Organic Growth Accelerates, Two Recent Acquisitions Expand Services
TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue, Inc. (NYSE:TBI) today announced fourth quarter and full-year
2015 results, including revenue in the fourth quarter of $811 million,
up 17 percent from $691 million in the fourth quarter of 2014. Full-year
revenue was a record $2.7 billion, an increase of 24 percent compared to
2014.
TrueBlue’s fourth quarter adjusted net income per share* was $0.66, up
from $0.62 in the same quarter last year. Full-year adjusted net income
per share of $2.02 is an increase of 20 percent compared to 2014.
Adjusted EBITDA* also rose to $46 million in the quarter, compared to
$44 million for the fourth quarter of 2014. Full-year, adjusted EBITDA
increased 23 percent to $147 million.
“I am pleased to report that we achieved 14 percent organic revenue
growth for the fourth quarter and seven percent for 2015 compared to the
prior year,” said TrueBlue CEO Steve Cooper. “In our core business, we
saw widespread growth serving the specialized staffing needs of small-
to mid-sized customers. Construction had a strong quarter with
double-digit sales growth, and we saw improvement in manufacturing.
These overall results confirm that our strategies, which focus on
building organic growth and adding value through acquisitions, are
working well.”
TrueBlue acquired SIMOS, a leading provider of on premise workforce
management solutions, effective Dec. 1, 2015. TrueBlue also acquired Aon
Hewitt’s recruitment process outsourcing (RPO) business, which provides
scalable permanent recruiting solutions, at the beginning of 2016.
“We continue to invest in business growth and our new acquisitions
combine well with our existing business to put us in a strong position
as we head into 2016,” Cooper said. “We believe the RPO market has
tremendous potential on a worldwide scale, which is why we are so
pleased that we could bring the RPO operations of one of the industry’s
global leaders to our RPO brand PeopleScout. In addition, the SIMOS
acquisition really complements the work Staff Management | SMX is doing
to offer businesses large scale, on premise management with a focus on
improving productivity.”
Cooper said the company estimates adjusted EBITDA will grow nearly 30
percent in 2016 as a result of these two acquisitions and the increased
momentum in organic growth.
TrueBlue estimates revenue in the range of $660 million to $675 million,
an increase of 15 to 18 percent, and adjusted net income per diluted
share of $0.23 to $0.28, for the first quarter of 2016.
TrueBlue estimates revenue of $3.1 billion, an increase of 16 percent,
and adjusted net income per diluted share of $2.65 for the full year
2016.
Management will discuss fourth quarter and full-year 2015 results on a
conference call at 2 p.m. PT (5 p.m. ET), today, Wednesday, Feb. 3. The
conference call can be accessed on TrueBlue’s website: www.trueblue.com
*The definitions of Adjusted EPS and Adjusted EBITDA have been modified.
See the financial statements accompanying the release and the company’s
website for more information on non-GAAP terms.
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 750,000 people to work each
year. Learn more 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. 26, 2014. 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.
Management is providing full-year 2016 guidance on a one-time basis
to enhance clarity around recent acquisitions and current expectations
for the long-term performance potential of the business. Please
refer to the earnings release slides at www.trueblue.com
for additional details and disclaimers.
|
TRUEBLUE, INC.
|
|
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
13 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
December 25, 2015
|
|
December 26, 2014
|
|
Revenue from services
|
|
$
|
810,733
|
|
|
$
|
691,390
|
|
|
$
|
2,695,680
|
|
|
$
|
2,174,045
|
|
Cost of services
|
|
625,729
|
|
|
533,152
|
|
|
2,060,007
|
|
|
1,637,066
|
|
Gross profit
|
|
185,004
|
|
|
158,238
|
|
|
635,673
|
|
|
536,979
|
|
Selling, general and administrative expenses
|
|
141,419
|
|
|
117,123
|
|
|
495,988
|
|
|
425,777
|
|
Depreciation and amortization
|
|
10,428
|
|
|
9,347
|
|
|
41,843
|
|
|
29,474
|
|
Income from operations
|
|
33,157
|
|
|
31,768
|
|
|
97,842
|
|
|
81,728
|
|
Interest and other income (expense), net
|
|
(293
|
)
|
|
(269
|
)
|
|
(1,395
|
)
|
|
116
|
|
Income before tax expense
|
|
32,864
|
|
|
31,499
|
|
|
96,447
|
|
|
81,844
|
|
Income tax expense
|
|
4,696
|
|
|
4,472
|
|
|
25,200
|
|
|
16,169
|
|
Net income
|
|
$
|
28,168
|
|
|
$
|
27,027
|
|
|
$
|
71,247
|
|
|
$
|
65,675
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.68
|
|
|
$
|
0.67
|
|
|
$
|
1.73
|
|
|
$
|
1.61
|
|
Diluted
|
|
$
|
0.67
|
|
|
$
|
0.65
|
|
|
$
|
1.71
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,337
|
|
|
40,832
|
|
|
41,226
|
|
|
40,734
|
|
Diluted
|
|
41,748
|
|
|
41,317
|
|
|
41,622
|
|
|
41,176
|
|
|
|
TRUEBLUE, INC.
