TrueBlue (NYSE:TBI):
Third Quarter Summary
-
Revenue of $388 million, a decrease of 1% compared to the third
quarter of 2007.
-
Net income of $16.3 million, a decrease of 28% compared to the third
quarter of 2007.
-
Diluted net income per common share of $0.38 compared to $0.51 for the
third quarter of 2007.
-
EBITDA(a) of $29.0 million, a decrease of 21% compared to the third
quarter 2007.
The one percent revenue decline for the quarter consisted of 16 percent
growth from acquisitions completed within the last 12 months offset by a
17 percent decrease in organic revenue, which consists of total revenue
growth less growth from acquisitions.
“As a result of the weak economy, demand for
our services declined across most of the markets we serve, and we
responded by accelerating plans to close branches and implementing other
cost controls,” said TrueBlue CEO Steve
Cooper. “We will continue to aggressively
manage costs during these challenging times.”
Branch Activity
TrueBlue closed eight branches resulting in 919 total branches in
operation at the end of the quarter bringing year-to-date branch
closures for 2008 to 32 branches. The company plans to close 17 branches
during the fourth quarter of 2008 and is currently evaluating additional
branches to close.
Q4 Outlook
For the fourth quarter of 2008, TrueBlue estimates revenue in the range
of $325 to $335 million with net income per diluted share for the
quarter in the range of $0.10 to $0.14.
Management will discuss third quarter 2008 results on a conference call
at 2 p.m. (PT), today, Wednesday Oct. 15, 2008. The conference call can
be accessed on TrueBlue’s web site: www.TrueBlueInc.com.
About TrueBlue
TrueBlue (NYSE:TBI) is the leading provider of blue-collar staffing with
revenue of approximately $1.4 billion. Each year, TrueBlue connects
approximately 600,000 people to work through the following brands: Labor
Ready, PMI, Spartan Staffing, CLP Resources, PlaneTechs, and TLC
Drivers. Headquartered in Tacoma, Wash., TrueBlue serves more than
300,000 small to mid-sized businesses in the construction, warehousing,
hospitality, landscaping, transportation, light manufacturing, retail,
wholesale, facilities, sanitation, and aviation industries. For more
information, visit TrueBlue’s website at www.TrueBlueInc.com
Forward-looking Statements
This news release contains forward-looking statements, such as
statements about the ranges of revenues, gross margins and net income
anticipated for future periods, improvements in safety and workers’
compensation claims and costs, strategies for increasing revenue and net
income, and other factors that may affect TrueBlue’s
financial results and operations in the future. TrueBlue’s
actual results are, however, subject to a number of risks, including
without limitation the following: 1) national and global economic
conditions, including the impact of changes in national and global
credit markets and other changes on TrueBlue customers; 2) TrueBlue’s
ability to continue to attract and retain customers and maintain profit
margins in the face of new and existing competition; 3) potential new
laws and regulations that could have a materially adverse effect on
TrueBlue’s operations and financial results;
4) significant labor disturbances which could disrupt industries
TrueBlue serves; 5) increased costs and collateral requirements in
connection with TrueBlue’s insurance
obligations, including workers’ compensation
insurance; 6) the adequacy of TrueBlue’s
financial reserves; 7) TrueBlue’s continuing
ability to comply with financial covenants in its lines of credit and
other financing agreements; 8) TrueBlue’s
ability to attract and retain competent employees in key positions or to
find temporary employees or skilled trade workers to fulfill the needs
of our customers; 9) TrueBlue’s ability to
successfully complete and integrate acquisitions that it may make from
time to time; 10) TrueBlue’s ability to
timely execute strategies for acquired companies; and 11) other risks
described in TrueBlue’s filings with the
Securities and Exchange Commission, including its most recent Form 10-K
and Form 10-Q filings.
Definitions
(a) EBITDA is defined, discussed and reconciled to net income in the
financial schedules filed with this press release.
|
TrueBlue, Inc.
|
|
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
|
|
In Thousands, except per share data
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
|
|
Sept. 26,
|
|
Sept. 28,
|
|
Sept. 26,
|
|
Sept. 28,
|
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
387,914
|
|
$
|
390,672
|
|
$
|
1,082,640
|
|
$
|
1,032,040
|
|
Cost of services
|
|
272,736
|
|
|
265,168
|
|
|
758,564
|
|
|
701,858
|
|
Gross profit
|
|
115,178
|
|
|
125,504
|
|
|
324,076
|
|
|
330,182
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
|
|
|
|
86,226
|
|
|
89,077
|
|
|
253,279
|
|
|
248,355
|
|
Depreciation and amortization
|
|
3,988
|
|
|
3,402
|
|
|
11,863
|
|
|
8,661
|
|
Income from operations
|
|
24,964
|
|
|
33,025
|
|
|
58,934
|
|
|
73,166
|
|
Interest and other income, net
|
|
1,049
|
|
|
2,504
|
|
|
4,569
|
|
|
8,223
|
|
Income before tax expense
|
|
26,013
|
|
|
35,529
|
|
|
63,503
|
|
|
81,389
|
|
Income tax expense
|
|
9,678
|
|
|
12,806
|
|
|
21,639
|
|
|
29,545
|
|
Net income
|
$
|
16,335
|
|
$
|
22,723
|
|
$
|
41,864
|
|
$
|
51,844
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.38
|
|
$
|
0.51
|
|
$
|
0.97
|
|
$
|
1.12
|
|
Diluted
|
$
|
0.38
|
|
$
|
0.51
|
|
$
|
0.97
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
42,460
|
|
|
44,487
|
|
|
43,005
|
|
|
46,484
|
|
Diluted
|
|
42,695
|
|
|
44,784
|
|
|
43,176
|
|
|
46,775
|
|
|
|
TrueBlue, Inc.
