TrueBlue Reports 2011 First Quarter Results

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter of 2011 of $274 million, an increase of 14 percent compared to revenue of $240 million for the first quarter of 2010. Net income for the quarter was $0.8 million or $0.02 per diluted share, compared to a net loss of $2.3 million or $0.05 per diluted share for the first quarter of 2010.

"Our team continues to do an outstanding job in serving the needs of our customers," said TrueBlue CEO Steve Cooper. "We experienced broad-based demand for our services with double-digit growth across most industries we serve. Businesses are increasingly turning to our blue-collar staffing solutions to increase the efficiency of their workforce."

For the second quarter of 2011, TrueBlue estimates revenue in the range of $315 million to $325 million and net income per diluted share for the quarter of $0.15 to $0.20.

Management will discuss first quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, April 27. 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 2010, TrueBlue connected approximately 300,000 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 news release contains forward-looking statements that reflect management's current outlook for future periods, including statements regarding economic trends and future profitability. These forward-looking statements are based upon TrueBlue's current expectations, and TrueBlue's actual results may differ materially from those described or contemplated in the forward-looking statements. Factors that may cause TrueBlue's actual results to differ materially from those contained in the forward-looking statements, include without limitation the following: 1) national and global economic conditions, including the impact of changes in national and global credit markets and other changes on TrueBlue customers; 2) TrueBlue's ability to continue to attract and retain customers and maintain profit margins in the face of new and existing competition; 3) new laws and regulations that could have a materially adverse effect on TrueBlue's operations and financial results; 4) significant labor disturbances which could disrupt industries TrueBlue serves; 5) increased costs and collateral requirements in connection with TrueBlue's insurance obligations, including workers' compensation insurance; 6) the adequacy of TrueBlue's financial reserves; 7) TrueBlue's continuing ability to comply with financial covenants in its lines of credit and other financing agreements; 8) TrueBlue's ability to attract and retain competent employees in key positions or to find temporary employees to fulfill the needs of its customers; 9) TrueBlue's ability to successfully complete and integrate acquisitions that it may make from time to time; and 10) other risks described in TrueBlue's filings with the Securities and Exchange Commission, including its most recent Form 10-K and Form 10-Q filings.


TRUEBLUE, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

                                              13 Weeks Ended  13 Weeks Ended

                                              April 1,        March 26,

                                              2011              2010

Revenue from services                         $ 274,300       $ 239,851

Cost of services                                204,269         178,726

Gross profit                                    70,031          61,125

Selling, general and administrative expenses    65,159          61,214

Depreciation and amortization                   3,922           4,095

Income (loss) from operations                   950             (4,184  )

Interest and other income, net                  308             328

Income (loss) before tax expense (benefit)      1,258           (3,856  )

Income tax expense (benefit)                    492             (1,597  )

Net income (loss)                             $ 766           $ (2,259  )

Net income (loss) per common share:

Basic                                         $ 0.02          $ (0.05   )

Diluted                                       $ 0.02          $ (0.05   )

Weighted average shares outstanding:

Basic                                           43,460          43,083

Diluted                                         43,854          43,083




TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

                                              April 1,   December 31,

                                              2011       2010

Assets

Current assets:

Cash and cash equivalents                     $ 152,790  $ 163,153

Accounts receivable, net                        120,410    108,692

Other current assets                            22,172     21,655

Total current assets                            295,372    293,500

Property and equipment, net                     52,386     53,958

Restricted cash and investments                 123,808    120,067

Other assets, net                               78,403     78,941

Total assets                                  $ 549,969  $ 546,466

Liabilities and shareholders' equity

Current liabilities                           $ 85,869   $ 85,923

Long-term liabilities                           148,290    147,836

Total liabilities                               234,159    233,759

Shareholders' equity                            315,810    312,707

Total liabilities and shareholders' equity    $ 549,969  $ 546,466




TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

                                                  13 Weeks Ended  13 Weeks Ended

                                                  April 1,        March 26,

                                                    2011            2010

Cash flows from
operating activities:

Net income (loss)                                 $ 766           $ (2,259  )

Adjustments to reconcile net income
(loss) to net cash:

Depreciation and                                    3,922           4,095
amortization

Provision for doubtful                              576             2,066
accounts

Stock-based compensation                            2,575           2,430

Deferred income taxes                               690             1,118

Other operating                                     (527    )       23
activities

Changes in operating
assets and liabilities:

Accounts receivable                                 (12,294 )       2,395

Income taxes                                        (1,264  )       (3,183  )

Other assets                                        458             587

Accounts payable and other accrued                  (2,547  )       (1,248  )
expenses

Accrued wages and                                   3,695           (477    )
benefits

Workers' compensation                               (542    )       (2,314  )
claims reserve

Other liabilities                                   (103    )       225

Net cash (used in) provided by                      (4,595  )       3,458
operating activities

Cash flows from
investing activities:

Capital expenditures                                (1,691  )       (777    )

Change in restricted cash and cash                  (635    )       2,305
equivalents

Purchase of restricted                              (3,106  )
investments

Other                                               -               10

Net cash (used in) provided by                      (5,432  )       1,538
investing activities

Cash flows from
financing activities:

Net proceeds from sale of stock through options     424             294
and employee benefit plans

Common stock repurchases for taxes upon vesting     (1,460  )       (1,153  )
of restricted stock

Payments on debt                                    (103    )       (92     )

Other                                               541             77

Net cash used in                                    (598    )       (874    )
financing activities

Effect of exchange rates                            262             16
on cash

Net change in cash and                              (10,363 )       4,138
cash equivalents

CASH AND CASH EQUIVALENTS,                          163,153         124,377
beginning of period

CASH AND CASH EQUIVALENTS, end of                 $ 152,790       $ 128,515
period




TRUEBLUE, INC.

Schedule of Total Revenue Growth(1)

(Unaudited)

January 2011      19%

February 2011     12%

March 2011        13%

Q-1 2011          14%

(1) Revenue growth is organic; no acquisition activity within the last 12
months




    Source: TrueBlue, Inc.