TrueBlue (TBI) 23 Oct 232023 Q3 Earnings call transcript

Greetings, and welcome to TrueBlue Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Derrek Gafford, Chief Financial Officer. Thank you, Derrek.

You may begin.

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

actual terms are filings, remind those begin, in forward-looking and our today's which update income and presenting or I at in These obligation to we want described reconciliations forward-looking encourage and assume adjustments everyone could net review and measures Investor statements, measure. materially understanding to from of our results we our forward-looking uncertainties, in change want and of revise one contain or tax Before statements. We adjusted are highlight to these impact to for non-GAAP under presentation trueblue.com uncertainties, release to use when you their the that our non-GAAP differ some our no when section which risks purpose. I in cause press slide call all the our release SEC complete Relations We do financial earnings statements. any subject calculating risks and of involving the today's results. a to of

We of will income prior we versus insight. this tax-affecting now of deductible blended method XX%, our adjustments provides tax-affecting using our with tax our statutory rate, taxable more useful adjustments effective and using be as investors rate believe all

comparison same in unless Relations made are website. comparisons year, the financial today the all net for convenience, we otherwise section the approach results adjusted and income, net adjusted period a of on quarters GAAP on U.S. using income back page to this our to your For prior stated. Investor diluted XXXX income have provided of under and the a net per share based years Any to reconciliation prior

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

Okay.

turn Let's to over the Taryn. call now

with being appreciate the $XXX quarter to us. Revenue welcome, compared was today's and you Derrek, call. million everyone, you, down year. for Thank to We XX% the prior

a TrueBlue our environment about staffing conscious choose of results full-time most and challenging in and recruiting. geographies, reflective and temporary fill. Across they and Our positions the are to clients remain selective cost verticals

help uncertainty, ensure are poised their navigate staying staffing highly and support clients expand. our to them this to we engaged Our to needs are teams when

sales to We opportunity teams capitalize are with and focus leveraging underpenetrated being nationwide. have particular centralized and proactive a by playbooks our on our every and high-growth we verticals geographies on approach

pursuing offering market needs focus, our clients highly solutions expansion shorter-term we meet opportunities. Along future Additionally, advancing our us position and immediate with for to while gain positioning flexible to our us digital including strategic projects share. priorities, committed to are order current longer-term capabilities, to to in remain we

the experience. efficiency improve For instance, we our are client Affinix drive JobStack platform to and associate and and candidate greater enhancing

also committed both We scope to are and footprint. our our expanding

underpenetrated into For health example, product focused skilled renewables as and focus our driver, is and well labor across market skilled such diversifying placements. as as within such care, in placements we're also staffing, and we're focused offerings. Gaining RPO, geographies RPO high-growth as verticals on on higher businesses. specialized high-growth share more Within skill trades sectors a

While staffing we to industry for and are currently outlook subdued, well positive, long-term demand remains capitalize. is positioned the

and and staffing deep RPO, We resources. footprint, have expertise in technology strong leading significant a

and committed. incredibly team is talented Our

provides and we immediate a to remain strong, vital serve are clients future service, have ready our and a and needs. values Our we mission. TrueBlue compelling

He pass for talent organization, the his moment want with call organization with his our and us to it discussion serve him well Before than Derrek. Derrek numerous to take contributions results, to entire our digital leadership people-first for bench decades has and his a that thank I to grateful more to TrueBlue and now. to I'll turn on our continue for finance company. built over a is further a over deep contribution. Thank during you will I X you,

Demand Taryn. you, one tight critical for environment. tough be as retaining labor and pools businesses hand, talent to a continues in services recognize act. Thank remain all soft today's balancing our On sorts businesses face how of is

underlying On broader with staffing the the demand labor further for the taking for to the down other of factors end our growth in workforce short hand, an with Revenue seen the increases XX%. some the the of of businesses was needs and in trends market businesses impacting pay uncertainty of as particularly or pay attempt rates, the have came future points are to as positions demand, U.S. Total in X In significant the at their our manage lower scale. costs, also of fill They more action. by employees existing roles And well the they They're asking about providers. These midpoint the judicious trajectory human do the more. for softer-than-expected their coupled factors, half on use capital in being of and are quarter to September. expectation their in August driven more selective first choose revenue quarter

