Exhibit 99.1

 

FOR IMMEDIATE RELEASE:

 

TRUEBLUE REPORTS 2008 THIRD QUARTER RESULTS

 

Tacoma, WA – Oct. 15, 2008

 

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 release.

 

Contacts

 

Derrek Gafford, EVP & CFO

253-680-8214

 

Stacey Burke, VP of Corporate Communications

253-680-8291

 



 

TrueBlue, Inc.

SUMMARY CONSOLIDATED STATEMENTS OF INCOME

In Thousands, except per share data

(Unaudited)

 

 

 

Thirteen Weeks Ended

 

Thirty-Nine Weeks Ended

 

 

 

September 26,

 

September 28,

 

September 26,

 

September 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

 

 

 

September 26,

 

December 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

 

 

 

September 26,

 

September 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