COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 26, 2022 | Jul. 19, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 26, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-14543 | |
Entity Registrant Name | TrueBlue, Inc. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1287341 | |
Entity Address, Address Line One | 1015 A Street | |
Entity Address, City or Town | Tacoma | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98402 | |
City Area Code | 253 | |
Local Phone Number | 383-9101 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | TBI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock Shares Outstanding (in shares) | 32,686,375 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000768899 | |
Current Fiscal Year End Date | --12-25 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 32,432 | $ 49,896 |
Accounts receivable, net of allowance of $3,987 and $6,687 | 338,800 | 353,882 |
Prepaid expenses and other current assets | 22,224 | 31,614 |
Income tax receivable | 12,878 | 9,681 |
Total current assets | 406,334 | 445,073 |
Property and equipment, net | 90,091 | 88,090 |
Restricted cash and investments | 205,769 | 221,026 |
Deferred income taxes, net | 27,262 | 29,330 |
Goodwill | 93,995 | 94,538 |
Intangible assets, net | 18,998 | 22,211 |
Operating lease right-of-use assets, net | 52,923 | 55,197 |
Workers’ compensation claims receivable, net | 78,645 | 61,386 |
Other assets, net | 16,993 | 16,375 |
Total assets | 991,010 | 1,033,226 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 66,396 | 77,172 |
Accrued wages and benefits | 85,543 | 100,173 |
Current portion of workers’ compensation claims reserve | 56,024 | 61,596 |
Current operating lease liabilities | 12,240 | 12,097 |
Other current liabilities | 12,618 | 7,508 |
Total current liabilities | 232,821 | 258,546 |
Workers’ compensation claims reserve, less current portion | 211,574 | 194,598 |
Long-term deferred compensation liabilities | 25,237 | 28,806 |
Long-term operating lease liabilities | 52,543 | 54,927 |
Other long-term liabilities | 2,882 | 3,282 |
Total liabilities | 525,057 | 540,159 |
#REF! | ||
Shareholders’ equity: | ||
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, no par value, 100,000 shares authorized; 32,684 and 34,861 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (17,344) | (15,747) |
Retained earnings | 483,296 | 508,813 |
Total shareholders’ equity | 465,953 | 493,067 |
Total liabilities and shareholders’ equity | $ 991,010 | $ 1,033,226 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 3,987 | $ 6,687 |
Preferred stock, par value (in dollars per share) | $ 0.131 | $ 0.131 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 32,684,000 | 34,861,000 |
Common stock, shares outstanding (in shares) | 32,684,000 | 34,861,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 569,253 | $ 515,955 | $ 1,120,768 | $ 974,661 |
Cost of services | 410,722 | 379,487 | 822,392 | 727,619 |
Gross profit | 158,531 | 136,468 | 298,376 | 247,042 |
Selling, general and administrative expense | 122,034 | 110,508 | 242,602 | 207,909 |
Depreciation and amortization | 7,245 | 7,017 | 14,532 | 13,979 |
Income (loss) from operations | 29,252 | 18,943 | 41,242 | 25,154 |
Interest and other income (expense), net | (110) | 724 | 395 | 1,299 |
Income before tax expense | 29,142 | 19,667 | 41,637 | 26,453 |
Income tax expense (benefit) | 5,129 | 3,783 | 7,105 | 3,671 |
Net income | $ 24,013 | $ 15,884 | $ 34,532 | $ 22,782 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.73 | $ 0.46 | $ 1.04 | $ 0.66 |
Diluted (in dollars per share) | $ 0.72 | $ 0.45 | $ 1.02 | $ 0.65 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 32,707 | 34,818 | 33,318 | 34,746 |
Diluted (in shares) | 33,149 | 35,352 | 33,832 | 35,205 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | $ (1,724) | $ (6) | $ (1,597) | $ 490 |
Comprehensive income (loss) | $ 22,289 | $ 15,878 | $ 32,935 | $ 23,272 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 34,532 | $ 22,782 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,532 | 13,979 |
Provision for credit losses | 2,572 | 2,094 |
Stock-based compensation | 4,487 | 6,916 |
Deferred income taxes | 2,117 | 652 |
Non-cash lease expense | 6,518 | 7,853 |
Other operating activities | 6,752 | (1,473) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12,524 | (16,486) |
Income tax receivable | (3,549) | 1,103 |
Operating lease right-of-use asset | 0 | 6,135 |
Other assets | (8,486) | (2,495) |
Accounts payable and other accrued expenses | (10,629) | (6,952) |
Accrued wages and benefits | (14,638) | 11,208 |
Deferred employer payroll taxes | 0 | 2,810 |
Workers’ compensation claims reserve | 11,404 | (598) |
Operating lease liabilities | (6,441) | (6,729) |
Other liabilities | 1,407 | 6,563 |
Net cash provided by operating activities | 53,102 | 47,362 |
Cash flows from investing activities: | ||
Capital expenditures | (13,992) | (19,868) |
Purchases of restricted available-for-sale investments | 0 | (14) |
Sales of restricted available-for-sale investments | 0 | 452 |
Purchases of restricted held-to-maturity investments | 4,950 | 0 |
Maturities of restricted held-to-maturity investments | 17,826 | 15,143 |
Net cash used in investing activities | (1,116) | (4,287) |
Cash flows from financing activities: | ||
Purchases and retirement of common stock | (60,939) | 0 |
Net proceeds from employee stock purchase plans | 536 | 538 |
Common stock repurchases for taxes upon vesting of restricted stock | (4,132) | (2,686) |
Other | (147) | (188) |
Net cash used in financing activities | (64,682) | (2,336) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (494) | 319 |
Net change in cash, cash equivalents and restricted cash | (13,190) | 41,058 |
Cash, cash equivalents and restricted cash, beginning of period | 103,185 | 118,612 |
Cash, cash equivalents and restricted cash, end of period | 89,995 | 159,670 |
Supplemental Disclosure of Cash Flow Information [Abstract] | ||
Interest | 452 | 880 |
Income taxes | 8,413 | 1,943 |
Operating lease liabilities | 7,925 | 8,335 |
