TrueBlue Reports 2012 Third Quarter Results

TrueBlue Reports 2012 Third Quarter Results

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYS: TBI) today reported revenue for the third quarter of 2012 of $379 million, an increase of 2 percent, compared to revenue of $371 million for the third quarter of 2011. Net income for the quarter was $14.3 million or $0.36 per diluted share, compared to net income of $13.9 million or $0.33 per diluted share for the third quarter of 2011.

"TrueBlue achieved revenue and earnings per share growth this quarter, while managing through an increasingly difficult economic environment," TrueBlue CEO Steve Cooper said. "Demand for labor in manufacturing has declined and growth trends softened across most of the other industries we serve. Our results have also been adversely impacted by the anticipated decline of a large customer project.


"For the fourth quarter, we anticipate the uncertain economic conditions to continue along with further decline from our large customer project." TrueBlue estimates revenue in the range of $332 million to $342 million and net income per diluted share of $0.11 to $0.16 for the fourth quarter.

"We remain optimistic about our specialized approach to vertical markets and believe our strategies remain on track to deliver long-term growth for our shareholders," Cooper said.

Management will discuss third quarter 2012 results on a conference call at 2 p.m. (PT) today, Wednesday, Oct. 24. The conference call can be accessed on TrueBlue's web site: www.trueblueinc.com

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2011, TrueBlue connected approximately 325,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 175,000 businesses in the retail, wholesale, manufacturing, transportation, aviation, services, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. For more information, visit TrueBlue's website at www.trueblueinc.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. 30, 2011 and in our quarterly reports on Form 10-Q subsequently filed. 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.

TRUEBLUE, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

13 Weeks Ended

39 Weeks Ended

September 28,

September 30,

September 28,

September 30,

2012

2011

2012

2011

Revenue from services

$

379,467

$

371,379

$

1,044,915

$

965,857

Cost of services

274,237

271,528

766,914

710,644

Gross profit

105,230

99,851

278,001

255,213

Selling, general and administrative expenses

77,634

73,235

221,243

206,071

Depreciation and amortization

4,660

4,205

14,156

11,989

Income from operations

22,936

22,411

42,602

37,153

Interest and other income, net

409

323

1,086

798

Income before tax expense

23,345

22,734

43,688

37,951

Income tax expense

8,998

8,821

17,474

14,724

Net income

$

14,347

$

13,913

$

26,214

$

23,227

Net income per common share

Basic

$

0.36

$

0.33

$

0.66

$

0.54

Diluted

$

0.36

$

0.33

$

0.66

$

0.54

Weighted average shares outstanding

Basic

39,516

41,612

39,547

42,813

Diluted

39,858

41,958

39,841

43,176

TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

September 28,

December 30,

2012

2011

Assets

Current assets

Cash and cash equivalents

$

119,341

$

109,311

Accounts receivable, net

183,101

153,878

Other current assets

15,061

17,426

Total current assets

317,503

280,615

Property and equipment, net

57,418

56,239

Restricted cash and investments

132,052

130,498

Other assets, net

91,670

93,417

Total assets

$

598,643

$

560,769

Liabilities and shareholders' equity

Current liabilities

$

117,550

$

112,289

Long-term liabilities

156,553

154,901

Total liabilities

274,103

267,190

Shareholders' equity

324,540

293,579

Total liabilities and shareholders' equity

$

598,643

$

560,769

TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

39 Weeks Ended

September 28,

September 30,

2012

2011

Cash flows from operating activities

Net income

$

26,214

$

23,227

Adjustments to reconcile net income to net cash from operating activities

Depreciation and amortization

14,156

11,989

Provision for doubtful accounts

4,305

4,424

Stock-based compensation

6,268

5,583

Deferred income taxes

1,191

899

Other operating activities

1,196

(471

)

Changes in operating assets and liabilities

Accounts receivable

(33,528

)

(70,116

)

Income taxes

2,206

6,950

Other assets

(592

)

1,720

Accounts payable and other accrued expenses

(2,906

)

19,634

Accrued wages and benefits

8,248

12,033

Workers' compensation claims reserve

5,930

735

Other liabilities

280

(144

)

Net cash provided by operating activities

32,968

16,463

Cash flows from investing activities

Capital expenditures

(13,930

)

(6,251

)

Change in restricted cash and cash equivalents

487

65,104

Purchases of restricted investments

(18,153

)

(87,768

)

Maturities of restricted investments

14,418

6,193

Other

(250

)

(6,800

)

Net cash used in investing activities

(17,428

)

(29,522

)

Cash flows from financing activities

Purchases and retirement of common stock

(4,386

)

(50,143

)

Net proceeds from stock option exercises and employee stock purchase plans

3,806

874

Common stock repurchases for taxes upon vesting of restricted stock

(2,076

)

(1,692

)

Payments on other liabilities

(3,987

)

(302

)

Other

764

674

Net cash used in financing activities

(5,879

)

(50,589

)

Effect of exchange rates on cash

369

(455

)

Net change in cash and cash equivalents

10,030

(64,103

)

CASH AND CASH EQUIVALENTS, beginning of period

109,311

163,153

CASH AND CASH EQUIVALENTS, end of period

$

119,341

$

99,050



TrueBlue, Inc.
EVP & CFO
Derrek Gafford, 253-680-8214
or
VP of Corporate Communications
Stacey Burke, 253-680-8291

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS:

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