EXHIBIT 99.1


TRUEBLUE REPORTS 2014 THIRD QUARTER RESULTS
 
TACOMA, WA-Oct. 23, 2014--TrueBlue, Inc. (NYSE:TBI) today reported results for the third quarter of 2014.
Revenue was $633 million, up 40 percent compared to revenue of $451 million for the third quarter in 2013.
Net income was $21 million compared to $19 million for the third quarter of 2013.
Adjusted net income* was $22 million, or $0.54 per diluted share, compared to $19 million, or $0.48 per diluted share, for the third quarter of 2013.
Adjusted EBITDA* was $42 million, up 25 percent compared to $33 million for the third quarter of 2013.

“We are pleased with the success of our growth strategies, which produced strong revenue and profit growth this quarter,” TrueBlue CEO Steve Cooper said. “Our team continues to focus on providing more value to customers through the specialized services we offer. In addition, we have a proven track record of acquiring companies with complementary service offerings that enable our customers to better manage their workforce.”

TrueBlue completed its acquisition of Seaton on June 30, 2014, the first day of its third quarter. TrueBlue refers to Seaton’s industry-leading brands, Staff Management | SMX, PeopleScout and HRX, as its Outsourcing Solutions group. TrueBlue is now the largest industrial staffing provider in the U.S.        

“We are excited about the opportunities to expand our EBITDA margin through operational efficiency and the use of technology,” Cooper said. “This reduces the dependency on our branch footprint while allowing us to still deliver excellent service.”
 
TrueBlue has consolidated 52 branches year to date, resulting in 708 branches in operation at the end of the quarter.

TrueBlue estimates revenue in the range of $695 million to $705 million and adjusted net income* per diluted share of $0.44 to $0.49 for the fourth quarter of 2014.
 
Management will discuss third quarter 2014 results on a conference call at 6 a.m. PT (9 a.m. ET), today, Thursday, Oct. 23. The conference call can be accessed on TrueBlue’s web site: www.trueblue.com
 
*
This is a non-GAAP financial measure that excludes non-recurring acquisition and integration costs for which a reconciliation is provided along with the financial statements accompanying this release.

About TrueBlue
TrueBlue (NYSE: TBI) is a leading staffing, recruiting and workforce management company. The company fills individual positions on demand, staffs entire facilities, and manages outsourced recruiting processes and staffing vendor programs for a wide variety of clients. The company’s specialized workforce solutions meet clients’ needs for a reliable, efficient workforce, and it serves a wide variety of industries. TrueBlue connects as many as 500,000 people to work each year. Learn more about TrueBlue at www.trueblue.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 fiscal year ended Dec. 27, 2013. Additional risk factors resulting from the acquisition of Seaton will be included in our Form 10-Q. 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. 
 
 
Contacts:
Derrek Gafford, EVP & CFO
253-680-8214
 
Stacey Burke, VP of Corporate Communications
253-680-8291









TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
 
13 Weeks Ended
 
39 Weeks Ended
 
September 26, 2014
 
September 27, 2013
 
September 26, 2014
 
September 27, 2013
Revenue from services
$
633,365

 
$
451,169

 
$
1,482,655

 
$
1,219,977

Cost of services
473,766

 
327,641

 
1,103,914

 
897,937

Gross profit
159,599

 
123,528

 
378,741

 
322,040

Selling, general and administrative expenses
120,318

 
90,767

 
308,654

 
268,538

Depreciation and amortization
9,719

 
4,771

 
20,126

 
15,133

Income from operations
29,562

 
27,990

 
49,961

 
38,369

Interest and other income (expense), net
(409
)
 
416

 
385

 
1,167

Income before tax expense
29,153

 
28,406

 
50,346

 
39,536

Income tax expense
8,243

 
9,454

 
11,696

 
9,124

Net income
$
20,910

 
$
18,952

 
$
38,650

 
$
30,412

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
$
0.51

 
$
0.47

 
$
0.95

 
$
0.76

Diluted
$
0.51

 
$
0.47

 
$
0.94

 
$
0.75

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
Basic
40,793

 
40,330

 
40,701

 
40,085

Diluted
41,038

 
40,670

 
40,971

 
40,395






TRUEBLUE, INC.
SELECTED FINANCIAL DATA
(Unaudited, in thousands)

 
13 Weeks Ended
 
September 26, 2014
 
September 27, 2013
 
Legacy TrueBlue
 
Seaton (1)
 
Total Company
 
Legacy TrueBlue
Revenue from services
$
484,729

 
$
148,636

 
$
633,365

 
$
451,169

 
 
 
 
 
 
 
 
Adjusted EBITDA (2)
34,932

 
6,688

 
41,620

 
33,394

Non-recurring acquisition costs (3)
 
 
 
 
2,339

 
633

EBITDA (2)
 
 
 
 
39,281

 
32,761

Depreciation and amortization
 
 
 
 
9,719

 
4,771

Interest income (expense), net
 
 
 
 
(409
)
 
416

Income before tax expense
 
 
 
 
$
29,153

 
$
28,406

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Seaton was acquired effective June 30, 2014. Therefore, the comparative prior year amounts are not presented.
 
