Board Authorizes $100 Million Share Repurchase
TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue, Inc. (NYSE:TBI) announced today its fiscal third quarter 2017
results.
Revenue was $661 million, a decrease of 5 percent, compared to revenue
of $697 million in the fiscal third quarter of 2016. Excluding the
previously disclosed reduction in the scope of services provided to the
company's former largest customer, revenue declined by 2 percent. Net
income per diluted share was $0.51 compared to $0.56 in the fiscal third
quarter of 2016. Adjusted net income per diluted share1 was
$0.60 compared to $0.72 in the fiscal third quarter of 2016.
“We are encouraged by this quarter’s revenue results,” TrueBlue CEO
Steve Cooper said. “We saw improving revenue trends across all of our
segments and double-digit growth in our PeopleScout business. These
trends combined with the continued progress of our digital strategy
position us well for future revenue growth. We are committed to driving
higher shareholder returns through organic revenue growth strategies and
share repurchases.”
The company also announced that its Board of Directors authorized a $100
million stock repurchase program. “The company is producing strong cash
flow and the balance sheet is in great shape,” TrueBlue CFO Derrek
Gafford said. “The new share authorization demonstrates our desire to
return more cash to shareholders and our confidence in the long-term
outlook for our business.”
2017 Outlook
The company estimates revenue for the fiscal fourth quarter of 2017 will
range from $660 million to $675 million. It also expects net income per
diluted share will range from $0.36 to $0.41. Adjusted net income per
diluted share is expected to be $0.45 to $0.50.
The fiscal fourth quarter of 2016 included a 14th week and
two additional days from moving the week-ending date from Friday to
Sunday. On a GAAP basis our fourth quarter revenue outlook represents a
decline of 8% to 10% while on a comparable basis2, the
revenue outlook represents a decline of 1% to 3%. The additional nine
days in the fiscal fourth quarter of 2016 generated $56 million of
revenue, $0.04 of net income per diluted share, and $0.05 of adjusted
net income per diluted share.
Management will discuss third quarter 2017 results on a webcast at 2
p.m. PT (5 p.m. ET), today, Monday, Oct. 30. 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 onsite workforce management, and PeopleScout segment offering
Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP)
solutions. Learn more at www.trueblue.com.
1
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See the financial statements accompanying the release and the
company’s website for more information on non-GAAP terms.
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2
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The comparable period in 2016 excludes the first week (ended Sept.
30) of the fourth quarter and the two additional days associated
with the change in week-ending date.
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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, and (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.
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TRUEBLUE, INC.
|
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
39 Weeks Ended
|
(in thousands, except per share data)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
Revenue from services
|
|
|
|
$
|
660,780
|
|
|
|
$
|
697,097
|
|
|
|
$
|
1,839,146
|
|
|
$
|
2,015,689
|
|
Cost of services
|
|
|
|
488,761
|
|
|
|
518,702
|
|
|
|
1,372,418
|
|
|
1,516,858
|
|
Gross profit
|
|
|
|
172,019
|
|
|
|
178,395
|
|
|
|
466,728
|
|
|
498,831
|
|
Selling, general and administrative expense
|
|
|
|
131,552
|
|
|
|
134,679
|
|
|
|
378,150
|
|
|
401,090
|
|
Depreciation and amortization
|
|
|
|
11,189
|
|
|
|
11,690
|
|
|
|
34,650
|
|
|
34,673
|
|
Goodwill and intangible asset impairment charge
|
|
|
|
—
|
|
|
|
4,275
|
|
|
|
—
|
|
|
103,544
|
|
Income (loss) from operations
|
|
|
|
29,278
|
|
|
|
27,751
|
|
|
|
53,928
|
|
|
(40,476
|
)
|
Interest and other income (expense), net
|
|
|
|
(219
|
)
|
|
|
(867
|
)
|
|
|
10
|
|
|
(2,773
|
)
|
Income (loss) before tax expense
|
|
|
|
29,059
|
|
|
|
26,884
|
|
|
|
53,938
|
|
|
(43,249
|
)
|
Income tax expense (benefit)
|
|
|
|
7,838
|
|
|
|
3,455
|
|
|
|
14,909
|
|
|
(9,911
|
)
|
Net income (loss)
|
|
|
|
$
|
21,221
|
|
|
|
$
|
23,429
|
|
|
|
$
|
39,029
|
|
|
$
|
(33,338
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.94
|
|
|
$
|
(0.80
|
)
|
Diluted
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.94
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|
|
$
|
(0.80
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
41,046
|
|
|
|
41,762
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|
|
|
41,420
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|
|
41,651
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|
Diluted
|
|
|
|
41,276
|
|
|
|
42,056
|
|
|
|
41,671
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|
|
41,651
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|
|
|
|
|
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TRUEBLUE, INC.