Property and equipment purchased but not yet paid | 3,385 | 1,968 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,852 | $ 3,162 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 26, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2021. The results of operations for the twenty-six weeks ended June 26, 2022 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include a significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, changes in the carrying amount of net assets, sale or disposition of a significant portion of a reporting unit, or a sustained decrease in share price. We monitor the existence of potential impairment indicators throughout the fiscal year. Goodwill We test for goodwill impairment at the reporting unit level. We consider our operating segments to be our reporting units for goodwill impairment testing. Our operating segments with remaining goodwill are PeopleReady, PeopleManagement Centerline, PeopleScout RPO and PeopleScout MSP. When evaluating goodwill for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the reporting unit is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds the carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value of the goodwill. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. We performed our annual goodwill impairment test as of the first day of our fiscal second quarter of 2022. Based on our assessment of qualitative factors, we concluded it was more likely than not that the fair value of each reporting unit exceeded its carrying value, and the goodwill associated with each reporting unit was not impaired. As such, it was not necessary to perform a quantitative impairment analysis. Accordingly, no impairment loss was recognized for the twenty-six weeks ended June 26, 2022. Indefinite-lived intangible assets We have indefinite-lived intangible assets related to our Staff Management and PeopleScout trade names. We evaluate our indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, or sale or disposition of a significant portion of the business. We monitor the existence of potential impairment indicators throughout the fiscal year. When evaluating indefinite-lived intangible assets for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of the indefinite-lived intangible is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions and overall company financial performance If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the indefinite-lived intangible is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, utilizes the relief from royalty method to determine the fair value of each of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. Management uses considerable judgment to determine key assumptions, including projected revenue, royalty rates and appropriate discount rates. We performed our annual impairment test for 2022 as of the first day of our fiscal second quarter. Based on our assessment of qualitative factors, we concluded it was more likely than not that the fair value of our indefinite-lived intangible assets exceeded their carrying value and were not impaired. As such, it was not necessary to perform a quantitative impairment analysis. Accordingly, no impairment loss was recognized for the twenty-six weeks ended June 26, 2022. Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 26, 2022 that had an impact on our financial statements. Recently issued accounting standards not yet adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Assets measured at fair value on a recurring basis Our assets measured at fair value on a recurring basis consisted of the following: June 26, 2022 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 32,432 $ 32,432 $ — $ — Restricted cash and cash equivalents 57,563 57,563 — — Cash, cash equivalents and restricted cash (1) 89,995 89,995 — — Municipal debt securities 52,266 — 52,266 — Corporate debt securities 64,928 — 64,928 — Agency mortgage-backed securities 85 — 85 — U.S. government and agency securities 986 — 986 — Restricted investments classified as held-to-maturity (2) $ 118,265 $ — $ 118,265 $ — December 26, 2021 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 49,896 $ 49,896 $ — $ — Restricted cash and cash equivalents 53,289 53,289 — — Cash, cash equivalents and restricted cash (1) 103,185 103,185 — — Municipal debt securities 58,505 — 58,505 — Corporate debt securities 78,357 — 78,357 — Agency mortgage-backed securities 152 — 152 — U.S. government and agency securities 1,070 — 1,070 — Restricted investments classified as held-to-maturity (2) $ 138,084 $ — $ 138,084 $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3: Restricted Cash and Investments for additional details on our held-to-maturity debt securities. |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 6 Months Ended |
Jun. 26, 2022 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND INVESTMENTS | RESTRICTED CASH AND INVESTMENTS The following is a summary of the carrying value of our restricted cash and investments: (in thousands) June 26, December 26, Cash collateral held by insurance carriers $ 29,179 $ 28,957 Cash and cash equivalents held in Trust 27,745 21,590 Investments held in Trust 121,447 135,419 Company-owned life insurance policies 26,759 32,318 Other restricted cash and cash equivalents 639 2,742 Total restricted cash and investments $ 205,769 $ 221,026 Held-to-maturity Restricted cash and investments include collateral that has been provided or pledged to insurance carriers for workers’ compensation and state workers’ compensation programs. Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in debt and asset-backed securities. