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About Labor Ready Southwest, Inc.

Staffing firm TrueBlue specializes in providing general laborers on short notice for short-term jobs in fields such as construction, hospitality, and transportation. The company offers general labor staffing services from about 615 branches throughout the US, Puerto Rico, and Canada, mostly through its PeopleReady business. The PeopleManagement unit finds contingent labor and outsourced industrial workers, while the PeopleScout group provides outsourced recruitment for permanent employees. TrueBlue mainly serves companies in the construction, manufacturing and logistics, warehousing and distribution, waste and recycling, energy, retail, hospitality, and others. Vast majority of its revenues comes from US operations.

Operations

TrueBlue operates through three business segments: PeopleReady, PeopleManagement, and PeopleScout.

PeopleReady generates more than 60% of revenue by providing staffing for contingent on-demand and skilled labor to approximately 138,000 clients operating in a variety of industries. PeopleManagement, accounting for more than a quarter of revenue, encompasses TrueBlue's on-site placement and management services. The segment's brands are SMX (management of contingent work forces), SIMOS (warehouse operations), and Centerline Drivers (provides truck drivers).

PeopleScout, around 10% of revenue, provides outsourced recruitment for permanent employees for jobs in major industries.

Geographic Reach

Based in Tacoma, Washington, TrueBlue operates a network comprising 615 branches across all 50 states, Puerto Rico, and Canada. The company also has a growing presence in Europe. The US generates about 95% of sales.

Sales and Marketing

TrueBlue's clients range from small and medium-sized businesses to Fortune 100 companies. The firm serves about 139,000 clients in industries that include construction, energy, manufacturing, warehousing, distribution, waste, wholesale, retail, transportation, hospitality, and others.

Sales to its 10 largest clients account for about 15% of TrueBlue's revenue.

TrueBlue's advertising expenses were $6.8 million, $8.1 million and $7.3 million in fiscal 2019, 2018 and 2017, respectively.

Financial Performance

Over the last five years TrueBlue's revenue has fluctuated. After peaking at $2.7 billion in 2016, some of the decline in revenue was expected and came from a small number of large clients that experienced issues within their businesses.

Total company revenue declined 5.2% to $2.4 billion, for 2019 compared to the prior year. This decline was primarily driven by less demand for their services attributable to lower volumes within the businesses of their clients and continued economic uncertainty.

The company reported net income of $63.1 million in 2019 compared to $65.8 million in 2018. The 4% fall was primarily driven by declining income from operations partially offset by lower interest expense due to a lower debt balance of $37 million at the end of 2019 compared to $80 million at the end of 2018.

TrueBlue's total cash on hand was $92.4 million in 2019 compared to $102.5 million in 2018. Cash from operations added $93.5 million, while investing activities used $21.6 million and financing used $82.9 million. The cash mainly used for capital expenditures; and purchases and reitrement of common stock.

Strategy

TrueBlue has been investing heavily in mobile-based products that offer clients expanded access to employees. In 2018 the company launched its JobStack mobile application, which provides clients with an additional tool to reach temporary employees from new and younger demographics. Since its launch, JobStack now accounts for 50% of temp jobs filled via PeopleReady's services.

Offer by the PeopleScout business, the company's talent acquisition Affinix mobile platform streamlines the sourcing and screening processes of permanent employees for TrueBlue's clients.

Company Background

Glenn Welstad, having made his fortune as a franchisee of Hardee's fast food restaurants, came out of early retirement in 1989 to start Labor Ready with $50,000 in investment capital. With one dispatch office in Kent, Washington, the company focused strictly on blue-collar labor, a segment most larger temporary agencies ignored. The company changed its name from Labor Ready to TrueBlue in late 2007 to emphasize the blue-collar nature of its staffing services.

Labor Ready Southwest, Inc.

1015 A St Unit A
Tacoma, WA 98402-5122
Phone: 1 (253) 680-8487

Firm Stats

Employer Type: Privately Owned
Branch Manager: Junell Fendel
Director of BI: Lisa Linke
Svp: Mark Tower
Employees (This Location): 148
Employees (All Locations): 723

Major Office Locations

Tacoma, WA

Other Locations

Dothan, AL
Fayetteville, AR
Bullhead City, AZ
Gilbert, AZ
Glendale, AZ
Goodyear, AZ
Phoenix, AZ
Tempe, AZ
Tucson, AZ
Bakersfield, CA
Bellflower, CA
Chula Vista, CA
City Of Industry, CA
Commerce, CA
Compton, CA
Concord, CA
Corona, CA
Costa Mesa, CA
El Cajon, CA
El Centro, CA
Elk Grove, CA
Escondido, CA
Fairfield, CA
Fresno, CA
Fullerton, CA
Hayward, CA
Inglewood, CA
Long Beach, CA
Los Angeles, CA
Modesto, CA
Newhall, CA
North Hills, CA
Oceanside, CA
Palmdale, CA
Palm Desert, CA
Pasadena, CA
Redding, CA
Redwood City, CA
Sacramento, CA
Salinas, CA
San Bernardino, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Santa Ana, CA
Santa Barbara, CA
Santa Maria, CA
Santa Rosa, CA
Simi Valley, CA
Soquel, CA
South Gate, CA
South San Francisco, CA
Stockton, CA
Temecula, CA
Torrance, CA
Turlock, CA
Upland, CA
Ventura, CA
Visalia, CA
Woodland Hills, CA
Yuba City, CA
Aurora, CO
Colorado Springs, CO
Denver, CO
Fort Collins, CO
Grand Junction, CO
Greeley, CO
Longmont, CO
Pueblo, CO
Thornton, CO
Westminster, CO
Doral, FL
Atlanta, GA
Griffith, IN
Wichita, KS
Albuquerque, NM
Las Cruces, NM
Las Vegas, NV
Schenectady, NY
Bethany, OK
Lawton, OK
Norman, OK
Oklahoma City, OK
Pittsburgh, PA
Abilene, TX
Amarillo, TX
Austin, TX
Brownsville, TX
Bryan, TX
Dallas, TX
Del Rio, TX
Denton, TX
Duncanville, TX
El Paso, TX
Forest Hill, TX
Fort Worth, TX
Grand Prairie, TX
Houston, TX
Killeen, TX
Laredo, TX
Longview, TX
Lubbock, TX
Mesquite, TX
Midland, TX
Plano, TX
San Angelo, TX
Sherman, TX
Texas City, TX
Tyler, TX
Victoria, TX
Waco, TX
Wichita Falls, TX
Ogden, UT
Provo, UT
Salt Lake City, UT
Sandy, UT
St George, UT
West Valley City, UT
Lynchburg, VA
Petersburg, VA