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SUMMARY CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
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(in thousands)
|
|
|
|
Oct 1, 2017
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|
|
Jan 1, 2017
|
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
35,055
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|
|
$
|
34,970
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Accounts receivable, net
|
|
|
|
380,473
|
|
|
352,606
|
Other current assets
|
|
|
|
24,868
|
|
|
40,227
|
Total current assets
|
|
|
|
440,396
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|
|
427,803
|
Property and equipment, net
|
|
|
|
63,079
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|
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63,998
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Restricted cash and investments
|
|
|
|
244,173
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|
|
231,193
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Goodwill and intangible assets, net
|
|
|
|
336,734
|
|
|
349,894
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Other assets, net
|
|
|
|
47,968
|
|
|
57,557
|
Total assets
|
|
|
|
$
|
1,132,350
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|
|
$
|
1,130,445
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|
|
|
|
|
|
|
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Liabilities and shareholders' equity
|
|
|
|
|
|
|
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Current portion of long-term debt
|
|
|
|
$
|
23,422
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|
|
$
|
2,267
|
Other current liabilities
|
|
|
|
224,785
|
|
|
248,868
|
Long-term debt, less current portion
|
|
|
|
111,408
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|
|
135,362
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Other long-term liabilities
|
|
|
|
228,962
|
|
|
218,769
|
Total liabilities
|
|
|
|
588,577
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|
605,266
|
Shareholders' equity
|
|
|
|
543,773
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|
|
525,179
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Total liabilities and shareholders' equity
|
|
|
|
$
|
1,132,350
|
|
|
$
|
1,130,445
|
|
|
|
|
|
|
|
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TRUEBLUE, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
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|
39 Weeks Ended
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(in thousands)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
39,029
|
|
|
|
$
|
(33,338
|
)
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
34,650
|
|
|
|
34,673
|
|
Goodwill and intangible asset impairment charge
|
|
|
|
—
|
|
|
|
103,544
|
|
Provision for doubtful accounts
|
|
|
|
6,321
|
|
|
|
6,361
|
|
Stock-based compensation
|
|
|
|
6,161
|
|
|
|
7,443
|
|
Deferred income taxes
|
|
|
|
4,890
|
|
|
|
(23,874
|
)
|
Other operating activities
|
|
|
|
2,563
|
|
|
|
5,603
|
|
Changes in operating assets and liabilities, net of effects of
acquisition of business:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(34,198
|
)
|
|
|
102,722
|
|
Income tax receivable
|
|
|
|
12,788
|
|
|
|
4,018
|
|
Other assets
|
|
|
|
6,306
|
|
|
|
(3,563
|
)
|
Accounts payable and other accrued expenses
|
|
|
|
(784
|
)
|
|
|
(3,764
|
)
|
Accrued wages and benefits
|
|
|
|
(176
|
)
|
|
|
(3,254
|
)
|
Workers’ compensation claims reserve
|
|
|
|
1,985
|
|
|
|
11,938
|
|
Other liabilities
|
|
|
|
1,086
|
|
|
|
4,740
|
|
Net cash provided by operating activities
|
|
|
|
80,621
|
|
|
|
213,249
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(16,303
|
)
|
|
|