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon (“Trust”). The amortized cost and estimated fair value of our held-to-maturity investments held in Trust, aggregated by investment category as of June 26, 2022 and December 26, 2021, were as follows: June 26, 2022 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 52,362 $ 141 $ (237) $ 52,266 Corporate debt securities 67,999 12 (3,083) 64,928 Agency mortgage-backed securities 86 — (1) 85 U.S. government and agency securities 1,000 — (14) 986 Total held-to-maturity investments $ 121,447 $ 153 $ (3,335) $ 118,265 December 26, 2021 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 56,346 $ 2,159 $ — $ 58,505 Corporate debt securities 77,925 995 (563) 78,357 Agency mortgage-backed securities 148 4 — 152 U.S. government and agency securities 1,000 70 — 1,070 Total held-to-maturity investments $ 135,419 $ 3,228 $ (563) $ 138,084 The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: June 26, 2022 (in thousands) Amortized cost Fair value Due in one year or less $ 22,399 $ 22,381 Due after one year through five years 99,048 95,884 Total held-to-maturity investments $ 121,447 $ 118,265 Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty. We have no significant concentrations of counterparties in our held-to-maturity investment portfolio. Deferred compensation investments and company-owned life insurance policies We hold company-owned life insurance policies to support our deferred compensation liability. During the year ended December 26, 2021, we also held mutual funds and money market funds. As of December 26, 2021, all of the mutual funds and money market funds were converted into company-owned life insurance policies. Unrealized gains and losses related to investments still held at June 26, 2022 and June 27, 2021, which are included in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income, were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Unrealized gains (losses) $ (3,549) $ 1,549 $ (5,560) $ 2,426 |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Accounts receivable allowance for credit losses The activity related to the accounts receivable allowance for credit losses was as follows: Twenty-six weeks ended (in thousands) June 26, June 27, Beginning balance $ 6,687 $ 2,921 Current period provision 2,572 2,094 Write-offs (5,258) (1,176) Foreign currency translation (14) 4 Ending balance $ 3,987 $ 3,843 Prepaid expenses and other current assets (in thousands) June 26, December 26, Prepaid software agreements $ 8,147 $ 10,078 Other prepaid expenses 7,311 8,858 Other current assets 6,766 12,678 Prepaid expenses and other current assets $ 22,224 $ 31,614 Other current liabilities (in thousands) June 26, December 26, Contract liabilities $ 7,041 $ 626 Other current liabilities 5,577 6,882 Other current liabilities $ 12,618 $ 7,508 |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 6 Months Ended |
Jun. 26, 2022 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
WORKERS' COMPENSATION INSURANCE AND RESERVES | WORKERS' COMPENSATION INSURANCE AND RESERVES We provide workers’ compensation insurance for our associates and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above a $2.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured. Effective July 1, 2022, we have increased our deductible limit to $5.0 million on a “per occurrence” basis. Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The weighted average discount rate was 1.6% at June 26, 2022 and December 26, 2021. Payments made against self-insured claims are made over a weighted average period of approximately 5.5 years as of June 26, 2022. The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) June 26, December 26, Undiscounted workers’ compensation reserve $ 284,051 $ 273,000 Less discount on workers’ compensation reserve 16,453 16,806 Workers’ compensation reserve, net of discount 267,598 256,194 Less current portion 56,024 61,596 Long-term portion $ 211,574 $ 194,598 Payments made against self-insured claims were $21.5 million and $22.4 million for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively. Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The rates used to discount excess claims incurred during the twenty-six weeks ended June 26, 2022 and fifty-two weeks ended December 26, 2021 were 2.1% and 1.8%, respectively. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 17 years. The discounted workers’ compensation reserve for excess claims was $80.0 million and $62.7 million, as of June 26, 2022 and December 26, 2021, respectively. The discounted receivables from insurance companies, net of valuation allowance, were $78.6 million and $61.4 million as of June 26, 2022 and December 26, 2021, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 26, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT We have a revolving credit agreement with Bank of America, N.A., Wells Fargo Bank, N.A., PNC Bank, N.A., KeyBank, N.A. and HSBC Bank USA, N.A., which provides for a revolving line of credit of up to $300.0 million, and is currently set to mature on March 16, 2025 (“Revolving Credit Facility”). We have an option to increase the amount to $450.0 million, subject to lender approval. Included in the Revolving Credit Facility is a $30.0 million sub-limit for “Swingline” loans and a $125.0 million sub-limit for letters of credit. At June 26, 2022, $7.3 million was utilized by outstanding standby letters of credit, leaving $292.7 million unused under the Revolving Credit Facility. At December 26, 2021, $6.2 million was utilized by outstanding standby letters of credit. Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed under the revolving line of credit in excess of the Swingline loans, based on the U.S. Dollar London Interbank Offered Rate (“LIBOR”) plus an applicable spread between 1.25% and 3.50%. Alternatively, at our option, we may pay interest based on a base rate plus an applicable spread between 0.25% and 1.50%. The base rate is the greater of the prime rate (as announced by Bank of America), or the federal funds rate plus 0.50%. The applicable spread is determined by the consolidated leverage ratio, as defined in the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, we are required to pay a variable rate of interest on funds borrowed under the Swingline loan based on the base rate plus applicable spread between 0.25% and 1.50%, as described above. A commitment fee between 0.25% and 0.50% is applied against the Revolving Credit Facility’s unused borrowing capacity, with the specific rate determined by the consolidated leverage ratio, as defined in the second amendment to our credit agreement. Letters of credit are priced at a margin between 1.00% and 3.25%, plus a fronting fee of 0.50%. Obligations under the Revolving Credit Facility are guaranteed by TrueBlue and material U.S. domestic subsidiaries, and are secured by substantially all of the assets of TrueBlue and material U.S. domestic subsidiaries. The second amendment to our credit agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including, among others, financial covenants. The following financial covenants, as defined in the second amendment to our credit agreement, were in effect as of June 26, 2022: • Consolidated leverage ratio less than 3.00, defined as our funded indebtedness divided by trailing twelve months consolidated EBITDA, as defined in the amended credit agreement. As of June 26, 2022, our consolidated leverage ratio was 0.06. • Consolidated fixed charge coverage ratio greater than 1.25, defined as the trailing twelve months bank-adjusted cash flow divided by cash interest expense. As of June 26, 2022, our consolidated fixed charge ratio was 104.04. As of June 26, 2022, we were in compliance with all effective covenants related to the Revolving Credit Facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 26, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) June 26, December 26, Cash collateral held by workers’ compensation insurance carriers $ 23,332 $ 23,056 Cash and cash equivalents held in Trust 27,745 21,590 Investments held in Trust 121,447 135,419 Letters of credit (1) 6,160 6,160 Surety bonds (2) 21,898 21,969 Total collateral commitments $ 200,582 $ 208,194 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one Legal contingencies and developments We are involved in various proceedings arising in the normal course of conducting business. We believe the liabilities included in our financial statements reflect the probable loss that can be reasonably estimated and are immaterial. We also believe that the aggregate range of reasonably possible losses for the Company's exposure in excess of the amount accrued is expected to be immaterial to the Company. It remains possible that despite our current belief, material differences in actual outcomes or changes in management's evaluation or predictions could arise that could have a material effect on the Company's financial condition, results of operations or cash flows. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 26, 2022 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDER’S EQUITY | SHAREHOLDERS' EQUITY Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Common stock shares Beginning balance 33,608 35,474 34,861 35,493 Purchases and retirement of common stock (907) — (2,234) — Net issuance under equity plans, including tax benefits (17) 6 57 (17) Stock-based compensation — 30 — 34 Ending balance 32,684 35,510 32,684 35,510 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 483,170 459,958 508,813 452,017 Net income 24,013 15,884 34,532 22,782 Purchases and retirement of common stock (1) (24,613) — (60,939) — Net issuance under equity plans, including tax benefits 51 152 (3,597) (2,148) Stock-based compensation 675 3,573 4,487 6,916 Ending balance 483,296 479,567 483,296 479,567 Accumulated other comprehensive loss Beginning balance, net of tax (15,620) (14,332) (15,747) (14,828) Foreign currency translation adjustment (1,724) (6) (1,597) 490 Ending balance, net of tax (17,344) (14,338) (17,344) (14,338) Total shareholders’ equity ending balance $ 465,953 $ 465,230 $ 465,953 $ 465,230 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax provision or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate and, if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision and quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our full year pre-tax income and loss by jurisdiction, tax credits, government audit developments, changes in laws, regulations and administrative practices, and relative changes in expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Our effective income tax rate for the twenty-six weeks ended June 26, 2022 was 17.1%. The difference between the statutory federal income tax rate of 21% and our effective tax rate was primarily due to hiring credits, including the Work Opportunity Tax Credit (“WOTC”), as well as stock-based compensation. WOTC is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. Other differences between the statutory federal income tax rate result from state and foreign income taxes and certain non-deductible and non-taxable items. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Jun. 26, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) June 26, June 27, June 26, June 27, Net income $ 24,013 $ 15,884 $ 34,532 $ 22,782 Weighted average number of common shares used in basic net income per common share 32,707 34,818 33,318 34,746 Dilutive effect of non-vested stock-based awards 442 534 514 459 Weighted average number of common shares used in diluted net income per common share 33,149 35,352 33,832 35,205 Net income per common share: Basic $ 0.73 $ 0.46 $ 1.04 $ 0.66 Diluted $ 0.72 $ 0.45 $ 1.02 $ 0.65 Anti-dilutive shares 322 26 457 54 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 26, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our operating segments and reportable segments are described below: Our PeopleReady reportable segment provides blue-collar, contingent staffing through the PeopleReady operating segment. PeopleReady provides on-demand and skilled labor in a broad range of industries that include construction, manufacturing and logistics, warehousing and distribution, retail, waste and recycling, energy, hospitality, and general labor. Our PeopleManagement reportable segment provides contingent labor and outsourced industrial workforce solutions, primarily on-site at the client’s facility, through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • PeopleManagement On-Site : On-site management and recruitment for the contingent industrial workforce of manufacturing, warehousing and distribution facilities; and • PeopleManagement Centerline : Recruitment and management of contingent and dedicated commercial drivers to the transportation and distribution industries. Our PeopleScout reportable segment provides high-volume, permanent employee recruitment process outsourcing, employer branding services and management of outsourced labor service providers through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • PeopleScout RPO : Outsourced recruitment of permanent employees on behalf of clients and employer branding services; and • PeopleScout MSP : Management of multiple third-party