Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS FOURTH QUARTER RESULTS
TACOMA, WA. – Feb. 3, 2010—TrueBlue, Inc. (NYSE:TBI) today reported net income of $2.1 million or $0.05 per diluted share for the fourth quarter of 2009, compared to a net loss of $46.0 million or $1.08 per diluted share for the fourth quarter of 2008. Revenue for the quarter was $262 million, a decrease of 13 percent compared to the fourth quarter of 2008.
TrueBlue’s fourth quarter 2008 results included a goodwill and intangible asset impairment charge of $61 million ($49.3 million after tax) or $1.16(a) per diluted share related to the company’s prior acquisitions. Excluding this impairment charge, net income would have been $3.3 million(a) or $0.08(a) per diluted share.
“Our fourth quarter 2009 results reflect improving revenue trends and our continued cost control efforts,” said TrueBlue CEO Steve Cooper. “We are well positioned for 2010 with a leaner organization and strong customer relationships focused on meeting the current and emerging needs of customers in each of our niche brands.”
TrueBlue closed 16 branches in the fourth quarter, resulting in 754 branches in operation at the end of the quarter.
For the first quarter of 2010, TrueBlue estimates revenue in the range of $230 million to $240 million and net loss per diluted share for the quarter of $0.06 to $0.11.
About TrueBlue
TrueBlue, Inc. is the leading provider of blue-collar staffing. In 2009, TrueBlue connected approximately 300,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline (formerly TLC), and served approximately 175,000 businesses in the services, retail, wholesale, manufacturing, transportation, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. 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 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) The $1.16 impact per diluted share related to the goodwill and intangible asset impairment is calculated by taking the impact of the impairment net of tax of $49.3 million divided by the diluted number of shares for the fourth quarter of 2008. Net income excluding the impairment of $3.3 million is calculated by taking net income for the fourth quarter of 2008 and subtracting the impact of the impairment net of tax of $49.3 million. Net income per diluted share excluding the impairment of $0.08 is calculated by taking the net loss for the fourth quarter of 2008 less the impact of the impairment net of tax divided by the diluted number of shares for the fourth quarter of 2008.
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
| Thirteen Weeks Ended | Fiscal Years Ended | |||||||||||||
| December 25, 2009 (Unaudited) |
December 26, 2008 (Unaudited) |
December 25, 2009 (Unaudited) |
December 26, 2008 |
|||||||||||
| Revenue from services |
$ | 262,150 | $ | 301,629 | $ | 1,018,418 | $ | 1,384,269 | ||||||
| Cost of services |
189,228 | 213,193 | 727,372 | 971,757 | ||||||||||
| Gross profit |
72,922 | 88,436 | 291,046 | 412,512 | ||||||||||
| Selling, general and administrative expenses |
65,538 | 78,834 | 262,182 | 332,113 | ||||||||||
| Goodwill and intangible asset impairment (1) |
— | 61,000 | — | 61,000 | ||||||||||
| Depreciation and amortization |
4,368 | 4,911 | 17,030 | 16,774 | ||||||||||
| Income (loss) from operations |
3,016 | (56,309 | ) | 11,834 | 2,625 | |||||||||
| Interest and other income, net |
154 | 961 | 2,307 | 5,530 | ||||||||||
| Income (loss) before tax expense |
3,170 | (55,348 | ) | 14,141 | 8,155 | |||||||||
| Income tax expense (benefit) |
1,039 | (9,325 | ) | 5,344 | 12,314 | |||||||||
| Net income (loss) |
$ | 2,131 | $ | (46,023 | ) | $ | 8,797 | $ | (4,159 | ) | ||||
| Net income (loss) per common share: |
||||||||||||||
| Basic |
$ | 0.05 | $ | (1.08 | ) | $ | 0.21 | $ | (0.10 | ) | ||||
| Diluted |
$ | 0.05 | $ | (1.08 | ) | $ | 0.20 | $ | (0.10 | ) | ||||
| Weighted average shares outstanding: |
||||||||||||||
| Basic |
42,946 | 42,522 | 42,842 | 42,885 | ||||||||||
| Diluted |
43,277 | 42,522 | 43,014 | 42,885 | ||||||||||
| (1) | The goodwill and intangible asset impairment relates to our investments in CLP, Spartan Staffing and Centerline (formerly TLC). |
The impact on net income (loss) is $49.3 million after tax or $1.16 per diluted share for the thirteen weeks and fiscal year ended December 26, 2008.