our XX.X% Gross and a $XX are transition. Adjusted CEO half from for revenue sequential EBITDA the disciplined second mix encouraged prior we than staffing our a from XX as of PeopleScout. Workers' the $XX revenue favorable side received margin travel margin down results results higher of costs $XX a last highest in gross the associated as due of year. blended are due of to compensation of with our see reserves our rebounds. line in credits. that We the Included to this carries and by was PeopleReady's renewable development job we we demand on associated to less strengths believe versus business million operational down year. factors readiness benefit focused was the period quarter which increase $X These the fiscal declined year, business, income $X to impact in percentage this revenue last trends of to costs tax decline the a the QX was margin while of as September will points, for into breakeven and were last of spread a $XX year. revenue partially costs week business lower and due rate of excluding share million the Adjusted our in adjusted business, X% with also delivered bill, positive while our million, million with our pay quarter. decreased between consecutive which pricing inflation. SG&A roughly the quarter were market We income to offset increase last case tenth pass-through the at this for for From tax income its business, than and extra XX-week the maintaining was year, net which an income million $X October, our basis be energy impact mix million when associated driven X%, patterns. our in this well remain weekly million year. down SG&A of to enhance decreased net historical business, net recognized loss Looking are QX profitability, our in favorable PeopleReady perspective, the quarter, rate managing quarter with by of

while specific renewable be energy our solid segment Now continue while have was points. decreased retail, basis and segments. challenging continues of our revenue results transportation The growth. let's to our most verticals, down margin the to XX%, business profit and profit XXX segment service to turn decreased XX% PeopleReady industries

in and with points. rates decreased choose drifted they SG&A this, attempting hiring We XXXX, continuing consistently the employee to to X.X% inflationary use our and soft, demand national some are employees or to compared The resilience more with throughout We fill, produced pay points. rate basis revenue would the down characterize XX%, United accounts. margin less XX%, decreased remain cover customers XX% contraction, fill States. Quit in segment priority internal also RPO positive PeopleManagement medium-sized clients to to to in resources business current decreased Being bill XX% have environment and roles pay inflation, employee for expense. XXX churn in playing pressures margin as customers. business the with resulting and basis healthy up segment greater X.X%. PeopleScout to an rates rates XX%. profit profit is jobs. Also and rates of another seeing the lower the of our up with important XXX small segment op our disciplined freezes Despite continuing down quarter bill was their quit while produced choose larger segment margin be in PeopleScout a between help was jobs into while pricing spread decreased segment the are our selective margin profit revenue initiating to profit as others

the sheet. to balance turn let's Now

over and with shape. We good availability. Our debt, balance in borrowing sheet finished million is $XX no million cash quarter the of in $XXX

additional Before color moment I'd to of items. take like a provide on couple a we forward-looking up, wrap to

our everyone of million First, similar this headwind which due incremental seasonal on to to that add to year will revenue fiscal the expected profit week, to remind include million a low XXXX, $XX is volume. XXth a $XX slight fourth I want and to quarter

a of on XX% decline we comparable a revenue Second, expect to XX-week XX% basis.

trends too soon our staying fact While staffing most expectations, side we business has on power. it's the are the recent the weekly to whether by followed that of revenue encouraged have the historical trend tell

today. on presentation see our website details our additional outlook, our earnings For to please posted

to XXXX, staying disciplined. it we down As think about for planning comes

actions, management to preserving cost been also We operational to while operating plan we additional this take strengths with actions and challenging. prepared our in cost become should the continue environment pricing focused more and course XXXX. We're have our management

I a ensure on year serve tenure month adviser and on investment end to been the community through Now an will smooth over employees, pleasure XX-year It transition. a my last my as here. will note, CFO, of this help a to personal has as our be while this be customers the our staying

call our questions. remarks. the now please Okay. open This for concludes prepared Operator,

from first with BMO Our Markets. Instructions] [Operator Capital question Jeffrey comes Silber

last but to that's in difficult of competitive years and wanted Derrek, especially And you different or over of a thank space, anything Is best in quarters of the the business terms know you been Wow, it's luck, all I a before the so. long start, it time. I to more help XX to the been your there's this there for environment visibility the guidance. making of past wish just lack have going of guidance? or seem provide tough somewhat in the I your couple on

I don't some brands industry staffing at and market. the Jeff. with visibility as staffing take niches of our of than think our a are The less parts the you've way visible noted, guidance and in the many particularly so, look our we even

of how that the guidance the really setting call the So into look a the on mind probability kind conference is, we're that's try up. things before or things And trends kind take we right to unless shot at -- down see at trending. a look of on something here that -- our the we've way in a we sign are might turn we or something that taking call. build coming turn to extra just -- in that don't tick might reasonable up We little a something seeing we're got of

