TrueBlue Reports 2012 Third Quarter Results

10/24/2012

TACOMA, Wash.--(BUSINESS WIRE)--Oct. 24, 2012-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter of 2012 of $379 million, an increase of 2 percent, compared to revenue of $371 million for the third quarter of 2011. Net income for the quarter was $14.3 million or $0.36 per diluted share, compared to net income of $13.9 million or $0.33 per diluted share for the third quarter of 2011.

"TrueBlue achieved revenue and earnings per share growth this quarter, while managing through an increasingly difficult economic environment," TrueBlue CEO Steve Cooper said. "Demand for labor in manufacturing has declined and growth trends softened across most of the other industries we serve. Our results have also been adversely impacted by the anticipated decline of a large customer project.

"For the fourth quarter, we anticipate the uncertain economic conditions to continue along with further decline from our large customer project." TrueBlue estimates revenue in the range of $332 million to $342 million and net income per diluted share of $0.11 to $0.16 for the fourth quarter.

"We remain optimistic about our specialized approach to vertical markets and believe our strategies remain on track to deliver long-term growth for our shareholders," Cooper said.

Management will discuss third quarter 2012 results on a conference call at 2 p.m. (PT) today, Wednesday, Oct. 24. 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
39 Weeks Ended


September 28,
September 30,
September 28,
September 30,


2012
2011
2012
2011








 
Revenue from services
$ 379,467
$ 371,379
$ 1,044,915
$ 965,857
Cost of services
  274,237
  271,528
  766,914
  710,644
Gross profit

105,230

99,851

278,001

255,213
Selling, general and administrative expenses

77,634

73,235

221,243

206,071
Depreciation and amortization
  4,660
  4,205
  14,156
  11,989
Income from operations

22,936

22,411

42,602

37,153
Interest and other income, net
  409
  323
  1,086
  798
Income before tax expense

23,345

22,734

43,688

37,951
Income tax expense
  8,998
  8,821
  17,474
  14,724
Net income
$ 14,347
$ 13,913
$ 26,214
$ 23,227








 
Net income per common share







Basic
$ 0.36
$ 0.33
$ 0.66
$ 0.54
Diluted
$ 0.36
$ 0.33
$ 0.66
$ 0.54








 
Weighted average shares outstanding







Basic

39,516

41,612

39,547

42,813
Diluted

39,858

41,958

39,841

43,176
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

 
 


September 28,
December 30,


2012
2011

Assets





Current assets



Cash and cash equivalents
$ 119,341
$ 109,311
Accounts receivable, net

183,101

153,878
Other current assets
  15,061
  17,426
Total current assets

317,503

280,615
Property and equipment, net

57,418

56,239
Restricted cash and investments

132,052

130,498
Other assets, net
  91,670
  93,417
Total assets
$ 598,643
$ 560,769




 
Liabilities and shareholders' equity



Current liabilities
$ 117,550
$ 112,289
Long-term liabilities
  156,553
  154,901
Total liabilities

274,103

267,190
Shareholders' equity
  324,540
  293,579
Total liabilities and shareholders' equity
$ 598,643
$ 560,769
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 
 


39 Weeks Ended


September 28,
September 30,


2012
2011




 
Cash flows from operating activities



Net income
$ 26,214

$ 23,227

Adjustments to reconcile net income to net cash from operating activities





Depreciation and amortization

14,156


11,989
Provision for doubtful accounts

4,305


4,424
Stock-based compensation

6,268


5,583
Deferred income taxes

1,191


899
Other operating activities

1,196


(471 )
Changes in operating assets and liabilities



Accounts receivable

(33,528 )

(70,116 )
Income taxes

2,206


6,950
Other assets

(592 )

1,720
Accounts payable and other accrued expenses

(2,906 )

19,634
Accrued wages and benefits

8,248


12,033
Workers' compensation claims reserve

5,930


735
Other liabilities
  280  
  (144 )
Net cash provided by operating activities
  32,968  
  16,463  




 
Cash flows from investing activities



Capital expenditures

(13,930 )

(6,251 )
Change in restricted cash and cash equivalents

487


65,104
Purchases of restricted investments

(18,153 )

(87,768 )
Maturities of restricted investments

14,418


6,193
Other
  (250 )
  (6,800 )
Net cash used in investing activities
  (17,428 )
  (29,522 )




 
Cash flows from financing activities



Purchases and retirement of common stock

(4,386 )

(50,143 )

Net proceeds from stock option exercises and employee stock purchase plans



3,806


874

Common stock repurchases for taxes upon vesting of restricted stock



(2,076 )

(1,692 )
Payments on other liabilities

(3,987 )

(302 )
Other
  764  
  674  
Net cash used in financing activities
  (5,879 )
  (50,589 )




 
Effect of exchange rates on cash
  369  
  (455 )




 
Net change in cash and cash equivalents

10,030


(64,103 )
CASH AND CASH EQUIVALENTS, beginning of period
  109,311  
  163,153  
CASH AND CASH EQUIVALENTS, end of period
$ 119,341  
$ 99,050  

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.