TRUEBLUE, INC. COMMENT ON FORWARD LOOKING STATEMENTS
Certain statements in this Form 10-Q, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, the impact of and our ongoing response to COVID-19, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve risks and uncertainties, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "goal," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially from those expressed or implied in our forward-looking statements, including the risks and uncertainties described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" (Part I, Item 2 of this Form 10-Q),"Quantitative and Qualitative Disclosures about Market Risk" (Part I, Item 3 of this Form 10-Q), and "Risk Factors" (Part II, Item 1A of this Form 10-Q). We undertake no duty to update or revise publicly any of the forward-looking statements after the date of this report or to conform such statements to actual results or to changes in our expectations, whether because of new information, future events, or otherwise.
BUSINESS OVERVIEW
TrueBlue, Inc. (the "company," "TrueBlue," "we," "us" and "our") is a leading provider of specialized workforce solutions that help our clients improve productivity and grow their businesses. Client demand for contingent workforce solutions and outsourced recruiting services is cyclical and dependent on the overall strength of the economy and labor market, as well as trends in workforce flexibility. During periods of rising economic uncertainty, clients reduce their contingent labor in response to lower volumes and reduced appetite for expanding production or inventory, which reduces the demand for our services. That environment also reduces demand for permanent placement recruiting, whether outsourced or in-house. However, as the economy emerges from periods of uncertainty, contingent labor providers are uniquely positioned to respond quickly to increasing demand for labor and rapidly fill new or temporary positions, replace absent employees, and convert fixed labor costs to variable costs. Similarly, companies often reduce or eliminate their in-house recruiting teams during economic downturns, and turn to hybrid or fully outsourced recruiting models during periods of rapid re-hiring and high employee turnover. In order to competitively differentiate our services in these highly fragmented industries, we are committed to executing our digital strategies, combined with a focus on improving operational efficiencies in order to gain market share. We have implemented these core strategies for each of our business segments:PeopleReady , PeopleManagement and PeopleScout.
PeopleReady , our largest segment by revenue, provides clients with access to qualified associates through a wide range of staffing solutions for on-demand contingent general and skilled labor.PeopleReady connects people with work in a broad range of industries through our network of branches across all 50 states inthe United States ("U.S."),Canada andPuerto Rico , and increasingly through our industry-leading mobile app, JobStackTM. JobStack creates a virtual exchange between our associates and clients, and allows our branch resources to expand their recruiting, sales and service delivery efforts. JobStack is competitively differentiating our services, expanding our reach into new demographics, and improving our service delivery and work order fill rates. JobStack has also enabled our recent service center and full virtual service center initiatives, which we expect will result in a greater focus on sales and improved customer service, as well as a more efficient and scalable service delivery model.
PeopleManagement
PeopleManagement, our second largest segment by revenue, provides recruitment and on-site management of a facility's contingent industrial workforce throughout theU.S. ,Canada andPuerto Rico . In comparison withPeopleReady , services are larger in scale and longer in duration, and dedicated service teams are located at the client's facility as an integral part of the production and logistics process. We offer scalable solutions to meet the volume requirements of labor-intensive manufacturing, warehousing and distribution facilities, by providing large-scale sourcing, screening, recruiting and management of the contingent workforce. PeopleManagement also provides dedicated and contingent commercial truck drivers to the transportation and distribution industries through our Centerline Drivers ("Centerline") brand. Centerline matches drivers to each client's specific needs, allowing them to improve productivity, control costs, ensure compliance and deliver improved Page - 14
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service. Our primary focus at PeopleManagement continues to be growing our client base by targeting local and underserved markets, as well as investing in customer and associate care programs to improve retention.
PeopleScout
PeopleScout, our smallest segment by revenue, offers recruitment process
outsourcing ("RPO") and managed service provider ("MSP") solutions to a wide
variety of industries and geographies, primarily in the U.S. , Canada , the United
Kingdom and Australia . PeopleScout provides RPO services that manage talent
solutions spanning the global economy and talent advisory capabilities
supporting total workforce needs. Our programs deliver improved talent quality
and candidate experience, faster hiring, increased scalability, lower cost of
recruitment, greater flexibility, and improved regulatory compliance. We
leverage our proprietary technology platform (AffinixTM) for sourcing, screening
and delivering a permanent workforce, along with dedicated service delivery
teams to work as an integrated partner with our clients. PeopleScout also
includes our MSP business, which manages our clients' contingent labor programs
including vendor selection, performance management, compliance monitoring and
risk management. Our primary focus at PeopleScout is to leverage our strong
brand reputation, continued investments in our sales team, and use of our
proprietary technology platform (Affinix) to capture opportunities in an
industry that is expanding rapidly post-pandemic.