 
 
 
 
 
 
 
(2) EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income (loss). Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating performance. EBITDA and Adjusted EBITDA should not be considered a measure of financial performance in isolation or as an alternative to income from operations in the Consolidated Statements of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies.
 
 
 
 
 
 
 
 
(3) Non-recurring acquisition costs for the 13 weeks ended September 26, 2014 related to the acquisition and integration of Seaton. The acquisition was completed effective June 30, 2014, the first day of our third quarter. The non-recurring acquisition costs for the prior year related to the acquisition and integration of TWC.
 





TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

 
September 26, 2014
 
December 27, 2013
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
29,244

 
$
122,003

Marketable securities
1,746

 
14,745

Accounts receivable, net
310,926

 
199,519

Other current assets
35,629

 
20,191

Total current assets
377,545

 
356,458

Property and equipment, net
79,304

 
54,473

Restricted cash and investments
152,281

 
154,558

Other assets, net
391,597

 
153,972

Total assets
$
1,000,727

 
$
719,461

 
 
 
 
Liabilities and shareholders' equity
 
 
 
Current liabilities
$
177,958

 
$
121,409

Long-term debt
174,950

 
29,656

Other long-term liabilities
207,853

 
175,036

Total liabilities
560,761

 
326,101

Shareholders' equity
439,966

 
393,360

Total liabilities and shareholders' equity
$
1,000,727

 
$
719,461






TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
39 Weeks Ended
 
September 26, 2014
 
September 27, 2013
Cash flows from operating activities
 
 
 
   Net income
$
38,650

 
$
30,412

Adjustments to reconcile net income to net cash from operating activities
 
 
 
Depreciation and amortization
20,126

 
15,133

Provision for doubtful accounts
9,619

 
8,785

Stock-based compensation
8,902

 
6,428

Deferred income taxes
6,077

 
(1,694
)
Other operating activities
(148
)
 
1,213

Changes in operating assets and liabilities, net of acquisition
 
 
 
Accounts receivable
(26,391
)
 
(24,776
)
Income taxes
(3,179
)
 
6,580

Other assets
(6,510
)
 
(4,703
)
Accounts payable and other accrued expenses
(1,687
)
 
(6,728
)
Accrued wages and benefits
11,373

 
11,419

Workers' compensation claims reserve
532

 
2,785

Other liabilities
2,539

 
423

Net cash provided by operating activities
59,903

 
45,277

 
 
 
 
Cash flows from investing activities
 
 
 
Capital expenditures
(10,213
)
 
(10,350
)
Acquisition of businesses, net of cash acquired
(307,972
)
 
(54,872
)
Purchases of marketable securities
(25,057
)
 
(35,300
)
Sales and maturities of marketable securities
43,917

 
205

Change in restricted cash and cash equivalents
10,020

 
(1,338
)
Purchases of restricted investments
(18,196
)
 
(9,175
)
Maturities of restricted investments
10,588

 
13,337

Net cash used in investing activities
(296,913
)
 
(97,493
)
 
 
 
 
Cash flows from financing activities
 
 
 
Net proceeds from stock option exercises and employee stock purchase plans
1,673

 
8,731

Common stock repurchases for taxes upon vesting of restricted stock
(3,021
)
 
(2,653
)
Proceeds from note payable
186,994

 
34,000

Payments on debt and other liabilities
(41,700
)
 
(8,115
)
Other
1,242

 
720

Net cash provided by financing activities
145,188

 
32,683

 
 
 
 
Effect of exchange rates on cash
(937
)
 
(435
)
Net change in cash and cash equivalents
(92,759
)
 
(19,968
)
CASH AND CASH EQUIVALENTS, beginning of period
122,003

 
129,513

CASH AND CASH EQUIVALENTS, end of period
$
29,244

 
$
109,545






TRUEBLUE, INC.
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO
ADJUSTED NET INCOME PER DILUTED SHARE
(Unaudited, in thousands, except per share data)

 
13 Weeks Ended
 
September 26, 2014
 
September 27, 2013
GAAP Net income
$
20,910

 
$
18,952

Non-recurring acquisition costs, net of income tax (1)
1,404

 
380

Adjusted Net income
$
22,314

 
$
19,332

 
 
 
 
GAAP Net income per diluted share
$
0.51

 
$
0.47

Non-recurring acquisition costs, net of income tax (1)
0.03

 
0.01

Adjusted Net income per diluted share (2)
$
0.54

 
$
0.48

 
 
 
 
(1) Non-recurring acquisition costs for the current quarter related to the acquisition and integration of Seaton. The acquisition was completed on June 30, 2014, the first business day of our third quarter. The non-recurring acquisition costs for the prior year related to the acquisition and integration of TWC. The impact on net income per diluted share is net of income taxes at 40%.
 
 
 
 
(2) Adjusted net income and adjusted net income per diluted share are non-GAAP financial measures which exclude non-recurring costs for the purchase, integration, reorganization, and shutdown activities related to acquisitions, and which is used by management in communicating comparable performance. Adjusted net income and adjusted net income per diluted share should not be considered measures of financial performance in isolation or as an alternative to net income and net income per share in the Consolidated Statements of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies.