.
Speaker Change: Keep in mind with the seasonality of our business, we typically see our highest volumes in the second half of the year.
Speaker Change: While we expect improved revenue and operating leverage in the second quarter, our lean cost structure will drive additional margin improvement as we move through the year.
Speaker Change: It's also important to note that our effective tax rate is highly sensitive and periods of low profitability for tax credits can drive significant movement.
Speaker Change: We expect our statutory income tax rate before job tax credits of 24% to 28% for the year with job tax credits of $4 million to $8 million.
Carl R. Schweihs: Additional information on our outlook can be found in the earnings presentation shared on our website today. Before we open the call up for questions, I want to turn it back over to Taryn for some closing remarks.
Speaker Change: Additional information on our outlook can be found in the earnings presentation shared on our website today.
Speaker Change: We open the call up for questions I want to turn it back over to Darren for some closing remarks.
Darren: Thank you Carl.
Taryn R. Owen: As you have heard from us today, we remain committed to advancing our strategic priorities and managing through this challenging market cycle with the agility and discipline needed to return to profitable growth. We understand the current market dynamics and the needs of our customers, and we are taking decisive actions to preserve and enhance our strengths, ensuring we are well positioned to capitalize on growth opportunities as conditions improve. We are confident that combining our strategic priorities with our many strengths and assets will enable us to advance our mission to connect people and work while delivering long-term value.
Darren: As you have heard from us today.
Darren: We remain committed to advancing our strategic priorities and managing through this challenging market cycle with the agility and discipline needed to return to profitable growth.
Speaker Change: We understand the current market dynamics and the needs of our customers and we are taking decisive actions to preserve and enhance our strengths.
Speaker Change: Ensuring we are well positioned to capitalize on growth opportunities as conditions improve.
We are confident that combining our strategic priorities with our many strengths and assets will enable us to advance our mission to connect people and work, while delivering long term value.
Operator: This concludes our prepared remarks. Operator, please open the call now for questions. Thank you. We will now be conducting a question and answer session.
This concludes our prepared remarks, operator, please open the call now for questions.
Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.
Speaker Change: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: <unk> until will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Operator: One moment, please, while we pull for questions. Thank you. Our first question comes from Jeff Silber with BMO Capital Markets. Please proceed with your question.
Speaker Change: Thank you. Our first question comes from the line of Jeff Cyber with beer.
<unk> capital markets. Please proceed with your questions.
Jeffrey Marc Silber: Thanks so much. I was wondering if you could give us a little bit of color on the intra-quarter trend in the first quarter and what's happened so far in the second quarter, if there's been any change.
Jeffrey Marc Silber: Thanks, so much.
Jeffrey Marc Silber: I was wondering if you can give us a little bit of color.
Jeffrey Marc Silber: Intra quarter trends in the first quarter and what's happened so far in the second quarter, if theres been any change.
Carl R. Schweihs: Yeah, absolutely. Thanks, Jeff, for the question. First, just as we kind of think back on the quarter, look, we ended at minus 13, with People Ready at minus 12. If you exclude Canada, that was all around 11 percent. People Management was down 7 percent, and People Scout was down 33. That was right in line with our outlook, right at minus 13 for the total company, minus 11 for People Ready, minus 6 for People Management, and minus 35 for People Scout.
Jeffrey Marc Silber: Yeah, absolutely thanks, Geoff for the question.
First just as we kind of think back on the quarter look we ended at minus 13 with people ready at minus 12, if you exclude Canada that was all around 11% people management was down 7% and people Scott was down 33, I was right in line with with our outlook right at minus 13 for the total company minus 11 for people ready.
Jeffrey Marc Silber: Six for people management and minus 35 for people Scott as we look to Q2.
Carl R. Schweihs: As we look to Q2, we're down 13 percent, which includes a point from Canada as well. The total company. People Ready is down 15 percent for the quarter, which includes two points of headwind from Canada. People Management, the midpoint's at minus 4, and People Scout's at minus 28. Jeff, as you're asking about kind of results between quarters, the results from staffing are really comparable kind of each month to the quarterly results, and we were seeing very similar results in April, which is in line with our outlook.
