TACOMA, Wash.--(BUSINESS WIRE)--Oct. 23, 2014--
TrueBlue, Inc. (NYSE:TBI) today reported results for the third quarter
of 2014.
-
Revenue was $633 million, up 40 percent compared to revenue of $451
million for the third quarter in 2013.
-
Net income was $21 million compared to $19 million for the third
quarter of 2013.
-
Adjusted net income* was $22 million, or $0.54 per diluted
share, compared to $19 million, or $0.48 per diluted share, for the
third quarter of 2013.
-
Adjusted EBITDA* was $42 million, up 25 percent compared to
$33 million for the third quarter of 2013.
“We are pleased with the success of our growth strategies, which
produced strong revenue and profit growth this quarter,” TrueBlue CEO
Steve Cooper said. “Our team continues to focus on providing more value
to customers through the specialized services we offer. In addition, we
have a proven track record of acquiring companies with complementary
service offerings that enable our customers to better manage their
workforce.”
TrueBlue completed its acquisition of Seaton on June 30, 2014, the first
day of its third quarter. TrueBlue refers to Seaton’s industry-leading
brands, Staff Management | SMX, PeopleScout and HRX, as its Outsourcing
Solutions group. TrueBlue is now the largest industrial staffing
provider in the U.S.
“We are excited about the opportunities to expand our EBITDA margin
through operational efficiency and the use of technology,” Cooper said.
“This reduces the dependency on our branch footprint while allowing us
to still deliver excellent service.”
TrueBlue has consolidated 52 branches year to date, resulting in 708
branches in operation at the end of the quarter.
TrueBlue estimates revenue in the range of $695 million to $705 million
and adjusted net income* per diluted share of $0.44 to
$0.49 for the fourth quarter of 2014.
Management will discuss third quarter 2014 results on a conference
call at 6 a.m. PT (9 a.m. ET), today, Thursday, Oct. 23. The conference
call can be accessed on TrueBlue’s web site: www.trueblue.com.
* This is a non-GAAP financial measure that excludes
non-recurring acquisition and integration costs for which a
reconciliation is provided along with the financial statements
accompanying this release.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading staffing, recruiting and workforce
management company. The company fills individual positions on demand,
staffs entire facilities, and manages outsourced recruiting processes
and staffing vendor programs for a wide variety of clients. The
company’s specialized workforce solutions meet clients’ needs for a
reliable, efficient workforce, and it serves a wide variety of
industries. TrueBlue connects as many as 500,000 people to work each
year. Learn more about TrueBlue 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. 27, 2013. Additional risk factors resulting from the
acquisition of Seaton will be included in our Form 10-Q. 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 26
|
|
|
September 27
|
|
|
September 26
|
|
|
September 27
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenue from services
|
|
|
|
$
|
633,365
|
|
|
|
$
|
451,169
|
|
|
$
|
1,482,655
|
|
|
$
|
1,219,977
|
|
Cost of services
|
|
|
|
|
473,766
|
|
|
|
|
327,641
|
|
|
|
1,103,914
|
|
|
|
897,937
|
|
Gross profit
|
|
|
|
|
159,599
|
|
|
|
|
123,528
|
|
|
|
378,741
|
|
|
|
322,040
|
|
Selling, general and administrative expenses
|
|
|
|
|
120,318
|
|
|
|
|
90,767
|
|
|
|
308,654
|
|
|
|
268,538
|
|
Depreciation and amortization
|
|
|
|
|
9,719
|
|
|
|
|
4,771
|
|
|
|
20,126
|
|
|
|
15,133
|
|
Income from operations
|
|
|
|
|
29,562
|
|
|
|
|
27,990
|
|
|
|
49,961
|
|
|
|
38,369
|
|
Interest and other income (expense), net
|
|
|
|
|
(409
|
)
|
|
|
|
416
|
|
|
|
385
|
|
|
|
1,167
|
|
Income before tax expense
|
|
|
|
|
29,153
|
|
|
|
|
28,406
|
|
|
|
50,346
|
|
|
|
39,536
|
|
Income tax expense
|
|
|
|
|
8,243
|
|
|
|
|
9,454
|
|
|
|
11,696
|
|
|
|
9,124
|
|
Net income
|
|
|
|
$
|
20,910
|
|
|
|
$
|
18,952
|
|
|
$
|
38,650
|
|
|
$
|
30,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.47
|
|
|
$
|
0.95
|
|
|
$
|
0.76
|
|
Diluted
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.47
|
|
|
$
|
0.94
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
40,793
|
|
|
|
|
40,330
|
|
|
|
40,701
|
|
|
|
40,085
|
|
Diluted
|
|
|
|
|
41,038
|
|
|
|
|
40,670
|
|
|
|
40,971
|
|
|
|
40,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
SELECTED FINANCIAL DATA
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
|
|
|
|
|
September 26, 2014
|
|
|
September 27, 2013
|
|
|
|
|
Legacy TrueBlue
|
|
|
Seaton (1)
|
|
|
Total Company
|
|
|
Legacy TrueBlue
|
|
Revenue from services
|
|
|
|
$
|
484,729
|
|
|
$
|
148,636
|
|
|
$
|
633,365
|
|
|
|
$
|
451,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
|
|
|
|
34,932
|
|
|
|
6,688
|
|
|
|
41,620
|
|
|
|
|
33,394
|
|
Non-recurring acquisition costs (3)
|
|
|
|
|
|
|
|
|
|
|
2,339
|
|
|
|
|
633
|
|
EBITDA (2)
|
|
|
|
|
|
|
|
|
|
|
39,281
|
|
|
|
|
32,761
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
9,719
|
|
|
|
|
4,771
|
|
Interest income (expense), net
|
|
|
|
|
|
|
|
|
|
|
(409
|
)
|
|
|
|
416
|
|
Income before tax expense
|
|
|
|
|
|
|
|
|
|
$
|
29,153
|
|
|
|
$
|
28,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Seaton was acquired effective June 30, 2014. Therefore, the
comparative prior year amounts are not presented.
