TrueBlue Reports Fourth Quarter 2007 Results
TACOMA, Wash.--(BUSINESS WIRE)--
TrueBlue, Inc. (NYSE:TBI) today reported revenue for the fourth quarter ended Dec. 28, 2007 of $353.6 million, an increase of 4.6 percent from $338.1 million for the fourth quarter of 2006. For the fourth quarter of 2007, the company generated net income of $14.4 million or $0.33 per diluted share, a decrease from $21.6 million or $0.42 per diluted share for the fourth quarter of 2006. The fourth quarter of 2006 included an additional $4.2 million of net income from the reinstatement of the Work Opportunity Tax Credit and other tax matters.
"Our focus on revenue growth and disciplined cost containment continues to drive our performance, despite the difficult operating environment," said TrueBlue CEO Steve Cooper. "During the quarter, we closed 27 branches and made other changes across our operations to adjust for current conditions."
Revenue for the quarter from branches open 12 months or longer decreased 0.2 percent while revenue from acquisitions provided 5.3 percent of revenue growth over the same period a year ago. Other items such as branch openings, branch closings, and the impact of currency decreased revenue by 0.5 percent.
"During 2007, we took significant strategic steps toward our goal of becoming the leading provider of blue-collar staffing," said Cooper. "We returned $150 million of capital to shareholders by purchasing our own stock; we made two acquisitions to fuel future growth; and we renamed our company to clarify our niche approach to branding and growing our company."
For the first quarter of 2008, TrueBlue estimates revenue in the range of $312 million to $317 million, with net income per diluted share for the quarter in the range of $0.18 to $0.20.
Management will discuss fourth quarter 2007 results on a conference call at 2 p.m. (PT), Wednesday Jan. 30, 2008. The conference call can be accessed on TrueBlue's web site: www.TrueBlueInc.com.
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.
About TrueBlue
TrueBlue, Inc., headquartered in Tacoma, Wash., is the parent company of Labor Ready, Spartan Staffing, CLP Resources, and PlaneTechs. TrueBlue's brands provide general labor, light industrial and skilled trades services to small to mid-sized businesses in the construction, warehousing, hospitality, landscaping, transportation, light manufacturing, retail, wholesale, facilities, sanitation, and aviation industries. Annually, the company serves approximately 300,000 customers and puts more than 600,000 people to work through its nearly 900 branch offices in the United States, Canada, and the United Kingdom. For additional information, visit TrueBlue's website at www.TrueBlueInc.com.
TrueBlue, Inc.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
In Thousands, except per share data
Thirteen Weeks Ended Fiscal Years Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2007 2006 2007 2006
(Unaudited) (Unaudited)
Revenue from services $353,616 $338,148 $1,385,656 $1,349,118
Cost of services 241,705 228,035 943,563 915,773
----------- -------- ----------- ----------
Gross profit 111,911 110,113 442,093 433,345
Selling, general and
administrative expenses 87,865 83,158 336,220 318,681
Depreciation and
amortization 3,562 2,455 12,223 10,364
----------- -------- ----------- ----------
Income from operations 20,484 24,500 93,650 104,300
Interest and other income,
net 2,729 3,108 10,953 11,873
----------- -------- ----------- ----------
Income before tax expense 23,213 27,608 104,603 116,173
Income tax expense 8,860 6,046 38,405 39,701
----------- -------- ----------- ----------
Net income $ 14,353 $ 21,562 $ 66,198 $ 76,472
=========== ======== =========== ==========
Net income per common
share:
Basic $ 0.33 $ 0.42 $ 1.45 $ 1.46
Diluted $ 0.33 $ 0.42 $ 1.44 $ 1.45
Weighted average shares outstanding:
Basic 43,280 51,026 45,683 52,418
Diluted 43,513 51,327 45,960 52,853
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
December 28, December 29,
2007 2006
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 57,008 $ 107,944
Marketable securities 10,954 91,510
Accounts receivable, net 140,027 120,173
Other current assets 21,519 20,131
------------ ------------
Total current assets 229,508 339,758
Property and equipment, net 44,909 31,949
Restricted cash 132,497 143,731
Other assets 138,335 76,868
------------ ------------
Total assets $ 545,249 $ 592,306
============ ============
Liabilities and shareholders' equity
Current liabilities $ 114,538 $ 101,385
Long-term liabilities 146,884 138,403
------------ ------------
Total liabilities 261,422 239,788
Shareholders' equity 283,827 352,518
------------ ------------
Total liabilities and shareholders'
equity $ 545,249 $ 592,306
============ ============
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
Fiscal Years Ended
December 28, December 29,
2007 2006
(Unaudited)
Cash Flows from Operating activities:
Net income $ 66,198 $ 76,472
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 12,223 10,364
Provision for doubtful accounts 9,987 7,215
Stock-based compensation 6,943 6,377
Excess tax benefits from stock-based
compensation (1,451) (3,527)
Deferred income taxes (8,696) (3,169)
Other operating activities 401 56
Changes in operating assets and liabilities,
exclusive of businesses acquired:
Accounts receivable (10,897) (5,429)
Income taxes 12,359 4,797
Other assets 3,734 (2,677)
Accounts payable and other accrued
expenses 270 (3,068)
Accrued wages and benefits (2,541) (798)
Workers' compensation claims reserve 5,748 21,576
Other current liabilities 4,376 (38)
------------ ------------
Net cash provided by operating activities 98,654 108,151
------------ ------------
Cash Flows from Investing activities:
Capital expenditures (21,040) (13,007)
Purchases of marketable securities (191,032) (88,266)
Maturities of marketable securities 271,580 90,301
Acquisition of businesses, net of cash
acquired (76,902) -
Change in restricted cash and other
assets 11,234 8,948
Other (167) 214
------------ ------------
Net cash used in investing activities (6,327) (1,810)
------------ ------------
Cash Flows from Financing activities:
Purchases and retirement of common stock (150,310) (88,744)
Net proceeds from sale of stock through
options and employee benefit plans 4,715 5,293
Excess tax benefits from stock-based
compensation 1,451 3,527
Payments on debt (909) (1,212)
------------ ------------
Net cash used in financing activities (145,053) (81,136)
------------ ------------
Effect of exchange rates on cash 1,790 584
------------ ------------
Net change in cash and cash equivalents (50,936) 25,789
Cash and cash equivalents, beginning of year 107,944 82,155
------------ ------------
Cash and cash equivalents, end of year $ 57,008 $ 107,944
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Source: TrueBlue, Inc.
Released January 30, 2008