TrueBlue Reports 2011 Fourth Quarter Results

02/08/2012

TACOMA, Wash.--(BUSINESS WIRE)--Feb. 8, 2012-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the thirteen-week fourth quarter of 2011 of $350 million, an increase of 12 percent compared to revenue of $312 million for the fourteen-week fourth quarter of 2010. Net income for the fourth quarter was $7.6 million, or $0.19 per diluted share, compared to net income of $4.0 million, or $0.09 per diluted share, for the fourth quarter of 2010.

“We had solid revenue growth this quarter and achieved operating income growth of more than 90 percent,” said TrueBlue CEO Steve Cooper. “Our better-than-expected results were driven by additional demand in the energy industry and a successful holiday season. Our focus remains on our vertical market strategy, which includes our specialized expertise in the industries we serve, and increasing our value to local and national customers.”

For the first quarter of 2012, TrueBlue estimates revenue in the range of $300 million to $310 million and estimates net income per diluted share of $0.00 to $0.05.

Management will discuss fourth quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, Feb. 8, 2012. The conference call and a copy of the slides for the call can be accessed on TrueBlue’s web site: www.trueblueinc.com.

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2011, TrueBlue connected approximately 325,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 175,000 businesses in the services, retail, wholesale, manufacturing, transportation, aviation, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. For more information, visit TrueBlue’s website at www.TrueBlueInc.com.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Examples of such factors can be found in our reports filed with the SEC, including the information under the heading ‘Risk Factors’ in our Annual Report on Form 10-K for the year ended Dec. 31, 2010 and in our most recent Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2011. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)



 
 
 







 







 

13 Weeks Ended
14 Weeks Ended
52 Weeks Ended
53 Weeks Ended

December 30,
December 31,
December 30,
December 31,

2011
2010
2011
2010







 
Revenue from services $ 350,155
$ 311,943
$ 1,316,013
$ 1,149,367
Cost of services   258,324
  230,034
  968,967
  845,916
Gross profit
91,831

81,909

347,046

303,451
Selling, general and administrative expenses
76,755

71,797

282,828

258,722
Depreciation and amortization   4,395
  4,580
  16,384
  16,468
Income from operations
10,681

5,532

47,834

28,261
Interest and other income, net   693
  238
  1,490
  901
Income before tax expense
11,374

5,770

49,324

29,162
Income tax expense   3,810
  1,812
  18,533
  9,323
Net income $ 7,564
$ 3,958
$ 30,791
$ 19,839







 

Net income per common share








Basic $ 0.19
$ 0.09
$ 0.73
$ 0.46
Diluted $ 0.19
$ 0.09
$ 0.73
$ 0.46







 

Weighted average shares outstanding








Basic
39,404

43,308

41,961

43,224
Diluted
39,848

43,738

42,322

43,540







 







 







 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)








 







 







 





December 30,
December 31,





2011
2010
Assets






Current assets








Cash and cash equivalents



$ 109,311

$

163,153

Accounts receivable, net




153,878

108,692

Other current assets



  17,426
 

21,655

Total current assets




280,615

293,500

Property and equipment, net




56,239

53,958

Restricted cash and investments




130,498

120,067

Other assets, net



  93,417
 

78,941

Total assets



$ 560,769

$

546,466








 
Liabilities and shareholders' equity






Current liabilities



$ 112,289

$

85,923

Long-term liabilities



  154,901
 

147,836

Total liabilities




267,190

233,759

Shareholders' equity



  293,579
 

312,707

Total liabilities and shareholders' equity



$ 560,769

$

546,466

 
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


 
 


52 Weeks Ended
53 Weeks Ended


December 30,
December 31,


2011
2010




 

Cash flows from operating activities





Net income
$ 30,791

$ 19,839

Adjustments to reconcile net income to net cash provided by operating activities





Depreciation and amortization

16,384


16,468
Provision for doubtful accounts

6,638


8,158
Stock-based compensation

7,432


7,159
Deferred income taxes

(1,910 )

5,322
Other operating activities

(473 )

(202 )

Changes in operating assets and liabilities





Accounts receivable

(51,824 )

(11,604 )
Income taxes

3,513


(3,338 )
Other assets

(1,244 )

(727 )
Accounts payable and other accrued expenses

5,423




747
Accrued wages and benefits

10,793


2,752
Workers' compensation claims reserve

4,537


(2,195 )
Other liabilities
  529  
  (406 )
Net cash provided by operating activities
 

30,589

 
  41,973  




 

Cash flows from investing activities





Capital expenditures

(9,707

)

(7,050 )
Change in restricted cash and cash equivalents

68,504


3,945
Purchase of restricted investments

(88,173 )

-
Maturities of restricted investments

9,238


-
Other
  (6,800 )
  (298 )
Net cash used in investing activities
 

(26,938

)
  (3,403 )




 

Cash flows from financing activities





Purchases and retirement of common stock

(56,932 )

-
Net proceeds from sale of stock through options and employee benefit plans

1,131


1,054
Common stock repurchases for taxes upon vesting of restricted stock

(1,776 )

(1,568 )
Payments on debt

(302 )

(382 )
Other
  664  
  129  
Net cash used in financing activities
  (57,215 )
  (767 )




 
Effect of exchange rates on cash
  (278 )
  973  




 
Net change in cash and cash equivalents

(53,842 )

38,776




 
CASH AND CASH EQUIVALENTS, beginning of year
  163,153  
  124,377  
CASH AND CASH EQUIVALENTS, end of year
$ 109,311  
$ 163,153  

Source: TrueBlue, Inc.

TrueBlue, Inc.
Derrek Gafford, EVP & CFO, 253-680-8214
or
Stacey Burke, VP of Corporate Communications, 253-680-8291

IR CONTACT

Derrek Gafford

Chief Financial Officer

Phone: 1-253-680-8214

InvestorRelations@TrueBlue.com

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About TrueBlue

TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions, helping clients improve growth and performance by providing staffing, workforce management, and recruitment process outsourcing solutions. The company’s specialized workforce solutions meet clients’ needs for a reliable, efficient workforce in a wide variety of industries. TrueBlue connects as many as 840,000 people to work each year.