staffing vendors on behalf of clients. The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Revenue from services: Contingent staffing PeopleReady $ 317,943 $ 299,316 $ 623,633 $ 559,708 PeopleManagement 161,938 152,356 325,757 304,110 Human resource outsourcing PeopleScout 89,372 64,283 171,378 110,843 Total company $ 569,253 $ 515,955 $ 1,120,768 $ 974,661 The following table presents a reconciliation of segment profit to income before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Segment profit: PeopleReady $ 20,325 $ 18,437 $ 36,544 $ 30,297 PeopleManagement 4,228 3,221 7,207 6,337 PeopleScout 20,593 10,857 31,565 14,894 Total segment profit 45,146 32,515 75,316 51,528 Corporate unallocated expense (6,531) (7,307) (13,829) (12,926) Third-party processing fees for hiring tax credits (162) (30) (324) (165) Amortization of software as a service assets (699) (646) (1,446) (1,319) PeopleReady technology implementation costs (1,748) — (4,298) — COVID-19 government subsidies, net — 2,296 — 4,039 Other benefits (costs) 491 (868) 355 (2,024) Depreciation and amortization (7,245) (7,017) (14,532) (13,979) Income from operations 29,252 18,943 41,242 25,154 Interest expense and other income, net (110) 724 395 1,299 Income before tax expense $ 29,142 $ 19,667 $ 41,637 $ 26,453 Asset information by reportable segment is not presented as we do not manage our segments on a balance sheet basis. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 26, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2021. The results of operations for the twenty-six weeks ended June 26, 2022 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. |
Recently adopted accounting standards and recently issued accounting pronouncements not yet adopted | Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 26, 2022 that had an impact on our financial statements. Recently issued accounting standards not yet adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Our assets measured at fair value on a recurring basis consisted of the following: June 26, 2022 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 32,432 $ 32,432 $ — $ — Restricted cash and cash equivalents 57,563 57,563 — — Cash, cash equivalents and restricted cash (1) 89,995 89,995 — — Municipal debt securities 52,266 — 52,266 — Corporate debt securities 64,928 — 64,928 — Agency mortgage-backed securities 85 — 85 — U.S. government and agency securities 986 — 986 — Restricted investments classified as held-to-maturity (2) $ 118,265 $ — $ 118,265 $ — December 26, 2021 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Cash and cash equivalents $ 49,896 $ 49,896 $ — $ — Restricted cash and cash equivalents 53,289 53,289 — — Cash, cash equivalents and restricted cash (1) 103,185 103,185 — — Municipal debt securities 58,505 — 58,505 — Corporate debt securities 78,357 — 78,357 — Agency mortgage-backed securities 152 — 152 — U.S. government and agency securities 1,070 — 1,070 — Restricted investments classified as held-to-maturity (2) $ 138,084 $ — $ 138,084 $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3: Restricted Cash and Investments for additional details on our held-to-maturity debt securities. |
RESTRICTED CASH AND INVESTMEN_2
RESTRICTED CASH AND INVESTMENTS (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Restricted Cash and Investments [Abstract] | |
Schedule of restricted cash and investments | The following is a summary of the carrying value of our restricted cash and investments: (in thousands) June 26, December 26, Cash collateral held by insurance carriers $ 29,179 $ 28,957 Cash and cash equivalents held in Trust 27,745 21,590 Investments held in Trust 121,447 135,419 Company-owned life insurance policies 26,759 32,318 Other restricted cash and cash equivalents 639 2,742 Total restricted cash and investments $ 205,769 $ 221,026 |
Schedule of held-to-maturity investments | The amortized cost and estimated fair value of our held-to-maturity investments held in Trust, aggregated by investment category as of June 26, 2022 and December 26, 2021, were as follows: June 26, 2022 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 52,362 $ 141 $ (237) $ 52,266 Corporate debt securities 67,999 12 (3,083) 64,928 Agency mortgage-backed securities 86 — (1) 85 U.S. government and agency securities 1,000 — (14) 986 Total held-to-maturity investments $ 121,447 $ 153 $ (3,335) $ 118,265 December 26, 2021 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 56,346 $ 2,159 $ — $ 58,505 Corporate debt securities 77,925 995 (563) 78,357 Agency mortgage-backed securities 148 4 — 152 U.S. government and agency securities 1,000 70 — 1,070 Total held-to-maturity investments $ 135,419 $ 3,228 $ (563) $ 138,084 |
Schedule of held-to-maturity investments by contractual maturity | The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: June 26, 2022 (in thousands) Amortized cost Fair value Due in one year or less $ 22,399 $ 22,381 Due after one year through five years 99,048 95,884 Total held-to-maturity investments $ 121,447 $ 118,265 |
Schedule of unrealized gain (loss) on equity investments | Unrealized gains and losses related to investments still held at June 26, 2022 and June 27, 2021, which are included in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income, were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Unrealized gains (losses) $ (3,549) $ 1,549 $ (5,560) $ 2,426 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for credit losses | The activity related to the accounts receivable allowance for credit losses was as follows: Twenty-six weeks ended (in thousands) June 26, June 27, Beginning balance $ 6,687 $ 2,921 Current period provision 2,572 2,094 Write-offs (5,258) (1,176) Foreign currency translation (14) 4 Ending balance $ 3,987 $ 3,843 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets (in thousands) June 26, December 26, Prepaid software agreements $ 8,147 $ 10,078 Other prepaid expenses 7,311 8,858 Other current assets 6,766 12,678 Prepaid expenses and other current assets $ 22,224 $ 31,614 |
Other current liabilities | Other current liabilities (in thousands) June 26, December 26, Contract liabilities $ 7,041 $ 626 Other current liabilities 5,577 6,882 Other current liabilities $ 12,618 $ 7,508 |
