Exhibit 99.1

FOR IMMEDIATE RELEASE:

TRUEBLUE REPORTS SECOND QUARTER 2009 RESULTS

TACOMA, WA.—July 22, 2009—TrueBlue, Inc. (NYSE:TBI) today reported net income of $3.7 million or $0.09 per diluted share for the quarter ended June 26, 2009, compared to net income of $16.7 million or $0.39 per diluted share for the second quarter of 2008. Revenue for the quarter was $247 million, a decrease of 33 percent compared to the second quarter of 2008.

“We continue to manage our business with tremendous discipline and experienced better-than-expected results in several areas this quarter,” said TrueBlue CEO Steve Cooper. “Monthly same branch revenue trends improved, our risk management programs drove lower workers’ compensation expense, and our focused approach to controlling costs further reduced operating expenses. Our results demonstrate the strong operating leverage in our business model as well as the expanded need for our services.”

TrueBlue closed 36 branches in the quarter, resulting in 775 branches in operation at the end of the quarter.

For the third quarter of 2009, TrueBlue estimates revenue in the range of $267 million to $277 million and net income per diluted share for the quarter of $0.10 to $0.15.

The company filed a $100 million Shelf Registration Statement today with the Securities and Exchange Commission which, when effective, will allow the company to sell various securities in amounts and prices determined at the time of sale. The filing will enable the company to access capital efficiently and quickly if needed, however, it has no current plans to make an offering.

About TrueBlue

TrueBlue, Inc. (NYSE: TBI) is the leading provider of blue-collar staffing with revenue of approximately $1.4 billion in 2008. Each year, TrueBlue connects approximately 500,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and TLC. Headquartered in Tacoma, Wash., TrueBlue serves approximately 250,000 small to mid-sized businesses in wholesale, services, transportation, manufacturing, retail, and construction 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/(loss) 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.


This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. The offering of these securities will be made only by means of the prospectus supplement and accompanying prospectus

Contacts

Derrek Gafford, EVP & CFO

253-680-8214

Stacey Burke, VP of Corporate Communications

253-680-8291


TrueBlue, Inc.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

In Thousands, except per share data

(Unaudited)

 

     Thirteen Weeks Ended    Twenty-Six Weeks Ended
      June 26,
2009
   June 27,
2008
   June 26,
2009
    June 27,
2008

Revenue from services

   $ 247,011    $ 370,710    $ 471,425      $ 694,726

Cost of services

     174,181      260,167      335,924        485,828
                            

Gross profit

     72,830      110,543      135,501        208,898

Selling, general and administrative expenses

     63,383      84,569      131,694        167,053

Depreciation and amortization

     4,280      3,967      8,425        7,875
                            

Income (loss) from operations

     5,167      22,007      (4,618     33,970

Interest and other income, net

     712      1,624      1,913        3,520
                            

Income (loss) before tax expense (benefit)

     5,879      23,631      (2,705     37,490

Income tax expense (benefit)

     2,149      6,903      (1,132     11,961
                            

Net income (loss)

   $ 3,730    $ 16,728    $ (1,573   $ 25,529
                            

Net income (loss) per common share:

          

Basic

   $ 0.09    $ 0.39    $ (0.04   $ 0.59

Diluted

   $ 0.09    $ 0.39    $ (0.04   $ 0.59

Weighted average shares outstanding:

          

Basic

     42,836      43,194      42,759        43,278

Diluted

     42,921      43,338      42,759        43,416


TrueBlue, Inc.

SUMMARY CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

 

     June 26,
2009
   December 26,
2008

Assets

     

Current assets

     

Cash and cash equivalents

   $ 103,942    $ 108,102

Accounts receivable, net

     108,026      104,979

Other current assets

     21,154      29,723
             

Total current assets

     233,122      242,804

Property and equipment, net

     61,566      61,542

Restricted cash

     123,349      120,323

Other assets

     91,941      95,006
             

Total assets

   $ 509,978    $ 519,675
             

Liabilities and shareholders’ equity

     

Current liabilities

   $ 81,656    $ 95,308

Long-term liabilities

     157,081      154,238
             

Total liabilities

     238,737      249,546

Shareholders’ equity

     271,241      270,129
             

Total liabilities and shareholders’ equity

   $ 509,978    $ 519,675
             


TrueBlue, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

 

     Twenty-Six Weeks Ended  
     June 26,
2009
    June 27,
2008
 

Cash flows from operating activities:

    

Net income (loss)

   $ (1,573   $ 25,529   

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

    

Depreciation and amortization

     8,425        7,875   

Provision for doubtful accounts

     3,923        4,453   

Stock-based compensation

     4,024        4,504   

Deferred income taxes

     3,561        (2,087

Other operating activities

     1,181        146   

Changes in operating assets and liabilities, exclusive of business acquired:

    

Accounts receivable

     (6,969     (2,475

Income taxes

     7,610        (6,092

Other assets

     (1,143     2,512   

Accounts payable and other accrued expenses

     (4,793     (2,502

Accrued wages and benefits

     (985     1,633   

Workers’ compensation claims reserve

     (5,406     3,141   

Other liabilities

     (134     (2,717
                

Net cash provided by operating activities

     7,721        33,920   
                

Cash flows from investing activities:

    

Capital expenditures

     (7,329     (11,681

Purchases of marketable securities

     —          (27,146

Maturities of marketable securities

     —          37,055   

Acquisition of business, net of cash acquired

     —          (22,574

Change in restricted cash

     (3,026     11,240   

Other

     (71     (21
                

Net cash used in investing activities

     (10,426     (13,127
                

Cash flows from financing activities:

    

Purchases and retirement of common stock

     —          (11,501

Net proceeds from sale of stock through options and employee benefit plans

     529        1,208   

Shares withheld for taxes upon vesting of restricted stock

     (749     (850

Payments on debt

     (207     (128

Other

     (960     (229
                

Net cash used in financing activities

     (1,387     (11,500
                

Effect of exchange rates on cash

     (68     (552
                

Net change in cash and cash equivalents

     (4,160     8,741   

CASH AND CASH EQUIVALENTS, beginning of period

     108,102        57,008   
                

CASH AND CASH EQUIVALENTS, end of period

   $ 103,942      $ 65,749