|
|
SEGMENT DATA
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
13 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
December 25, 2015
|
|
December 26, 2014
|
|
Revenue from services
|
|
|
|
|
|
|
|
|
|
Staffing Services
|
|
$
|
783,732
|
|
|
$
|
668,082
|
|
|
$
|
2,591,166
|
|
|
$
|
2,125,915
|
|
|
Managed Services
|
|
27,001
|
|
|
23,308
|
|
|
104,514
|
|
|
48,130
|
|
|
Total Company
|
|
$
|
810,733
|
|
|
$
|
691,390
|
|
|
$
|
2,695,680
|
|
|
$
|
2,174,045
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, current definition (1)
|
|
|
|
|
|
|
|
|
|
Staffing Services
|
|
$
|
52,903
|
|
|
$
|
46,056
|
|
|
$
|
167,198
|
|
|
$
|
141,225
|
|
|
Managed Services
|
|
1,365
|
|
|
2,215
|
|
|
12,344
|
|
|
5,937
|
|
|
|
|
54,268
|
|
|
48,271
|
|
|
179,542
|
|
|
147,162
|
|
|
Corporate unallocated
|
|
(7,925
|
)
|
|
(4,598
|
)
|
|
(32,370
|
)
|
|
(27,720
|
)
|
|
Adjusted EBITDA, current definition (1)
|
|
46,343
|
|
|
43,673
|
|
|
147,172
|
|
|
119,442
|
|
|
WOTC processing fees (2)
|
|
(1,410
|
)
|
|
(1,665
|
)
|
|
(2,352
|
)
|
|
(3,020
|
)
|
|
Adjusted EBITDA, as previously defined (3)
|
|
44,933
|
|
|
42,008
|
|
|
144,820
|
|
|
116,422
|
|
|
Non-recurring acquisition and integration costs (4)
|
|
(1,348
|
)
|
—
|
|
(893
|
)
|
—
|
|
(5,135
|
)
|
—
|
|
(5,220
|
)
|
|
EBITDA
|
|
43,585
|
|
|
41,115
|
|
|
139,685
|
|
|
111,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
10,428
|
|
|
9,347
|
|
|
41,843
|
|
|
29,474
|
|
|
Interest expense (income), net
|
|
293
|
|
|
269
|
|
|
1,395
|
|
|
(116
|
)
|
|
Income before tax expense
|
|
$
|
32,864
|
|
|
$
|
31,499
|
|
|
$
|
96,447
|
|
|
$
|
81,844
|
|
(1) 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 acquisition and integration costs, as well as, Work Opportunity Tax
Credit third-party processing fees. EBITDA and Adjusted EBITDA are key
measures used by management to evaluate performance. EBITDA and Adjusted
EBITDA should not be considered measures of financial performance in
isolation or as an alternative to Income from operations in the
Consolidated Statements of Operations in accordance with GAAP, and may
not be comparable to similarly titled measures of other companies.
(2) These third-party processing fees are associated with generating the
Work Opportunity Tax Credits, which are designed to encourage employers
to hire workers from certain targeted groups with higher than average
unemployment rates.
(3) Adjusted EBITDA, as previously defined, included Work Opportunity
Tax Credit third-party processing fees.
(4) Non-recurring acquisition and integration costs consist of the
acquisition and integration of Seaton, which was completed on June 30,
2014, the first business day of our third quarter of 2014, and the
acquisition related costs for SIMOS and the recruitment process
outsourcing business of Aon Hewitt, which were completed on December 1,
2015, and January 4, 2016, respectively.
|
|
|
TRUEBLUE, INC.