WORKERS' COMPENSATION INSURAN_2
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
Reconciliation of workers' compensation claims reserve | The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) June 26, December 26, Undiscounted workers’ compensation reserve $ 284,051 $ 273,000 Less discount on workers’ compensation reserve 16,453 16,806 Workers’ compensation reserve, net of discount 267,598 256,194 Less current portion 56,024 61,596 Long-term portion $ 211,574 $ 194,598 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of workers’ compensation collateral commitments | We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) June 26, December 26, Cash collateral held by workers’ compensation insurance carriers $ 23,332 $ 23,056 Cash and cash equivalents held in Trust 27,745 21,590 Investments held in Trust 121,447 135,419 Letters of credit (1) 6,160 6,160 Surety bonds (2) 21,898 21,969 Total collateral commitments $ 200,582 $ 208,194 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Shareholders' Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Common stock shares Beginning balance 33,608 35,474 34,861 35,493 Purchases and retirement of common stock (907) — (2,234) — Net issuance under equity plans, including tax benefits (17) 6 57 (17) Stock-based compensation — 30 — 34 Ending balance 32,684 35,510 32,684 35,510 Common stock amount Beginning balance $ 1 $ 1 $ 1 $ 1 Current period activity — — — — Ending balance 1 1 1 1 Retained earnings Beginning balance 483,170 459,958 508,813 452,017 Net income 24,013 15,884 34,532 22,782 Purchases and retirement of common stock (1) (24,613) — (60,939) — Net issuance under equity plans, including tax benefits 51 152 (3,597) (2,148) Stock-based compensation 675 3,573 4,487 6,916 Ending balance 483,296 479,567 483,296 479,567 Accumulated other comprehensive loss Beginning balance, net of tax (15,620) (14,332) (15,747) (14,828) Foreign currency translation adjustment (1,724) (6) (1,597) 490 Ending balance, net of tax (17,344) (14,338) (17,344) (14,338) Total shareholders’ equity ending balance $ 465,953 $ 465,230 $ 465,953 $ 465,230 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) and diluted common shares | Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) June 26, June 27, June 26, June 27, Net income $ 24,013 $ 15,884 $ 34,532 $ 22,782 Weighted average number of common shares used in basic net income per common share 32,707 34,818 33,318 34,746 Dilutive effect of non-vested stock-based awards 442 534 514 459 Weighted average number of common shares used in diluted net income per common share 33,149 35,352 33,832 35,205 Net income per common share: Basic $ 0.73 $ 0.46 $ 1.04 $ 0.66 Diluted $ 0.72 $ 0.45 $ 1.02 $ 0.65 Anti-dilutive shares 322 26 457 54 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Revenue from services: Contingent staffing PeopleReady $ 317,943 $ 299,316 $ 623,633 $ 559,708 PeopleManagement 161,938 152,356 325,757 304,110 Human resource outsourcing PeopleScout 89,372 64,283 171,378 110,843 Total company $ 569,253 $ 515,955 $ 1,120,768 $ 974,661 The following table presents a reconciliation of segment profit to income before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) June 26, June 27, June 26, June 27, Segment profit: PeopleReady $ 20,325 $ 18,437 $ 36,544 $ 30,297 PeopleManagement 4,228 3,221 7,207 6,337 PeopleScout 20,593 10,857 31,565 14,894 Total segment profit 45,146 32,515 75,316 51,528 Corporate unallocated expense (6,531) (7,307) (13,829) (12,926) Third-party processing fees for hiring tax credits (162) (30) (324) (165) Amortization of software as a service assets (699) (646) (1,446) (1,319) PeopleReady technology implementation costs (1,748) — (4,298) — COVID-19 government subsidies, net — 2,296 — 4,039 Other benefits (costs) 491 (868) 355 (2,024) Depreciation and amortization (7,245) (7,017) (14,532) (13,979) Income from operations 29,252 18,943 41,242 25,154 Interest expense and other income, net (110) 724 395 1,299 Income before tax expense $ 29,142 $ 19,667 $ 41,637 $ 26,453 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 | Jun. 27, 2021 | Dec. 27, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 89,995 | $ 103,185 | $ 159,670 | $ 118,612 |
Restricted investments classified as held-to-maturity | 118,265 | 138,084 | ||
Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 52,266 | 58,505 | ||
Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 64,928 | 78,357 | ||
Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 85 | 152 | ||
U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 986 | 1,070 | ||
Fair value, recurring | Total fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 32,432 | 49,896 | ||
Fair value, recurring | Total fair value | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 57,563 | 53,289 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 89,995 | 103,185 | ||
Restricted investments classified as held-to-maturity | 118,265 | 138,084 | ||
Fair value, recurring | Total fair value | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 52,266 | 58,505 | ||
Fair value, recurring | Total fair value | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 64,928 | 78,357 | ||
Fair value, recurring | Total fair value | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 85 | 152 | ||
Fair value, recurring | Total fair value | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 986 | 1,070 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 32,432 | 49,896 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 57,563 | 53,289 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 89,995 | 103,185 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 118,265 | 138,084 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 52,266 | 58,505 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 64,928 | 78,357 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 85 | 152 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 986 | 1,070 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | $ 0 | $ 0 |
RESTRICTED CASH AND INVESTMEN_3
RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | Dec. 26, 2021 | |
Restricted Cash and Investments [Line Items] | |||||
Cash collateral held by insurance carriers | $ 29,179 | $ 29,179 | $ 28,957 | ||