Fiscal first quarter of 2022 highlights
Our strong performance from the prior year continued, as total company revenue grew 20.2% to$551.5 million for the thirteen weeks endedMarch 27, 2022 , compared to the same period in the prior year driven by strong overall demand for our services in all three segments.PeopleReady revenue grew 17.4% due to higher bill rates and improvement in labor supply. PeopleManagement revenue grew 8.0%, fueled by existing client growth despite global supply chain challenges, as well as strong demand for commercial trucking services. PeopleScout revenue grew 76.1% and continued to benefit from the post-pandemic hiring surge at new and existing clients, as companies are returning to hybrid and fully outsourced recruiting models. Total company gross profit as a percentage of revenue for the thirteen weeks endedMarch 27, 2022 increased by 130 basis points to 25.4%, compared to 24.1% for the same period in the prior year. This increase was primarily driven by higher bill rates compared to pay rates, and sales mix trending toward higher margin segments. Total company selling, general and administrative ("SG&A") expense increased 23.8% to$120.6 million , for the thirteen weeks endedMarch 27, 2022 , compared to the same period in the prior year. The overall increase in SG&A expense was primarily to support revenue growth of 20.2%. The additional increase in the current year was primarily due to the investments we are making to replace ourPeopleReady technology platform to better support our digital strategy and new service delivery models, which began during the fiscal fourth quarter of 2021. SG&A expense in the prior year benefited from the remaining temporary cost reductions taken during 2020 in response to the pandemic, which have been removed in the current year. Revenue growth, along with an improvement in gross profit as a percentage of revenue, more than offset the additional SG&A expense as a percentage of revenue, and resulted in net income improving to$10.5 million for the thirteen weeks endedMarch 27, 2022 compared to$6.9 million for the same period in the prior year. As ofMarch 27, 2022 , we were in a strong financial position with cash and cash equivalents of$36.7 million , total debt outstanding of$4.0 million ,$6.2 million utilized by outstanding standby letters of credit, and$289.8 million available under our revolving credit agreement ("Revolving Credit Facility"), for total liquidity of$326.6 million . Page - 15
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RESULTS OF OPERATIONS
Total company results
The following table presents selected financial data:
Thirteen weeks ended
Mar 27, Mar 28,
(in thousands, except percentages and per share data) 2022 % of revenue 2021 % of revenue
Revenue from services $ 551,515 $ 458,706
Gross profit 139,845 25.4 % 110,574 24.1 %
Selling, general and administrative expense 120,568 21.9 97,401 21.2
Depreciation and amortization 7,287 1.3 6,962 1.5
Income from operations 11,990 2.2 % 6,211 1.4 %
Interest expense and other income, net 505 575
Income before tax expense (benefit) 12,495 6,786
Income tax expense (benefit) 1,976 (112)
Net income $ 10,519 1.9 % $ 6,898 1.5 %
Net income per diluted share $ 0.30 $ 0.20
Revenue from services
Thirteen weeks ended
Mar 27,
Growth Segment % of
2022 % total 2021 total
Revenue from services:
PeopleReady $ 305,690 17.4 % 55.4 % $ 260,392 56.8 %
PeopleManagement 163,819 8.0 29.7 151,754 33.1
PeopleScout 82,006 76.1 14.9 46,560 10.1
Total company $ 551,515 20.2 % 100.0 % $ 458,706 100.0 %
Total company revenue grew 20.2% to $551.5 million for the thirteen weeks ended
March 27, 2022 , compared to the same period in the prior year. The growth was
driven by strong overall demand for our services in all segments.
