TrueBlue Reports Third Quarter 2009 Results
TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYSE:TBI) today reported net income of $8.2 million or $0.19 per diluted share for the quarter ended Sept. 25, 2009, compared to net income of $16.3 million or $0.38 per diluted share for the third quarter of 2008. Revenue for the quarter was $285 million, a decrease of 27 percent compared to the third quarter of 2008.
"Our strict cost management combined with ongoing stabilization in same branch revenue drove our results this quarter," said TrueBlue CEO Steve Cooper. "Ongoing risk management programs that drove workers compensation expense lower also contributed to our better-than-expected results. Our results demonstrate that, in addition to the strong operating leverage in our business model, we remain focused on executing on every element of the business."
TrueBlue closed 12 branches, resulting in 764 branches in operation at the end of the quarter.
For the fourth quarter of 2009, TrueBlue estimates revenue in the range of $240 million to $250 million and net income per diluted share for the quarter of $0.00 to $0.05.
About TrueBlue
TrueBlue, Inc. (NYSE: TBI) is the leading provider of blue-collar staffing with revenue of approximately $1.4 billion in 2008. Last year, TrueBlue connected approximately 500,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and TLC, and served approximately 250,000 businesses in the wholesale, services, transportation, manufacturing, retail, and construction industries. TrueBlue is headquartered in Tacoma, Wash. For more information, visit TrueBlue's website at www.TrueBlueInc.com.
Forward-looking Statements
This news release and the schedule regarding 2009 assumptions contain forward-looking statements, such as statements about the ranges of revenues, gross margins and net income/(loss) anticipated for future periods, improvements in safety and workers' compensation claims and costs, strategies for increasing revenue and net income, and other factors that may affect TrueBlue's financial results and operations in the future. TrueBlue's actual results are, however, subject to a number of risks, including 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) potential 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 or skilled trade workers to fulfill the needs of our customers; 9) TrueBlue's ability to successfully complete and integrate acquisitions that it may make from time to time; 10) TrueBlue's ability to timely execute strategies for acquired companies; and 11) 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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. The offering of these securities will be made only by means of the prospectus supplement and accompanying prospectus
TrueBlue, Inc.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, except per share data
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 25, September 26, September 25, September 26,
2009 2008 2009 2008
Revenue from $ 284,843 $ 387,914 $ 756,268 $ 1,082,640
services
Cost of services 202,220 272,736 538,144 758,564
Gross profit 82,623 115,178 218,124 324,076
Selling, general and
administrative 64,950 86,226 196,644 253,279
expenses
Depreciation and 4,237 3,988 12,662 11,863
amortization
Income from 13,436 24,964 8,818 58,934
operations
Interest and other 240 1,049 2,153 4,569
income, net
Income before tax 13,676 26,013 10,971 63,503
expense
Income tax expense 5,437 9,678 4,305 21,639
Net income $ 8,239 $ 16,335 $ 6,666 $ 41,864
Net income per
common share:
Basic $ 0.19 $ 0.38 $ 0.16 $ 0.97
Diluted $ 0.19 $ 0.38 $ 0.16 $ 0.97
Weighted average
shares outstanding:
Basic 42,906 42,460 42,808 43,005
Diluted 43,121 42,695 42,930 43,176
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
September 25, December 26,
2009 2008
Assets
Current assets
Cash and cash equivalents $ 95,522 $ 108,102
Accounts receivable, net 130,515 104,979
Other current assets 17,300 29,723
Total current assets 243,337 242,804
Property and equipment, net 61,322 61,542
Restricted cash 126,183 120,323
Other assets 88,907 95,006
Total assets $ 519,749 $ 519,675
Liabilities and shareholders' equity
Current liabilities $ 83,415 $ 95,308
Long-term liabilities 154,876 154,238
Total liabilities 238,291 249,546
Shareholders' equity 281,458 270,129
Total liabilities and shareholders' equity $ 519,749 $ 519,675
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
Thirty-Nine Weeks Ended
September 25, September 26,
2009 2008
Cash flows from operating activities:
Net income $ 6,666 $ 41,864
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 12,662 11,863
Provision for doubtful accounts 7,969 6,697
Stock-based compensation 5,597 6,229
Deferred income taxes 4,081 (7,102 )
Other operating activities 1,037 530
Changes in operating assets and liabilities,
exclusive of business acquired:
Accounts receivable (33,505 ) (11,394 )
Income taxes 12,917 (4,350 )
Other assets (1,095 ) -
Accounts payable and other accrued expenses (4,225 ) (1,663 )
Accrued wages and benefits 1,803 (2,654 )
Workers' compensation claims reserve (9,094 ) 4,106
Other liabilities (152 ) (3,216 )
Net cash provided by operating activities 4,661 40,910
Cash flows from investing activities:
Capital expenditures (10,540 ) (20,009 )
Purchases of marketable securities - (27,158 )
Maturities of marketable securities - 38,087
Acquisition of business, net of cash acquired - (21,270 )
Change in restricted cash (5,860 ) 4,712
Other 85 -
Net cash used in investing activities (16,315 ) (25,638 )
Cash flows from financing activities:
Purchases and retirement of common stock - (15,997 )
Net proceeds from sale of stock through options
and employee benefit plans 838 3,173
Shares withheld for taxes upon vesting of (820 ) (918 )
restricted stock
Payments on debt (304 ) (193 )
Other (996 ) (229 )
Net cash used in financing activities (1,282 ) (14,164 )
Effect of exchange rates on cash 356 (636 )
Net change in cash and cash equivalents (12,580 ) 472
CASH AND CASH EQUIVALENTS, beginning of period 108,102 57,008
CASH AND CASH EQUIVALENTS, end of period $ 95,522 $ 57,480
Source: TrueBlue, Inc.
Released October 21, 2009