Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS 2010 FIRST QUARTER RESULTS
TACOMA, WA. – April 21, 2010—TrueBlue, Inc. (NYSE:TBI) today reported a net loss of $2.3 million or $0.05 per diluted share for the first quarter of 2010, compared to a net loss of $5.3 million or $0.12 per diluted share for the first quarter of 2009. Revenue for the quarter was $240 million, an increase of 7 percent compared to revenue of $224 million for the first quarter of 2009.
“We are pleased that our monthly revenue trends showed accelerated growth this quarter, with same branch revenue growth of 15 percent in March,” said TrueBlue CEO Steve Cooper. “The improvement was widespread across nearly every geography and industry we serve, outside of construction. We are excited about the growth coming from new and existing customers who are expanding their business.”
TrueBlue closed eight branches in the first quarter, resulting in 747 branches in operation at the end of the quarter.
For the second quarter of 2010, TrueBlue estimates revenue in the range of $265 million to $275 million and net income per diluted share for the quarter of $0.03 to $0.08.
Management will discuss first quarter 2010 results on a conference call at 2 p.m. (PT), today, Wednesday, April 21, 2010. The conference call can be accessed on TrueBlue’s web site: www.TrueBlueInc.com.
About TrueBlue
TrueBlue, Inc. is a 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, 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) 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.
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 | ||||||||
| March 26, 2010 |
March 27, 2009 |
|||||||
| Revenue from services |
$ | 239,851 | $ | 224,414 | ||||
| Cost of services |
178,726 | 161,743 | ||||||
| Gross profit |
61,125 | 62,671 | ||||||
| Selling, general and administrative expenses |
61,214 | 68,311 | ||||||
| Depreciation and amortization |
4,095 | 4,145 | ||||||
| Loss from operations |
(4,184 | ) | (9,785 | ) | ||||
| Interest and other income, net |
328 | 1,201 | ||||||
| Loss before tax benefit |
(3,856 | ) | (8,584 | ) | ||||
| Income tax benefit |
(1,597 | ) | (3,281 | ) | ||||
| Net loss |
$ | (2,259 | ) | $ | (5,303 | ) | ||
| Net loss per common share: |
||||||||
| Basic |
$ | (0.05 | ) | $ | (0.12 | ) | ||
| Diluted * |
$ | (0.05 | ) | $ | (0.12 | ) | ||
| Weighted average shares outstanding: |
||||||||
| Basic |
43,083 | 42,682 | ||||||
| Diluted * |
43,083 | 42,682 | ||||||
| * | Due to the anti-dilutive impact of certain equity instruments, 0.35 million shares were excluded from the calculation of diluted shares outstanding. |
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| March 26, 2010 |
December 25, 2009 | |||||
| Assets | ||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 128,515 | $ | 124,377 | ||
| Accounts receivable, net |
100,785 | 105,246 | ||||
| Other current assets |
18,986 | 18,440 | ||||
| Total current assets |
248,286 | 248,063 | ||||
| Property and equipment, net |
57,560 | 60,353 | ||||
| Restricted cash |
121,707 | 124,012 | ||||
| Other assets, net |
86,109 | 85,701 | ||||
| Total assets |
$ | 513,662 | $ | 518,129 | ||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities |
$ | 80,778 | $ | 84,835 | ||
| Long-term liabilities |
148,012 | 147,862 | ||||
| Total liabilities |
228,790 | 232,697 | ||||
| Shareholders’ equity |
284,872 | 285,432 | ||||
| Total liabilities and shareholders’ equity |
$ | 513,662 | $ | 518,129 | ||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Thirteen Weeks Ended | ||||||||
| March 26, 2010 |
March 27, 2009 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (2,259 | ) | $ | (5,303 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
4,095 | 4,145 | ||||||
| Provision for doubtful accounts |
2,066 | 2,912 | ||||||
| Stock-based compensation |
2,430 | 2,497 | ||||||
| Deferred income taxes |
1,118 | (3,777 | ) | |||||
| Other operating activities |
23 | 790 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
2,395 | 9,180 | ||||||
| Income taxes |
(3,183 | ) | 358 | |||||
| Other assets |
587 | (264 | ) | |||||
| Accounts payable and other accrued expenses |
(1,248 | ) | (2,474 | ) | ||||
| Accrued wages and benefits |
(477 | ) | (1,465 | ) | ||||
| Workers’ compensation claims reserve |
(2,314 | ) | (2,967 | ) | ||||
| Other liabilities |
225 | (52 | ) | |||||
| Net cash provided by operating activities |
3,458 | 3,580 | ||||||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
(777 | ) | (4,527 | ) | ||||
| Change in restricted cash |
2,305 | (3,280 | ) | |||||
| Other |
10 | 71 | ||||||
| Net cash provided by (used in) investing activities |
1,538 | (7,736 | ) | |||||
| Cash flows from financing activities: |
||||||||
| Net proceeds from sale of stock through options and employee benefit plans |
294 | 322 | ||||||
| Common stock repurchases for taxes upon vesting of restricted stock |
(1,153 | ) | (591 | ) | ||||
| Payments on debt |
(92 | ) | (133 | ) | ||||
| Other |
77 | — | ||||||
| Net cash used in financing activities |
(874 | ) | (402 | ) | ||||
| Effect of exchange rates on cash |
16 | (19 | ) | |||||
| Net change in cash and cash equivalents |
4,138 | (4,577 | ) | |||||
| CASH AND CASH EQUIVALENTS, beginning of period |
124,377 | 108,102 | ||||||
| CASH AND CASH EQUIVALENTS, end of period |
$ | 128,515 | $ | 103,525 | ||||
TRUEBLUE, INC.
Analysis of Revenue Growth / (Decline)
(Unaudited)
| Thirteen Weeks Ended | ||||||
| March 26, 2010 |
March 27, 2009 |
|||||
| Major Revenue Trends |
||||||
| Organic revenue growth / (decline) |
6.9 | % | (35.7 | )% | ||
| Acquisitions within last 12 months |
0.0 | % | 5.0 | % | ||
| Total revenue growth / (decline) |
6.9 | % | (30.7 | )% | ||
| Organic Revenue Trends* |
||||||
| Same branch |
11.5 | % | (32.8 | )% | ||
| New branches |
0.9 | % | 0.2 | % | ||
| Closed branches |
(5.4 | )% | (4.9 | )% | ||
| Currency |
0.5 | % | (0.9 | )% | ||
| * | Percentages for organic revenue components do not sum to total organic revenue growth / (decline) 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
(Unaudited)
| January 2010 |
5.2 | % | |
| February 2010 |
12.7 | % | |
| March 2010 |
15.4 | % | |
| Q-1 2010 |
11.5 | % |