TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue (NYSE:TBI) today announced its fourth quarter and full-year
results for 2018. Full-year revenue was $2.5 billion, which was flat
compared to 2017. Net income per diluted share was $1.63, an increase of
22 percent, compared to $1.34 in 2017. Adjusted net income per diluted
share1 was $2.28, an increase of 31 percent, compared to
$1.74 in 2017.
Fourth quarter revenue was $650 million, a decrease of 3 percent,
compared to revenue of $670 million in the fourth quarter of 2017. Net
income per diluted share was $0.37, a decrease of 8 percent, compared to
$0.40 in the fourth quarter of 2017. Adjusted net income per diluted
share was $0.61, an increase of 20 percent, compared to $0.51 in the
fourth quarter of 2017.
“Our 2018 results showed meaningful improvement in many parts of our
business,” said Patrick Beharelle, CEO of TrueBlue. “PeopleReady, our
largest segment, returned to revenue growth, and PeopleScout, our
highest margin segment, delivered double-digit revenue growth. Our focus
on lowering cost of services helped produce our third consecutive year
of gross margin expansion, and we utilized a significant portion of cash
flow to repurchase shares.
“During the year, TrueBlue made substantial progress on several
strategic initiatives as well,” Mr. Beharelle added. “We divested
PlaneTechs, which further concentrated our focus on more profitable,
higher-growth markets. We also acquired TMP Holdings LTD, increasing
PeopleScout’s ability to compete for more global business. On the
digital front, we dispatched 3 million shifts via JobStackTM
and achieved impressive user ratings. AffinixTM,
PeopleScout’s proprietary talent acquisition platform, generated high
interest among customers and received industry accolades for its
compelling innovation.”
“Our fourth quarter results were in-line with our outlook for both
revenue and earnings per share,” said Derrek Gafford, chief financial
officer. “Effective cost management helped produce a 3 percent increase
in gross profit. We continue to see opportunity in the marketplace and
believe that our team has the right focus on business development,
pricing and costs to deliver profitable growth in 2019.”
2019 Outlook
“Looking forward to the first quarter of 2019, we expect some revenue
and pricing headwinds with certain clients in PeopleManagement and
PeopleScout,” said Mr. Beharelle. “Despite the near-term challenges, we
believe that we have the right focus and strategies for long-term
growth. We continue to see a positive demand environment for our
services and expect increased demand for PeopleReady services in the
first quarter.”
TrueBlue estimates revenue for the first quarter of 2019 will range from
$552 million to $569 million. The company also estimates net income per
diluted share will range from $0.07 to $0.11 and adjusted net income per
diluted share will range from $0.22 to $0.27.
Management will discuss fourth quarter and full-year 2018 results on a
webcast at 2 p.m. PST (5 p.m. EST), today, Thursday, Feb. 7, 2019. The
webcast can be accessed on TrueBlue’s website: www.trueblue.com.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce
solutions that help clients achieve business growth and improve
productivity. In 2018, we connected approximately 730,000 people with
work. Our PeopleReady segment offers industrial staffing services,
PeopleManagement offers contingent and productivity-based on-site
industrial staffing services, and PeopleScout offers recruitment process
outsourcing (RPO) and managed service provider (MSP) solutions to a wide
variety of industries. Learn more at www.trueblue.com.
1 See the financial statements accompanying the release and
the company’s website for more information on non-GAAP terms.
Forward-looking statements
This document contains forward-looking statements relating to our plans
and expectations, all of which are subject to risks and uncertainties.
Such statements are based on management’s expectations and assumptions
as of the date of this release and involve many risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements including: (1)
national and global economic conditions, (2) our ability to attract and
retain clients, (3) our ability to attract sufficient qualified
candidates and employees to meet the needs of our clients, (4) our
ability to maintain profit margins, (5) new laws and regulations that
could affect our operations or financial results, (6) our ability to
successfully complete and integrate acquisitions, (7) our ability to
successfully execute on business strategies to further digitize our
business model, and (8) any reduction or change in tax credits we
utilize, including the Work Opportunity Tax Credit. Other information
regarding factors that could affect our results is included in our
Securities Exchange Commission (SEC) filings, including the company's
most recent reports on Forms 10-K and 10-Q, copies of which may be
obtained by visiting our website at www.trueblue.com
under the Investor Relations section or the SEC's website at www.sec.gov.
