TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue, Inc. (NYSE:TBI) announced today its fiscal first quarter 2017
results.
Revenue was $568 million, a decrease of 12 percent, compared to revenue
of $646 million in the fiscal first quarter of 2016. Excluding the
previously disclosed reduction in the scope of services provided to our
former largest customer, revenue declined by 3 percent. Net income per
diluted share was $0.11 compared to $0.17 in the fiscal first quarter of
2016. Adjusted net income per diluted share1 was $0.21
compared to $0.27 in the fiscal first quarter of 2016.
“Our team did a great job managing bill rates and reducing operating
expenses to generate net income ahead of our expectation,” TrueBlue CEO
Steve Cooper said. “With the majority of the revenue growth headwind
behind us from our former largest customer, we have set the stage for
long-term growth.
“Businesses value the speed and specialized nature of our services that
help them get the right talent into the right job, at the right time.
The growing breadth of our workforce solutions, our new go-to-market
brands, and innovative use of technology increasingly position us to
meet the needs of businesses as they adapt to a constantly changing
business environment.”
2017 Outlook
The company estimates revenue for the fiscal second quarter of 2017 will
range from $600 million to $615 million. It also expects net income per
diluted share will range from $0.29 to $0.34. Adjusted net income per
diluted share1 is expected to be $0.38 to $0.43.
Management will discuss first quarter 2017 results on a webcast at 2
p.m. PT (5 p.m. ET) today, Monday, May 1. The webcast can be accessed on
TrueBlue’s website: www.trueblue.com.
About TrueBlue:
TrueBlue (NYSE:TBI) is a leading provider of specialized workforce
solutions that help clients create growth, improve efficiency and
increase reliability. TrueBlue connected over 815,000 people with work
during 2016 in a wide variety of industries through its PeopleReady
segment offering industrial staffing services, PeopleManagement segment
offering on-site workforce management and PeopleScout segment offering
recruitment process outsourcing services. Learn more at www.trueblue.com.
1 See the financial statements accompanying the release and
the company’s website for more information on non-GAAP terms.
Forward-looking Statements
This release contains forward-looking statements relating to our plans
and expectations, all of which are subject to risks and uncertainties.
Such statements are based on management’s expectations and assumptions
as of the date of this release and involve many risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements. We presently
consider the following to be among important factors that could cause
actual results to differ materially from the company’s expectations: (1)
national and global economic conditions, (2) our ability to attract and
retain customers, (3) our ability to maintain profit margins, (4) new
laws and regulations that could have a material effect on our operations
or financial results, (5) our ability to successfully complete and
integrate acquisitions. Other information regarding factors that could
materially affect our results is included in our SEC filings, including
the company's most recent reports on Forms 10-K and 10-Q, copies of
which may be obtained by visiting our website at www.trueblue.com
under the Investor Relations section or the SEC's website at www.sec.gov.
We assume no duty to update or revise any forward-looking statements
contained in this release.
|
TRUEBLUE, INC. SUMMARY CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, in thousands, except per
share data)
|
|
|
|
13 Weeks Ended
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
Revenue from services
|
|
$
|
568,244
|
|
|
$
|
645,980
|
|
Cost of services
|
|
428,815
|
|
|
495,468
|
|
Gross profit
|
|
139,429
|
|
|
150,512
|
|
Selling, general and administrative expense
|
|
121,844
|
|
|
130,624
|
|
Depreciation and amortization
|
|
11,174
|
|
|
11,289
|
|
Income from operations
|
|
6,411
|
|
|
8,599
|
|
Interest and other income (expense), net