|
|
|
|
(2) EBITDA and Adjusted EBITDA are non-GAAP financial measures.
EBITDA excludes interest, taxes, depreciation and amortization from
net income (loss). Adjusted EBITDA further excludes from EBITDA
non-recurring costs related to the purchase, integration,
reorganization and shutdown activities related to acquisitions.
EBITDA and Adjusted EBITDA are key measures used by management in
evaluating performance. EBITDA and Adjusted EBITDA should not be
considered a measure of financial performance in isolation or as an
alternative to income from operations in the Consolidated Statements
of Operations in accordance with GAAP, and, as presented, may not be
comparable to similarly titled measures of other companies.
|
|
|
|
(3) Non-recurring acquisition costs for the 13 weeks ended September
26, 2014 related to the acquisition and integration of Seaton. The
acquisition was completed effective June 30, 2014, the first day of
our third quarter. The non-recurring acquisition costs for the prior
year related to the acquisition and integration of TWC.
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 26
|
|
|
December 27
|
|
|
|
|
2014
|
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
29,244
|
|
|
$
|
122,003
|
|
Marketable securities
|
|
|
|
|
1,746
|
|
|
|
14,745
|
|
Accounts receivable, net
|
|
|
|
|
310,926
|
|
|
|
199,519
|
|
Other current assets
|
|
|
|
|
35,629
|
|
|
|
20,191
|
|
Total current assets
|
|
|
|
|
377,545
|
|
|
|
356,458
|
|
Property and equipment, net
|
|
|
|
|
79,304
|
|
|
|
54,473
|
|
Restricted cash and investments
|
|
|
|
|
152,281
|
|
|
|
154,558
|
|
Other assets, net
|
|
|
|
|
391,597
|
|
|
|
153,972
|
|
Total assets
|
|
|
|
$
|
1,000,727
|
|
|
$
|
719,461
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
$
|
177,958
|
|
|
$
|
121,409
|
|
Long-term debt
|
|
|
|
|
174,950
|
|
|
|
29,656
|
|
Other long-term liabilities
|
|
|
|
|
207,853
|
|
|
|
175,036
|
|
Total liabilities
|
|
|
|
|
560,761
|
|
|
|
326,101
|
|
Shareholders' equity
|
|
|
|
|
439,966
|
|
|
|
393,360
|
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
1,000,727
|
|
|
$
|
719,461
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
39 Weeks Ended
|
|
|
|
|
September 26
|
|
|
September 27
|
|
|
|
|
2014
|
|
|
2013
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
38,650
|
|
|
|
$
|
30,412
|
|
|
Adjustments to reconcile net income to net cash from operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
20,126
|
|
|
|
|
15,133
|
|
|
Provision for doubtful accounts
|
|
|
|
|
9,619
|
|
|
|
|
8,785
|
|
|
Stock-based compensation
|
|
|
|
|
8,902
|
|
|
|
|
6,428
|
|
|
Deferred income taxes
|
|
|
|
|
6,077
|
|
|
|
|
(1,694
|
)
|
|
Other operating activities
|
|
|
|
|
(148
|
)
|
|
|
|
1,213
|
|
|
Changes in operating assets and liabilities, net of acquisition
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(26,391
|
)
|
|
|
|
(24,776
|
)
|
|
Income taxes
|
|
|
|
|
(3,179
|
)
|
|
|
|
6,580
|
|
|
Other assets
|
|
|
|
|
(6,510
|
)
|
|
|
|
(4,703
|
)
|
|
Accounts payable and other accrued expenses
|
|
|
|
|
(1,687
|
)
|
|
|
|
(6,728
|
)
|
|
Accrued wages and benefits
|
|
|
|
|
11,373
|
|
|
|
|
11,419
|
|
|
Workers' compensation claims reserve
|
|
|
|
|
532
|
|
|
|
|
2,785
|
|
|
Other liabilities
|
|
|
|
|
2,539
|
|
|
|
|
423
|
|
|
Net cash provided by operating activities
|
|
|
|
|
59,903
|
|
|
|
|
45,277
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(10,213
|
)
|
|
|
|
(10,350
|