And took a in step was, into so saw went about in really And PeopleScout. much pretty like what we really at just we August, down, quarter as there. particularly out also July of came we things PeopleReady, then PeopleManagement this management hung thought. kind

of of that back kind fact, September. of end the September, then run really things above those we revenue so from a we industry didn't and verticals actually the of nicely into I what didn't came normally rally extent, step industry, into down had and to with retail. really as sequential of took exception as the We the lesser one talked step-up transportation live a up rate of as would well. industry step were all manufacturing A threw And coming. That bit That's X continued us that saw mark, perspective. industries we that bounced a at off took a couple and forward that vertical, those September, actually see a see into what the a other matter saw what all we went the their back August, of we about retail we sequential to

to right going and the outlook fourth on so have And look made assumption October, that, this set quarter we the into going for trends. going with the back that X our as last staffing historical we weeks guidance into the sequential quarter, we're businesses, for has been the we line, And at that's everything continue.

Okay. be bit management the where you That's get times will about in management. Can we in cost that talked A few coming? cost more a you helpful. think remarks, prepared terms color little of

so done this Well, what about year. far Well, let's talk we've sure.

to And so was I'm going shared been have that into in cost of comparison our about would talked cost all our those those we when not budget year, fair for our the you amount really this outlook have actions coming February costs year with you sales. of year through of million about where to running which the are are a of talk out what year. We've first costs, this through running cut been with SG&A $XX we though, in

costs down started, cost year if about the where we're people us. say the are for keep this mind, first we about X,XXX not fact, those line. That's where sale item they that's it recruiting down pep some SG&A are sales a because In X/X from through cost PeopleScout, of running when brand. And of we of at these in book actions, in I of

of some to we've restructuring then the of taken. would seeing what severance those. And we've million we costs and not you're actions the workforce had consider $XX unique about So that related

we've transition that But had those worked year. all past against far those We also actions we have things are are that so with We've the negated those, it. so seeing inflation some But rate. had this cost not notable us, some our CEO costs run also that of once you're built those. have into get all taken

to also the on some gains some together, As really for did and technology remarks, XXXX. as finish I disciplined in next company, though, management, in that chance the XX% the get of will to in doing. XX% cost XXXX recap some I alluded the better maybe is, be worse. forward the for in talking made basics We some there be costs can think more delivery like And be company actions. The mean what just on and a centralization, of we those for plans industry, exercise. just things company's that for by you quarter some process fourth to after give things lowering And though, come prepared service kind preparing XXXX, specifics, really stay in the Hard look color probably it that things we there's focused plans planning we get there's in to some to to and that you, through about they're is really to a chance pull a I it this disciplined to say. With downside for to year the odds company our through more February. results what on to planning those you the able some harder

more want All sneak If the one Great. I just -- question. right. I just just to in could clarify follow-up guidance.

So million $XXX to million since to basis, week to $XXX a that but XX-week to XXth quarter, $XX need get $XXX $XXX that we million on top the in is to million. of a is million million $XX the to add on Is there correct?

Yes, right. that's exactly

think a do. to basis, -- both real results. But add And to so decretive the XX-week to ways way easiest But that on quarter. all perspective, it the we low the comparable a some think line. on other you it's a than we provide that our Don't of so -- in you and mentioned. revenue. from we've If these we think had quarter to year. to more bottom Add we'll to practice just do don't easiest more anything XXth time, anything, to exactly It's any it's with week of what that slightly need you is over things the else you give seasonal the GAAP and XX-week years kind it's we like some

Kartik Northcoast question Research. next comes the from with of Mehta Our line

did, first up. -- of if might of but about weeks trends I talked know you what apologize, those than I if October, this, and kind different the you September already wondering, anything Or mentioned you if part firming you I'm latter maybe have saw you you you Derrek, of continue? few anticipated?