|
|
74
|
|
|
(1,019
|
)
|
Income before tax expense
|
|
6,485
|
|
|
7,580
|
|
Income tax expense
|
|
1,811
|
|
|
612
|
|
Net income
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
Basic
|
|
$
|
0.11
|
|
|
$
|
0.17
|
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
0.17
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
Basic
|
|
41,637
|
|
|
41,502
|
|
Diluted
|
|
41,937
|
|
|
41,798
|
|
|
|
TRUEBLUE, INC. SUMMARY CONSOLIDATED BALANCE SHEETS (Unaudited,
in thousands)
|
|
|
|
Apr 2, 2017
|
|
Jan 1, 2017
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
26,083
|
|
$
|
34,970
|
Accounts receivable, net
|
|
302,082
|
|
352,606
|
Other current assets
|
|
29,311
|
|
40,227
|
Total current assets
|
|
357,476
|
|
427,803
|
Property and equipment, net
|
|
64,118
|
|
63,998
|
Restricted cash and investments
|
|
228,120
|
|
231,193
|
Goodwill and intangible assets, net
|
|
346,521
|
|
349,894
|
Other assets, net
|
|
54,532
|
|
57,557
|
Total assets
|
|
$
|
1,050,767
|
|
$
|
1,130,445
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
24,556
|
|
$
|
2,267
|
Other current liabilities
|
|
214,138
|
|
248,868
|
Long-term debt, less current portion
|
|
55,140
|
|
135,362
|
Other long-term liabilities
|
|
223,148
|
|
218,769
|
Total liabilities
|
|
516,982
|
|
605,266
|
Shareholders' equity
|
|
533,785
|
|
525,179
|
Total liabilities and shareholders' equity
|
|
$
|
1,050,767
|
|
$
|
1,130,445
|
|
|
TRUEBLUE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited,
in thousands)
|
|
|
|
13 Weeks Ended
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
Adjustments to reconcile net income to net cash from operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
11,174
|
|
|
11,289
|
|
Provision for doubtful accounts
|
|
1,446
|
|
|
1,308
|
|
Stock-based compensation
|
|
3,304
|
|
|
3,179
|
|
Deferred income taxes
|
|
726
|
|
|
(1,083
|
)
|
Other operating activities
|
|
937
|
|
|
1,014
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
49,077
|
|
|
147,067
|
|
Income tax receivable
|
|
9,565
|
|
|
14,742
|
|
Other assets
|
|
3,627
|
|
|
(3,668
|
)
|
Accounts payable and other accrued expenses
|
|
(15,015
|
)
|
|
(9,681
|
)
|
Accrued wages and benefits
|
|
(16,071
|
)
|
|
(16,153
|
)
|
Workers’ compensation claims reserve
|
|
(1,957
|
)
|
|
3,731
|
|
Other liabilities
|
|
2,488
|
|
|
1,792
|
|
Net cash provided by operating activities
|
|
53,975
|
|
|
160,505
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Capital expenditures
|
|
(6,167
|
)
|
|
(3,876
|
)
|
Acquisition of business
|
|
—
|
|
|
(72,000
|
)
|
Change in restricted cash and cash equivalents
|
|
14,039
|
|
|
(3,592
|
)
|
Purchases of restricted investments
|
|
(14,975
|
)
|
|
(11,222
|
)
|
Maturities of restricted investments
|
|
4,423
|
|
|
3,164
|
|
Net cash used in investing activities
|
|
(2,680
|
)
|
|
(87,526
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Net proceeds from stock option exercises and employee stock purchase
plans
|
|
491
|
|
|
477
|
|
Common stock repurchases for taxes upon vesting of restricted stock
|
|
(2,400
|
)
|
|
(2,229
|
)
|
Net change in revolving credit facility
|
|
(57,367
|
)
|
|
(78,988
|
)
|
Payments on debt
|
|
(567
|
)
|
|
(756
|
)
|
Other
|
|
—
|
|
|
171
|
|
Net cash used in financing activities
|
|
(59,843
|
)
|
|
(81,325
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(339
|
)
|
|
453
|
|
Net change in cash and cash equivalents
|
|
(8,887
|
)
|
|
(7,893
|
)
|
CASH AND CASH EQUIVALENTS, beginning of period
|
|
34,970
|
|
|
29,781
|
|
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
26,083
|
|
|
$
|
21,888
|
|
|
|
TRUEBLUE, INC. NON-GAAP RECONCILIATIONS (Unaudited,
in thousands, except for per share data)
|
|
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET
INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE
|
|
|
|
13 Weeks Ended
|
|
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
|
Q2 2017 Outlook*
|
Net income
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
|
$
|
12,000
|
|
|
—
|
|
$
|
14,100
|
|
Acquisition and integration costs (1)
|
|
—
|
|
|
1,060
|
|
|
|
|
—
|
|
|
Amortization of intangible assets of acquired businesses (2)
|
|
5,864
|
|
|
6,735
|
|
|
|
|
5,600
|
|
|
Tax effective of adjustments to net income (3)
|
|
(1,642
|
)
|
|
(2,183
|
)
|
|
|
|
(1,600)
|
|
|
Adjust income taxes to normalized effective rate (4)
|
|
(5
|
)
|
|
(1,510
|
)
|
|
|
|
—
|
|
|
Adjusted net income (6)
|
|
$
|
8,891
|
|
|
$
|
11,070
|
|
|
$
|
16,000
|
|
|
—
|
|
$
|
18,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, per diluted share (6)
|
|
$
|
0.21
|
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
|
—
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
41,937
|
|
|
41,798
|
|
|
|
|
41,900
|
|
|
|
* Totals may not sum due to rounding
|
|
|
2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA, ADJUSTED
EBITDA AND ADJUSTED EBITDA EXCLUDING THE COMPANY'S FORMER LARGEST
CUSTOMER
|
|
|
|
13 Weeks Ended
|
|
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
|
Q2 2017 Outlook*
|
Net income
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
|
$
|
12,000
|
|
—
|
|
$
|
14,100
|
Income tax expense
|
|
1,811
|
|
|
612
|
|
|
4,700
|
|
—
|
|
5,500
|
Interest and other expense (income), net
|
|
(74
|
)
|
|
1,019
|
|
|
|
|
(100)
|
|
|
Depreciation and amortization
|
|
11,174
|
|
|
11,289
|
|
|
|
|
12,200
|
|
|
EBITDA (7)
|
|
17,585
|
|
|
19,888
|
|
|
28,700
|
|
—
|
|
31,700
|
Acquisition and integration costs (1)
|
|
—
|
|
|
1,060
|
|
|
|
|
—
|
|
|
Work Opportunity Tax Credit processing fees (5)
|
|
272
|
|
|
477
|
|
|
|
|
300
|
|
|
Adjusted EBITDA (7)
|
|
17,857
|
|
|
21,425
|
|
|
29,000
|
|
—
|
|
32,000
|
Former largest customer (8)
|
|
(962
|
)
|
|
(4,846
|
)
|
|
|
|
(600)
|
|
|
Adjusted EBITDA (7) excluding former largest customer
|
|
$
|
16,895
|
|
|
$
|
16,579
|
|
|
$
|
28,400
|
|
—
|
|
$
|
31,400
|
|
* Totals may not sum due to rounding
|
|
|
3. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND
ADJUSTED NET INCOME PER DILUTED SHARE EXCLUDING THE COMPANY'S
FORMER LARGEST CUSTOMER
|
|
Due to a previously announced reduction in the scope of services
with its former largest customer, the company is providing results
excluding this customer to help investors assess the company's
underlying results with prior periods.
|
|
|
|
|
|
13 Weeks Ended
|
|
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
Net income
|
|
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
Acquisition and integration costs (1)
|
|
|
|
—
|
|
|
1,060
|
|
Amortization of intangible assets of acquired businesses (2)
|
|
|
|
5,864
|
|
|
6,735
|
|
Former largest customer (8)
|
|
|
|
(962
|
)
|
|
(4,846
|
)
|
Tax effective of adjustments to net income (3)
|
|
|
|
(1,373
|
)
|
|
(826
|
)
|
Adjust income taxes to normalized effective rate (4)
|
|
|
|
(5
|
)
|
|
(1,510
|
)
|
Adjusted net income (6), excluding former largest customer
|
|
|
|
$
|
8,198
|
|
|
$
|
7,581
|
|
|
|
|
|
|
|
|
Adjusted net income, per diluted share (6), excluding former largest
customer
|
|
|
|
$
|
0.20
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
41,937
|
|
|
41,798
|
|
|
|
(1)
|
|
Acquisition and integration costs relate to the acquisition of the
recruitment process outsourcing business of Aon Hewitt, which was
completed on January 4, 2016, and the acquisition of SIMOS, which
was completed on December 1, 2015.
|
|
(2)
|
|
Amortization of intangible assets of acquired businesses as well as
accretion expense related to the SIMOS acquisition earn-out.
|
|
(3)
|
|
Total tax effect of each of the adjustments to U.S. GAAP Net income
per diluted share using the ongoing rate of 28%.
|
|
(4)
|
|
Adjusts the effective income tax rate to the expected ongoing rate
of 28%.
|
|
(5)
|
|
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 and reduce our income taxes.
|
|
(6)
|
|
Adjusted net income and Adjusted net income per diluted share are
non-GAAP financial measures, which exclude from Net income and Net
income on a per diluted share basis, costs related to acquisition
and integration costs, amortization of intangibles of acquired
businesses as well as accretion expense related to acquisition
earn-out, tax effect of each adjustment to U.S. GAAP Net income, and
adjusts income taxes to the expected ongoing effective tax rate.