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. Any other reference to future
financial estimates are included for informational purposes only and
subject to risk factors discussed in our most recent filings with the
SEC.
In addition, we use several non-GAAP financial measures when presenting
our financial results in this document. Please refer to the
reconciliations between our GAAP and non-GAAP financial measures in the
appendix to this document and on our website at www.trueblue.com
under the Investor Relations section for additional information on both
current and historical periods. The presentation of these non-GAAP
financial measures is used to enhance the understanding of certain
aspects of our financial performance. It is not meant to be considered
in isolation, superior to, or as a substitute for the directly
comparable financial measures prepared in accordance with U.S. GAAP, and
may not be comparable to similarly titled measures of other companies.
|
|
|
TRUEBLUE, INC.
|
|
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
13 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands, except per share data)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Revenue from services
|
|
|
$
|
650,147
|
|
|
|
$
|
669,625
|
|
|
|
$
|
2,499,207
|
|
|
|
$
|
2,508,771
|
|
|
Cost of services
|
|
|
477,717
|
|
|
|
501,880
|
|
|
|
1,833,607
|
|
|
|
1,874,298
|
|
|
Gross profit
|
|
|
172,430
|
|
|
|
167,745
|
|
|
|
665,600
|
|
|
|
634,473
|
|
|
Selling, general and administrative expense
|
|
|
145,280
|
|
|
|
132,644
|
|
|
|
550,632
|
|
|
|
510,794
|
|
|
Depreciation and amortization
|
|
|
10,272
|
|
|
|
11,465
|
|
|
|
41,049
|
|
|
|
46,115
|
|
|
Income from operations
|
|
|
16,878
|
|
|
|
23,636
|
|
|
|
73,919
|
|
|
|
77,564
|
|
|
Interest and other income (expense), net
|
|
|
848
|
|
|
|
(24
|
)
|
|
|
1,744
|
|
|
|
(14
|
)
|
|
Income before tax expense
|
|
|
17,726
|
|
|
|
23,612
|
|
|
|
75,663
|
|
|
|
77,550
|
|
|
Income tax expense
|
|
|
2,839
|
|
|
|
7,185
|
|
|
|
9,909
|
|
|
|
22,094
|
|
|
Net income
|
|
|
$
|
14,887
|
|
|
|
$
|
16,427
|
|
|
|
$
|
65,754
|
|
|
|
$
|
55,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.38
|
|
|
|
$
|
0.41
|
|
|
|
$
|
1.64
|
|
|
|
$
|
1.35
|
|
|
Diluted
|
|
|
$
|
0.37
|
|
|
|
$
|
0.40
|
|
|
|
$
|
1.63
|
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,528
|
|
|
|
40,545
|
|
|
|
39,985
|
|
|
|
41,202
|
|
|
Diluted
|
|
|
39,926
|
|
|
|
40,856
|
|
|
|
40,275
|
|
|
|
41,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
46,988
|
|
|
|
$
|
28,780
|
|
Accounts receivable, net
|
|
|
355,373
|
|
|
|
374,273
|
|
Other current assets
|
|
|
27,466
|
|
|
|
25,226
|
|
Total current assets
|
|
|
429,827
|
|
|
|
428,279
|
|
Property and equipment, net
|
|
|
57,671
|
|
|
|
60,163
|
|
Restricted cash and investments
|
|
|
235,443
|
|
|
|
239,231
|
|
Goodwill and intangible assets, net
|
|
|
328,695
|
|
|
|
331,309
|
|
Other assets, net
|
|
|
63,208
|
|
|
|
50,049
|
|