Yes.

about then to talk about talk let's year-over-year run from a things perspective How things and are rate. looking. you So on --

So that's just the -- mind. talk trends quarter well were on sometimes the about and for as might people's what because we

during was quarter, around XX%. the quarter down revenue XX%. month right for Every the was So

very a So perspective. steady year-over-year decline from

As through the weeks revenue we of the declined. X October, first come

businesses, PO, the But were we a is provide down for Now staffing monthly weeks, this and we X business businesses, staffing monthly basis. those our for on bill first PeopleScout our metrics through only XX% year-over-year. our the

in Now, if a a September take our of middle third we look through of run rate to businesses. the perspective week from the perspective, sequential October staffing

would we were with those of as historical up standards. ramping All expect

we've of really signs So to. in we're referring of press you that saw That's prepared remarks our some stabilization. our in potential what seen release

encouraged not with And share of We're we're the So latest trend recent most by that. can we're on banking we kind but from it. that that's the encouraged it, by you. perspective

by I And market. progressing, mentioned where said about already, you know were this I know you couple things going on but then some demand you warrant a well. few talked of of but curious you where had already end also are a things

market. So just the thoughts end on

the I asked what question and it, in had asking of quarter. kind happened kind yes, come had Jeff the guidance up, Well, had believe about of

And so the that of was explanation that.

on to others and out side kind weaken, negative of we right at be with are averages. continues strengthening are expectation. line we've in That little And but historical the a retail. all our exception in is, looking with think we've main better good expected, perspective. takeaway are most the of got so We've of some really that of the trends would I seen those trends got if retail. what that Really, The than some the sequential to wanted actually from overall are one sequential go the one performed we call stabilization a enhance

last Perfect. And then just question. one

at business being about down you look bit staffing a and the segments, little talked XX%. As you your about

you look segments. business the expectations of as the Just at other X

I'm midpoints. off the quarter, talking fourth Well, given I'm numbers, to but ranges going if going we're to Yes. midpoint. just you about just quote We've to go give less

So for for That's our at the the the PeopleReady XX% quarter company fourth outlook business about is for segments, PeopleScout. about and XX%. XX% for our midpoint PeopleManagement, of be staffing X down RPO our to

next question Our line comes Sidoti. Marc the of from Riddick with

you forward little everything goes that Derrek, forward first certainly hope that I the sort and little for remarks. there. And your and the renewables sort on that to -- revenue years, on all to flow. quick looking of effect And thank could on revenue assistance, touch follow-up Maybe you sort into wanted light and the in the commentary moving a how the touched the looking and impact? on you a more you're all shed of prepared well Just of of just over pass-through mix cash bit for then have I in want a plays did to mix

when Well, that talking about renewable been Yes. a we're space, for bright has spot the us.

about if we're for renewable basis, so XX%. a And up us year-over-year on talking was energy

so there. we've be year-over-year strong a that's dynamic continuing each on quarter rate And basis, to really been just not some for building but run a us, sequentially,

energy was quarter our third $XX renewable in for about million the So total.

Okay.

is helpful. I investments to up as the in on demand thinking digital definitely wondering we about if have potential though cash be for about to there we there challenging capabilities? needs of anything a should then times that be coming cash a having is internal advantageous. we flow sort have anything on there lumpy as have would gain that be nice impact that there certainly far that certainly far horizon the in as sheet balance are quarters? It mix should the Or any as clean as thinking and very Is follow was That's Okay. the prioritization. seemed know usage -- there. I could that

been perspective, of in lumpy perspective, use in has as perspective, CapEx really technology. priority, expense there. flow business. a well cash out capital a an investing of capital and back the as a operating No, use From from our nothing both That perspective, from largely

there. is business. that are done be to the focused we digitally improvements and There's future more lot a So and that the some in have to very being the company on excited transforming there about made still be

percentage trim going stay to some on into in that have market total we're for advantageous think to our look and that dollars is, what we That at like. Outside We true prices been about shareholders. conditions year. year, to we doesn't next that, stock this spot those. the might of returning of this bought in of going back So the look mean next as back depending We favorite cap. both -- capital pretty a

pretty in much And year, of sheet that been we where really so balance the still strong. keep want in That's bought about alignment with years. back X% this We most market we've to cap.