)
|
|
Acquisition of business, net of cash acquired
|
|
|
|
|
(307,972
|
)
|
|
|
|
(54,872
|
)
|
|
Purchases of marketable securities
|
|
|
|
|
(25,057
|
)
|
|
|
|
(35,300
|
)
|
|
Sales and maturities of marketable securities
|
|
|
|
|
43,917
|
|
|
|
|
205
|
|
|
Change in restricted cash and cash equivalents
|
|
|
|
|
10,020
|
|
|
|
|
(1,338
|
)
|
|
Purchases of restricted investments
|
|
|
|
|
(18,196
|
)
|
|
|
|
(9,175
|
)
|
|
Maturities of restricted investments
|
|
|
|
|
10,588
|
|
|
|
|
13,337
|
|
|
Net cash used in investing activities
|
|
|
|
|
(296,913
|
)
|
|
|
|
(97,493
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from stock option exercises and employee stock purchase
plans
|
|
|
|
|
1,673
|
|
|
|
|
8,731
|
|
|
Common stock repurchases for taxes upon vesting of restricted stock
|
|
|
|
|
(3,021
|
)
|
|
|
|
(2,653
|
)
|
|
Proceeds from note payable
|
|
|
|
|
186,994
|
|
|
|
|
34,000
|
|
|
Payments on debt and other liabilities
|
|
|
|
|
(41,700
|
)
|
|
|
|
(8,115
|
)
|
|
Other
|
|
|
|
|
1,242
|
|
|
|
|
720
|
|
|
Net cash provided by financing activities
|
|
|
|
|
145,188
|
|
|
|
|
32,683
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
|
|
(937
|
)
|
|
|
|
(435
|
)
|
|
Net change in cash and cash equivalents
|
|
|
|
|
(92,759
|
)
|
|
|
|
(19,968
|
)
|
|
CASH AND CASH EQUIVALENTS, beginning of period
|
|
|
|
|
122,003
|
|
|
|
|
129,513
|
|
|
CASH AND CASH EQUIVALENTS, end of period
|
|
|
|
$
|
29,244
|
|
|
|
$
|
109,545
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO ADJUSTED
NET INCOME PER DILUTED SHARE
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
|
|
September 26
|
|
|
September 27
|
|
|
|
|
2014
|
|
|
2013
|
|
GAAP Net income
|
|
|
|
$
|
20,910
|
|
|
$
|
18,952
|
|
Non-recurring acquisition costs, net of income tax (1)
|
|
|
|
|
1,404
|
|
|
|
380
|
|
Adjusted Net income
|
|
|
|
$
|
22,314
|
|
|
$
|
19,332
|
|
|
|
|
|
|
|
|
|
GAAP Net income per diluted share
|
|
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
Non-recurring acquisition costs per diluted share, net of income tax
(1)
|
|
|
|
|
0.03
|
|
|
|
0.01
|
|
Adjusted net income per diluted share (2)
|
|
|
|
$
|
0.54
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
(1) Non-recurring acquisition costs for the current quarter related
to the acquisition and integration of Seaton. The acquisition was
completed on June 30, 2014, the first business day of our third
quarter. The non-recurring acquisition costs for the prior year
related to the acquisition and integration of TWC. The impact on net
income per diluted share is net of income taxes at 40%.
|
|
|
|
(2) Adjusted net income and adjusted net income per diluted share
are non-GAAP financial measures which exclude non-recurring costs
for the purchase, integration, reorganization, and shutdown
activities related to acquisitions, and which is used by management
in communicating comparable performance. Adjusted net income and
adjusted net income per diluted share should not be considered
measures of financial performance in isolation or as an alternative
to net income and net income per share in the Consolidated
Statements of Operations in accordance with GAAP, and, as presented,
may not be comparable to similarly titled measures of other
companies.
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Source: TrueBlue, Inc.
TrueBlue, Inc.
Derrek Gafford, 253-680-8214
EVP & CFO
or
Stacey
Burke, 253-680-8291
VP of Corporate Communications