TRUEBLUE REPORTS THIRD QUARTER 2015 RESULTS
 
TACOMA, WA-Oct. 21, 2015--TrueBlue, Inc. (NYSE:TBI) announced today that revenue for the third quarter of 2015 was $684 million, an increase of 8 percent, compared to revenue of $633 million for the third quarter of 2014. Adjusted net income per share* for the third quarter of 2015 was $0.54, up from $0.53 a year ago, an increase of 2 percent. 

“Our team delivered solid organic revenue results this quarter,” said TrueBlue CEO Steve Cooper. “The pace of growth took a significant step up compared to our growth in the first half of the year. We are especially pleased that the improved results came from most geographies and industries including construction. We also saw improvement with small to medium-sized customers and continued strength with national customers.

“The appeal of our specialized service offerings continues to grow in a tightening labor market and we expect another solid quarter of growth as we finish 2015,” Cooper added. “We are excited about the opportunities for increased demand in our services during 2016 and the powerful earnings growth our business can produce.”

For the fourth quarter of 2015, the company estimates revenue in the range of $738 million to $753 million and adjusted net income per share of $0.58 to $0.64.

Management will discuss third quarter 2015 results on a conference call at 2 p.m. PT (5 p.m. ET), today, Wednesday, Oct. 21. The conference call can be accessed on TrueBlue’s website: www.trueblue.com.
 
 *See the financial statements accompanying the release and the company’s website for more information on non-GAAP terms.
 
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions, helping clients improve growth and performance by providing staffing, workforce management, and recruitment process outsourcing solutions. The company’s specialized workforce solutions meet clients’ needs for a reliable, efficient workforce in a wide variety of industries. TrueBlue connects as many as 750,000 people to work each year. Learn more 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. 26, 2014. 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. 

 
 
Contact:
Derrek Gafford, EVP & CFO
253-680-8214




TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
 
13 Weeks Ended
 
39 Weeks Ended
 
September 25, 2015
 
September 26, 2014
 
September 25, 2015
 
September 26, 2014
Revenue from services
$
683,918

 
$
633,365

 
$
1,884,947

 
$
1,482,655

Cost of services
515,051

 
473,766

 
1,434,278

 
1,103,914

Gross profit
168,867

 
159,599

 
450,669

 
378,741

Selling, general and administrative expenses
125,117

 
120,318

 
354,569

 
308,654

Depreciation and amortization
10,498

 
9,719

 
31,415

 
20,126

Income from operations
33,252

 
29,562

 
64,685

 
49,961

Interest and other income (expense), net
(366
)
 
(409
)
 
(1,102
)
 
385

Income before tax expense
32,886

 
29,153

 
63,583

 
50,346

Income tax expense
12,796

 
8,243

 
20,504

 
11,696

Net income
$
20,090

 
$
20,910

 
$
43,079

 
$
38,650

 
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.49

 
$
0.51

 
$
1.05

 
$
0.95

Diluted
$
0.48

 
$
0.51

 
$
1.04

 
$
0.94

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
41,296

 
40,793

 
41,189

 
40,701

Diluted
41,620

 
41,038

 
41,546

 
40,971








TRUEBLUE, INC.
SEGMENT DATA
(Unaudited, in thousands)
 
13 Weeks Ended
 
September 25, 2015
 
September 26, 2014
Revenue from services
 
 
 
Staffing Services
$
656,619

 
$
608,543

Managed Services
27,299

 
24,822

Total Company
$
683,918

 
$
633,365

 
 
 
 
EBITDA (1)
 
 
 
Staffing Services
$
50,290

 
$
45,698

Managed Services
3,175

 
3,723

 
53,465


49,421

Corporate unallocated
(9,715
)
 
(7,801
)
Adjusted EBITDA (1)
43,750


41,620

Non-recurring acquisition and integration costs (2)
—

 
(2,339
)
 
43,750


39,281

 
 
 
 
Depreciation and amortization
10,498

 
9,719

Interest expense, net
366

 
409

Income before tax expense
$
32,886


$
29,153


(1)
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. 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 measures 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.

(2)
Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014.