PeopleReady revenue grew 17.4% to$305.7 million for the thirteen weeks endedMarch 27, 2022 , compared to the same period in the prior year. Revenue benefited from higher bill rates, which have increased ahead of pay rates as the labor supply has improved.PeopleReady revenue improved across most geographies and industries. Retail and hospitality benefited primarily from project work and increasing volumes from events, respectively. We believe the revenue growth has been supported by the use of our JobStack mobile app that digitally connects associates with work. During the first quarter of 2022,PeopleReady dispatched approximately 792,000 shifts via JobStack, compared to 716,000 for the same period in the prior year, and our digital fill rate increased to 59% at the higher volume of revenue, compared to 58% for the same period in the prior year.
PeopleManagement
PeopleManagement revenue grew 8.0% to$163.8 million for the thirteen weeks endedMarch 27, 2022 , compared to the same period in the prior year. PeopleManagement's revenue growth was due to existing client growth, despite the global supply chain challenges of our automotive and manufacturing clients, and strong demand for commercial trucking services. Page - 16
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PeopleScout
PeopleScout revenue grew 76.1% to $82.0 million for the thirteen weeks ended
March 27, 2022 , compared to the same period in the prior year. PeopleScout
revenue continued to benefit from the post-pandemic hiring surge that began at
the end of the fiscal second quarter of 2021, as companies began to return to
normal operations and increased their use of fully outsourced and hybrid
recruiting services. Revenue growth has been impacted by improved hiring volumes
and demand at existing clients, primarily within travel and leisure, as well as
new client business.
Gross profit
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Gross profit $ 139,845 $ 110,574
Percentage of revenue 25.4 % 24.1 %
Gross profit as a percentage of revenue grew 130 basis points to 25.4% for the
thirteen weeks ended March 27, 2022 , compared to 24.1% for the same period in
the prior year. Our staffing businesses contributed 110 basis points of
expansion of which 40 basis points was attributable to higher bill rates
compared to pay rates. An additional 30 basis points was attributable to sales
mix shift toward our PeopleReady segment, which has a higher gross margin
profile than PeopleManagement, our other staffing segment, as well as 20 basis
points due to customer mix. The remaining 20 basis point improvement was due to
lower workers' compensation costs. Our PeopleScout business contributed 20 basis
points of expansion primarily due to improved recruiter utilization on
increasing volumes.
SG&A expense
Thirteen weeks
ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Selling, general and administrative expense $ 120,568 $ 97,401
Percentage of revenue 21.9 % 21.2 %
Total company SG&A expense increased by $23.2 million or 23.8% for the thirteen
weeks ended March 27, 2022 , compared to the same period in the prior year. The
increase in SG&A expense was primarily to support revenue growth of 20.2%. As a
percentage of revenue, SG&A expense increased 70 basis points, the majority of
which was related to $2.6 million of costs incurred to replace our PeopleReady
technology platform to better support our digital strategy and new service
delivery models, which began during the fiscal fourth quarter of 2021. SG&A
expense in the prior year benefited from the remaining temporary cost reductions
taken during 2020 in response to the pandemic, which have been removed in the
current year.
Depreciation and amortization
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Depreciation and amortization $ 7,287 $ 6,962
Percentage of revenue 1.3 % 1.5 %
Depreciation and amortization increased for the thirteen weeks ended March 27,
2022 compared to the same period in the prior year, due to certain assets placed
into service during 2021, slightly offset by assets becoming fully amortized
during 2021.
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Income taxes
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Income tax expense (benefit) $ 1,976 $ (112)
Effective income tax rate 15.8 % (1.7) %
Our tax provision and our effective tax rate are subject to variation due to
several factors, including variability in accurately predicting our pre-tax and
taxable income and loss by jurisdiction, tax credits, government audit
developments, changes in laws, regulations and administrative practices, and
relative changes of 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 and loss. 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 or loss is lower.