Cash and cash equivalents held in Trust | 27,745 | 27,745 | 21,590 | ||
Investments held in Trust | 121,447 | 121,447 | 135,419 | ||
Company owned life insurance policies | 26,759 | 26,759 | 32,318 | ||
Other restricted cash and cash equivalents | 639 | 639 | 2,742 | ||
Restricted cash and investments | 205,769 | 205,769 | 221,026 | ||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 121,447 | 121,447 | 135,419 | ||
Gross unrealized gains | 153 | 153 | 3,228 | ||
Gross unrealized losses | (3,335) | (3,335) | (563) | ||
Fair value | 118,265 | 118,265 | 138,084 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 121,447 | 121,447 | 135,419 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 118,265 | 118,265 | 138,084 | ||
Unrealized gains (losses) on Investments | (3,549) | $ (1,549) | 5,560 | $ 2,426 | |
Municipal debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 52,362 | 52,362 | 56,346 | ||
Gross unrealized gains | 141 | 141 | 2,159 | ||
Gross unrealized losses | (237) | (237) | 0 | ||
Fair value | 52,266 | 52,266 | 58,505 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 52,362 | 52,362 | 56,346 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 52,266 | 52,266 | 58,505 | ||
Corporate debt securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 67,999 | 67,999 | 77,925 | ||
Gross unrealized gains | 12 | 12 | 995 | ||
Gross unrealized losses | (3,083) | (3,083) | (563) | ||
Fair value | 64,928 | 64,928 | 78,357 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 67,999 | 67,999 | 77,925 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 64,928 | 64,928 | 78,357 | ||
Agency mortgage-backed securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 86 | 86 | 148 | ||
Gross unrealized gains | 0 | 0 | 4 | ||
Gross unrealized losses | (1) | (1) | 0 | ||
Fair value | 85 | 85 | 152 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 86 | 86 | 148 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 85 | 85 | 152 | ||
U.S. government and agency securities | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 1,000 | 1,000 | 1,000 | ||
Gross unrealized gains | 0 | 0 | 70 | ||
Gross unrealized losses | (14) | (14) | 0 | ||
Fair value | 986 | 986 | 1,070 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Amortized cost of held-to-maturity investments | 1,000 | 1,000 | 1,000 | ||
Held-to-maturity securities, fair value [Abstract] | |||||
Fair value | 986 | 986 | $ 1,070 | ||
Restricted cash and investments | |||||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||||
Amortized cost of held-to-maturity investments | 121,447 | 121,447 | |||
Fair value | 118,265 | 118,265 | |||
Held-to-maturity securities, amortized cost [Abstract] | |||||
Due in one year or less | 22,399 | 22,399 | |||
Due after one year through five years | 99,048 | 99,048 | |||
Amortized cost of held-to-maturity investments | 121,447 | 121,447 | |||
Held-to-maturity securities, fair value [Abstract] | |||||
Due in one year or less | 22,381 | 22,381 | |||
Due after one year through five years | 95,884 | 95,884 | |||
Fair value | $ 118,265 | $ 118,265 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Allowance for credit losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Dec. 26, 2021 | Dec. 27, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 3,987 | $ 3,843 | $ 6,687 | $ 2,921 |
Provision for credit losses | 2,572 | 2,094 | ||
Write-offs | (5,258) | (1,176) | ||
Foreign currency translation | (14) | 4 | ||
Ending balance | $ 3,987 | $ 3,843 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid software agreements | $ 8,147 | $ 10,078 |
Other prepaid expenses | 7,311 | 8,858 |
Other current assets | 6,766 | 12,678 |
Prepaid expenses and other current assets | $ 22,224 | $ 31,614 |
SUPPLEMENTAL BALANCE SHEET IN_5
SUPPLEMENTAL BALANCE SHEET INFORMATION - Other current liabilities (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract liabilities | $ 7,041 | $ 626 |
Other current liabilities | 5,577 | 6,882 |
Other current liabilities | $ 12,618 | $ 7,508 |
WORKERS' COMPENSATION INSURAN_3
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
Undiscounted workers’ compensation reserve | $ 284,051 | $ 273,000 |
Less discount on workers’ compensation reserve | 16,453 | 16,806 |
Workers' compensation reserve, net of discount | 267,598 | 256,194 |
Less current portion | 56,024 | 61,596 |
Long-term portion | $ 211,574 | $ 194,598 |
WORKERS' COMPENSATION INSURAN_4
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | Dec. 26, 2021 | Jul. 01, 2022 | |
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation claim deductible limit | $ 2 | |||||
Weighted average period for claim payments below deductible limit | 5 years 6 months | |||||
Payments made against self-insured claims | $ 21.5 | $ 22.4 | ||||
Weighted average period for claim payments and receivables above deductible limit | 17 years | |||||
Workers' compensation reserve for excess claims | $ 80 | $ 80 | $ 62.7 | |||
Worker's compensation receivable for excess claims | 78.6 | 78.6 | $ 61.4 | |||
Workers compensation expense | $ 9.8 | $ 9.3 | $ 21.1 | $ 19.4 | ||
Subsequent Event | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers compensation deductible increase | $ 5 | |||||
Below limit | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation discount | 1.60% | |||||
Above Limit | ||||||
Workers' Compensation Deductible Limit [Line Items] | ||||||
Workers' compensation discount | 2.10% | 1.80% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Millions | Mar. 16, 2020 USD ($) | Dec. 31, 2023 | Jun. 25, 2023 | Jun. 26, 2022 USD ($) | Dec. 26, 2021 USD ($) |
Revolving Credit Facility [Line Items] | |||||
Debt instrument, leverage ratio | 0.06 | ||||
Debt instrument, fixed charge coverage ratio | 104.04 | ||||
Revolving Credit Facility | |||||
Revolving Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 300 | ||||
Maximum borrowing capacity subject to lender approval | $ 450 | ||||
Remaining borrowing capacity | $ 292.7 | ||||
Revolving Credit Facility | Base rate | |||||
Revolving Credit Facility [Line Items] | |||||
Additional debt instrument base rate | 0.50% | ||||
Revolving Credit Facility | Minimum | |||||
Revolving Credit Facility [Line Items] | |||||