Jeffrey Marc Silber: Whereas we're down 13%.
Jeffrey Marc Silber: Which includes a point from Canada as well the total company people ready is down 15% for the quarter, which includes two points of headwind from Canada.
Jeffrey Marc Silber: People management, the mid points at minus four and people Scott that minus 28.
Jeffrey Marc Silber: Jeff as Youre, asking about kind of results intra quarter. The results from staffing are really comparable kind of each month to the quarter results and we are seeing very similar results in April which is in line with our outlook and I think the one item. That's important to note is we are seeing a sequential build in people ready from March to April however, it's a bit softer than our.
Carl R. Schweihs: I think the one item that's important to note is we are seeing a sequential build in people ready from March to April; however, it's a bit softer than our kind of pre-pandemic historical averages, which is also reflected in our outlook.
Jeffrey Marc Silber: Our kind of pre pandemic historical averages, which is also reflected in our outlook.
Taryn R. Owen: Okay, that's really helpful. You actually asked my second question about Outlook by segment and then, generally, when you talk to customers, are you seeing any signs of kind of a light at the end of the tunnel, or is it still kind of steady as she goes?
Jeffrey Marc Silber: Okay, that's really helpful.
Speaker Change: Are you actually ask my second question about the outlook by segment.
Speaker Change: And then generally.
Jeffrey Marc Silber: When you talk to customers are you seeing any signs of kind of a light at the end of the tunnel or still kind of steady as she goes.
Taryn R. Owen: Hi Jeff, this is Taryn. We have a couple of bright spots within our customer base that are renewable, which we spoke about in our prepared remarks. Transportation returns to growth in the quarter, as does manufacturing in our people management on site business. And so those are a couple of bright spots that we are encouraged by. However, when we're out talking to customers more broadly, they're still in a place of uncertainty and really waiting for economic conditions to improve before they make long-term workforce decisions. So that continues to be what we are hearing from customers overall.
Jeffrey Marc Silber: Hi, Jeff. This is taryn I, we have a couple of bright spots within within our customer base renewable which we spoke about in our prepared remarks transportation returned to growth in the quarter as did manufacturing in our people managed.
Taryn R. Owen: Onsite business and so those are a couple of bright spots that we are encouraged by however, when we're out talking to customers more broadly there are still in a place of uncertainty and really waiting for economic conditions to improve before they make long term workforce decision.
Taryn R. Owen: So that continues to be what we are hearing from customers overall.
Taryn R. Owen: Yeah.
Jeffrey Marc Silber: Okay, thanks. I'll jump back in the queue.
Speaker Change: Okay. Thanks.
Speaker Change: I will jump back in the queue.
Speaker Change: Thanks, Jeff.
Speaker Change: Thank you.
Operator: Our next question comes from the line of Kartik Mehta with NorthCoast Research. Please proceed with your question.
Speaker Change: Our next question comes from the line of car T. <unk> Mehta with Northcoast Research. Please proceed with your question.
Kartik Mehta: Thank you. I think, Taryn, you might have said something about price competition finally coming into the market. I was wondering if you would be able to elaborate.
Mehta: Thank you.
Mehta: I think Darren you might have said.
Mehta: Something about price competition finally coming into the market I was wondering if he would be able to elaborate is this something new that it started at the beginning of the year.
Kartik Mehta: Is this, you know, something new? Did it start at the beginning of the year? And what does it look like now compared to what you've seen in the past?
Mehta: What is it look like now compared to what you've seen in the past.
Mehta: Okay.
Carl R. Schweihs: Thanks for the question, Kartik. I'll hop in here and let Taryn add any additional color if she has some.
Darren: Hey, Thanks for the question Kartik I'll I'll hop in here and let <unk>.
Speaker Change: Add any additional color if she awesome, but from a from really a bill paid spread we talked about this the last couple of quarters right.