The items creating a difference between income taxes computed at the statutory
federal income tax rate and income taxes reported on the Consolidated Statements
of Operations and Comprehensive Income are as follows:
Thirteen weeks ended
(in thousands, except percentages) $ 12,495 $ 6,786 Federal income tax expense at statutory rate 2,624 21.0% 1,425 21.0% Increase (decrease) resulting from: State income taxes, net of federal benefit 474 3.8 288 4.2 Coronavirus Aid, Relief and Economic Security Act - - 136 2.0 Hiring tax credits, net (1,142) (9.1) (2,737) (40.3) Non-deductible and non-taxable items 263 2.1 133 2.0 Stock-based compensation (619) (5.0) 291 4.3 Foreign taxes and other, net 376 3.0 352 5.1 Income tax expense (benefit)
For the thirteen weeks endedMarch 27, 2022 we incurred income tax expense of$2.0 million and had an effective tax rate of 15.8%, compared to a benefit of$0.1 million and an effective tax rate benefit of 1.7% for the same period in the prior year. The difference between the statutory federal income tax rate of 21% and our effective tax rate of 15.8% for the thirteen weeks endedMarch 27, 2022 was primarily due to the benefit of hiring credits, including the Work Opportunity Tax Credit ("WOTC"), as well as stock-based compensation, partially offset by state income taxes and other discrete adjustments. The low negative tax rate in the prior year was primarily due to the benefit of hiring credits exceeding the tax on the small amount of pre-tax income. WOTC, our primary hiring tax credit, is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. WOTC is generally calculated as a percentage of wages over a twelve-month period up to worker maximums by targeted groups. Based on historical results and business trends, we estimate the amount of WOTC we expect to earn related to wages of the current year. However, the estimate is subject to variation because 1) a small percentage of our workers qualify for one or more of the many targeted groups; 2) the targeted groups are subject to different incentive credit rates and limitations; 3) credits fluctuate depending on economic conditions and qualified worker retention periods; and 4) state and federal offices can delay their credit certification processing and have inconsistent certification rates. We recognize an adjustment to prior year hiring credits if credits certified by government offices differ from original estimates. The WOTC program has been approved through the end of 2025. Page - 18
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Segment performance
We evaluate performance based on segment revenue and segment profit. Segment
profit includes revenue, related cost of services, and ongoing operating
expenses directly attributable to the reportable segment. Segment profit
excludes goodwill and intangible asset impairment charges, depreciation and
amortization expense, unallocated corporate general and administrative expense,
interest expense, other income and expense, income taxes, and other adjustments
not considered to be ongoing. See Note 11: Segment Information, to our
consolidated financial statements found in Item 1 of this Quarterly Report on
Form 10-Q, for additional details on our reportable segments, as well as a
reconciliation of segment profit to income before tax expense (benefit).
Segment profit should not be considered a measure of financial performance in
isolation or as an alternative to net income on the Consolidated Statements of
Operations and Comprehensive Income in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP"), and may not be
comparable to similarly titled measures of other companies.
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Revenue from services $ 305,690 $ 260,392
Segment profit 16,219 11,860
Percentage of revenue 5.3 % 4.6 %
PeopleReady segment profit grew $4.4 million for the thirteen weeks ended
March 27, 2022 , and also grew as a percentage of revenue, compared to the same
period in the prior year. Segment profit growth was primarily due to higher bill
rates, which have increased ahead of pay rates as the labor supply has improved.
PeopleManagement segment performance was as follows:
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Revenue from services $ 163,819 $ 151,754
Segment profit 2,979 3,116
Percentage of revenue 1.8 % 2.1 %
PeopleManagement segment profit declined $0.1 million for the thirteen weeks
ended March 27, 2022 , and also declined as a percentage of revenue, compared to
the same period in the prior year. Segment profit declined for the thirteen
weeks ended March 27, 2022 primarily due to a benefit recorded in the prior year
related to accounts receivable credit loss reserves that did not reoccur in the
current period.
PeopleScout segment performance was as follows:
Thirteen weeks ended
(in thousands, except percentages) Mar 27, 2022 Mar 28, 2021
Revenue from services $ 82,006 $ 46,560
Segment profit 10,972 4,037
Percentage of revenue 13.4 % 8.7 %
PeopleScout segment profit grew $6.9 million for the thirteen weeks ended
March 27, 2022 , and also grew as a percentage of revenue, compared to the same
period in the prior year. Segment profit improved as the result of operating
leverage as volumes recovered within existing clients, especially within travel
and leisure.
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FUTURE OUTLOOK
The following highlights represent our operating outlook for the fiscal second
quarter and full year of 2022. These expectations are subject to revision as our
business changes with the overall economy.