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

 
September 25, 2015
 
December 26, 2014
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
23,232

 
$
19,666

Marketable securities
—

 
1,500

Accounts receivable, net
362,016

 
359,903

Other current assets
28,546

 
34,738

Total current assets
413,794

 
415,807

Property and equipment, net
55,995

 
61,392

Restricted cash and investments
181,910

 
168,426

Other assets, net
410,213

 
421,046

Total assets
$
1,061,912

 
$
1,066,671

 
 
 
 
Liabilities and shareholders' equity
 
 
 
Current liabilities
$
213,242

 
$
187,230

Long-term debt, less current portion
111,689

 
199,383

Other long-term liabilities
219,699

 
210,724

Total liabilities
544,630

 
597,337

Shareholders' equity
517,282

 
469,334

Total liabilities and shareholders' equity
$
1,061,912

 
$
1,066,671





TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
39 Weeks Ended
 
September 25, 2015
 
September 26, 2014
Cash flows from operating activities:
 
 
 
Net income
$
43,079

 
$
38,650

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
Depreciation and amortization
31,415

 
20,126

Provision for doubtful accounts
4,483

 
9,619

Stock-based compensation
8,283

 
8,902

Deferred income taxes
(6,029
)
 
6,077

Other operating activities
20

 
(148
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(6,597
)
 
(26,391
)
Income taxes
9,673

 
(3,179
)
Other assets
(3,685
)
 
(6,510
)
Accounts payable and other accrued expenses
17,453

 
(1,687
)
Accrued wages and benefits
10,315

 
11,373

Workers’ compensation claims reserve
10,024

 
532

Other liabilities
1,883

 
2,539

Net cash provided by operating activities
120,317

 
59,903

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(12,590
)
 
(10,213
)
Acquisition of businesses, net of cash acquired
—

 
(307,972
)
Purchases of marketable securities
—

 
(25,057
)
Sales and maturities of marketable securities
1,500

 
43,917

Change in restricted cash and cash equivalents
13,070

 
10,020

Purchases of restricted investments
(38,818
)
 
(18,196
)
Maturities of restricted investments
11,047

 
10,588

Net cash used in investing activities
(25,791
)
 
(296,913
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Net proceeds from stock option exercises and employee stock purchase plans
1,164

 
1,673

Common stock repurchases for taxes upon vesting of restricted stock
(3,725
)
 
(3,021
)
Net change in revolving credit facility
(85,994
)
 
146,994

Payments on debt and other liabilities
(1,700
)
 
(1,700
)
Other
1,134

 
1,242

Net cash provided by (used in) financing activities
(89,121
)
 
145,188

Effect of exchange rate changes on cash and cash equivalents
(1,839
)
 
(937
)
Net change in cash and cash equivalents
3,566


(92,759
)
CASH AND CASH EQUIVALENTS, beginning of period
19,666

 
122,003

CASH AND CASH EQUIVALENTS, end of period
$
23,232

 
$
29,244






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

 
13 Weeks Ended
 
September 25, 2015
 
September 26, 2014
GAAP net income
$
20,090

 
$
20,910

Income tax expense
12,796

 
8,243

Interest expense, net
366

 
409

Income from operations
33,252

 
29,562

 
 
 
 
Depreciation and amortization
10,498

 
9,719

EBITDA (4)
43,750

 
39,281

Non-recurring acquisition and integration costs (1)
—

 
2,339

Adjusted EBITDA (4)
$
43,750

 
$
41,620

 
 
 
 
GAAP net income per diluted share
$
0.48

 
$
0.51

Non-recurring acquisition and integration costs, net of tax (1)
—

 
0.03

Amortization of intangible assets of acquired businesses, net of tax (2)
0.07

 
0.07

Adjust income taxes to a marginal rate (3)
(0.01
)
 
(0.08
)
Adjusted net income per diluted share (5)
$
0.54

 
$
0.53

 
 
 
 
Diluted weighted average shares outstanding
41,620

 
41,038


(1)
Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014.

(2)
Amortization of intangible assets of acquired businesses.

(3)
Adjust income taxes to a marginal rate of 40%.

(4)
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. 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 measures 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.

(5)
Adjusted net income per diluted share is a non-GAAP financial measure which excludes from net income on a per diluted share basis non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions, net of tax, amortization of intangibles of acquired businesses, net of tax and adjusts income taxes to a marginal rate of 40%. Adjusted net income per diluted share is a key measure used by management in evaluating performance and communicating comparable results. Adjusted net income per diluted share should not be considered a measure of financial performance in isolation or as an alternative to net income per diluted 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.