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
In Thousands
|
|
|
|
|
|
|
|
|
|
Sept. 26,
|
|
Dec. 28,
|
|
|
|
2008
|
|
2007
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
57,480
|
|
$
|
57,008
|
|
Marketable securities
|
|
|
-
|
|
|
10,954
|
|
Accounts receivable, net
|
|
|
155,652
|
|
|
140,027
|
|
Other current assets
|
|
|
27,737
|
|
|
21,519
|
|
Total current assets
|
|
|
240,869
|
|
|
229,508
|
|
Property and equipment, net
|
|
|
58,184
|
|
|
44,909
|
|
Restricted cash
|
|
|
127,785
|
|
|
132,497
|
|
Other assets
|
|
|
154,606
|
|
|
138,335
|
|
Total assets
|
|
$
|
581,444
|
|
$
|
545,249
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
Current liabilities
|
|
$
|
108,857
|
|
$
|
114,538
|
|
Long-term liabilities
|
|
|
156,241
|
|
|
146,884
|
|
Total liabilities
|
|
|
265,098
|
|
|
261,422
|
|
Shareholders' equity
|
|
|
316,346
|
|
|
283,827
|
|
Total liabilities and shareholders' equity
|
|
$
|
581,444
|
|
$
|
545,249
|
|
|
|
TrueBlue, Inc.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
In Thousands
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirty-Nine Weeks Ended
|
|
|
|
Sept. 26,
|
|
Sept. 28,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
41,864
|
|
|
$
|
51,844
|
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
11,863
|
|
|
|
8,661
|
|
|
Provision for doubtful accounts
|
|
|
6,697
|
|
|
|
7,543
|
|
|
Stock-based compensation
|
|
|
6,229
|
|
|
|
5,457
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
-
|
|
|
|
(1,293
|
)
|
|
Deferred income taxes
|
|
|
(7,102
|
)
|
|
|
(4,458
|
)
|
|
Other operating activities
|
|
|
530
|
|
|
|
105
|
|
|
Changes in operating assets and liabilities,
|
|
|
|
|
|
exclusive of businesses acquired:
|
|
|
|
|
|
Accounts receivable
|
|
|
(11,394
|
)
|
|
|
(34,904
|
)
|
|
Income taxes
|
|
|
(4,350
|
)
|
|
|
9,957
|
|
|
Other assets
|
|
|
-
|
|
|
|
298
|
|
|
Accounts payable and other accrued expenses
|
|
|
(1,663
|
)
|
|
|
1,696
|
|
|
Accrued wages and benefits
|
|
|
(2,654
|
)
|
|
|
(342
|
)
|
|
Workers' compensation claims reserve
|
|
|
4,106
|
|
|
|
5,621
|
|
|
Other liabilities
|
|
|
(3,216
|
)
|
|
|
872
|
|
|
Net cash provided by operating activities
|
|
|
40,910
|
|
|
|
51,057
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(20,009
|
)
|
|
|
(16,311
|
)
|
|
Purchases of marketable securities
|
|
|
(27,158
|
)
|
|
|
(146,901
|
)
|
|
Maturities of marketable securities
|
|
|
38,087
|
|
|
|
227,706
|
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
(21,270
|
)
|
|
|
(26,456
|
)
|
|
Change in restricted cash
|
|
|
4,712
|
|
|
|
809
|
|
|
Other
|
|
|
-
|
|
|
|
(167
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
(25,638
|
)
|
|
|
38,680
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Purchases and retirement of common stock
|
|
|
(15,997
|
)
|
|
|
(148,233
|
)
|
|
Net proceeds from sale of stock through options
|
|
|
|
|
|
and employee benefit plans
|
|
|
3,173
|
|
|
|
5,046
|
|
|
Shares withheld for taxes upon vesting of restricted stock
|
|
|
(918
|
)
|
|
|
(954
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
-
|
|
|
|
1,293
|
|
|
Payments on debt
|
|
|
(193
|
)
|
|
|
(842
|
)
|
|
Other
|
|
|
(229
|
)
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
(14,164
|
)
|
|
|
(143,690
|
)
|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
(636
|
)
|
|
|
1,893
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
472
|
|
|
|
(52,060
|
)
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, beginning of period
|
|
|
57,008
|
|
|
|
107,944
|
|
|
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
57,480
|
|
|
$
|
55,884
|
|
TrueBlue
Derrek Gafford, EVP & CFO
253-680-8214
or
Stacey
Burke, VP of Corporate Communications
253-680-8291