Operating outlook
•We are not providing customary revenue guidance for the fiscal second quarter of 2022. Our historical second quarter sequential revenue growth has been approximately 8% over the prior five years, excluding the fiscal second quarter of 2020. However, revenue trends exitingMarch 2022 imply sequential revenue growth of 3% to 5%. •We anticipate gross margin contraction of between 60 and 20 basis points for the fiscal second quarter of 2022 compared to the same period in the prior year. For fiscal 2022, we anticipate gross margin changes between a contraction of 40 and expansion of 20 basis points, compared to the prior year. We expect higher workers' compensation expense to negatively impact gross margin. •For the fiscal second quarter of 2022, we anticipate SG&A expense to be between$126 million and$130 million . This includes approximately$3 million in costs to implement new cloud-based solutions atPeopleReady . We will continue to exercise disciplined cost management while making investments in sales resources and digital strategies to drive profitable revenue growth. We are also implementing pilot projects to further reduce the costs of ourPeopleReady branch network through a greater use of technology, centralizing work activities, and repurposing of job roles, while maintaining the strength of our geographic footprint. These pilots will occur through 2022 and, if successful, could lead to additional efficiencies in the future.
•We expect our effective income tax rate for fiscal 2022 to be between 14% and 18%.
Liquidity outlook •Capital expenditures and spending for software as a service assets for the fiscal second quarter of 2022 are expected to be approximately$12 million , and between$43 million and$48 million for fiscal 2022. We remain committed to technological innovation to transform our business for a digital future. We continue to make investments in online and mobile apps to improve access to associates and candidates, as well as improve the speed and ease of connecting them with our clients. We expect these investments will increase the competitive differentiation of our services over the long term, improve the efficiency of our service delivery, and reducePeopleReady's dependence on local branches to find associates and connect them with work. Examples includePeopleReady's JobStack mobile app and PeopleScout's Affinix talent acquisition technology. Page - 20
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LIQUIDITY AND CAPITAL RESOURCES
We believe we have a strong financial position and sufficient sources of funding to meet our short and long term obligations. As ofMarch 27, 2022 we had$36.7 million in cash and cash equivalents and$289.8 million available under our Revolving Credit Facility. We have an option to increase the total line of credit amount from$300 million to$450 million , subject to bank approval. Cash generated through our core operations is our primary source of liquidity. Our principal ongoing cash needs are to finance working capital, fund capital expenditures, repay outstanding Revolving Credit Facility balances, and execute share repurchases. We manage working capital through timely collection of accounts receivable, which we achieve through focused collection efforts and tightly monitoring trends in days sales outstanding. While client payment terms are generally 90 days or less, we pay our associates weekly, so additional financing through the use of our Revolving Credit Facility is sometimes necessary to support revenue growth. We also manage working capital through efficient cost management and strategically timing payments of accounts payable. We remain committed to technological innovation to transform our business for a digital future. As part of executing this strategy, we continue to make investments in online and mobile apps to improve access to associates and candidates, as well as to improve the speed and ease of connecting our clients and associates for our staffing business, and candidates for our RPO business. We expect these investments will increase the competitive differentiation of our services over the long term, improve the efficiency of our service delivery model, and reducePeopleReady's dependence on local branches to find associates and connect them with work. In addition, we continue to transition our back-office technology from on-premise software platforms to cloud-based software solutions, to increase automation and the efficiency of running our business. Outside of ongoing cash needed to support core operations, our insurance carriers and certain state workers' compensation programs require us to collateralize a portion of our workers' compensation obligation, for which they become responsible should we become insolvent. On a regular basis, these entities assess the amount of collateral they will require from us relative to our workers' compensation obligation. Such amounts can increase or decrease independent of our assessments and reserves. We continue to have risk that these collateral requirements may be increased by our insurers due to our loss history and market dynamics. We generally anticipate that our collateral commitments will continue to grow as we grow our business. We pay our premiums and deposit our collateral in installments. The collateral typically takes the form of cash and cash-backed instruments, highly rated investment grade securities, letters of credit, and surety bonds. Restricted cash and investments supporting our self-insured workers' compensation obligation are held in a trust at the Bank of New York Mellon ("Trust"), and are used to pay workers' compensation claims as they are filed. See Note 5:Workers' Compensation Insurance and Reserves, and Note 3: Restricted Cash and Investments, to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q, for details on our