Total assets
|
|
|
$
|
1,114,844
|
|
|
|
$
|
1,109,031
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
$
|
225,526
|
|
|
|
$
|
212,419
|
|
Long-term debt, less current portion
|
|
|
80,000
|
|
|
|
116,489
|
|
Other long-term liabilities
|
|
|
217,879
|
|
|
|
225,276
|
|
Total liabilities
|
|
|
523,405
|
|
|
|
554,184
|
|
Shareholders’ equity
|
|
|
591,439
|
|
|
|
554,847
|
|
Total liabilities and shareholders’ equity
|
|
|
$
|
1,114,844
|
|
|
|
$
|
1,109,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
52 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
65,754
|
|
|
|
$
|
55,456
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
41,049
|
|
|
|
46,115
|
|
|
Provision for doubtful accounts
|
|
|
10,042
|
|
|
|
6,808
|
|
|
Stock-based compensation
|
|
|
13,876
|
|
|
|
7,744
|
|
|
Deferred income taxes
|
|
|
(1,929
|
)
|
|
|
2,440
|
|
|
Other operating activities
|
|
|
5,154
|
|
|
|
2,349
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
11,640
|
|
|
|
(28,483
|
)
|
|
Income tax receivable
|
|
|
(996
|
)
|
|
|
14,875
|
|
|
Other assets
|
|
|
(12,928
|
)
|
|
|
5,289
|
|
|
Accounts payable and other accrued expenses
|
|
|
2,855
|
|
|
|
(10,569
|
)
|
|
Accrued wages and benefits
|
|
|
(1,447
|
)
|
|
|
(2,888
|
)
|
|
Workers’ compensation claims reserve
|
|
|
(7,877
|
)
|
|
|
(1,048
|
)
|
|
Other liabilities
|
|
|
499
|
|
|
|
2,046
|
|
|
Net cash provided by operating activities
|
|
|
125,692
|
|
|
|
100,134
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(17,054
|
)
|
|
|
(21,958
|
)
|
|
Acquisition of business
|
|
|
(22,742
|
)
|
|
|
—
|
|
|
Divestiture of business
|
|
|
10,587
|
|
|
|
—
|
|
|
Purchases of restricted investments
|
|
|
(12,941
|
)
|
|
|
(50,601
|
)
|
|
Maturities of restricted investments
|
|
|
21,635
|
|
|
|
20,157
|
|
|
Other
|
|
|
—
|
|
|
|
(1,979
|
)
|
|
Net cash used in investing activities
|
|
|
(20,515
|
)
|
|
|
(54,381
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Purchases and retirement of common stock
|
|
|
(34,818
|
)
|
|
|
(36,680
|
)
|
|
Net proceeds from stock option exercises and employee stock purchase
plans
|
|
|
1,503
|
|
|
|
1,646
|
|
|
Common stock repurchases for taxes upon vesting of restricted stock
|
|
|
(3,404
|
)
|
|
|
(3,127
|
)
|
|
Net change in revolving credit facility
|
|
|
(15,900
|
)
|
|
|
(16,607
|
)
|
|
Payments on debt
|
|
|
(22,397
|
)
|
|
|
(2,267
|
)
|
|
Payment of contingent consideration at acquisition date fair value
|
|
|
—
|
|
|
|
(18,300
|
)
|
|
Net cash used in financing activities
|
|
|
(75,016
|
)
|
|
|
(75,335
|
)
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
|
(1,542
|
)
|
|
|
191
|
|
|
Net change in cash, cash equivalents, and restricted cash
|
|
|
28,619
|
|
|
|
(29,391
|
)
|
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
|
73,831
|
|
|
|
103,222
|
|
|
Cash, cash equivalents and restricted cash, end of period
|
|
|
$
|
102,450
|
|
|
|
$
|
73,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, INC.
|
|
SEGMENT DATA
|
|
(Unaudited)
|
|
|
|
|
|
13 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Revenue from services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PeopleReady
|
|
|
$
|
399,116
|
|
|
|
$
|
393,029
|
|
|
|
$
|
1,522,076
|
|
|
|
$
|
1,511,360
|
|
|
PeopleManagement
|
|
|
184,324
|
|
|
|
225,865
|
|
|
|
728,254
|
|
|
|
807,273
|
|
|
PeopleScout
|
|
|
66,707
|
|
|
|
50,731
|
|
|
|
248,877
|
|
|
|
190,138
|
|
|
Total company
|
|
|
$
|
650,147
|
|
|
|
$
|
669,625
|
|
|
|
$
|
2,499,207
|
|
|
|
$
|
2,508,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PeopleReady
|
|
|
$
|
22,045
|
|
|
|
$
|
21,128
|
|
|
|
$
|
85,998
|
|
|
|
$
|
79,044
|
|
|
PeopleManagement
|
|
|
5,097
|
|
|
|
8,457
|
|
|
|
21,627
|
|
|
|
27,216
|
|
|
PeopleScout
|
|
|
11,680
|
|
|
|
10,283
|
|
|
|
47,383
|
|
|
|
39,354
|
|
|
Total segment profit
|
|
|
38,822
|
|
|
|
39,868
|
|
|
|
155,008
|
|
|
|
145,614
|
|
|
Corporate unallocated expense
|
|
|
(6,065
|
)
|
|
|
(4,268
|
)
|
|
|
(26,066
|
)
|
|
|
(20,968
|
)
|
|
Total company Adjusted EBITDA
|
|
|
32,757
|
|
|
|
35,600
|
|
|
|
128,942
|
|
|
|
124,646
|
|
|
Work Opportunity Tax Credit processing fees (2)
|
|
|
(285
|
)
|
|
|
(337
|
)
|
|
|
(985
|
)
|
|
|
(805
|
)
|
|
Acquisition/integration costs (3)
|
|
|
(989
|
)
|
|
|
—
|
|
|
|
(2,672
|
)
|
|
|
—
|
|
|
Other costs (4)
|
|
|
(4,333
|
)
|
|
|
(162
|
)
|
|
|
(10,317
|
)
|
|
|
(162
|
)
|
|
EBITDA
|
|
|
27,150
|
|
|
|
35,101
|
|
|
|
114,968
|
|
|
|
123,679
|
|
|
Depreciation and amortization
|
|
|
(10,272
|
)
|
|
|
(11,465
|
)
|
|
|
(41,049
|
)
|
|
|
(46,115
|
)
|
|
Interest and other income (expense), net
|
|
|
848
|
|
|
|
(24
|
)
|
|
|
1,744
|
|
|
|
(14
|
)
|
|
Income before tax expense
|
|
|
17,726
|
|
|
|
23,612
|
|
|
|
75,663
|
|
|
|
77,550
|
|
|
Income tax expense
|
|
|
(2,839
|
)
|
|
|
(7,185
|
)
|
|
|
(9,909
|
)
|
|
|
(22,094
|
)
|
|
Net income
|
|
|
$
|
14,887
|
|
|
|
$
|
16,427
|
|
|
|
$
|
65,754
|
|
|
|
$
|
55,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
We evaluate performance based on segment revenue and segment profit.
Segment profit includes revenue, related cost of services, and
ongoing operating expenses directly attributable to the reportable
segment. Segment profit excludes goodwill and intangible impairment
charges, depreciation and amortization expense, unallocated
corporate general and administrative expense, interest, other income
and expense, income taxes, and costs not considered to be ongoing
costs of the segment. Segment profit is comparable to segment
adjusted EBITDA amounts reported in prior years.
|
|
|
|
|
|
(2)
|
|
|
These third-party processing fees are associated with generating the
Work Opportunity Tax Credits, which are designed to encourage
employers to hire workers from certain targeted groups with higher
than average unemployment rates.
|
|
|
|
|
|
(3)
|
|
|
Acquisition/integration costs relate to the acquisition of TMP
Holdings LTD completed on June 12, 2018.
|
|
|
|
|
|
(4)
|
|
|
Other costs for the 13 weeks and 52 weeks ended December 30, 2018
include implementation costs for cloud-based systems of $2.2 million
and $6.7 million, respectively, and accelerated vesting of stock
associated with the CEO transition of $2.1 million and $3.6 million,
respectively. Other costs for the 13 weeks and 52 weeks ended
December 31, 2017 include a workforce reduction charge of $2.5
million primarily associated with employee reductions in the
PeopleReady business, offset by $2.3 million of workers'
compensation benefit. The workers' compensation benefit is
associated with the favorable settlement of insurance coverage
associated with a former insurance company and other items not
considered part of our core operations.
|
|
|
|
|
TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS
In addition to financial measures presented in accordance with U.S.