Carl R. Schweihs: But really, a bill pay spread, you know, we talked about this the last couple of quarters, right? After more than 10 quarters of favorable spreads, we are beginning to see some of the type of pricing pressure that we'd expect in this type of economic environment, right? This quarter, our pay rates were up 6.1 percent, and our bill rates were up 5.8, but that only led to about a 10 basis point impact on our margin for the quarter.
Speaker Change: After more than 10 quarters of favorable spreads.
Speaker Change: We're beginning to see some of the type of pricing pressure that we'd expect in this type of economic environment right. This quarter, our pay rates were up six 1% of our bill rates were up five eight that only led to about a Ken.
Speaker Change: At this point impact on our margin for the quarter, we expect our results to be slightly better in Q2.
Carl R. Schweihs: We expect our results to be slightly better in Q2, really because of signs of pay rate softening in some parts of the country, which is really leading to kind of will lead to improved bill pay spread in the second half of the year. Just to kind of put this in perspective, Kartik, look, if you look at kind of where we saw pay rates increase in 22, we were up like 8 percent.
Speaker Change: Really because of signs of pay rate softening in some parts of the country, which is really leading the kind of will lead to improved bill pay spread in the second half of the year just to kind of put this in perspective Carty look if you look at kind of where we saw pay rates increase in 'twenty. Two we were up like 8% in 'twenty three we were up around 7% in the first quarter, we're seeing.
Carl R. Schweihs: In 23, we were up around 7 percent. In the first quarter, we're seeing 6 percent. So we see that continuing to moderate. We don't think that's going to be a big headwind for us. But just like with any pricing, we make sure that we're priced competitively for our customers and also that they know that our bill rates are competitive in the market and they provide value for the services we provide.
Speaker Change: 6%. So we we see that continuing to moderate and we don't think thats going to be a big headwind for us, but just like with any pricing we make sure that we're priced competitively.
Speaker Change: Our customers and also that they know that our bill rates are competitive in the market and they provide value for the services we provide.
Taryn R. Owen: And Kartik, just to add to that, pricing is becoming an increasing part of the conversation, particularly when we look at our people scout business and our people management business, where customers are going out to bid, and we're seeing an increase in RFPs that are coming to market. A lot of that is driven by customers looking at pricing in the market as they continue to be under pressure themselves.
Speaker Change: Kartik just to add to that pricing is becoming an increasing part of the conversation, particularly when we look in our people scout business and our people management business, where customers are going out to bid and we're seeing an increase in rfps that are coming to market a lot of that is driven by.
Speaker Change: Customers.
Speaker Change: Looking at pricing in the market as they continue to be under pressure themselves.
Kartik Mehta: And then when you look at some of the metrics for the business, such as job orders and other indicators you look at, particularly job orders, are they declining at the same rate as revenue, or is there a difference, maybe based on the type of jobs you're seeing now versus a year ago?
Speaker Change: And then when you look at some of the metrics for the business such as job orders and other indicators you look at particularly job orders are the declining at the same rate.
Speaker Change: The revenue or is there a difference.
Speaker Change: Maybe based on the type of jobs Youre seeing now versus a year ago.
Taryn R. Owen: It's similar in terms of the type of jobs that we saw a year ago, with the exception of the progress that we've made in renewable energy, as we mentioned, transportation, our center line business returned to growth, so we're seeing an increase in orders there and customer activity as well as manufacturing in the onsite business.
Speaker Change: Uh huh.
Speaker Change: It's similar in terms of the type of jobs that were seeing a year ago with the exception of the progress that we've made and renewable that we mentioned.
Speaker Change: <unk> are centerline business returned to growth. So we're seeing an increase in in orders there in customer activity as well as manufacturing and the and the onsite business.
Kartik Mehta: Thank you very much; I appreciate it.
Speaker Change: Perfect. Thank you very much I appreciate it.
Speaker Change: Thanks Marty.
Operator: Thank you. Our next question comes from the line of Mark Marcon with Baird. Please proceed with your question.
Speaker Change: Thank you. Our next question comes from the line of Mark Mccollum with Baird. Please proceed with your question.
Mark Steven Marcon: Good afternoon. The renewables business, you mentioned it doubled. What's the size of it now?
Mark Steven Marcon: Hey, good afternoon.
