TrueBlue Reports Q4 and Full Year 2012 Results

TrueBlue Reports Q4 and Full Year 2012 Results

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYS: TBI) today reported revenue for the fourth quarter of 2012 of $345 million, a decrease of two percent compared to revenue of $350 million for the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $7.4 million, or $0.19 per diluted share, compared to net income of $7.6 million, or $0.19 per diluted share, for the fourth quarter of 2011.

Revenue for the full fiscal year of 2012 was $1.39 billion, an increase of six percent compared to $1.32 billion for 2011. Net income for 2012 was $33.6 million, or $0.84 per diluted share, compared to $30.8 million, or $0.73 per diluted share, for the prior year.


"We had steady revenue growth of four percent this quarter, excluding the impact of one large project," said TrueBlue CEO Steve Cooper. "Solid execution across our business, along with an improving construction market, contributed to our results. Our customers value the services we provide and we continued to expand our gross margin this quarter."

Cooper added that TrueBlue also had another year of improved results from its safety practices and that the company is proud of its efforts to ensure that its temporary associates are working safely while providing services customers want.

"We remain optimistic about the outlook for the staffing industry as businesses increasingly look for a flexible workforce to increase productivity and control costs," Cooper said. "We are also excited about the improving trends in construction and the demand it creates in many of the industries we serve."

For the first quarter of 2013, TrueBlue estimates revenue in the range of $335 million to $345 million, and estimates net loss per diluted share of ($0.05) to $0.00. This includes the operations from the purchase of substantially all of the assets of MDT Personnel, the third largest general labor staffing firm in the U.S., which TrueBlue announced today. More information about the transaction is contained in the company's 8-K also filed today.

Management will discuss fourth quarter 2012 results on a conference call at 6 a.m. (PT) today, Wednesday, Feb. 6, 2013. The conference call can be accessed on TrueBlue's web site: www.trueblue.com.

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2012, TrueBlue connected approximately 350,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 140,000 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.trueblue.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

52 Weeks Ended

December 28,

December 30,

December 28,

December 30,

2012

2011

2012

2011

Revenue from services

$

344,614

$

350,155

$

1,389,530

$

1,316,013

Cost of services

250,231

258,324

1,017,145

968,967

Gross profit

94,383

91,831

372,385

347,046

Selling, general and administrative expenses

79,215

76,755

300,459

282,828

Depreciation and amortization

4,734

4,395

18,890

16,384

Income from operations

10,434

10,681

53,036

47,834

Interest and other income, net

483

693

1,569

1,490

Income before tax expense

10,917

11,374

54,605

49,324

Income tax expense

3,502

3,810

20,976

18,533

Net income

$

7,415

$

7,564

$

33,629

$

30,791

Net income per common share

Basic

$

0.19

$

0.19

$

0.85

$

0.73

Diluted

$

0.19

$

0.19

$

0.84

$

0.73

Weighted average shares outstanding

Basic

39,549

39,404

39,548

41,961

Diluted

39,929

39,848

39,862

42,322

TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

December 28,

December 30,

2012

2011

Assets

Current assets

Cash and cash equivalents

$

129,513

$

109,311

Accounts receivable, net

167,292

153,878

Other current assets

20,361

17,426

Total current assets

317,166

280,615

Property and equipment, net

58,171

56,239

Restricted cash and investments

136,259

130,498

Other assets, net

90,147

93,417

Total assets

$

601,743

$

560,769

Liabilities and shareholders' equity

Current liabilities

$

113,556

$

112,289

Long-term liabilities

154,513

154,901

Total liabilities

268,069

267,190

Shareholders' equity

333,674

293,579

Total liabilities and shareholders' equity

$

601,743

$

560,769

TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

52 Weeks Ended

December 28,

December 30,

2012

2011

Cash flows from operating activities

Net income

$

33,629

$

30,791

Adjustments to reconcile net income to net cash from operating activities

Depreciation and amortization

18,890

16,384

Provision for doubtful accounts

6,994

6,638

Stock-based compensation

7,917

7,432

Deferred income taxes

3,091

(1,910

)

Other operating activities

1,946

(473

)

Changes in operating assets and liabilities

Accounts receivable

(20,408

)

(51,824

)

Income taxes

(3,748

)

3,513

Other assets

(1,214

)

(1,244

)

Accounts payable and other accrued expenses

1,524

5,423

Accrued wages and benefits

(182

)

10,793

Workers' compensation claims reserve

3,746

4,537

Other liabilities

138

529

Net cash provided by operating activities

52,323

30,589

Cash flows from investing activities

Capital expenditures

(17,826

)

(9,707

)

Change in restricted cash and cash equivalents

7,587

68,504

Purchases of restricted investments

(33,778

)

(88,173

)

Maturities of restricted investments

18,116

9,238

Other

(250

)

(6,800

)

Net cash used in investing activities

(26,151

)

(26,938

)

Cash flows from financing activities

Purchases and retirement of common stock

(4,386

)

(56,932

)

Net proceeds from stock option exercises and employee stock purchase plans

4,164

1,131

Common stock repurchases for taxes upon vesting of restricted stock

(2,154

)

(1,776

)

Payments on other liabilities

(4,548

)

(302

)

Other

751

664

Net cash used in financing activities

(6,173

)

(57,215

)

Effect of exchange rates on cash

203

(278

)

Net change in cash and cash equivalents

20,202

(53,842

)

CASH AND CASH EQUIVALENTS, beginning of period

109,311

163,153

CASH AND CASH EQUIVALENTS, end of period

$

129,513

$

109,311



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

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS:

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