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
31,741
|
|
|
$
|
19,666
|
|
Marketable securities
|
|
—
|
|
|
1,500
|
|
Accounts receivable, net
|
|
467,932
|
|
|
359,903
|
|
Other current assets
|
|
60,477
|
|
|
34,738
|
|
Total current assets
|
|
560,150
|
|
|
415,807
|
|
Property and equipment, net
|
|
57,530
|
|
|
61,392
|
|
Restricted cash and investments
|
|
187,153
|
|
|
168,426
|
|
Goodwill and intangible assets, net
|
|
436,313
|
|
|
378,415
|
|
Other assets, net
|
|
48,181
|
|
|
42,631
|
|
Total assets
|
|
$
|
1,289,327
|
|
|
$
|
1,066,671
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
Current liabilities
|
|
$
|
238,090
|
|
|
$
|
187,230
|
|
Long-term debt, less current portion
|
|
243,397
|
|
|
199,383
|
|
Other long-term liabilities
|
|
257,591
|
|
|
210,724
|
|
Total liabilities
|
|
739,078
|
|
|
597,337
|
|
Shareholders' equity
|
|
550,249
|
|
|
469,334
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,289,327
|
|
|
$
|
1,066,671
|
|
|
|
TRUEBLUE, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
52 Weeks Ended
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
71,247
|
|
|
$
|
65,675
|
|
|
Adjustments to reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
41,843
|
|
|
29,474
|
|
|
Provision for doubtful accounts
|
|
7,132
|
|
|
11,815
|
|
|
Stock-based compensation
|
|
11,103
|
|
|
11,051
|
|
|
Deferred income taxes
|
|
5,176
|
|
|
12,663
|
|
|
Other operating activities
|
|
446
|
|
|
898
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(95,930
|
)
|
|
(77,629
|
)
|
|
Income tax receivable
|
|
(16,678
|
)
|
|
(5,696
|
)
|
|
Other assets
|
|
(6,398
|
)
|
|
(7,361
|
)
|
|
Accounts payable and other accrued expenses
|
|
29,979
|
|
|
(8,683
|
)
|
|
Accrued wages and benefits
|
|
12,203
|
|
|
12,069
|
|
|
Workers’ compensation claims reserve
|
|
14,736
|
|
|
1,579
|
|
|
Other liabilities
|
|
(827
|
)
|
|
1,670
|
|
|
Net cash provided by operating activities
|
|
74,032
|
|
|
47,525
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
(18,394
|
)
|
|
(16,918
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
(67,500
|
)
|
|
(305,876
|
)
|
|
Purchases of marketable securities
|
|
—
|
|
|
(25,057
|
)
|
|
Sales and maturities of marketable securities
|
|
1,500
|
|
|
44,167
|
|
|
Change in restricted cash and cash equivalents
|
|
18,374
|
|
|
(9,283
|
)
|
|
Purchases of restricted investments
|
|
(51,516
|
)
|
|
(18,196
|
)
|
|
Maturities of restricted investments
|
|
12,510
|
|
|
12,726
|
|
|
Net cash used in investing activities
|
|
(105,026
|
)
|
|
(318,437
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Net proceeds from stock option exercises and employee stock purchase
plans
|
|
1,563
|
|
|
2,191
|
|
|
Common stock repurchases for taxes upon vesting of restricted stock
|
|
(3,869
|
)
|
|
(3,114
|
)
|
|
Net change in revolving credit facility
|
|
46,091
|
|
|
171,994
|
|
|
Payments on debt and other liabilities
|
|
(2,078
|
)
|
|
(2,267
|
)
|
|
Other
|
|
1,079
|
|
|
978
|
|
|
Net cash provided by financing activities
|
|
42,786
|
|
|
169,782
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
283
|
|
|
(1,207
|
)
|
|
Net change in cash and cash equivalents
|
|
12,075
|
|
|
(102,337
|
)
|
|
CASH AND CASH EQUIVALENTS, beginning of period
|
|
19,666
|
|
|
122,003
|
|
|
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
31,741
|
|
|
$
|
19,666
|
|
|
|
|
TRUEBLUE, INC.
|
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
|
|
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO ADJUSTED
NET INCOME PER DILUTED SHARE
|
|
(Unaudited, in thousands, except for per share data)
|
|
|
|
|
|
13 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
December 25, 2015
|
|
December 26, 2014
|
|
GAAP net income
|
|
$
|
28,168
|
|
|
$
|
27,027
|
|
|
$
|
71,247
|
|
|
$
|
65,675
|
|
|
Income tax expense
|
|
4,696
|
|
|
4,472
|
|
|
25,200
|
|
|
16,169
|
|
|
Interest expense (income), net
|
|
293
|
|
|
269
|
|
|
1,395
|
|
|
(116
|
)
|
|
Income from operations
|
|
33,157
|
|
|
31,768
|
|
|
97,842
|
|
|
81,728
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
10,428
|
|
|
9,347
|
|
|
41,843
|
|
|
29,474
|
|
|
EBITDA (1)
|
|
43,585
|
|
|
41,115
|
|
|
139,685
|
|
|
111,202
|
|
|
Non-recurring acquisition and integration costs (2)
|
|
1,348
|
|
|
893
|
|
|
5,135
|
|
|
5,220
|
|
|
Adjusted EBITDA, as previously defined (3)
|
|
44,933
|
|
|
42,008
|
|
|
144,820
|
|
|
116,422
|
|
|
Work Opportunity Tax Credit processing fees (4)
|
|
1,410
|
|
|
1,665
|
|
|
2,352
|
|
|
3,020
|
|
|
Adjusted EBITDA, current definition (1)
|
|
$
|
46,343
|
|
|
$
|
43,673
|
|