Mark Steven Marcon: The renewals new molds business you mentioned it doubled.
Mark Steven Marcon: The size of it now and.
Mark Steven Marcon: What would the size the if we strip out the pass through costs.
Carl R. Schweihs: Thanks, Mark. I'll take that.
Mark Steven Marcon: Thanks, Mark I'll take that yes. It did nearly double we haven't kind of given the full the full size of our renewable business. It is stuck within our kind of skilled trades business within people ready I think the best way to kind of think about that that's roughly about 20%.
Carl R. Schweihs: Yeah, it did nearly double. We haven't kind of given the full size of our renewable business. It's stuck within our kind of skilled trades business within PeopleReady. I think the best way to kind of think about that is that it's roughly about 20% of total company revenue in our skilled trades. If you add in our centerline business as well, it's about 25%. And then, as we talked about last week from a pass-through perspective, there are pass-through travel costs within that business. However, if you exclude those pass-through travel costs, the renewable business is very similar to other large customers-ready customer accounts.
Total company revenue and our skilled trades, if you add in our center line business as well it's about 25%.
Mark Steven Marcon: And then as we talked about last last week from a pass through perspective, there is pass through travel cost within that business.
However, if you exclude those pass through travel costs. The renewable business is very similar to other large.
Mark Steven Marcon: People ready customer accounts.
Carl R. Schweihs: Okay, and then I was trying to get a sense for you mentioned that renewables have continued to be strong, transportation and manufacturing have actually turned. And so I was trying to get a consolidated view in terms of the portions of the business that have turned, and that seem like they're getting a little bit better relative to the rest. And just trying to think through when the overall business would likely turn.
Okay, and then I was just trying to get a sense for you mentioned renewables has continued to be strong transportation and manufacturing of actually turned in and so I was trying to get a consolidated view in terms of the <unk>.
Mark Steven Marcon: Portions of the business that have terms that would seem like they're getting a little bit better relative to the rest of.
Mark Steven Marcon: I'm just trying to think through window, the overall business would likely turn.
Carl R. Schweihs: Yeah, and I think that's really where I kind of point out that skilled business, right? That kind of takes our skilled field network, our renewable business, Centerline, which is our driver business, and that's really where we're starting to see better demand trends. Taryn also mentioned earlier that we've seen manufacturing start to grow within our on-site business, so that's another bright spot that we've seen across the portfolio.
Speaker Change: Yeah, and I think that that's really where I kind of pointed out that skill business right you get that kind of takes our skilled field network. Our renewable business Center line, which is our driver business and that's that's really where we're starting to see better demand trends parent also mentioned earlier that we've seen manufacturing and start to grow within our onsite business. So that's another bright spot.
Speaker Change: That was seen across the portfolio.
Mark Steven Marcon: Great, and you did a nice job in terms of managing SG&A. Can you talk a little bit about what your expectations would be for SG&A as we look towards the second quarter?
Speaker Change: Great.
Speaker Change: You did a nice job in terms of managing SG&A can you talk a little bit about like what your expectations would be for SG&A.
Speaker Change: As we look towards the second quarter.
Carl R. Schweihs: Yeah, absolutely. If we just kind of look back on Q1, right, we got into about a 9% decline year over year, we over delivered on those cost actions, and we got to minus 13. We were guiding to a midpoint of 99 million, which is roughly down 18% year over year. It is important to note, Mark, that that includes kind of a $7 million one-time benefit from our COVID subsidies, as we talked about in the prepared remarks. So if you adjust that out, it's really in line with Q1 at roughly, you know, down 13%, or about 106 million for the quarter.
Speaker Change: Yeah, absolutely. So yes, if we just kind of look back on Q1, right, we guided to about 9% decline year over year, we over delivered on those cost actions and got to minus 13, we.
Speaker Change: We were guiding to a midpoint of $99 million, which is roughly down 18% year over year. It is important to note mark that that includes kind of a $7 million one time benefit from from our corporate subsidies as we talked about in the prepared remarks. So if you adjust that out right.
In line with Q1 at roughly down 13% or about $106 million for the quarter, we expect that to carry through the year, we will make.