(17,766
|
)
|
Acquisition of business
|
|
|
|
—
|
|
|
|
(71,863
|
)
|
Change in restricted cash and cash equivalents
|
|
|
|
8,623
|
|
|
|
732
|
|
Purchases of restricted investments
|
|
|
|
(36,015
|
)
|
|
|
(35,940
|
)
|
Maturities of restricted investments
|
|
|
|
15,042
|
|
|
|
12,273
|
|
Net cash used in investing activities
|
|
|
|
(28,653
|
)
|
|
|
(112,564
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Purchases and retirement of common stock
|
|
|
|
(29,371
|
)
|
|
|
—
|
|
Net proceeds from stock option exercises and employee stock purchase
plans
|
|
|
|
1,179
|
|
|
|
1,183
|
|
Common stock repurchases for taxes upon vesting of restricted stock
|
|
|
|
(2,956
|
)
|
|
|
(2,692
|
)
|
Net change in revolving credit facility
|
|
|
|
(1,099
|
)
|
|
|
(104,586
|
)
|
Payments on debt
|
|
|
|
(1,700
|
)
|
|
|
(1,700
|
)
|
Payment of contingent consideration at acquisition date fair value
|
|
|
|
(18,300
|
)
|
|
|
—
|
|
Other
|
|
|
|
—
|
|
|
|
20
|
|
Net cash used in financing activities
|
|
|
|
(52,247
|
)
|
|
|
(107,775
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
364
|
|
|
|
2,090
|
|
Net change in cash and cash equivalents
|
|
|
|
85
|
|
|
|
(5,000
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
34,970
|
|
|
|
29,781
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
35,055
|
|
|
|
$
|
24,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP
RECONCILIATIONS
In addition to financial measures presented in accordance with GAAP, we
monitor other non-GAAP financial measures that we use to manage our
business, make planning decisions, allocate resources, and utilize as
performance measures in our executive compensation plan. These key
financial measures provide an additional view of our operational
performance and provide useful information that we use to manage and
grow our business. The presentation of these non-GAAP financial measures
is used to enhance the understanding of certain aspects of our financial
performance. It is not meant to be considered in isolation, superior to,
or as a substitute for the directly comparable financial measures
prepared in accordance with U.S. GAAP, and may not be comparable to
similarly titled measures of other companies.
|
|
|
|
|
|
|
Non-GAAP Measure
|
|
|
Definition
|
|
|
Purpose of Adjusted Measures
|
EBITDA and Adjusted EBITDA
|
|
|
EBITDA excludes from Net income the effects of: - interest
expense, - income taxes, and - depreciation and
amortization.
Adjusted EBITDA, further excludes the
effects of: - acquisition/integration and other costs, -
goodwill and intangible asset impairment charge, and - Work
Opportunity Tax Credit third-party processing fees.
|
|
|
- Enhances comparability on a consistent basis and provides
investors with useful insight into the underlying trends of the
business.
- Is used by management to assess performance
and effectiveness of our business strategies by excluding certain
non-cash charges.
- Provides a measure, among others, used in the determination of
incentive compensation for management.
|
Adjusted net income and Adjusted net income, per diluted share
|
|
|
Net income and Net income per diluted share, excluding the effects
of:
- acquisition/integration and other costs, - goodwill and
intangible asset impairment charge, - 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 - adjusted income
taxes to the expected ongoing effective tax rate.
|
|
|
- Enhances comparability on a consistent basis and provides
investors with useful insight into the underlying trends of the
business.
- Is used by management to assess performance
and effectiveness of our business strategies by excluding certain
non-cash charges.
|
|
|
|
|
|
|
|
|
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED
NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE
|
(Unaudited)
|
|
|
|
|
|
13 Weeks Ended*
|
(in thousands, except for per share data)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
|
|
Q4 2017 Outlook
|
Net income
|
|
|
|
$
|
21,221
|
|
|
|
$
|
23,429
|
|
|
|
$
|
14,500
|
—
|
$
|
16,700
|
Acquisition/integration and other costs (1)
|
|
|
|
—
|
|
|
|
4,842
|
|
|
|
—
|
Goodwill and intangible asset impairment charge (2)
|
|
|
|
—
|
|
|
|
4,275
|
|
|
|
—
|
Amortization of intangible assets of acquired businesses (3)
|
|
|
|
5,353
|
|
|
|
6,831
|
|
|
|
5,300
|
Tax effect of adjustments to net income (4)
|
|
|
|
(1,499
|
)
|
|
|
(4,465
|
)
|
|
|
(1,500)
|
Adjust income taxes to normalized effective rate (5)
|
|
|
|
(299
|
)
|
|
|
(4,073
|
)
|
|
|
—
|
Adjusted net income
|
|
|
|
$
|
24,776
|
|
|
|
$
|
30,839
|
|
|
|
$
|
18,300
|
—
|
$
|
20,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, per diluted share
|
|
|
|
$
|
0.60
|
|
|
|
$
|
0.72
|
|
|
|
$
|
0.45
|
—
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
41,276
|
|
|
|
42,056
|
|
|
|
40,800
|
* Totals may not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND
ADJUSTED EBITDA
|
(Unaudited)
|
|
|
|
|
|
13 Weeks Ended*
|
(in thousands)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
|
|
Q4 2017 Outlook
|
Net income
|
|
|
|
$
|
21,221
|
|
|
$
|
23,429
|
|
|
$
|
14,500
|
—
|
$
|
16,700
|
Income tax expense
|
|
|
|
7,838
|
|
|
3,455
|
|
|
5,600
|
—
|
6,500
|
Interest and other expense, net
|
|
|
|
219
|
|
|
867
|
|
|
—
|
Depreciation and amortization
|
|
|
|
11,189
|
|
|
11,690
|
|
|
11,000
|
EBITDA
|
|
|
|
40,467
|
|
|
39,441
|
|
|
31,100
|
—
|
34,100
|
Acquisition/integration and other costs (1)
|
|
|
|
—
|
|
|
4,842
|
|
|
—
|
Goodwill and intangible asset impairment charge (2)
|
|
|
|
—
|
|
|
4,275
|
|
|
—
|
Work Opportunity Tax Credit processing fees (6)
|
|
|
|
180
|
|
|
754
|
|
|
200
|
Adjusted EBITDA
|
|
|
|
$
|
40,647
|
|
|
$
|
49,312
|
|
|
$
|
31,300
|
—
|
$
|
34,300
|
* Totals may not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. RECONCILIATION OF U.S. GAAP REVENUE TO REVENUE EXCLUDING THE
COMPANY'S FORMER LARGEST CUSTOMER
|
(Unaudited)
|
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
|
(in thousands)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
Revenue from services
|
|
|
|
$
|
660,780
|
|
|
|
$
|
697,097
|
|
Former largest customer revenue
|
|
|
|
(11,393
|
)
|
|
|
(31,891
|
)
|
Revenue excluding former largest customer
|
|
|
|
$
|
649,387
|
|
|
|
$
|
665,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Acquisition/integration costs related to the acquisition of the
recruitment process outsourcing business of Aon Hewitt, which was
completed on January 4, 2016. In addition, other charges include
costs associated with our exit from the Amazon delivery business
of $1.8 million and branch signage write-offs of $1.6 million due
to our re-branding to PeopleReady in the third quarter of 2016.
|
|
|
|
|
(2)
|
|
|
The Goodwill and intangible asset impairment charge for the thirteen
weeks ended September 23, 2016, relates to the CLP and Spartan
reporting unit trade names/trademarks of $4.3 million that were
written-off due to the re-branding of PeopleReady.
|
|
|
|
|
(3)
|
|
|
Amortization of intangible assets of acquired businesses as well as
accretion expense related to the SIMOS acquisition earn-out.
|
|
|
|
|
(4)
|
|
|
Total tax effect of each of the adjustments to U.S. GAAP Net income
per diluted share using the ongoing rate of 28%.
|
|
|
|
|
(5)
|
|
|
Adjusts the effective income tax rate to the expected ongoing rate
of 28%.
|
|
|
|
|
(6)
|
|
|
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.
|
|
|
|
|
|
TRUEBLUE, INC.
