TrueBlue Reports 2013 Second Quarter Results

07/24/2013

TACOMA, Wash.--(BUSINESS WIRE)--Jul. 24, 2013-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the second quarter of 2013 of $422 million, an increase of 19 percent compared to revenue of $354 million for the second quarter of 2012. Net income for the quarter was $12.5 million or $0.31 per diluted share, compared to net income of $10.3 million or $0.26 per diluted share for the second quarter of 2012.

“We are pleased with the double-digit year-over-year revenue growth we experienced this quarter,” TrueBlue CEO Steve Cooper said. “Overall, demand for our specialized blue-collar staffing solutions grew across most industries and locations.”

TrueBlue acquired MDT Personnel in the first quarter of 2013 and its integration into the company is now complete, Cooper said.

“Our teams have combined very well and I’m pleased with the way they have engaged our customers,” he said. “We’ve been successful in retaining customers and penetrating more deeply into the market.”

Cooper added that TrueBlue is optimistic about the company’s growth prospects. “Favorable trends in the staffing industry, along with the strength of our organic and acquisition growth strategies, give us confidence that we’re on track to deliver long-term shareholder value. With both the anticipated revenue decline in a large project and MDT integration costs mostly behind us, we expect to see higher levels of profit growth during the remainder of the year.”

TrueBlue estimates revenue in the range of $450 million to $460 million and net income per diluted share of $0.44 to $0.49 for the third quarter of 2013.

Management will discuss second quarter 2013 results on a conference call at 2 p.m. Pacific Standard Time (5 pm. Eastern Standard Time), today, Wednesday, July 24. The conference call can be accessed on TrueBlue’s web site: www.trueblue.com.

About TrueBlue

TrueBlue (NYSE: TBI) is the leading provider of blue-collar staffing and helps over 140,000 businesses be more productive through easy access to dependable temporary labor. TrueBlue provides specialized blue-collar staffing solutions to industries that include construction, manufacturing, transportation, aviation, waste, hospitality, retail, renewable energy and more. Through its Labor Ready, CLP, Spartan Staffing, PlaneTechs, and Centerline service lines, TrueBlue connects approximately 350,000 people to work annually across the U.S., Canada and Puerto Rico. Learn more about TrueBlue 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 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 28,



June 29,



June 28,



June 29,







  2013



  2012



  2013  



  2012






















 
Revenue from services





$ 422,310



$ 354,261



$ 768,809




$ 665,448
Cost of services





  310,437



  260,725



  570,296  



  492,677
Gross profit






111,873




93,536




198,513





172,771
Selling, general and administrative expenses






89,339




71,526




177,771





143,610
Depreciation and amortization





  5,203



  4,729



  10,362  



  9,496
Income from operations






17,331




17,281




10,380





19,665
Interest and other income, net





  275



  412



  752  



  677
Income before tax expense (benefit)






17,606




17,693




11,132





20,342
Income tax expense (benefit)





  5,069



  7,356



  (330 )



  8,475
Net income





$ 12,537



$ 10,337



$ 11,462  



$ 11,867






















 
Net income per common share





















Basic





$ 0.31



$ 0.26



$ 0.29




$ 0.30
Diluted





$ 0.31



$ 0.26



$ 0.28




$ 0.30






















 
Weighted average shares outstanding





















Basic






40,140




39,701




39,962





39,563
Diluted






40,421




40,097




40,248





39,993



























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

             
         








June 28,




December 28,








  2013




  2012
Assets













Current assets













Cash and cash equivalents






$ 136,004




$ 129,513
Accounts receivable, net







199,315





167,292
Other current assets






  20,884




  20,361
Total current assets







356,203





317,166
Property and equipment, net







56,314





58,171
Restricted cash and investments







134,052





136,259
Other assets, net






  129,119




  90,147
Total assets






$ 675,688




$ 601,743














 
Liabilities and shareholders' equity













Current liabilities






$ 127,272




$ 113,556
Long-term liabilities






  194,924




  154,513
Total liabilities







322,196





268,069
Shareholders' equity






  353,492




  333,674
Total liabilities and shareholders' equity






$ 675,688




$ 601,743
















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

       
     
         









26 Weeks Ended









June 28,




June 29,









  2013  




  2012  















 
Cash flows from operating activities














Net income







$ 11,462





$ 11,867

Adjustments to reconcile net income to net cash from operating activities
















Depreciation and amortization








10,362






9,496
Provision for doubtful accounts








6,415






2,022
Stock-based compensation








4,594






4,846
Deferred income taxes








(2,564 )





(15 )
Other operating activities








848






972
Changes in operating assets and liabilities, net of acquisitions









Accounts receivable








(8,528 )





(11,938 )
Income taxes








(143 )





4,488
Other assets








341






2,084
Accounts payable and other accrued expenses



(7,496

)





(3,173 )
Accrued wages and benefits








7,053








5,949
Workers' compensation claims reserve








1,583






882
Other liabilities







  186  




  277  
Net cash provided by operating activities







 

24,113

 




  27,757  















 
Cash flows from investing activities














Capital expenditures








(7,200 )





(9,535 )
Acquisition of businesses, net of cash acquired



(54,873 )





-
Change in restricted cash and cash equivalents



3,709








9,774
Purchases of restricted investments








(6,789 )





(18,153 )
Maturities of restricted investments








10,871






12,726
Other







  -  




  -  
Net cash used in investing activities







 

(54,282

)




  (5,188 )















 
Cash flows from financing activities














Purchases and retirement of common stock








-






(3,990 )

Net proceeds from stock option exercises and employee stock purchase plans





6,023






3,142

Common stock repurchases for taxes upon vesting of restricted stock










(2,182 )





(1,996 )
Proceeds from note payable








34,000






-
Payments on debt








(1,115 )





(88 )
Other







  478  




  556  
Net cash provided by (used in) financing activities


  37,204  




  (2,376 )















 
Effect of exchange rates on cash







  (544 )




  (58 )















 
Net change in cash and cash equivalents








6,491






20,135
CASH AND CASH EQUIVALENTS, beginning of period


  129,513  




  109,311  
CASH AND CASH EQUIVALENTS, end of period


$ 136,004  




$ 129,446  

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.