Carl R. Schweihs: We expect that to carry through the year. We will make selective investments as we see opportunities to accelerate growth, but it's not going to be anything material. You know, we actually feel like we've made really good progress on SG&A over the past year, and many of these reductions are going to be permanent. Some will come back, obviously, as we get higher revenue. But we feel like, you know, when we look at the overall business, we deliver anywhere between 17 and 22% across all of the segments in segment profit. We think on a blended average, with the actions we've taken, we'd expect to be on the high side of that range as revenue recovers.
Speaker Change: Selective investments as we see opportunities to accelerate growth, but it's not going to be anything material.
Speaker Change: And we actually we feel like we've made really good progress on SG&A over the past year and many of these reductions are going to be permanent some will come back obviously as we get higher revenue.
Speaker Change: But we feel like when we look at the overall business, we deliver anywhere between 17 and 22% across.
Speaker Change: All of the segments and segment profit, we think on a blended average.
Actions, we've taken we would expect to be on the high side of that range as revenue recovers, yeah, Mark just to add to that.
Taryn R. Owen: Yeah, Mark, just to add to that, you know, an important element of our strategy is to simplify our organization structure. So we're really looking at making structural changes to the business that will help drive efficiencies, bring us closer to our customers, and, you know, not only increase profitability but also get our business and teams closer together so that we are increasing cross-selling opportunities as well.
Speaker Change: Courtney element of our strategy is to simplify our organization structure. So we're really looking at making structural changes to the business that will help drive efficiencies bring us closer to our customers and not only.
Mark Steven Marcon: Not only increased profitability, but also get our our business teams closer together so that we are.
Mark Steven Marcon: Increasing cross selling opportunities as well.
Speaker Change: Great and then.
Speaker Change: The shifts in really good shape.
Mark Steven Marcon: Right, and then the balance sheet's in really good shape. Can you talk a little bit about, you know, the simplification and structural changes and, you know, what sort of potential strategic changes you're contemplating?
Speaker Change: Can you talk a little bit about.
Speaker Change: Simplification and structural.
Speaker Change: What sort of potential.
Speaker Change: Strategic changes you're contemplating at this point.
Taryn R. Owen: Sure, we're really focused on three strategic priorities. One is advancing our digital transformation across the enterprise. We made really good progress on that in the last quarter with our continued rollout of our own proprietary Jobstack app, so I'm really pleased with the project there. The second is expanding our market presence into high-growth, under-penetrated markets.
Sure, we're really focused on three strategic priorities one is advancing our digital transformation across the enterprise. We made really good progress on that in the last quarter with our continued rollout of our own proprietary job stock up so really pleased with the project there.
Speaker Change: Second is expansion of market presence into high growth Underpenetrated market. So we have some wins to share there around wins.
Taryn R. Owen: So we have some wins to share there around wins in health care in our PeopleScout business. Just a couple of examples, we want to deal with a hearing health care provider where we're hiring both retail roles and audiologists in Australia, New Zealand, and India. We want to deal with a home health care provider where we're going to hire 300 clinical roles across 15 states in our RPO business. And we've just engaged with private and charter schools to help them hire staff nurses within their schools.
Speaker Change: Wins in health care, and our people Scout business just a couple of examples how we wanted to deal with the hearing healthcare provider, where we're hiring both retail rolls an audiologist in Australia, New Zealand and in India, We want to deal with the home health care provider, where we're going to hire 300 clinical Roe.
Speaker Change: Pulls across 15 states.
Speaker Change: Our Rps business and we've just engaged with private and charter schools to help them hire staff nurses within their school. So really good progress around that strategic initiative and then finally as you mentioned simplifying our org structure is really our third priority of that that we're focused on.
Taryn R. Owen: So really good progress around that strategic initiative. And then finally, as you mentioned, simplifying our organizational structure is really our third priority that we're focused on. And we've made good progress there, as Carl mentioned and as reflected in the SG&A reduction. For example, we brought together leadership of our two on-site businesses to help maximize synergies within those two businesses. We brought together our center line and our people-ready skilled trades brands under single leadership, as we think there's an opportunity there for additional synergies and cross-selling opportunities.