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
| December 25, 2009 (Unaudited) |
December 26, 2008 | |||||
| Assets |
||||||
| Current assets |
||||||
| Cash and cash equivalents |
$ | 124,377 | $ | 108,102 | ||
| Accounts receivable, net |
105,246 | 104,979 | ||||
| Other current assets |
18,440 | 29,723 | ||||
| Total current assets |
248,063 | 242,804 | ||||
| Property and equipment, net |
60,353 | 61,542 | ||||
| Restricted cash |
124,012 | 120,323 | ||||
| Other assets |
85,701 | 95,006 | ||||
| Total assets |
$ | 518,129 | $ | 519,675 | ||
| Liabilities and shareholders’ equity |
||||||
| Current liabilities |
$ | 84,835 | $ | 95,308 | ||
| Long-term liabilities |
147,862 | 154,238 | ||||
| Total liabilities |
232,697 | 249,546 | ||||
| Shareholders’ equity |
285,432 | 270,129 | ||||
| Total liabilities and shareholders’ equity |
$ | 518,129 | $ | 519,675 | ||
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
| Fiscal Years Ended | ||||||||
| December 25, 2009 (Unaudited) |
December 26, 2008 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income (loss) |
$ | 8,797 | $ | (4,159 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
17,030 | 16,774 | ||||||
| Goodwill and intangible asset impairment |
— | 61,000 | ||||||
| Provision for doubtful accounts |
10,145 | 9,374 | ||||||
| Stock-based compensation |
7,066 | 7,706 | ||||||
| Deferred income taxes |
2,772 | 2,960 | ||||||
| Other operating activities |
1,062 | (311 | ) | |||||
| Changes in operating assets and liabilities, exclusive of business acquired: |
||||||||
| Accounts receivable |
(10,412 | ) | 36,602 | |||||
| Income taxes |
13,397 | (25,170 | ) | |||||
| Other assets |
919 | 3,133 | ||||||
| Accounts payable and other accrued expenses |
(4,573 | ) | (5,199 | ) | ||||
| Accrued wages and benefits |
2,015 | (8,815 | ) | |||||
| Workers’ compensation claims reserve |
(14,091 | ) | 1,680 | |||||
| Other liabilities |
(522 | ) | (3,137 | ) | ||||
| Net cash provided by operating activities |
33,605 | 92,438 | ||||||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
(13,153 | ) | (26,137 | ) | ||||
| Purchases of marketable securities |
— | (27,158 | ) | |||||
| Maturities of marketable securities |
— | 38,087 | ||||||
| Acquisition of business, net of cash acquired |
— | (22,390 | ) | |||||
| Change in restricted cash |
(3,689 | ) | 12,174 | |||||
| Other |
94 | (11 | ) | |||||
| Net cash used in investing activities |
(16,748 | ) | (25,435 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Purchases and retirement of common stock |
— | (15,997 | ) | |||||
| Net proceeds from sale of stock through options and employee benefit plans |
1,062 | 3,488 | ||||||
| Shares withheld for taxes upon vesting of restricted stock |
(880 | ) | (1,018 | ) | ||||
| Payments on debt |
(394 | ) | (250 | ) | ||||
| Other |
(996 | ) | (229 | ) | ||||
| Net cash used in financing activities |
(1,208 | ) | (14,006 | ) | ||||
| Effect of exchange rates on cash |
626 | (1,903 | ) | |||||
| Net change in cash and cash equivalents |
16,275 | 51,094 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of year |
108,102 | 57,008 | ||||||
| CASH AND CASH EQUIVALENTS, end of year |
$ | 124,377 | $ | 108,102 | ||||
TrueBlue, Inc.
Analysis of Revenue Growth / (Decline)
(Unaudited)
| Thirteen Weeks Ended | Fiscal Years Ended | |||||||||||
| December 25, 2009 |
December 26, 2008 |
December 25, 2009 |
December 26, 2008 |
|||||||||
| Major Revenue Trends |
||||||||||||
| Organic revenue decline |
-13.1 | % | -27.5 | % | -27.8 | % | -15.7 | % | ||||
| Acquisitions within last 12 months |
0.0 | % | 12.8 | % | 1.4 | % | 15.6 | % | ||||
| Total revenue decline |
-13.1 | % | -14.7 | % | -26.4 | % | -0.1 | % | ||||
| Organic Revenue Trends* |
||||||||||||
| Same branch |
-6.2 | % | -24.5 | % | -21.5 | % | -13.4 | % | ||||
| New branches |
0.5 | % | 0.7 | % | 0.2 | % | 0.8 | % | ||||
| Closed branches |
-8.9 | % | -3.1 | % | -7.7 | % | -3.4 | % | ||||
| Currency |
0.4 | % | -1.3 | % | -0.4 | % | -0.1 | % | ||||
| * | Percentages for organic revenue components do not sum to total organic revenue growth as same branch growth is determined off a revenue base of branches open for 12 or more months, whereas other organic revenue growth components are measured off a total revenue base. |
TrueBlue, Inc.
Schedule of Year-Over-Year Same Branch Revenue Growth / (Decline)
(Unaudited)
| January 2009 |
-30.2 | % | |
| February 2009 |
-31.9 | % | |
| March 2009 |
-35.3 | % | |
| April 2009 |
-31.2 | % | |
| May 2009 |
-29.3 | % | |
| June 2009 |
-23.9 | % | |
| July 2009 |
-20.2 | % | |
| August 2009 |
-18.4 | % | |
| September 2009 |
-18.1 | % | |
| October 2009 |
-15.1 | % | |
| November 2009 |
-6.6 | % | |
| December 2009 |
5.1 | % | |