TrueBlue Reports Q4 and Full-Year 2013 Results

02/06/2014

Record Q4 and 2013 Revenue

TACOMA, Wash.--(BUSINESS WIRE)--Feb. 6, 2014-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the fourth quarter of 2013 of $449 million, an increase of 30 percent compared to revenue of $345 million for the fourth quarter of 2012. Net income for the fourth quarter of 2013 was $14.5 million, or $0.36 per diluted share, compared to net income of $7.4 million, or $0.19 per diluted share, for the fourth quarter of 2012.

Revenue for the fiscal year of 2013 was $1.67 billion, an increase of 20 percent compared to $1.39 billion for fiscal 2012. Net income for 2013 was $44.9 million, or $1.11 per diluted share, compared to $33.6 million, or $0.84 per diluted share, for the prior year.

“This was a very successful quarter for us with adjusted EBITDA* growth of 80 percent,” TrueBlue CEO Steve Cooper said. “We are experiencing strong organic growth across the business, and the acquisitions completed in 2013 have exceeded our expectations. Our team’s efforts resulted in a record year, and I am proud of what they accomplished.”

TrueBlue acquired substantially all the assets of The Work Connection (TWC) at the beginning of the fourth quarter 2013, which expanded TrueBlue’s light industrial staffing business. TrueBlue completed three acquisitions in 2013, adding about $300 million of annualized revenue.

“We remain focused on producing strong organic growth through our specialized sales and service approach, using our strong balance sheet to pursue acquisitions, and continuing to use technology to improve both the customer and worker experience as well our own efficiency,” Cooper said.

TrueBlue estimates revenue in the range of $398 million to $408 million and net income per diluted share of $0.00 to $0.05 for the first quarter of 2014.

Management will discuss fourth quarter 2013 results on a conference call at 7 a.m. Pacific Time (10 a.m. Eastern Time), today, Thursday, Feb. 6, 2014. The conference call can be accessed on TrueBlue’s web site: www.trueblue.com.

*This is a non-GAAP financial measure for which a 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 130,000 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. TrueBlue connects approximately 375,000 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

52 Weeks Ended




December 27,

December 28,

December 27,

December 28,




2013

2012

2013

2012













 
Revenue from services


$ 448,952

$ 344,614

$ 1,668,929

$ 1,389,530
Cost of services


  328,690

  250,231

  1,226,626

  1,017,145
Gross profit



120,262


94,383


442,303


372,385
Selling, general and administrative expenses



93,709


79,215


362,248


300,459
Depreciation and amortization


  5,339

  4,734

  20,472

  18,890
Income from operations



21,214


10,434


59,583


53,036
Interest and other income, net


  186

  483

  1,354

  1,569
Income before tax expense



21,400


10,917


60,937


54,605
Income tax expense


  6,889

  3,502

  16,013

  20,976
Net income


$ 14,511

$ 7,415

$ 44,924

$ 33,629













 
Net income per common share












Basic


$ 0.36

$ 0.19

$ 1.12

$ 0.85
Diluted


$ 0.36

$ 0.19

$ 1.11

$ 0.84













 
Weighted average shares outstanding












Basic



40,412


39,549


40,166


39,548
Diluted



40,775


39,929


40,502


39,862

















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

     
   







 




December 27,

December 28,




2013

2012
Assets






Current assets






Cash and cash equivalents


$ 122,003

$ 129,513
Marketable securities



14,745


-
Accounts receivable, net



199,519


167,292
Other current assets


  20,191

  20,361
Total current assets



356,458


317,166
Property and equipment, net



54,473


58,171
Restricted cash and investments



154,558


136,259
Other assets, net


  153,972

  90,147
Total assets


$ 719,461

$ 601,743







 
Liabilities and shareholders' equity






Current liabilities


$ 121,409

$ 113,556
Long-term liabilities


  204,692

  154,513
Total liabilities



326,101


268,069
Shareholders' equity


  393,360

  333,674
Total liabilities and shareholders' equity


$ 719,461

$ 601,743







 

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







 







 




52 Weeks Ended




December 27,

December 28,




2013

2012
Cash flows from operating activities






Net income


$ 44,924


$ 33,629

Adjustments to reconcile net income to net cash from operating activities








Depreciation and amortization



20,472



18,890
Provision for doubtful accounts



12,063



6,994
Stock-based compensation



8,412



7,917
Deferred income taxes



(3,844 )


3,091
Other operating activities



2,116



1,946
Changes in operating assets and liabilities, net of acquisitions






Accounts receivable



(4,181 )


(20,408 )
Income taxes



4,113



(3,748 )
Other assets



(7,341 )


(1,214 )
Accounts payable and other accrued expenses



(3,592 )


1,524
Accrued wages and benefits



(3,643 )


(182 )
Workers' compensation claims reserve



9,859



3,746

Other liabilities




  6,710  

  138  
Net cash provided by operating activities


  86,068  

  52,323  







 
Cash flows from investing activities






Capital expenditures



(13,003 )


(17,826 )

Acquisition of businesses, net of cash acquired





(77,560 )


-
Purchases of marketable securities



(40,800 )


-
Maturities of marketable securities



20,050



-
Change in restricted cash and cash equivalents



(16,122 )


7,587
Purchases of restricted investments



(13,411 )


(33,778 )
Maturities of restricted investments



15,581



18,116
Other


  -  

  (250 )
Net cash used in investing activities


  (125,265 )

  (26,151 )







 
Cash flows from financing activities






Purchases and retirement of common stock



-



(4,386 )

Net proceeds from stock option exercises and employee stock purchase plans





9,136



4,164

Common stock repurchases for taxes upon vesting of restricted stock





(2,800 )


(2,154 )
Proceeds from note payable



34,000



-
Payments on debt and other liabilities



(8,681 )


(4,548 )
Other


  713  

  751  
Net cash provided by (used in) financing activities


  32,368  

  (6,173 )
Effect of exchange rates on cash


  (681 )

  203  
Net change in cash and cash equivalents



(7,510 )


20,202
CASH AND CASH EQUIVALENTS, beginning of period


  129,513  

  109,311  
CASH AND CASH EQUIVALENTS, end of period


$ 122,003  

$ 129,513  







 
 
TRUEBLUE, INC.
NET INCOME TO EBITDA
AND ADJUSTED EBITDA RECONCILIATION
(Unaudited, in thousands)

     
   
   
   













 




13 Weeks Ended

52 Weeks Ended




December 27,

December 28,

December 27,

December 28,




2013

2012

2013

2012













 
Net income


$ 14,511


$ 7,415


$ 44,924


$ 33,629
Income tax expense



6,889



3,502



16,013



20,976
Interest and other income, net



(186 )


(483 )


(1,354 )


(1,569 )
Depreciation and amortization


  5,339  

  4,734  

  20,472  

  18,890  
EBITDA*


$ 26,553


$ 15,168


$ 80,055


$ 71,926
Non-recurring acquisition costs


  825  

  -  

  7,375  

  -  
Adjusted EBITDA*


$ 27,378  

$ 15,168  

$ 87,430  

$ 71,926  













 

* EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating performance. EBITDA and Adjusted EBITDA should not be considered a measure of financial performance in isolation or as an alternative to income from operations in the Consolidated Statements of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies.

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.