workers' compensation program as well as the restricted cash and investments held in Trust. We have established investment policy directives for the Trust with the first priority to preserve capital, second to ensure sufficient liquidity to pay workers' compensation claims, third to diversify the investment portfolio and fourth to maximize after-tax returns. Trust investments must meet minimum acceptable quality standards. The primary investments includeU.S. Treasury securities,U.S. agency debentures,U.S. agency mortgages, corporate securities and municipal securities. For those investments rated by nationally recognized statistical rating organizations the minimum ratings at time of purchase are: S&P Moody's Fitch Short-term rating A-1/SP-1 P-1/MIG-1 F-1 Long-term rating A A2 A Total collateral commitments decreased$2.5 million during the thirteen week period endedMarch 27, 2022 primarily due to lower collateral requirements from our insurance carriers and the use of collateral to satisfy workers' compensation claims. See Note 7: Commitments and Contingencies, to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q, for additional details on our workers' compensation commitments. We continue to actively manage workers' compensation cost through the safety of our associates with our safety programs, and actively control costs with our network of service providers. These actions have had a positive impact creating favorable adjustments to workers' compensation liabilities recorded in the prior periods. Continued favorable adjustments to our prior year workers' compensation liabilities are dependent on our ability to continue to aggressively lower accident rates and costs of our claims. We expect diminishing favorable adjustments to our workers' compensation liabilities as the opportunity for significant reduction to the frequency and severity of accident rates diminishes. Page - 21
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Restricted cash and investments also includes collateral to support our
non-qualified deferred compensation plan in the form of company-owned life
insurance policies. Our non-qualified deferred compensation plan is managed by a
third-party service provider, and the investments backing the company-owned life
insurance policies align with the amount and timing of payments based on
employee elections.
A summary of our cash flows for each period are as follows:
Thirteen weeks ended
(in thousands) Mar 27, 2022 Mar 28, 2021
Net cash provided by operating activities $ 26,442 $ 27,883
Net cash provided by (used in) investing activities 255 (3,194)
Net cash used in financing activities (36,049) (2,394)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(57) 262
Net change in cash, cash equivalents and restricted cash $
(9,409)
Cash flows from operating activities
Cash provided by operating activities consists of net income adjusted for non-cash benefits and expenses, and changes in operating assets and liabilities.
Demand for our services is generally lower during the fiscal first quarter, due in part to limitations in outside work during the winter months and slowdowns in manufacturing and logistics after the fiscal fourth quarter holiday season. This results in a deleveraging of accounts receivable and accounts payable compared to the prior year-end. Also, accrued wages and benefits can fluctuate based on whether the period end requires the accrual of one or two weeks of payroll, the amount and timing of bonus payments, and timing of payroll tax payments. Net cash provided by accounts receivable collections was partially offset by a slight increase in our days sales outstanding during the thirteen weeks endedMarch 27, 2022 , primarily due to a higher percentage of receivables with longer payment terms. Net cash used for payments on accounts payable and accrued expenses was partially offset by more favorable payment terms negotiated with our vendors as part of our focus on capital management. Additionally, net cash used for payments for accrued wages and benefits was primarily due to timing and amount of annual bonus payments to employees.
Cash flows from investing activities
Investing cash flows consist of capital expenditures and purchases, sales and maturities of restricted investments.
Capital expenditures were higher for the thirteen weeks endedMarch 28, 2021 due to the build-out costs for ourChicago support center of$3.7 million , which was completed during fiscal 2021.
Cash flows from financing activities
Financing cash flows consist primarily of repurchases of common stock as part of our publicly announced share repurchase program, amounts to satisfy employee tax withholding obligations upon the vesting of restricted stock, the net change in our Revolving Credit Facility, and proceeds from the sale of common stock through our employee stock purchase plans. The increase in net cash used in financing activities was primarily due to the repurchase of$36.3 million of our common stock in the open market during the thirteen weeks endedMarch 27, 2022 . As ofMarch 27, 2022 ,$113.7 million remains available for repurchase under existing authorizations. This was partially offset by$4.0 million of borrowing under our Revolving Credit Facility for the thirteen weeks endedMarch 27, 2022 . See Note 6: Long-Term Debt, to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q, for additional details on our Revolving Credit Facility.
SUMMARY OF CRITICAL ACCOUNTING ESTIMATES
Our critical accounting estimates are discussed in Part II, Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations; Summary of Critical Accounting Estimates" in our Annual Report on
Form 10-K for the fiscal year ended
NEW ACCOUNTING STANDARDS
See Note 1: Summary of Significant Accounting Policies, to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q.
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