TrueBlue Reports 2008 Third Quarter Results
TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue (NYSE:TBI):
Third Quarter Summary
-- Revenue of $388 million, a decrease of 1% compared to the
third quarter of 2007.
-- Net income of $16.3 million, a decrease of 28% compared to the
third quarter of 2007.
-- Diluted net income per common share of $0.38 compared to $0.51
for the third quarter of 2007.
-- EBITDA(a) of $29.0 million, a decrease of 21% compared to the
third quarter 2007.
The one percent revenue decline for the quarter consisted of 16 percent growth from acquisitions completed within the last 12 months offset by a 17 percent decrease in organic revenue, which consists of total revenue growth less growth from acquisitions.
"As a result of the weak economy, demand for our services declined across most of the markets we serve, and we responded by accelerating plans to close branches and implementing other cost controls," said TrueBlue CEO Steve Cooper. "We will continue to aggressively manage costs during these challenging times."
Branch Activity
TrueBlue closed eight branches resulting in 919 total branches in operation at the end of the quarter bringing year-to-date branch closures for 2008 to 32 branches. The company plans to close 17 branches during the fourth quarter of 2008 and is currently evaluating additional branches to close.
Q4 Outlook
For the fourth quarter of 2008, TrueBlue estimates revenue in the range of $325 to $335 million with net income per diluted share for the quarter in the range of $0.10 to $0.14.
Management will discuss third quarter 2008 results on a conference call at 2 p.m. (PT), today, Wednesday Oct. 15, 2008. The conference call can be accessed on TrueBlue's web site: www.TrueBlueInc.com.
About TrueBlue
TrueBlue (NYSE:TBI) is the leading provider of blue-collar staffing with revenue of approximately $1.4 billion. Each year, TrueBlue connects approximately 600,000 people to work through the following brands: Labor Ready, PMI, Spartan Staffing, CLP Resources, PlaneTechs, and TLC Drivers. Headquartered in Tacoma, Wash., TrueBlue serves more than 300,000 small to mid-sized businesses in the construction, warehousing, hospitality, landscaping, transportation, light manufacturing, retail, wholesale, facilities, sanitation, and aviation industries. For more information, visit TrueBlue's website at www.TrueBlueInc.com
Forward-looking Statements
This news release contains forward-looking statements, such as statements about the ranges of revenues, gross margins and net income 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.
Definitions
(a) EBITDA is defined, discussed and reconciled to net income in the financial schedules filed with this press release.
TrueBlue, Inc.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
In Thousands, except per share data
(Unaudited)
Thirteen Weeks Thirty-Nine Weeks
Ended Ended
------------------- ---------------------
Sept. 26, Sept. 28, Sept. 26, Sept. 28,
2008 2007 2008 2007
--------- --------- ---------- ----------
Revenue from services $387,914 $390,672 $1,082,640 $1,032,040
Cost of services 272,736 265,168 758,564 701,858
--------- --------- ---------- ----------
Gross profit 115,178 125,504 324,076 330,182
Selling, general and
administrative expenses 86,226 89,077 253,279 248,355
Depreciation and amortization 3,988 3,402 11,863 8,661
--------- --------- ---------- ----------
Income from operations 24,964 33,025 58,934 73,166
Interest and other income,
net 1,049 2,504 4,569 8,223
--------- --------- ---------- ----------
Income before tax expense 26,013 35,529 63,503 81,389
Income tax expense 9,678 12,806 21,639 29,545
--------- --------- ---------- ----------
Net income $ 16,335 $ 22,723 $ 41,864 $ 51,844
========= ========= ========== ==========
Net income per common share:
Basic $ 0.38 $ 0.51 $ 0.97 $ 1.12
Diluted $ 0.38 $ 0.51 $ 0.97 $ 1.11
Weighted average shares
outstanding:
Basic 42,460 44,487 43,005 46,484
Diluted 42,695 44,784 43,176 46,775
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
Sept. 26, Dec. 28,
2008 2007
(Unaudited)
------------- ------------
Assets
Current assets
Cash and cash equivalents $ 57,480 $ 57,008
Marketable securities - 10,954
Accounts receivable, net 155,652 140,027
Other current assets 27,737 21,519
------------- ------------
Total current assets 240,869 229,508
Property and equipment, net 58,184 44,909
Restricted cash 127,785 132,497
Other assets 154,606 138,335
------------- ------------
Total assets $ 581,444 $ 545,249
============= ============
Liabilities and shareholders' equity
Current liabilities $ 108,857 $ 114,538
Long-term liabilities 156,241 146,884
------------- ------------
Total liabilities 265,098 261,422
Shareholders' equity 316,346 283,827
------------- ------------
Total liabilities and shareholders'
equity $ 581,444 $ 545,249
============= ============
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
Thirty-Nine Weeks
Ended
--------------------
Sept. 26, Sept. 28,
2008 2007
--------- ----------
Cash flows from operating activities:
Net income $ 41,864 $ 51,844
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 11,863 8,661
Provision for doubtful accounts 6,697 7,543
Stock-based compensation 6,229 5,457
Excess tax benefits from stock-based
compensation - (1,293)
Deferred income taxes (7,102) (4,458)
Other operating activities 530 105
Changes in operating assets and liabilities,
exclusive of businesses acquired:
Accounts receivable (11,394) (34,904)
Income taxes (4,350) 9,957
Other assets - 298
Accounts payable and other accrued expenses (1,663) 1,696
Accrued wages and benefits (2,654) (342)
Workers' compensation claims reserve 4,106 5,621
Other liabilities (3,216) 872
--------- ----------
Net cash provided by operating activities 40,910 51,057
--------- ----------
Cash flows from investing activities:
Capital expenditures (20,009) (16,311)
Purchases of marketable securities (27,158) (146,901)
Maturities of marketable securities 38,087 227,706
Acquisitions of businesses, net of cash
acquired (21,270) (26,456)
Change in restricted cash 4,712 809
Other - (167)
--------- ----------
Net cash provided by (used in) investing
activities (25,638) 38,680
--------- ----------
Cash flows from financing activities:
Purchases and retirement of common stock (15,997) (148,233)
Net proceeds from sale of stock through options
and employee benefit plans 3,173 5,046
Shares withheld for taxes upon vesting of
restricted stock (918) (954)
Excess tax benefits from stock-based
compensation - 1,293
Payments on debt (193) (842)
Other (229) -
--------- ----------
Net cash used in financing activities (14,164) (143,690)
--------- ----------
Effect of exchange rates on cash (636) 1,893
--------- ----------
Net change in cash and cash equivalents 472 (52,060)
CASH AND CASH EQUIVALENTS, beginning of period 57,008 107,944
--------- ----------
CASH AND CASH EQUIVALENTS, end of period $ 57,480 $ 55,884
========= ==========
Source: TrueBlue
Released October 15, 2008