TrueBlue Inc. today reported a net loss of $46.0 million or $1.08 per
diluted share for the quarter ended Dec. 26, 2008, a decrease from net
income of $14.4 million or $0.33 per diluted share for the fourth
quarter of 2007. EBITDA(a) for the fourth quarter of 2008 was
$9.6 million compared to $24.0 million for the fourth quarter of 2007.
Revenue for the quarter was $302 million, a decrease of 15 percent
compared to the fourth quarter of 2007. The 15 percent revenue decline
for the quarter consisted of a 13 percent growth from acquisitions
completed within the last 12 months offset by a 28 percent decrease in
organic revenue.
Fourth quarter 2008 results include a goodwill and intangible asset
impairment charge of $61 million ($49.3 million after tax) or $1.15(b)
per diluted share related to the company’s acquisitions over the past
five years. Excluding this impairment charge, net income would have been
$3.3 million(b) or $0.08(b) per diluted share. The
charge is largely a result of the adverse impact on expected future cash
flows related to the state of the economy. The charge does not impact
the company’s cash, liquidity, or banking covenants.
“The decline in demand for our services accelerated in the fourth
quarter,” said TrueBlue CEO Steve Cooper. “We will continue our focus on
aggressive cost management and on maintaining our strong financial
position. Labor markets have made extreme adjustments during this
recession, and we have made corresponding adjustments to our cost
structure. We are committed to continuing to connect people to work
through our five blue-collar brands and to help our customers manage
their labor needs through these turbulent times.”
In the fourth quarter, TrueBlue closed 70 branches bringing year-to-date
branch closures for 2008 to 102 branches resulting in a total of 850
branches in operation at the end of the year.
For the first quarter of 2009, TrueBlue estimates revenue in the range
of $220 to $230 million and loss per diluted share for the quarter of
$0.15 to $0.20.
Management will discuss fourth quarter 2008 results on a conference call
at 2 p.m. (PT), today, Wednesday Feb. 4, 2009. 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 500,000 people to work through the following brands: Labor
Ready, Spartan Staffing, CLP Resources, PlaneTechs, and TLC.
Headquartered in Tacoma, Wash., TrueBlue serves approximately 250,000
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
(loss) in the financial schedules filed with this release.
(b) The $1.15 impact per diluted share related to the
goodwill and intangible asset impairment is calculated by taking $49.3
million, which is the net of tax impact of the impairment, and dividing
it by the diluted number of shares for the fourth quarter of 2008. Net
income of $3.3 million, which excludes the impairment, net of tax, is
calculated by taking the net loss for the fourth quarter of $46 million
and adding back the impairment, net of tax, of $49.3 million. Net income
per diluted share of $0.08, which excludes the impairment, net of tax,
is calculated by taking $3.3 million and dividing it by the diluted
number of shares for the fourth quarter of 2008.
|
TrueBlue, Inc.
|
|
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
In Thousands, except per share data
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Fiscal Years Ended
|
|
|
December 26,
|
|
December 28,
|
|
December 26,
|
|
December 28,
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
301,629
|
|
|
$
|
353,616
|
|
$
|
1,384,269
|
|
|
$
|
1,385,656
|
|
Cost of services
|
|
213,193
|
|
|
|
241,705
|
|
|
971,757
|
|
|
|
943,563
|
|
Gross profit
|
|
88,436
|
|
|
|
111,911
|
|
|
412,512
|
|
|
|
442,093
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
administrative expenses
|
|
78,834
|
|
|
|
87,865
|
|
|
332,113
|
|
|
|
336,220
|
|
Goodwill and intangible
|
|
|
|
|
|
|
|
|
asset impairment (1)
|
|
61,000
|
|
|
|
-
|
|
|
61,000
|
|
|
|
-
|
|
Depreciation and amortization
|
|
4,911
|
|
|
|
3,562
|
|
|
16,774
|
|
|
|
12,223
|
|
(Loss) income from operations
|
|
(56,309
|
)
|
|
|
20,484
|
|
|
2,625
|
|
|
|
93,650
|
|
Interest and other income, net
|
|
961
|
|
|
|
2,729
|
|
|
5,530
|
|
|
|
10,953
|
|
(Loss) income before tax (benefit) expense
|
|
(55,348
|
)
|
|
|
23,213
|
|
|
8,155
|
|
|
|
104,603
|
|
Income tax (benefit) expense
|
|
(9,325
|
)
|
|
|
8,860
|
|
|
12,314
|
|
|
|
38,405
|
|
Net (loss) income
|
$
|
(46,023
|
)
|
|
$
|
14,353
|
|
$
|
(4,159
|
)
|
|
$
|
66,198
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.08
|
)
|
|
$
|
0.33
|
|
$
|
(0.10
|
)
|
|
$
|
1.45
|
|
Diluted
|
$
|
(1.08
|
)
|
|
$
|
0.33
|
|
$
|
(0.10
|
)
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
42,522
|
|
|
|
43,280
|
|
|
42,885
|
|
|
|
45,683
|
|
Diluted
|
|
42,763
|
|
|
|
43,513
|
|
|
43,073
|
|
|
|
45,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The goodwill and intangible asset impairment relates to our
investments in CLP, Spartan Staffing and TLC. The impact on net
(loss) income is $49.3 million after tax or $1.15 per diluted
share for the thirteen weeks and fiscal year ended December 26,
2008. Explanations for the calculation of the impact of the
impairment on diluted earnings per share are discussed in the
press release and associated 8K filing.