Unused capacity commitment fee percentage | 0.25% | ||||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Revolving Credit Facility | Minimum | Base rate | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.25% | ||||
Revolving Credit Facility | Maximum | |||||
Revolving Credit Facility [Line Items] | |||||
Unused capacity commitment fee percentage | 0.50% | ||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.50% | ||||
Revolving Credit Facility | Maximum | Base rate | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Swingline loan | |||||
Revolving Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 30 | ||||
Letters of credit outstanding | $ 7.3 | $ 6.2 | |||
Swingline loan | Minimum | Base rate | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.25% | ||||
Swingline loan | Maximum | Base rate | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Letter of credit | |||||
Revolving Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 125 | ||||
Letter of credit | London Interbank Offered Rate (LIBOR) | |||||
Revolving Credit Facility [Line Items] | |||||
Additional letters of credit base rate | 0.50% | ||||
Letter of credit | Minimum | London Interbank Offered Rate (LIBOR) | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
Letter of credit | Maximum | London Interbank Offered Rate (LIBOR) | |||||
Revolving Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Forecast | |||||
Revolving Credit Facility [Line Items] | |||||
Leverage ratio, threshold | 3 | ||||
Fixed charge coverage ratio, threshold | 1.25 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Dec. 26, 2021 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 23,332 | $ 23,056 |
Cash and cash equivalents held in Trust | 27,745 | 21,590 |
Investments held in Trust | 121,447 | 135,419 |
Letters of credit | 6,160 | 6,160 |
Surety bonds | 21,898 | 21,969 |
Total collateral commitments | $ 200,582 | $ 208,194 |
Surety bonds annual fee limit as a percentage of bond amount | 2% | |
Surety bonds required cancellation notice | 60 days | |
Minimum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 1 year | |
Maximum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 4 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | Dec. 26, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 34,861 | ||||
Ending balance (in shares) | 32,684 | 32,684 | |||
Beginning balance | $ 493,067 | ||||
Net income | $ 24,013 | $ 15,884 | 34,532 | $ 22,782 | |
Change in accounting standard cumulative-effect adjustment | 483,296 | 483,296 | $ 508,813 | ||
Foreign currency translation adjustment | (1,724) | (6) | (1,597) | 490 | |
Ending balance, net of tax | $ 465,953 | $ 465,230 | $ 465,953 | $ 465,230 | |
Common stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 33,608 | 35,474 | 34,861 | 35,493 | |
Purchases and retirement of common stock (in shares) | 907 | 0 | 2,234 | 0 | |
Net issuances under equity plans, including tax benefits (in shares) | (17) | 6 | 57 | (17) | |
Stock-based compensation (in shares) | 0 | 30 | 0 | 34 | |
Ending balance (in shares) | 32,684 | 35,510 | 32,684 | 35,510 | |
Beginning balance | $ 1 | $ 1 | $ 1 | $ 1 | |
Ending balance, net of tax | 1 | 1 | 1 | 1 | |
Retained earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 483,170 | 459,958 | 508,813 | 452,017 | |
Net income | 24,013 | 15,884 | 34,532 | 22,782 | |
Purchases and retirement of common stock | (24,613) | 0 | (60,939) | 0 | |
Net issuance under equity plans, including tax benefits | 51 | 152 | (3,597) | (2,148) | |
Stock-based compensation | 675 | 3,573 | 4,487 | 6,916 | |
Ending balance, net of tax | 483,296 | 479,567 | 483,296 | 479,567 | |
Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (15,620) | (14,332) | (15,747) | (14,828) | |
Foreign currency translation adjustment | (1,724) | (6) | (1,597) | 490 | |
Ending balance, net of tax | $ (17,344) | $ (14,338) | $ (17,344) | $ (14,338) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended |
Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate | 17.10% |
Statutory federal income tax rate | 21% |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 24,013 | $ 15,884 | $ 34,532 | $ 22,782 |
Weighted average number of common shares used in basic net income per common share (in shares) | 32,707 | 34,818 | 33,318 | 34,746 |
Dilutive effect of non-vested stock-based awards (in shares) | 442 | 534 | 514 | 459 |
Weighted average number of common shares used in diluted net income per common share | 33,149 | 35,352 | 33,832 | 35,205 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.73 | $ 0.46 | $ 1.04 | $ 0.66 |
Diluted (in dollars per share) | $ 0.72 | $ 0.45 | $ 1.02 | $ 0.65 |
Anti-dilutive shares (in shares) | 322 | 26 | 457 | 54 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 569,253 | $ 515,955 | $ 1,120,768 | $ 974,661 |
Segment profit | 45,146 | 32,515 | 75,316 | 51,528 |
Third-party processing fees for hiring tax credits | (162) | (30) | (324) | (165) |
Amortization of software as a service assets | (699) | (646) | (1,446) | (1,319) |
PeopleReady technology implementation costs | (1,748) | 0 | (4,298) | 0 |
COVID-19 government subsidies, net | 0 | 2,296 | 0 | 4,039 |
Other benefits (costs) | 491 | (868) | 355 | (2,024) |
Depreciation and amortization | (7,245) | (7,017) | (14,532) | (13,979) |
Income (loss) from operations | 29,252 | 18,943 | 41,242 | 25,154 |
Interest expense and other income, net | (110) | 724 | 395 | 1,299 |
Income before tax expense | 29,142 | 19,667 | 41,637 | 26,453 |
PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 20,325 | 18,437 | 36,544 | 30,297 |
PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 4,228 | 3,221 | 7,207 | 6,337 |
PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 20,593 | 10,857 | 31,565 | 14,894 |
Corporate unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Corporate unallocated expense | (6,531) | (7,307) | (13,829) | (12,926) |
Contingent staffing | PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 317,943 | 299,316 | 623,633 | 559,708 |
Contingent staffing | PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 161,938 | 152,356 | 325,757 | 304,110 |
Human resource outsourcing | PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 89,372 | $ 64,283 | $ 171,378 | $ 110,843 |