TrueBlue (TBI) risk factors, FY2024 10-K

RISKS RELATED TO OUR COMPANY’S OPERATIONS

1. 01Demand for our workforce solutions is significantly affected by fluctuations in general economic conditions
2. 02Advances in technology may disrupt the labor and recruiting markets and weaken the demand for our services. Failure to constantly improve our technology to meet the expectations of clients, associates, candidates and employees could have a negative impact on our financial position and results of operations
3. 03We are dependent on obtaining workers’ compensation and other insurance coverage at commercially reasonable terms. Unexpected changes in claim trends on our workers’ compensation or an inability to obtain appropriate insurance coverage may negatively impact our financial condition
4. 04The loss of, continued reduction in or substantial decline in revenue from larger clients or certain industries could have a material adverse effect on our revenues, profitability and liquidity
5. 05Our business and operations have undergone, and will continue to undergo, significant change as we seek to improve our operational and support effectiveness, which if not managed effectively could have an adverse outcome on our business and results of operations
6. 06New business initiatives may cause us to incur additional expenditures and could have an adverse effect on our business
7. 07Damage to our brands and reputation could have an adverse effect on our business
8. 08We may not achieve the intended effects of our business strategy which could negatively impact our results
9. 09Acquisitions may have an adverse effect on our business
10. 10As a result of past acquisitions, we have maintained goodwill and intangible assets on our balance sheet that may decrease our earnings or increase our losses if we recognize an impairment
11. 11Outsourcing certain aspects of our business could result in disruption and increased costs

RISKS RELATED TO OUR FINANCIAL POSITION

1. 12We cannot guarantee that we will repurchase our common stock pursuant to our share repurchase program or that our share repurchase program will enhance long-term shareholder value
2. 13Our level of debt and restrictions in our credit agreement could negatively affect our operations and limit our liquidity and our ability to react to changes in the economy
3. 14We may not be able to align our cost structure with our current revenue level, which in turn may require additional financing in the future that may not be available or may be available only on unfavorable terms
4. 15We may have additional tax liabilities that exceed our estimates
5. 16Failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting or fail to prevent fraud

LEGAL AND COMPLIANCE RELATED RISKS

1. 17We may experience employment-related claims, commercial indemnification claims and other legal proceedings that could materially harm our business
2. 18Failure to protect our intellectual property could harm our business, and we face the risk that our services or products may infringe upon the intellectual property rights or contractual rights of others
3. 19Our efforts to maintain adequate compliance policies and controls may not prevent violations that could result in significant fines and penalties

RISKS RELATED TO OUR INDUSTRY

1. 20Our workforce solutions are subject to extensive government regulation and the imposition of additional regulations, which could materially harm our future earnings
2. 21We may be unable to attract sufficient qualified associates and candidates to meet the needs of our clients
3. 22We operate in a highly competitive industry and may be unable to retain clients, market share or profit margins
4. 23Our business is subject to evolving regulations and stakeholders’ expectations, including environmental, social and governance (“ESG”) matters, that could expose us to numerous risks

RISKS RELATED TO CYBERSECURITY, DATA PRIVACY AND USE OF TECHNOLOGY

1. 24Cybersecurity vulnerabilities and other incidents could lead to the improper disclosure of information about our clients, candidates, associates and employees, which could materially harm our business
2. 25Data security, data privacy, and data protection laws and other technology regulations increase our costs
3. 26Failure of our information technology systems could adversely affect our operating results
4. 27Our facilities and operations are vulnerable to damage and interruption
5. 28Our development and use of AI technology involves risks and uncertainties that could expose us to legal, reputational and financial harm
6. 29Our results of operations could materially deteriorate if we fail to attract, develop and retain qualified employees
7. 30Loss of our executive officers or other key personnel or other changes to our management team could disrupt our operations or harm our business
8. 31We may be subject to actions of activist shareholders, which could disrupt our business and impact the trading value of our securities
9. 32We face risks in operating internationally
10. 33The price of our common stock may fluctuate significantly, which may result in losses for investors
11. 34Natural disasters and unusual weather conditions, pandemic outbreaks, terrorist acts, global political events and other serious catastrophic events could disrupt business and otherwise materially adversely affect our business and financial condition