GAAP, we monitor certain non-GAAP key financial measures. The
presentation of these non-GAAP financial measures is used to enhance the
understanding of certain aspects of our financial performance. It is not
meant to be considered in isolation, superior to, or as a substitute for
the directly comparable financial measures prepared in accordance with
U.S. GAAP, and may not be comparable to similarly titled measures of
other companies.
|
Non-GAAP Measure
|
|
|
Definition
|
|
|
Purpose of Adjusted Measures
|
EBITDA and
Adjusted EBITDA
|
|
|
EBITDA excludes from net income:
- interest and other income
(expense), net,
- income taxes, and
- depreciation and
amortization.
Adjusted EBITDA, further excludes:
- Work Opportunity Tax
Credit third-party processing fees,
- acquisition/integration
costs and
- other costs.
|
|
|
- Enhances comparability on a consistent basis and provides
investors with useful insight into the underlying trends of the
business.
- Used by management to assess performance
and effectiveness of our business strategies.
-
Provides a measure, among others, used in the determination of
incentive compensation for management.
|
|
|
|
|
|
|
|
|
Adjusted net income and
Adjusted net
income, per
diluted share
|
|
|
Net income and net income per diluted share, excluding:
-
gain on divestiture,
- amortization of intangibles of
acquired businesses, as well as accretion expense related to
acquisition earn-out,
- acquisition/integration costs,
-
other costs,
- tax effect of each adjustment to U.S. GAAP net
income, and
- adjust income taxes to the expected effective
tax rate.
|
|
|
- Enhances comparability on a consistent basis and provides
investors with useful insight into the underlying trends of the
business.
- Used by management to assess performance
and effectiveness of our business strategies.
|
|
|
|
|
|
|
|
|
Organic revenue
|
|
|
Revenue from services excluding acquired entity revenue.
|
|
|
- Enhances comparability on a consistent basis and provides
investors with useful insight into the underlying trends of the
business.
- Used by management to assess performance and
effectiveness of our business strategies.
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
Net cash provided by operating activities, minus cash purchases for
property and equipment.
|
|
|
- Used by management to assess cash flows.
|
|
|
|
|
|
|
|
|
|
|
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME
AND ADJUSTED NET INCOME, PER DILUTED SHARE
|
|
(Unaudited)
|
|
|
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
Q1 2019 Outlook*
|
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
(in thousands, except for per share data)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Mar 31, 2019
|
|
Net income
|
|
|
$
|
14,887
|
|
|
|
$
|
16,427
|
|
|
|
$ 2,700 — $ 4,400
|
|
Amortization of intangible assets of acquired businesses (2)
|
|
|
5,162
|
|
|
|
5,331
|
|
|
|
5,000
|
|
Acquisition/integration costs (3)
|
|
|
989
|
|
|
|
—
|
|
|
|
700
|
|
Other costs (4)
|
|
|
4,333
|
|
|
|
162
|
|
|
|
1,600
|
|
Tax effect of adjustments to net income (5)
|
|
|
(1,468
|
)
|
|
|
(1,538
|
)
|
|
|
(1,000)
|
|
Adjustment of income taxes to normalized effective rate (6)
|
|
|
357
|
|
|
|
574
|
|
|
|
—
|
|
Adjusted net income
|
|
|
$
|
24,260
|
|
|
|
$
|
20,956
|
|
|
|
$ 8,900 — $ 10,600
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, per diluted share
|
|
|
$
|
0.61
|
|
|
|
$
|
0.51
|
|
|
|
$ 0.22 — $ 0.27
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
39,926
|
|
|
|
40,856
|
|
|
|
39,800
|
|
