Carl Schweihs: Yes, and I think that’s really we’re right kind of point out that skilled business, right? That kind of takes our skilled field network, our renewable business, Centerline, which is our driver business, and that’s really where we’re starting to see better demand trends. Taryn also mentioned earlier that we’ve seen manufacturing start to grow within our onsite business, so that’s another bright spot that we’ve seen across the portfolio.
Mark Marcon: Great. And you did a nice job in terms of managing SG&A. Can you talk a little bit about like what your expectations would be for SG&A as we look towards the second quarter?
Carl Schweihs: Yes absolutely. So, yes, we just kind of look back on Q1, right, we guided to about 9% decline year-over-year, we overdelivered on those cost actions and got to a minus 13%. We were guiding to a midpoint of $99 million, which is roughly down call it 18% year-over-year. It is important to note, Mark, that that includes kind of a $7 million one-time benefit from our COVID subsidies as we talked about in the prepared remarks. So, if you adjust that out, it’s really in line with Q1 at roughly down 13% or about $106 million for the quarter. We expect that to carry through the year. We will make some selective investments as we see opportunities to accelerate growth, but it’s not going to be anything material. We actually — we feel like we’ve made really good progress on SG&A over the past year and many of these reductions are going to be permanent.
Some will come back, obviously, as we get higher revenue, but we feel like when we look at the overall business, we deliver anywhere between 17% and 22% across all of the segments. And segment profit, we think on a blended average with the actions we’ve take, we’d expect to be on the high side of that range as revenue recovers.
Taryn Owen: Yes, Mark, just to add to that. An important element of our strategy is to simplify our organization structure. So, we’re really looking at making structural changes to the business that will help drive efficiencies, bring us closer to our customers, and not only increased profitability, but also get our business and teams closer together, so that we are increasing cross-selling opportunities as well.
Mark Marcon: Great. And then the balance sheet is in really good shape. Can you talk a little bit about simplification and structural? And what sort of potential strategic changes you’re contemplating at this point?
Taryn Owen: Sure. We’re really focused on three strategic priorities. One is advancing our digital transformation across the enterprise. We made really good progress on that in the last quarter with our continued rollout of our own proprietary JobStack app. So, really pleased with the project there. The second is expansion of market presence into high-growth under-penetrated market. So we have some wins to share there around wins in health care and our PeopleScout business. Just a couple of examples, we won a deal with a hearing health care provider where we’re hiring both retail roles and audiologists in Australia, New Zealand and in India. We won to deal with a home health care provider, where we’re going to hire 300 clinical roles across 15 states in our RPO business.
And we’ve just engaged with private and charter schools to help them hire staff nurses within their schools, so really good progress around that strategic initiative. And then finally, as you mentioned, simplifying our org structure is really our third priority that we’re focused on. And we’ve made good progress there, as Carl mentioned and is reflected in the SG&A reduction. Just a couple of examples, we brought together leadership of our two on-site businesses to help maximize synergies within those two businesses. We brought together our Centerline and our PeopleReady skilled trades brands under single leadership, as we think there’s an opportunity there for additional synergies and cross-selling opportunities. And as I mentioned in the prepared remarks, we’ve streamlined our reporting structure and PeopleScout as well with our EMEA and APAC managing directors reporting directly to our PeopleScout president.
So with that org structure alignment not only are we able to better leverage our cost structure, but we’re starting to see some wins come to life through bringing our teams closer together between each of our brands, so good progress on those three priorities.
Mark Marcon: That’s good to hear. And can you elaborate a little bit with regards to digital in terms of the transformation? And putting the JobStack on your proprietary system, what are the actual on-the-ground benefits that you’re actually seeing from that? Is it easier from a candidate’s perspective, easier from a client’s perspective? Are the people sticking through the entire sign-on process? What are you seeing there?
Taryn Owen: Great. Thank you for that question, Mark. I’ll just start with the strategy around having our own version of JobStack allows us to control our road map and implement competitive enhancements and quickly address the evolving needs of our customers and our associates that are unique to our business, and this is the level of control that we did not have in the past. Around improved usability, there are a couple of things that I can point to in our initial release. The first is that our associates can now complete an application and onboarding paperwork fully in the digital application, ultimately reducing the time that it takes for them to be deployed to an assignment. It also has more robust job searching and ability to filter based on location proximity for our associates.
For our customers, we are able to respond very quickly to their feedback. So for example, we have a new time approval workflow in the new JobStack. And we got some feedback early on that when a customer had multiple associates on assignment it was too cumbersome to ultimately approve the time. And so we were able to very quickly change that workflow and address the customers’ needs. So those are a couple of examples. The third I would give is for our internal staff, our field employees who are working so hard every day to put people to work. It has improved visibility for our field staff into orders and associates that are available through the desktop application. So those are a couple of highlights for you.
Mark Marcon: That’s great. Thank you.
Taryn Owen: Thank you, Mark.
Operator: Thank you. Our next question comes from the line of Marc Riddick with Sidoti. Please proceed with your question.
Marc Riddick: Hi. Good evening.
Taryn Owen: Hi, Mark.
Carl Schweihs: Hey, Mark.
Marc Riddick: So I wanted to touch — one of the things that I sort of noticed the — for the 2Q guide on the share count that you’re using that’s below where you finish the — where first quarter average was, I was wondering if you could talk a little bit about, is that a function of the cadence of the timing of share repurchases? Or are we looking at a pickup in the pace of share repurchase activity in the second quarter?