Adjusted net income and Adjusted net income per diluted share are
key measures used by management to assess performance and, in our
opinion, enhance comparability and provide investors with useful
insight into the underlying trends of the business. Adjusted net
income and Adjusted net income per diluted share should not be
considered measures of financial performance in isolation or as an
alternative to net income or net income per diluted share in the
Consolidated Statements of Operations in accordance with U.S. GAAP,
and may not be comparable to similarly titled measures of other
companies. Adjusted net income and net income per diluted share
previously excluded the third-party processing fees associated with
generating Work Opportunity Tax Credits.
|
|
(7)
|
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA
excludes interest, taxes, depreciation and amortization. Adjusted
EBITDA further excludes from EBITDA costs related to acquisition
integration costs and Work Opportunity Tax Credit third-party
processing fees. EBITDA and Adjusted EBITDA are key measures used by
management to assess performance and, in our opinion, enhance
comparability and provide investors with useful insight into the
underlying trends of the business. 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 U.S. GAAP, and may not
be comparable to similarly titled measures of other companies.
|
|
(8)
|
|
The impact of our former largest customer excluding interest,
taxes, depreciation and amortization.
|
|
|
TRUEBLUE, INC. SEGMENT DATA (Unaudited,
in thousands)
|
|
|
|
13 Weeks Ended
|
|
|
Apr 2, 2017
|
|
Mar 25, 2016
|
Revenue from services
|
|
|
|
|
PeopleReady
|
|
$
|
332,624
|
|
|
$
|
356,010
|
|
PeopleManagement
|
|
191,686
|
|
|
246,427
|
|
PeopleScout
|
|
43,934
|
|
|
43,543
|
|
Total Company
|
|
568,244
|
|
|
645,980
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
|
|
|
PeopleReady
|
|
$
|
9,994
|
|
|
$
|
12,032
|
|
PeopleManagement
|
|
5,533
|
|
|
6,353
|
|
PeopleScout
|
|
8,665
|
|
|
8,010
|
|
|
|
24,192
|
|
|
26,395
|
|
Corporate unallocated expense (2)
|
|
(6,335
|
)
|
|
(4,970
|
)
|
Total company Adjusted EBITDA
|
|
17,857
|
|
|
21,425
|
|
Acquisition and integration (3)
|
|
—
|
|
|
(1,060
|
)
|
Work Opportunity Tax Credit processing fees (4)
|
|
(272
|
)
|
|
(477
|
)
|
EBITDA (1)
|
|
17,585
|
|
|
19,888
|
|
Depreciation and amortization
|
|
(11,174
|
)
|
|
(11,289
|
)
|
Interest and other income (expense), net
|
|
74
|
|
|
(1,019
|
)
|
Income before tax expense
|
|
6,485
|
|
|
7,580
|
|
Income tax expense
|
|
(1,811
|
)
|
|
(612
|
)
|
Net income
|
|
$
|
4,674
|
|
|
$
|
6,968
|
|
|
|
(1)
|
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA
excludes interest, taxes, depreciation and amortization. Adjusted
EBITDA further excludes from EBITDA costs related to acquisition
integration costs and Work Opportunity Tax Credit third-party
processing fees. EBITDA and Adjusted EBITDA are key measures used by
management to assess performance and, in our opinion, enhance
comparability and provide investors with useful insight into the
underlying trends of the business. 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 U.S. GAAP, and may not
be comparable to similarly titled measures of other companies.
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(2)
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Beginning in the fourth quarter of 2016, we changed our methodology
for allocating certain corporate costs to our segments, which
decreased our corporate unallocated expenses. We have adjusted the
prior year amounts to reflect this change for consistency purposes.
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(3)
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Acquisition and integration costs relate to the acquisition of the
recruitment process outsourcing business of Aon Hewitt, which was
completed on January 4, 2016, and the acquisition of SIMOS, which
was completed on December 1, 2015.
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(4)
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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 and reduce our income taxes.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170501005813/en/
Source: TrueBlue, Inc.