TrueBlue Reports 2013 First Quarter Results

04/24/2013

TACOMA, Wash.--(BUSINESS WIRE)--Apr. 24, 2013-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter of 2013 of $346 million, an increase of 11 percent compared to revenue of $311 million for the first quarter of 2012. Net loss for the quarter was ($1.1 million) or ($0.03) per diluted share, compared to net income of $1.5 million or $0.04 per diluted share for the first quarter of 2012.

The first quarter of 2013 includes the acquisition of MDT Personnel and related non-recurring acquisition and integration costs. The integration has gone well and is on track to be completed in the second quarter of 2013 as originally planned.

“We are pleased with our revenue growth in the quarter,” said TrueBlue CEO Steve Cooper. “We saw steady growth in demand for our services across most industries and locations, and we are especially encouraged by an increase in construction activity. Our recent growth across a broad mix of business is building a more sustainable revenue stream to replace the large customer project that is winding down.”

For the second quarter of 2013, TrueBlue estimates revenue in the range of $415 million to $425 million and net income per diluted share for the quarter of $0.22 to $0.27.

“The increased business activity we are seeing in our results indicates positive signs for the economy this year,” Cooper said. “The current economic climate allows the company to continue to pursue its organic and acquisition growth strategies.”

Management will discuss first quarter 2013 results on a conference call at 2 p.m. (PT), today, Wednesday, April 24. The conference call can be accessed on TrueBlue’s web site: www.trueblue.com.

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2012, TrueBlue connected approximately 350,000 people to work through the following business lines: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 140,000 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.trueblue.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. 28, 2012. 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


March 29,
March 30,


2013
2012




 
Revenue from services
$ 346,498

$ 311,187
Cost of services
  259,859  
  231,952  
Gross profit

86,639


79,235
Selling, general and administrative expenses

88,432


72,082
Depreciation and amortization
  5,159  
  4,768  
Income (loss) from operations

(6,952 )

2,385
Interest and other income, net
  477  
  264  
Income (loss) before tax expense (benefit)

(6,475 )

2,649
Income tax expense (benefit)
  (5,399 )
  1,119  
Net income (loss)
$ (1,076 )
$ 1,530  




 
Net income (loss) per common share



Basic
$ (0.03 )
$ 0.04
Diluted
$ (0.03 )
$ 0.04




 
Weighted average shares outstanding



Basic

39,784


39,425
Diluted

39,784


39,914




 




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




 


March 29,
December 28,


2013
2012
Assets



Current assets



Cash and cash equivalents
$ 110,800

$ 129,513
Accounts receivable, net

191,896


167,292
Other current assets
  23,492  
  20,361  
Total current assets

326,188


317,166
Property and equipment, net

57,695


58,171
Restricted cash and investments

144,375


136,259
Other assets, net
  125,790  
  90,147  
Total assets
$ 654,048  
$ 601,743  




 
Liabilities and shareholders' equity



Current liabilities
$ 123,941

$ 113,556
Long-term liabilities
  194,198  
  154,513  
Total liabilities

318,139


268,069
Shareholders' equity
  335,909  
  333,674  
Total liabilities and shareholders' equity
$ 654,048  
$ 601,743  




 




 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)




 


13 Weeks Ended


March 29,
March 30,


2013
2012




 
Cash flows from operating activities



Net income (loss)
$ (1,076 )
$ 1,530

Adjustments to reconcile net income (loss) to net cash from operating activities





Depreciation and amortization

5,159


4,768
Provision for doubtful accounts

1,652


1,049
Stock-based compensation

2,880


2,902
Deferred income taxes

(3,573 )

(1,006 )
Other operating activities

180


(401 )
Changes in operating assets and liabilities, net of acquisitions



Accounts receivable

4,982


8,441
Income taxes

(2,136 )

1,037
Other assets

251


1,076
Accounts payable and other accrued expenses

(6,990 )

(2,644 )
Accrued wages and benefits

4,061


1,513
Workers' compensation claims reserve

549


(876 )
Other liabilities
  158  
  303  
Net cash provided by operating activities
  6,097  
  17,692  




 
Cash flows from investing activities



Capital expenditures

(3,952 )

(3,704 )
Acquisition of business, net of cash acquired

(53,248 )

-
Change in restricted cash and cash equivalents

(4,489 )

3,529
Purchases of restricted investments

(1,365 )

(7,662 )
Maturities of restricted investments
  4,128       3,907  
Net cash used in investing activities
  (58,926 )
  (3,930 )




 
Cash flows from financing activities



Net proceeds from stock option exercises and employee stock purchase plans



2,266


2,894

Common stock repurchases for taxes upon vesting of restricted stock



(2,010 )

(1,807 )
Proceeds from long term debt

34,000


-
Payments on debt

(397 )

-
Other
  479  
  637  
Net cash provided by financing activities
  34,338  
  1,724  




 
Effect of exchange rates on cash
  (222 )
  208  




 
Net change in cash and cash equivalents

(18,713 )

15,694
CASH AND CASH EQUIVALENTS, beginning of period
  129,513  
  109,311  
CASH AND CASH EQUIVALENTS, end of period
$ 110,800  
$ 125,005  

 

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.