Speaker Change: And we've made we've made good progress there as Carl mentioned and as reflected in the.
Speaker Change: The SG&A reduction just a couple of examples we brought together leadership of our two onsite businesses.
Speaker Change: To help maximize synergies within within those two businesses. We brought together our center line and are people ready skilled trades brands under single leadership as we think there is.
An opportunity there for additional synergies and.
Speaker Change: And cross selling opportunities then as I mentioned in prepared remarks, we've streamlined our reporting structure and people scout as well with our EMEA and APAC managing directors reporting directly to our to our people scout.
Taryn R. Owen: And as I mentioned in my prepared remarks, we've streamlined our reporting structure in PeopleScout as well, with our EMEA and APAC managing directors reporting directly to our PeopleScout president. So with that organizational alignment, not only are we able to better leverage our cost structure, but we're starting to see some wins come to life through bringing our teams closer together between each of our brands. So good progress on those three priorities.
Speaker Change: President so with that org structure alignment not only are we able to.
Speaker Change: You know better leverage our cost structure that we're starting to see some wins come come to life through bringing our teams.
Speaker Change: Closer together between between each of our brands. So good progress on on those three priorities.
Taryn R. Owen: That's good to hear. And can you elaborate a little bit with regard to digital in terms of the transformation and putting the job stack on your proprietary system? What are the actual, you know, on-the-ground benefits that you're actually seeing from that? Is it easier from a candidate's perspective, easier from a client's perspective? Are people sticking through the entire sign-on process? What are you seeing there?
Speaker Change: That's good to hear and can you elaborate a little bit with regards to digital.
Speaker Change: In terms of the transformation and putting the job stack on your proprietary system what are the what are the actual.
Speaker Change: On the ground benefits that you're actually seeing from that is it.
Speaker Change: <unk>.
Speaker Change: Is it easier from a candidate perspective easier from.
Speaker Change: From a client's perspective or the.
Speaker Change: People sticking through the entire sign on process. What are you what are you seeing there.
Taryn R. Owen: Great. Thank you for that question, Mark. I'll just start with the strategy around having our own version of Jobstack allows us to control our roadmap and implement competitive enhancements and quickly address the evolving needs of our customers and our associates that are unique to our business. And this is a level of control that we did not have in the past. In terms of improved usability, there are a couple things that I can point to in our initial release.
Speaker Change: Great. Thank you for that question Mark.
Speaker Change: I'll just start with the the the strategy around having our own version of job stack allows us to control, our roadmap and implement competitive enhancements and quickly address the evolving needs of our customers and our associates that are unique to.
Speaker Change: Our business and this is a level of control that we did not have in the past.
Speaker Change: Around improved usability there are a couple of things that I can point to in our initial release. The first is that our associates can now complete an application and onboarding paperwork fully in the digital application ultimately, reducing the time that it takes for them to be deployed to an assignment. It also.
Taryn R. Owen: The first is that our associates can now complete an application and onboarding paperwork fully in the digital application, ultimately reducing the time that it takes for them to be deployed to an assignment. It also has more robust job searching and the ability to filter based on location proximity for our associates. For our customers, we are able to respond very quickly to their feedback. So, for example, we have a new time approval workflow in the new Jobstack, and we got some feedback early on that when a customer had multiple associates on assignment, it was too cumbersome to ultimately approve the time.
Speaker Change: Has more robust job searching.
Speaker Change: <unk> ability to filter based on location proximity for our associates for our customers. We are able to respond very quickly to their feedback. So for example, we.
Speaker Change: We have a new time approval workflow and in the new job stack and we got some feedback early on that win when a customer had multiple associates on assignment.
Speaker Change: It was too cumbersome to ultimately approve the time and so we were able to very quickly change that workflow and address the customers needs. So.
Taryn R. Owen: And so, we were able to very quickly change that workflow and address the customer's needs. So, those are just a couple of examples. The third point I would make is for our internal staff, our field employees who are working so hard every day to put people to work. It has improved visibility for our field staff, orders, and associates that are available through the desktop application. So, those are a couple of highlights for you. That's great!
