TrueBlue Reports 2013 Third Quarter Results

10/23/2013

TACOMA, Wash.--(BUSINESS WIRE)--Oct. 23, 2013-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter of 2013 of $451 million, an increase of 19 percent compared to revenue of $379 million for the third quarter of 2012. Net income for the quarter was $19.0 million or $0.47 per diluted share, compared to net income of $14.3 million or $0.36 per diluted share for the third quarter of 2012. Excluding non-recurring transaction costs associated with acquisitions, net income per diluted share for the third quarter was $0.48.*

“This quarter’s results reflect the successful execution of our growth strategies, which include blending strong organic growth with acquisitions that increase our share of the blue-collar job market,” TrueBlue CEO Steve Cooper said. “In addition to the strong organic revenue growth we have achieved so far this year, the acquisitions we closed in 2013 will add approximately $300 million of go-forward annual revenue.”

TrueBlue completed its acquisition of The Work Connection at the beginning of the fourth quarter. The addition of The Work Connection expands the range and reach of TrueBlue’s light industrial staffing business.

“We are encouraged by the strong demand for our services and believe there are opportunities ahead to pursue additional acquisitions that fit our strategies and enhance our ability to serve our customers,” Cooper added.

TrueBlue estimates revenue in the range of $430 million to $440 million and net income per diluted share of $0.30 to $0.35 for the fourth quarter of 2013.

Management will discuss third quarter 2013 results on a conference call at 2 p.m. Pacific Time (5 p.m. Eastern Time), today, Wednesday, Oct. 23. The conference call can be accessed on TrueBlue’s web site: www.trueblue.com.

* This is a non-GAAP financial measure for which reconciliation is provided along with the financial statements accompanying this release.

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

39 Weeks Ended




September 27,

September 28,

September 27,

September 28,




2013

2012

2013

2012













 
Revenue from services


$ 451,169

$ 379,467

$ 1,219,977

$ 1,044,915
Cost of services


  327,641

  274,237

  897,937

  766,914
Gross profit



123,528


105,230


322,040


278,001
Selling, general and administrative expenses



90,767


77,634


268,538


221,243
Depreciation and amortization


  4,771

  4,660

  15,133

  14,156
Income from operations



27,990


22,936


38,369


42,602
Interest and other income, net


  416

  409

  1,167

  1,086
Income before tax expense



28,406


23,345


39,536


43,688
Income tax expense


  9,454

  8,998

  9,124

  17,474
Net income


$ 18,952

$ 14,347

$ 30,412

$ 26,214













 
Net income per common share












Basic


$ 0.47

$ 0.36

$ 0.76

$ 0.66
Diluted


$ 0.47

$ 0.36

$ 0.75

$ 0.66













 
Weighted average shares outstanding












Basic



40,330


39,516


40,085


39,547
Diluted



40,670


39,858


40,395


39,841













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

     
   







 




September 27,

December 28,




2013

2012
Assets






Current assets






Cash and cash equivalents


$ 109,544

$ 129,513
Marketable securities



29,342


-
Accounts receivable, net



213,193


167,292

Other current assets




  18,196

  20,361
Total current assets



370,275


317,166
Property and equipment, net



55,765


58,171
Restricted cash and investments



138,457


136,259

Other assets, net




  134,016

  90,147
Total assets


$ 698,513

$ 601,743







 
Liabilities and shareholders' equity






Current liabilities


$ 127,373

$ 113,556
Long-term liabilities


  194,304

  154,513
Total liabilities



321,677


268,069
Shareholders' equity


  376,836

  333,674
Total liabilities and shareholders' equity


$ 698,513

$ 601,743







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

     
   







 




39 Weeks Ended




September 27,

September 28,




2013

2012
Cash flows from operating activities






Net income


$ 30,412


$ 26,214

Adjustments to reconcile net income to net cash from operating activities








Depreciation and amortization



15,133



14,156
Provision for doubtful accounts



8,785



4,305
Stock-based compensation



6,428



6,268
Deferred income taxes



(1,694 )


1,191
Other operating activities



1,213



1,196
Changes in operating assets and liabilities, net of acquisitions






Accounts receivable



(24,776 )


(33,528 )
Income taxes



6,580



2,206
Other assets



(4,703 )


(592 )
Accounts payable and other accrued expenses



(6,728 )


(2,906 )
Accrued wages and benefits



11,419



8,248
Workers' compensation claims reserve



2,785



5,930
Other liabilities


  423  

  280  
Net cash provided by operating activities


  45,277  

  32,968  







 
Cash flows from investing activities






Capital expenditures



(10,350 )


(13,930 )

Acquisition of businesses, net of cash acquired





(54,872 )


-
Purchases of marketable securities



(35,300 )


-
Maturities of marketable securities



205



-
Change in restricted cash and cash equivalents



(1,338 )


487
Purchases of restricted investments



(9,175 )


(18,153 )
Maturities of restricted investments



13,337



14,418
Other


  -  

  (250 )
Net cash used in investing activities


  (97,493 )

  (17,428 )







 
Cash flows from financing activities






Purchases and retirement of common stock



-



(4,386 )

Net proceeds from stock option exercises and employee stock purchase plans





8,731



3,806

Common stock repurchases for taxes upon vesting of restricted stock





(2,653 )


(2,076 )
Proceeds from note payable



34,000



-

Payments on debt and other liabilities





(8,115 )


(3,987 )
Other


  719  

  764  
Net cash provided by (used in) financing activities


  32,682  

  (5,879 )







 
Effect of exchange rates on cash


  (435 )

  369  







 
Net change in cash and cash equivalents



(19,969 )


10,030
CASH AND CASH EQUIVALENTS, beginning of period


  129,513  

  109,311  
CASH AND CASH EQUIVALENTS, end of period


$ 109,544  

$ 119,341  







 
 
TRUEBLUE, INC.
RECONCILATION OF EARNINGS PER SHARE
EXCLUDING NON-RECURRING ACQUISITION COSTS

     
 






 




13 Weeks Ended




September 27,
September 28,




2013
2012






 






 
Diluted earnings per share as reported


$ 0.47
$ 0.36

Non-recurring costs associated with acquisitions




$ 0.01   $ -

Diluted earnings per share excluding non-recurring costs associated with acquisitions*




$ 0.48   $ 0.36






 
* This is a non-GAAP financial measure that excludes non-recurring costs associated with acquisitions.

Source: TrueBlue, Inc.

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

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.