|
|
|
|
|
|
|
|
TrueBlue, Inc.
|
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
|
In Thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 26,
|
|
|
December 28,
|
|
|
|
|
2008
|
|
|
2007
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
108,102
|
|
|
$
|
57,008
|
|
|
Marketable securities
|
|
|
-
|
|
|
|
10,954
|
|
|
Accounts receivable, net
|
|
|
104,979
|
|
|
|
140,027
|
|
|
Other current assets
|
|
|
29,723
|
|
|
|
21,519
|
|
|
Total current assets
|
|
|
242,804
|
|
|
|
229,508
|
|
|
Property and equipment, net
|
|
|
61,542
|
|
|
|
44,909
|
|
|
Restricted cash
|
|
|
120,323
|
|
|
|
132,497
|
|
|
Other assets
|
|
|
95,006
|
|
|
|
138,335
|
|
|
Total assets
|
|
$
|
519,675
|
|
|
$
|
545,249
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
95,308
|
|
|
$
|
114,538
|
|
|
Long-term liabilities
|
|
|
154,238
|
|
|
|
146,884
|
|
|
Total liabilities
|
|
|
249,546
|
|
|
|
261,422
|
|
|
Shareholders' equity
|
|
|
270,129
|
|
|
|
283,827
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
519,675
|
|
|
$
|
545,249
|
|
|
|
|
|
|
TrueBlue, Inc.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
In Thousands
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended
|
|
|
|
December 26,
|
|
December 28,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(4,159
|
)
|
|
$
|
66,198
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
16,774
|
|
|
|
12,223
|
|
|
Goodwill and intangible asset impairment
|
|
|
61,000
|
|
|
|
-
|
|
|
Provision for doubtful accounts
|
|
|
9,374
|
|
|
|
9,987
|
|
|
Stock-based compensation
|
|
|
7,706
|
|
|
|
6,943
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
-
|
|
|
|
(1,451
|
)
|
|
Deferred income taxes
|
|
|
2,960
|
|
|
|
(8,696
|
)
|
|
Other operating activities
|
|
|
(311
|
)
|
|
|
401
|
|
|
Changes in operating assets and liabilities, exclusive of businesses
acquired:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
36,602
|
|
|
|
(10,897
|
)
|
|
Income taxes
|
|
|
(25,170
|
)
|
|
|
12,359
|
|
|
Other assets
|
|
|
3,133
|
|
|
|
3,734
|
|
|
Accounts payable and other accrued expenses
|
|
|
(5,199
|
)
|
|
|
270
|
|
|
Accrued wages and benefits
|
|
|
(8,815
|
)
|
|
|
(2,541
|
)
|
|
Workers' compensation claims reserve
|
|
|
1,680
|
|
|
|
5,748
|
|
|
Other liabilities
|
|
|
(3,137
|
)
|
|
|
4,376
|
|
|
Net cash provided by operating activities
|
|
|
92,438
|
|
|
|
98,654
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(26,137
|
)
|
|
|
(21,040
|
)
|
|
Purchases of marketable securities
|
|
|
(27,158
|
)
|
|
|
(191,032
|
)
|
|
Maturities of marketable securities
|
|
|
38,087
|
|
|
|
271,580
|
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
(22,390
|
)
|
|
|
(76,902
|
)
|
|
Change in restricted cash
|
|
|
12,174
|
|
|
|
11,234
|
|
|
Other
|
|
|
(11
|
)
|
|
|
(167
|
)
|
|
Net cash used in investing activities
|
|
|
(25,435
|
)
|
|
|
(6,327
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Purchases and retirement of common stock
|
|
|
(15,997
|
)
|
|
|
(150,310
|
)
|
|
Net proceeds from sale of stock through options and employee benefit
plans
|
|
|
|
|
|
|
|
3,488
|
|
|
|
5,712
|
|
|
Shares withheld for taxes upon vesting of restricted stock
|
|
|
(1,018
|
)
|
|
|
(997
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
-
|
|
|
|
1,451
|
|
|
Payments on debt
|
|
|
(250
|
)
|
|
|
(909
|
)
|
|
Other
|
|
|
(229
|
)
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
(14,006
|
)
|
|
|
(145,053
|
)
|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
(1,903
|
)
|
|
|
1,790
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
51,094
|
|
|
|
(50,936
|
)
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, beginning of year
|
|
|
57,008
|
|
|
|
107,944
|
|
|
CASH AND CASH EQUIVALENTS, end of year
|
|
$
|
108,102
|
|
|
$
|
57,008
|
|
TrueBlue Inc.
Derrek Gafford, EVP & CFO
253-680-8214
or
Stacey
Burke, VP of Corporate Communications
253-680-8291