Speaker Change: There are a couple of examples the third I would give is for our internal staff our field employees, who are working so hard every day to put people to work.
Speaker Change: It has improved visibility for our field staff into orders and associates that are available through the desktop application. So those are a couple of highlights for you.
Mark Steven Marcon: That's great. Thank you. Thank you, Mark.
Speaker Change: That's great. Thank you.
Speaker Change: Thank you Mark.
Operator: Thank you. Our next question comes from the line of Mark Riddick with Siddhartha. Please proceed with your question.
Speaker Change: Thank you. Our next question comes from the line of Marc Riddick with Sidoti. Please proceed with your question.
Marc Frye Riddick: Hi, good evening.
Marc Frye Riddick: Hi, Mark.
Marc Frye Riddick: So I wanted to touch on one of the things that I sort of noticed for the 2Q guide on the share count that you're using that's below where you finished, where the first quarter average was. I was wondering if you could talk a little bit about, is that a function of the cadence of the timing of share repurchases, or are we looking at a pickup in the pace of share repurchase activity in the second quarter?
Marc Frye Riddick: So I wanted to touch on one of the things that I sort of noticed.
Marc Frye Riddick: But the <unk> guide on the share count that you're using that's below where you finish the well.
Marc Frye Riddick: First quarter average was wondering if could talk a little bit about is that a function that the cadence of the timing of share repurchases or are we looking at a pickup in the pace of share repurchase activity in the second quarter.
Carl R. Schweihs: Yeah, you're right with your first response there, Mark. So we did, we purchased $10 million worth of shares in Q1, which is roughly around 3% of the kind of overall share count. So you're seeing that weighted average, and in our guide, I think we had 30.5 as the number to use for Q2.
Speaker Change: Yes, you are right with your first response, there Mark So we did repurchased $10 million worth of shares.
Speaker Change: In Q1, which is roughly around 3% of kind of overall.
Speaker Change: Uh-huh share count so youre seeing that weighted average and in our guide I think we had $30 five is what the numbers to use for Q2.
Marc Frye Riddick: Gotcha. And then I was wondering as far as the commentary as far as the client spending kind of situation is what it is. Are you getting a sense that there are any particular groups or industry verticals that might be sort of first to move or first to be more active, and maybe whether it's interest rates that would drive that or not? But are there any particular client verticals that you're looking at that you think would sort of be first to get moving in the positive direction?
Speaker Change: Got you and then I was wondering as far as the commentary as far as.
Speaker Change: Obviously.
Speaker Change: Clients are spending kind of situation is what it is are you getting a sense that there are any particular groups or industry verticals that might be sort of first to move our first would be more active and maybe whether it's interest rates that would drive that or not but are there any particular client verticals that youre looking at that you think would sort of be first just sort of get moving in the <unk>.
Speaker Change: The direction.
Carl R. Schweihs: Yeah, Mark, I could take that one. So, like, you know, kind of in the quarter, we saw most verticals in geography kind of continue to see that softness, with the largest kind being in retail and service industries. We mentioned some of the bright spots we're seeing, particularly in transportation and manufacturing, and I think that we're seeing those in kind of broader industry metrics as well, which we're happy to be able to see that kind of return to growth in ours.
Yeah.
Speaker Change: Yeah, Mark I can take that one so like you know.
Speaker Change: Kind of in the quarter, we saw most verticals and geography kind of continuing to see that softness with the largest kind of being in retail and service industries.
Mark Steven Marcon: We mentioned some of the bright spots, we're seeing particularly in transportation and manufacturing.
Mark Steven Marcon: And I think that we're seeing those in kind of broader industry metrics as well.
Which we're happy to be able to see that kind of return to growth in our so I'd say that those are probably the bright spots that we're seeing and traditionally that's what we've seen at least in the supply chain right. You make goods you transfer those goods and Thats, what where it starts to pick up so we're not seeing the full increase in demand, but happy to see those those things turn to growth in the quarter.