* Totals may not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
52 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands, except for per share data)
|
|
|
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Net income
|
|
|
|
|
|
$
|
65,754
|
|
|
|
$
|
55,456
|
|
|
Gain on divestiture (1)
|
|
|
|
|
|
(718
|
)
|
|
|
—
|
|
|
Amortization of intangible assets of acquired businesses (2)
|
|
|
|
|
|
20,750
|
|
|
|
22,290
|
|
|
Acquisition/integration costs (3)
|
|
|
|
|
|
2,672
|
|
|
|
—
|
|
|
Other costs (4)
|
|
|
|
|
|
10,317
|
|
|
|
162
|
|
|
Tax effect of adjustments to net income (5)
|
|
|
|
|
|
(5,074
|
)
|
|
|
(6,287
|
)
|
|
Adjustment of income taxes to normalized effective rate (6)
|
|
|
|
|
|
(1,843
|
)
|
|
|
380
|
|
|
Adjusted net income
|
|
|
|
|
|
$
|
91,858
|
|
|
|
$
|
72,001
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, per diluted share
|
|
|
|
|
|
$
|
2.28
|
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
|
|
40,275
|
|
|
|
41,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED
EBITDA
|
|
(Unaudited)
|
|
|
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
Q1 2019 Outlook*
|
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Mar 31, 2019
|
|
Net income
|
|
|
$
|
14,887
|
|
|
|
$
|
16,427
|
|
|
|
$ 2,700 — $ 4,400
|
|
Income tax expense
|
|
|
2,839
|
|
|
|
7,185
|
|
|
|
400 — 700
|
|
Interest and other (income) expense, net
|
|
|
(848
|
)
|
|
|
24
|
|
|
|
(600)
|
|
Depreciation and amortization
|
|
|
10,272
|
|
|
|
11,465
|
|
|
|
9,800
|
|
EBITDA
|
|
|
27,150
|
|
|
|
35,101
|
|
|
|
12,300 — 14,300
|
|
Work Opportunity Tax Credit processing fees (7)
|
|
|
285
|
|
|
|
337
|
|
|
|
200
|
|
Acquisition/integration costs (3)
|
|
|
989
|
|
|
|
—
|
|
|
|
700
|
|
Other costs (4)
|
|
|
4,333
|
|
|
|
162
|
|
|
|
1,600
|
|
Adjusted EBITDA
|
|
|
$
|
32,757
|
|
|
|
$
|
35,600
|
|
|
|
$ 14,800 — $ 16,800
|
|
* Totals may not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
52 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands)
|
|
|
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Net income
|
|
|
|
|
|
$
|
65,754
|
|
|
|
$
|
55,456
|
|
Income tax expense
|
|
|
|
|
|
9,909
|
|
|
|
22,094
|
|
Interest and other (income) expense, net
|
|
|
|
|
|
(1,744
|
)
|
|
|
14
|
|
Depreciation and amortization
|
|
|
|
|
|
41,049
|
|
|
|
46,115
|
|
EBITDA
|
|
|
|
|
|
114,968
|
|
|
|
123,679
|
|
Work Opportunity Tax Credit processing fees (7)
|
|
|
|
|
|
985
|
|
|
|
805
|
|
Acquisition/integration costs (3)
|
|
|
|
|
|
2,672
|
|
|
|
—
|
|
Other costs (4)
|
|
|
|
|
|
10,317
|
|
|
|
162
|
|
Adjusted EBITDA
|
|
|
|
|
|
$
|
128,942
|
|
|
|
$
|
124,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE
|
|
(Unaudited)
|
|
|
|
Total Company
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
2018
|
|
|
2017
|
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
52 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Revenue from services
|
|
|
$
|
650,147
|
|
|
|
$
|
669,625
|
|
|
|
$
|
2,499,207
|
|
|
|
$
|
2,508,771
|
|
|
Acquired entity revenue (3)
|
|
|
(13,075
|
)
|
|
|
—
|
|
|
|
(30,958
|
)
|
|
|
|
—
|
|
|
Organic revenue
|
|
|
637,072
|
|
|
|
669,625
|
|
|
|
2,468,249
|
|
|
|
|
2,508,771
|
|
|
Amazon revenue (8)
|
|
|
(205
|
)
|
|
|
(24,052
|
)
|
|
|
(23,941
|
)
|
|
|
|
(53,435
|
)
|
|
PlaneTechs revenue (9)
|
|
|
—
|
|
|
|
(10,405
|
)
|
|
|
(8,005
|
)
|
|
|
|
(44,327
|
)
|
|
Organic revenue excluding Amazon and PlaneTechs
|
|
|
$
|
636,867
|
|
|
|
$
|
635,168
|
|
|
|
$
|
2,436,303
|
|
|
|
$
|
2,411,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
PeopleScout
|
|
|
PeopleManagement
|
