TrueBlue Reports 2011 Fourth Quarter Results

Download as PDF

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the thirteen-week fourth quarter of 2011 of $350 million, an increase of 12 percent compared to revenue of $312 million for the fourteen-week fourth quarter of 2010. Net income for the fourth quarter was $7.6 million, or $0.19 per diluted share, compared to net income of $4.0 million, or $0.09 per diluted share, for the fourth quarter of 2010.

“We had solid revenue growth this quarter and achieved operating income growth of more than 90 percent,” said TrueBlue CEO Steve Cooper. “Our better-than-expected results were driven by additional demand in the energy industry and a successful holiday season. Our focus remains on our vertical market strategy, which includes our specialized expertise in the industries we serve, and increasing our value to local and national customers.”

For the first quarter of 2012, TrueBlue estimates revenue in the range of $300 million to $310 million and estimates net income per diluted share of $0.00 to $0.05.

Management will discuss fourth quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, Feb. 8, 2012. The conference call and a copy of the slides for the 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 services, retail, wholesale, manufacturing, transportation, aviation, 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 year ended Dec. 31, 2010 and in our most recent Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2011. 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 14 Weeks Ended 52 Weeks Ended 53 Weeks Ended
December 30, December 31, December 30, December 31,
2011 2010 2011 2010
 
Revenue from services $ 350,155 $ 311,943 $ 1,316,013 $ 1,149,367
Cost of services   258,324   230,034   968,967   845,916
Gross profit 91,831 81,909 347,046 303,451
Selling, general and administrative expenses 76,755 71,797 282,828 258,722
Depreciation and amortization   4,395   4,580   16,384   16,468
Income from operations 10,681 5,532 47,834 28,261
Interest and other income, net   693   238   1,490   901
Income before tax expense 11,374 5,770 49,324 29,162
Income tax expense   3,810   1,812   18,533   9,323
Net income $ 7,564 $ 3,958 $ 30,791 $ 19,839
 

Net income per common share

Basic $ 0.19 $ 0.09 $ 0.73 $ 0.46
Diluted $ 0.19 $ 0.09 $ 0.73 $ 0.46
 

Weighted average shares outstanding

Basic 39,404 43,308 41,961 43,224
Diluted 39,848 43,738 42,322 43,540
 
 
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 
 
 
December 30, December 31,
2011 2010
Assets

Current assets

Cash and cash equivalents $ 109,311

$

163,153

Accounts receivable, net 153,878

108,692

Other current assets   17,426  

21,655

Total current assets 280,615

293,500

Property and equipment, net 56,239

53,958

Restricted cash and investments 130,498

120,067

Other assets, net   93,417  

78,941

Total assets $ 560,769

$

546,466

 
Liabilities and shareholders' equity
Current liabilities $ 112,289

$

85,923

Long-term liabilities   154,901  

147,836

Total liabilities 267,190

233,759

Shareholders' equity   293,579  

312,707

Total liabilities and shareholders' equity $ 560,769

$

546,466

 
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

   
52 Weeks Ended 53 Weeks Ended
December 30, December 31,
2011 2010
 

Cash flows from operating activities

Net income $ 30,791 $ 19,839

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization 16,384 16,468
Provision for doubtful accounts 6,638 8,158
Stock-based compensation 7,432 7,159
Deferred income taxes (1,910 ) 5,322
Other operating activities (473 ) (202 )

Changes in operating assets and liabilities

Accounts receivable (51,824 ) (11,604 )
Income taxes 3,513 (3,338 )
Other assets (1,244 ) (727 )
Accounts payable and other accrued expenses

5,423

747
Accrued wages and benefits 10,793 2,752
Workers' compensation claims reserve 4,537 (2,195 )
Other liabilities   529     (406 )
Net cash provided by operating activities  

30,589

    41,973  
 

Cash flows from investing activities

Capital expenditures

(9,707

) (7,050 )
Change in restricted cash and cash equivalents 68,504 3,945
Purchase of restricted investments (88,173 ) -
Maturities of restricted investments 9,238 -
Other   (6,800 )   (298 )
Net cash used in investing activities  

(26,938

)   (3,403 )
 

Cash flows from financing activities

Purchases and retirement of common stock (56,932 ) -
Net proceeds from sale of stock through options and employee benefit plans 1,131 1,054
Common stock repurchases for taxes upon vesting of restricted stock (1,776 ) (1,568 )
Payments on debt (302 ) (382 )
Other   664     129  
Net cash used in financing activities   (57,215 )   (767 )
 
Effect of exchange rates on cash   (278 )   973  
 
Net change in cash and cash equivalents (53,842 ) 38,776
 
CASH AND CASH EQUIVALENTS, beginning of year   163,153     124,377  
CASH AND CASH EQUIVALENTS, end of year $ 109,311   $ 163,153  

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

Source: TrueBlue, Inc.

Released February 8, 2012