TrueBlue Reports 2012 Second Quarter Results

07/25/2012

TACOMA, Wash.--(BUSINESS WIRE)--Jul. 25, 2012-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the second quarter of 2012 of $354 million, an increase of 11 percent compared to revenue of $320 million for the second quarter of 2011. Net income for the quarter was $10.3 million or $0.26 per diluted share, compared to net income of $8.5 million or $0.20 per diluted share for the second quarter of 2011.

“We executed very well this quarter,” said TrueBlue CEO Steve Cooper. “Our team delivered double-digit growth in revenue and profits. Our services are increasingly relevant to customers who are turning to us as they manage their businesses through this uncertain economic environment. Our disciplined approach to managing our business will continue to drive growth and deliver value over the long term.”

For the third quarter of 2012, TrueBlue estimates revenue in the range of $385 million to $395 million and net income per diluted share for the quarter of $0.34 to $0.39.

Management will discuss second quarter 2012 results on a conference call at 2 p.m. (PT), today, Wednesday, July 25. The conference 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 retail, wholesale, manufacturing, transportation, aviation, services, 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 fiscal year ended Dec. 30, 2011 and in our quarterly reports on Form 10-Q subsequently filed. 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   26 Weeks Ended


June 29,
2012
  July 1,
2011

June 29,
2012
  July 1,
2011








 
Revenue from services
$ 354,261
$ 320,179
$ 665,448
$ 594,478
Cost of services
  260,725
  234,847
  492,677
  439,115
Gross profit

93,536

85,332

172,771

155,363
Selling, general and administrative expenses

71,526

67,677

143,610

132,837
Depreciation and amortization
  4,729
  3,862
  9,496
  7,784
Income from operations

17,281

13,793

19,665

14,742
Interest and other income, net
  412
  166
  677
  474
Income before tax expense

17,693

13,959

20,342

15,216
Income tax expense
  7,356
  5,411
  8,475
  5,903
Net income
$ 10,337
$ 8,548
$ 11,867
$ 9,313








 
Net income per common share







Basic
$ 0.26
$ 0.20
$ 0.30
$ 0.21
Diluted
$ 0.26
$ 0.20
$ 0.30
$ 0.21








 
Weighted average shares outstanding







Basic

39,701

43,367

39,563

43,413
Diluted

40,097

43,674

39,993

43,784
 
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
 

  June 29,
2012
  December 30,
2011
Assets



Current assets



Cash and cash equivalents
$ 129,446
$ 109,311
Accounts receivable, net

163,794

153,878
Other current assets
  11,662
  17,426
Total current assets

304,902

280,615
Property and equipment, net

57,251

56,239
Restricted cash and investments

124,949

130,498
Other assets, net
  93,693
  93,417
Total assets
$ 580,795
$ 560,769




 
Liabilities and shareholders' equity



Current liabilities
$ 117,949
$ 112,289
Long-term liabilities
  154,977
  154,901
Total liabilities

272,926

267,190
Shareholders' equity
  307,869
  293,579
Total liabilities and shareholders' equity
$ 580,795
$ 560,769
 
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 

  26 Weeks Ended


June 29,
2012
  July 1,
2011




 
Cash flows from operating activities



Net income
$ 11,867

$ 9,313

Adjustments to reconcile net income to net cash from operating activities





Depreciation and amortization

9,496


7,784
Provision for doubtful accounts

2,022


2,125
Stock-based compensation

4,846


4,097
Deferred income taxes

(15 )

1,991
Other operating activities

972


(485 )
Changes in operating assets and liabilities



Accounts receivable

(11,938 )

(36,449 )
Income taxes

4,488


1,019
Other assets

2,084


(1,845 )
Accounts payable and other accrued expenses

(3,173 )

8,881
Accrued wages and benefits

5,949


6,115
Workers' compensation claims reserve

882


(1,299 )
Other liabilities
  277  
  (112 )
Net cash provided by operating activities
  27,757  
  1,135  




 
Cash flows from investing activities



Capital expenditures

(9,535 )

(3,678 )
Change in restricted cash and cash equivalents

9,774


70,265
Purchase of restricted investments

(18,153 )

(78,279 )
Maturities of restricted investments

12,726


5,300
Other
  -  
  (2,800 )
Net cash used in investing activities
  (5,188 )
  (9,192 )




 
Cash flows from financing activities



Purchases and retirement of common stock

(3,990 )

(12,871 )

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



3,142


616

Common stock repurchases for taxes upon vesting of restricted stock



(1,996 )

(1,611 )
Payments on debt

(88 )

(206 )
Other
  556  
  691  
Net cash used in financing activities
  (2,376 )
  (13,381 )




 

Effect of exchange rates on cash
  (58 )
  304  




 
Net change in cash and cash equivalents

20,135


(21,134 )
CASH AND CASH EQUIVALENTS, beginning of period
  109,311  
  163,153  
CASH AND CASH EQUIVALENTS, end of period
$ 129,446  
$ 142,019  
 

Source: TrueBlue, Inc.

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