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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