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
13 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
Revenue from services
|
|
|
66,707
|
|
|
|
50,731
|
|
|
|
184,324
|
|
|
|
|
225,865
|
|
|
Acquired entity revenue (3)
|
|
|
(13,075
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Organic revenue
|
|
|
53,632
|
|
|
|
50,731
|
|
|
|
184,324
|
|
|
|
|
225,865
|
|
|
Amazon revenue (8)
|
|
|
—
|
|
|
|
—
|
|
|
|
(205
|
)
|
|
|
|
(24,052
|
)
|
|
PlaneTechs revenue (9)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(10,405
|
)
|
|
Organic revenue excluding Amazon and PlaneTechs
|
|
|
$
|
53,632
|
|
|
|
$
|
50,731
|
|
|
|
$
|
184,119
|
|
|
|
$
|
191,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
52 Weeks Ended
|
|
|
52 Weeks Ended
|
|
|
53 Weeks Ended
|
|
|
52 Weeks Ended
|
|
(in thousands)
|
|
|
Dec 30, 2018
|
|
|
Dec 31, 2017
|
|
|
Jan 1, 2017
|
|
|
Dec 25, 2015
|
|
Net cash provided by operating activities
|
|
|
$
|
125,692
|
|
|
|
$
|
100,134
|
|
|
|
$
|
260,703
|
|
|
|
$
|
72,072
|
|
|
Capital expenditures
|
|
|
(17,054
|
)
|
|
|
(21,958
|
)
|
|
|
(29,042
|
)
|
|
|
(18,394
|
)
|
|
Free cash flows
|
|
|
$
|
108,638
|
|
|
|
$
|
78,176
|
|
|
|
$
|
231,661
|
|
|
|
$
|
53,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Gain on the divestiture of our PlaneTechs business sold mid-March
2018.
|
|
|
|
|
|
(2)
|
|
|
Amortization of intangible assets of acquired businesses, as well as
accretion expense related to the SIMOS acquisition earn-out for 2017.
|
|
|
|
|
|
(3)
|
|
|
Acquisition/integration costs and acquired entity revenue relate to
the acquisition of TMP Holdings LTD completed on June 12, 2018.
|
|
|
|
|
|
(4)
|
|
|
Other costs for the 13 weeks and 52 weeks ended December 30, 2018
include implementation costs for cloud-based systems of $2.2 million
and $6.7 million, respectively, and accelerated vesting of stock
associated with the CEO transition of $2.1 million and $3.6 million,
respectively. Other costs for the 13 weeks and 52 weeks ended
December 31, 2017 include a workforce reduction charge of $2.5
million primarily associated with employee reductions in the
PeopleReady business, offset by $2.3 million of workers'
compensation benefit. The workers' compensation benefit is
associated with the favorable settlement of insurance coverage
associated with a former insurance company and other items not
considered part of our core operations. Other costs for the 13 weeks
ended March 31, 2019 include anticipated implementation costs for
cloud-based systems of $1.3 million and amortization expense
associated with software as a service assets of $0.3 million.
|
|
|
|
|
|
(5)
|
|
|
Total tax effect of each of the adjustments to U.S. GAAP net income
using the expected ongoing rate of 14 percent for 2018, due to the
enacted U.S. Tax Cuts and Jobs Act, and 28 percent for 2017.
|
|
|
|
|
|
(6)
|
|
|
Adjustment of the effective income tax rate to the expected ongoing
rate of 14 percent for 2018, due to the enacted U.S. Tax Cuts and
Jobs Act, and 28 percent for 2017.
|
|
|
|
|
|
(7)
|
|
|
These third-party processing fees are associated with generating the
Work Opportunity Tax Credits, which are designed to encourage
employers to hire workers from certain targeted groups with higher
than average unemployment rates.
|
|
|
|
|
|
(8)
|
|
|
Loss of Amazon Canadian business effective September 1, 2018.
|
|
|
|
|
|
(9)
|
|
|
PlaneTechs business sold mid-March 2018.
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190207005091/en/
Derrek Gafford, Executive Vice President and CFO
253-680-8214
Source: TrueBlue, Inc.