against a leverage. of have know, times, we've for way up. In operating business, financial As is which works in the lot of on us got is challenging when to more leverage this negative revenue And you operating it's that leverage great operating not leverage on us. important top

share the So RPO main recovering perspective, not the we're the business thoughts about future. is talked on at RPO running That's to a less in on just at out -- and staffing perspective part. tuck-ins acquisitions stay that right some a development ruling focus we're priority though, the now, business, from space. in Really moment. business, of current kind that perspective, an going We've look the is we're just repurchases, more something about disciplined it. From any giving acquisition you taking the

last that out the didn't the after of the sort And I'd close the the announcement Officer. thing then Okay. addition if Great. ask be I People on Chief remiss of came about

that and talk a little maybe So a I that. about little was shed if on light bit wondering could you

overall. he'll Sure. regarding his with forward He new the Thank to to all looking outstanding contribution say, leadership is team really certainly overall, and move the I that you the announcement I'm make This HR, glad Marc. we so to impressed support us Chief experience actually, as of today, first brings aspects People us of in you, And it's Officer, us strength would speaking. just Greg our Netolicky, here. joined Taryn day. saw incredibly forward our

line the Baird. question of Marcon Mark with next comes Our from

working the my to great Derrek. years, you over thanks XX It's Derrek. extend last me been with let And

bit the some -- really are clients been Can done. Can have you pulling little talk everything just the about what in-house. a commentary to There's that resources clients with appreciate little So their business? pulling like bit percentage a talk back you've regards are some PeopleScout you about pulling -- of back, also versus what terms seeing that volumes sight be new you things line you And you're are position can coming in are percentage in of and and in describe what particular rates bringing about up? your decisions RFPs in-house? And that could of -- any how competitive of thinking win terms space?

Sure.

-- primary So relied on business, internal within the in slowdown. talent a is and keeping them reduced during a of customers Mark, time customers the hiring our PeopleScout existing around acquisition focus the our internal driver really and volumes busy more retaining it's here that team where the have on resources,

those engaged slower and during needs and as focused their on this support their busy increase, retained we're ensuring recruiters certainly -- still they're to internal customers time. keep but with they're ready really able So them that to

hiring across seeing lower volumes. the board we're So

taking longer to about size deal our what deal the seeing. in average are an close. average year, are just additional gain customers pipeline. the million on approval on I pipeline, that now, their to initiated Some perspective, the process as look of deals in from overall down, was requirements would needs size we our hiring are be. From million what a $X is sales slow perspective, or the terms just in future accustomed they more It's insight down, just say, freezes to may hiring have of just to $X process and Last

PeopleScout. We some service supplement are recruiting On-Demand, We in solutions offering and we're RPO where seeing called activity shorter-term solutions. offer in-house Recruiter to with teams recruiters a our project

opportunities will expand those to their we kind solutions and the those with can rebound. -- when rebound upon relationships needs and customers of engaged provide stay So when

any, And just then, point that down you their but are the and they to lower what they're vendor, current they're internal extent, to keeping just the clients volume gotten did still your as the up -- where resources, clients what -- lose so percentage needs any have have of don't you, clients if come of what should a and Taryn, versus needs percentage going beyond through completely?

Yes. them percentage, have small of at with this we It's -- have customers taken just point. a volume don't couple a whatsoever that any

transportation, Great. things till picking -- just Okay. that you're segments before And if of favorable like PeopleReady or commentary up? much down, and range? a we about bit think side. And that to anything say the on stabilizing couple Maybe margin little that kind RPO the trend of do management have sound are. But investors but manufacturing the side, gave it you the If that's showing are end stability, about determining a of the on then cost like should saying continue because typically where more -- didn't you side? the doesn't things environment on of month how room like in you things how wait terms

stabilization potential Mark, staffing I'll take some signs that seeing in one. our Yes, we about businesses. did talk of

that seen with yet not We PeopleScout. have

we expect a call don't would to that it. One, side. we want stabilization it stable. This period think even I short on the been the see staffing However, to if has

whether we're we power. now seeing too as it tell said before, it So has to staying soon

to probably staffing see cycles. side. stabilization the However, experience been would This we through start on is first, where has is our multiple

see things of we with see off, follow, follow. When then placement XX% and we expect profile, like profit kind from PeopleScout can a to to we stabilize you Just expect staffing drop segment margin in then tend would on first this to the it would side go the and and margin. turned staffing comes see to improve even

on-site most it's don't our have variable of There the minimums of that that standpoint running. is we the from to branch locations where operations. businesses, all this out so are here keep We there. have don't have And to staffed be

to RPO too, flexibility there. certain it comes when Now more minimums, there are but clients, there's