Carl R. Schweihs: So I'd say that those are probably the bright spots that we're seeing. And traditionally, you know, that's what we've seen, at least in the supply chain, right? You make goods, you transfer those goods, and that's what starts to pick up. So we're not seeing the full increase in demand, but happy to see those things turn to growth in the quarter.
Marc Frye Riddick: And the last one for me, I was wondering if you could give sort of an update on your thoughts and views around talent availability, if we're starting to see any pick-up there, or if so, any particular areas where you're starting to see maybe a little more talent availability, maybe at the beginning of the year, or is it about the same as it was then? Thank you.
Okay, Great and then the last one for me I was wondering if you could just sort of maybe an update on your thoughts and views around talent availability, if we're starting to see.
Speaker Change: Uh huh.
Speaker Change: Any pick up there or if so any particular areas, where you're starting to see maybe a little more time with them they've been maybe beginning of the year or or or is it about the same as it was then thank you.
Taryn R. Owen: I would say, Mark, that our fill rates are in the high 80%, which is really strong for us compared to prior periods. And so we continue to see high fill rates, and our teams are certainly staying connected to our associates and continually recruiting. So that continues to stay strong for us, and we expect that to continue as demands return based on the recruiting work that we're doing in the interim.
Speaker Change: I would say mark that our fill rates are in the high 80, percents, which is.
Speaker Change: So really strong for us compared to.
Speaker Change: Prior period, and so we continue to see a high fill rates and our teams are certainly staying connected to our associates and continually recruiting so there.
Speaker Change: That continues to stay strong for us and we expect for that to continue as demands return based on other recruiting work that we're doing in the interim here.
Carl R. Schweihs: Yeah, maybe just to add on to that one too, uh, Mark, Taryn's absolutely right, we've seen that increase in our fill rate. Look, recruiting is what we do at our core. We've continued to recruit talent and see that available talent and be able to, as evidenced by increased fill rates. If you think about kind of where we were in 23 though, high 70s, low 80s, so it is an improvement that we're seeing here in Q4, or Q1 of 24. So, I just wanted to add that so you had kind of the prior year numbers.
Speaker Change: Yes, maybe just to add onto that one too mark as it turns out flu right right, we've seen that increase in our fill rate Ricky.
Speaker Change: Routing is Apple is what we do at our quarter, we've continued to recruit talent and see that available talent and be able as evidenced by increased fill rate. If you think about kind of where we were in 2003, though high <unk> low <unk>. So it is an improvement that we're seeing here in Q4 or Q1 about 24 so.
Speaker Change: I just wanted to add that so you had kind of that prior year numbers.
Marc Frye Riddick: Much appreciated. Thank you very much.
Speaker Change: Much appreciate it thank you very much.
Speaker Change: Thank you Mark.
Operator: Thank you. There are no further questions at this time. I'd like to turn the call back over to Taryn Owen for closing remarks.
Speaker Change: Thank you there are no further questions at this time I'd like to turn the call back over to Korean Owen for closing remarks.
Taryn R. Owen: Thank you, operator, and thank you everyone for joining us today. I do want to take a moment to thank the entire TrueBlue team for their tremendous efforts and commitment to advancing our mission to connect people and work. We look forward to speaking with you at upcoming investor events and our next quarterly call. If you have any questions, please don't hesitate to reach out.
Taryn R. Owen: Thank you operator, and thank you everyone for joining us today I do want to take a moment to thank the entire true blue team for their tremendous efforts and commitment to advancing our mission to connect people and work. We look forward to speaking with you at upcoming Investor events in our next quarterly.
Operator: Have a great evening. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Thank you for watching!
Taryn R. Owen: Call. If you have any questions. Please don't hesitate to reach out to have a great evening.
Operator: This concludes today's teleconference.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: Okay.
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Speaker Change: Oh.
Speaker Change: Okay.
Speaker Change: [noise].
Hum.
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Operator: Taryn Owen, Will Brunemann, Taryn Owen, Will Brunemann, Taryn Owen, Will Brunemann
Speaker Change: Hum.
Speaker Change: Hmm.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: [music].