|
$
|
147,172
|
|
|
$
|
119,442
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per diluted share
|
|
$
|
0.67
|
|
|
$
|
0.65
|
|
|
$
|
1.71
|
|
|
$
|
1.59
|
|
|
Non-recurring acquisition and integration costs, net of tax (2)
|
|
0.02
|
|
|
0.01
|
|
|
0.08
|
|
|
0.09
|
|
|
Work Opportunity Tax Credit processing fees, net of taxes (4)
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
|
0.05
|
|
|
Amortization of intangible assets of acquired businesses, net of tax
(5)
|
|
0.09
|
|
|
0.07
|
|
|
0.33
|
|
|
0.20
|
|
|
Adjust income taxes to a normalized effective tax rate (6)
|
|
(0.14
|
)
|
|
(0.14
|
)
|
|
(0.14
|
)
|
|
(0.24
|
)
|
|
Adjusted net income per diluted share, current definition (7)
|
|
$
|
0.66
|
|
|
$
|
0.62
|
|
|
$
|
2.02
|
|
|
$
|
1.69
|
|
|
Adjusted net income per diluted share, as previously defined (8)
|
|
$
|
0.57
|
|
|
$
|
0.52
|
|
|
$
|
1.75
|
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
41,748
|
|
|
41,317
|
|
|
41,622
|
|
|
41,176
|
|
(1) 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 acquisition and integration costs, as well as, Work Opportunity Tax
Credit third-party processing fees. EBITDA and Adjusted EBITDA are key
measures used by management to evaluate performance. EBITDA and Adjusted
EBITDA should not be considered measures of financial performance in
isolation or as an alternative to Income from operations in the
Consolidated Statements of Operations in accordance with GAAP, and may
not be comparable to similarly titled measures of other companies.
(2) Non-recurring acquisition and integration costs consist of the
acquisition and integration of Seaton, which was completed on June 30,
2014, the first business day of our third quarter of 2014, and the
acquisition related costs for SIMOS and the recruitment process
outsourcing business of Aon Hewitt, which were completed on December 1,
2015, and January 4, 2016, respectively.
(3) Adjusted EBITDA, as previously defined, included Work Opportunity
Tax Credit third-party processing fees.
(4) These third-party processing fees are associated with generating the
Work Opportunity Tax Credits, which are designed to encourage employers
to hire workers from certain targeted groups with higher than average
unemployment rates.
(5) Amortization of intangible assets of acquired businesses, as well
as, accretion expense related to acquisition earn-out.
(6) Adjusts the effective income tax rate to the expected, ongoing rate
of 32% including annual Work Opportunity Tax Credit benefits and
excluding any discreet or unique items.
(7) Adjusted net income per diluted share is a non-GAAP financial
measure which excludes from net income on a per diluted share basis
non-recurring costs related to acquisition and integration costs, net of
tax, amortization of intangibles of acquired businesses, net of tax,
accretion expense related to acquisition earn-out, net of tax, Work
Opportunity Tax Credit third-party processing fees, net of tax, and
adjusts income taxes to the expected ongoing effective rate. Adjusted
net income per diluted share is a key measure used by management to
evaluate performance and communicate comparable results. Adjusted net
income per diluted share should not be considered a measure of financial
performance in isolation or as an alternative to net income per diluted
share in the Consolidated Statements of Operations in accordance with
GAAP, and may not be comparable to similarly titled measures of other
companies.
(8) Adjusted net income per diluted share, calculated as previously
defined, was tax adjusted using a marginal tax rate of 40% and included
the third-party processing fees associated with generating Work
Opportunity Tax Credits.
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
December 25, 2015
|
|
December 26, 2014
|
|
December 25, 2015
|
|
December 26, 2014
|
|
GAAP net income per diluted share
|
|
$
|
0.67
|
|
|
$
|
0.65
|
|
|
$
|
1.71
|
|
|
$
|
1.59
|
|
|
Non-recurring acquisition and integration costs, net of tax
|
|
0.02
|
|
|
0.01
|
|
|
0.07
|
|
|
0.08
|
|
|
Amortization of intangible assets of acquired businesses, net of tax
|
|
0.08
|
|
|
0.06
|
|
|
0.29
|
|
|
0.18
|
|
|
Adjust income taxes to a marginal tax rate
|
|
(0.20
|
)
|
|
(0.20
|
)
|
|
(0.32
|
)
|
|
(0.40
|
)
|
|
Adjusted net income per diluted share, as previously defined
|
|
$
|
0.57
|
|
|
$
|
0.52
|
|
|
$
|
1.75
|
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
41,748
|
|
|
41,317
|
|
|
41,622
|
|
|
41,176
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160203005572/en/
Source: TrueBlue, Inc.