XX% we margin. So in still a turned

an do there's we a some number heard technology from annual need at to a an that to more shot margin digits, flowing had plus. from perspective earlier basis, to got from of think keep that celebrity quarters be into if my think that of downsize keeping a we annual at least basis, but we a can about both folks single those at protect good try to And we can on and perspective, XX% You've perspective, margins. we've to, statistics on the that lumpy, we people service

about I XXXX And with to and of as margin. is we -- do But XXXX. would hit mean, like that a QX Or at seem of when go? about that of were into QX you digits, XX% $XX get fourth that's think low like we huge kind the by was the running single COVID, go XXXX, a -- could you during million, -- you there even quarter in as Okay. the like margins Obviously, able of like fourth think? when as were does kind to, quarter, the

I guess to get see operating where on recession bona top environment what see have we'll were to perspective. in single we're could Well, at another of we fide now, from right things If an digits. happens

we I do rate think GDP make we've run realm. what got, there, what and slippage the with single-digit the that out keeping we positive just we're looking at with still to right -- it like talked place, feel of we've a about, in now, little adjustments can with out some

some us in an Okay. digitization of can Great. And then give terms the the of update with you in terms regards statistics? JobStack to and of PeopleReady, efforts,

business. that. certainly to PeopleReady JobStack Sure. our critical be continued component a has of to do Happy

have We associates and about engage that of XX,XXX -- XXX utilizing at any given our app XX% customers time. the our

really internal customers, are and our our around centered of to focusing in improving the JobStack -- with As the continuing and staff. Derrek associates focus development our experience investment all mentioned, for we usability

a you of couple give I'll So examples.

associates time clients our app, their assignment now be quickly On able in our and more to time directly ends. once are to the client which paid saved the has them approve side, allows

the improving searching job our which been associates a into for kind capabilities, desire we've that they improved by associates. our visibility efficiency increasing And jobs, available side, of staff, including was filtering matched associate upon level. the platform location and -- their proximity, now be On through for to have orders can the internal

focused again, improving the So to we upon make on continue improvements, those really usability.

accruals in margins, on quite -- favorable. mentioned anything of the workers' Okay. the Great. point out then there And Anything the basically we unusual? comp -- terms you gross to weren't that as

long-tail can that's like it and any a insurance on balance know, and could for little be you at as there's it's forth, lumpy a times. big -- would liability. When adjustments and sheet, us. our Mark. cost And a company, so, with that go really a think don't It's of I kind have you big other No, just back item

-- the so to same that's less -- really just we year year. There were what it. quarter prior saw were there And reserves this favorable than quarter adjustments last

quarter. It However, mean, in X.X% there's it. quarter. was when last revenue consistency X.X% a year. expense, comp of It last of the about as of at X.X% I in QX a percentage was you a in came look this workers' lot take

-- work of benefit in lower Just QX last there year, hitting larger benefit lumpy nice was that line. were -- the there than a it was because comp

get typically we Okay. that harvest cash were balance and like sheet get What's the trending? occurring Great. receivables look we we flows, at there? it the And a how when of take are DSOs the funds revenue then on normal use of a receivables, on accounts declines. didn't looked Because cash,

to the it's $XX the million it when for your on quarter be for comes doing receivable, at Well, year, year, to the you least own positive. the may math accounts

the Right. for But talking was I about, sequentially. quarter

Yes. is question, get if DSO kind your day, Well, to just we year-over-year. of up year-over-year, for X about the

we're big our were not revenue saw from on the look if QX, same to year. dollars about QX accounts side. We slide take really a the -- a receivable this just So seeing you

went stable. we just didn't anything from where seeing so of any They were And have to QX kind QX decline. -- we

of X increase So unseasonably up was a year-over-year. day well. but of DSO year more we as QX had it bit low that. was this than Sequentially,

quarter. timing mean, should there's flow I pretty having should difference free just in -- cash -- the nicely flow mean, harvesting up we I here fourth should a But no? free end in cash some quarter, the in fourth Okay. rebound

That's right. That's exactly right.

talking -- forward to Look on Great. call. Okay. Thanks. post you to

I'd no Taryn are closing back further questions the turn . at There time. to floor like over for to this comments.

our connect forward look to many to want work. everyone, of and operator, continued TrueBlue mission people focus the joining meeting today. progress. I our year Thank on you, at on the investor and entire you team thank thank updated you, and for their coming I to and tremendous events keeping for fulfilling you over efforts also us

don't hesitate reach any to evening. If questions, you have a out. Have please great

you. today's concludes teleconference. Thank This

time. this at your lines you your disconnect may Thank participation. You for