|
SEGMENT INFORMATION
|
(Unaudited)
|
|
1. SEGMENT DATA
|
|
|
|
|
|
13 Weeks Ended
|
(in thousands)
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016
|
Revenue from services:
|
|
|
|
|
|
|
|
PeopleReady
|
|
|
|
$
|
414,995
|
|
|
|
$
|
435,783
|
|
PeopleManagement
|
|
|
|
196,835
|
|
|
|
216,834
|
|
PeopleScout
|
|
|
|
48,950
|
|
|
|
44,480
|
|
Total company
|
|
|
|
660,780
|
|
|
|
697,097
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA (1):
|
|
|
|
|
|
|
|
PeopleReady
|
|
|
|
$
|
28,752
|
|
|
|
$
|
40,789
|
|
PeopleManagement
|
|
|
|
6,940
|
|
|
|
5,292
|
|
PeopleScout
|
|
|
|
10,277
|
|
|
|
8,358
|
|
Total Adjusted Segment EBITDA
|
|
|
|
45,969
|
|
|
|
54,439
|
|
Corporate unallocated expense (2)
|
|
|
|
(5,322
|
)
|
|
|
(5,127
|
)
|
Total company Adjusted EBITDA
|
|
|
|
40,647
|
|
|
|
49,312
|
|
Acquisition/integration and other costs (3)
|
|
|
|
—
|
|
|
|
(4,842
|
)
|
Goodwill and intangible asset impairment charge (4)
|
|
|
|
—
|
|
|
|
(4,275
|
)
|
Work Opportunity Tax Credit processing fees (5)
|
|
|
|
(180
|
)
|
|
|
(754
|
)
|
EBITDA
|
|
|
|
40,467
|
|
|
|
39,441
|
|
Depreciation and amortization
|
|
|
|
(11,189
|
)
|
|
|
(11,690
|
)
|
Interest and other income (expense), net
|
|
|
|
(219
|
)
|
|
|
(867
|
)
|
Income before tax expense
|
|
|
|
29,059
|
|
|
|
26,884
|
|
Income tax expense
|
|
|
|
(7,838
|
)
|
|
|
(3,455
|
)
|
Net income
|
|
|
|
$
|
21,221
|
|
|
|
$
|
23,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. SEGMENT EBITDA RECONCILIATION TO ADJUSTED SEGMENT
EBITDA
|
(Unaudited)
|
|
|
|
|
13 Weeks Ended
|
|
|
|
Oct 1, 2017
|
|
|
Sep 23, 2016 (2)
|
(in thousands)
|
|
|
PeopleReady
|
|
|
PeopleManagement
|
|
|
PeopleScout
|
|
|
PeopleReady
|
|
|
PeopleManagement
|
|
|
PeopleScout
|
Segment EBITDA (1)
|
|
|
$
|
28,572
|
|
|
$
|
6,940
|
|
|
$
|
10,277
|
|
|
$
|
34,100
|
|
|
$
|
3,520
|
|
|
$
|
8,358
|
Acquisition/integration and other costs (3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,660
|
|
|
1,772
|
|
|
—
|
Goodwill and intangible asset impairment charge (4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,275
|
|
|
—
|
|
|
—
|
Work Opportunity Tax Credit processing fees (5)
|
|
|
180
|
|
|
—
|
|
|
—
|
|
|
754
|
|
|
—
|
|
|
—
|
Adjusted Segment EBITDA (1)
|
|
|
$
|
28,752
|
|
|
$
|
6,940
|
|
|
$
|
10,277
|
|
|
$
|
40,789
|
|
|
$
|
5,292
|
|
|
$
|
8,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Segment earnings before interest, taxes, depreciation and
amortization ("Segment EBITDA") is a primary measure of segment
performance. Segment EBITDA includes net sales to third parties,
related cost of sales, selling, general and administrative
expenses, and goodwill and intangible asset impairment charge
directly attributable to the reportable segment together with
certain allocated corporate general and administrative expenses.
Segment EBITDA excludes unallocated corporate general and
administrative expenses. Adjusted Segment EBITDA is a non-GAAP
financial measure and further excludes acquisition/integration and
other costs, goodwill and intangible asset impairment charge, and
Work Opportunity Tax Credit third-party processing fees. Adjusted
Segment EBITDA is a key measure used by management to assess
performance and, in our opinion, enhances comparability and
provides investors with useful insight into the underlying trends
of the business. Adjusted Segment 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 U.S. GAAP, and may not
be comparable to similarly titled measures of other companies.
|
|
|
|
|
(2)
|
|
|
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.
|
|
|
|
|
(3)
|
|
|
Acquisition/integration costs related to the acquisition of the
recruitment process outsourcing business of Aon Hewitt, which was
completed on January 4, 2016. In addition, other charges include
costs associated with our exit from the Amazon delivery business
of $1.8 million and branch signage write-offs of $1.6 million due
to our re-branding to PeopleReady in the third quarter of 2016.
|
|
|
|
|
(4)
|
|
|
The Goodwill and intangible asset impairment charge for the thirteen
weeks ended September 23, 2016, relates to the CLP and Spartan
reporting unit trade names/trademarks of $4.3 million that were
written-off due to the re-branding of PeopleReady.
|
|
|
|
|
(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.
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20171030005212/en/
Source: TrueBlue, Inc.