Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS THIRD QUARTER 2010 RESULTS
TACOMA, WA. – Oct. 20, 2010—TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter ended Sept. 24, 2010 of $313 million, an increase of 10 percent from $285 million for the third quarter of 2009. Net income for the third quarter was $10.2 million or $0.23 per diluted share, an increase of 24 percent as compared to $8.2 million or $0.19 per diluted share for the third quarter of 2009.
“We are pleased to see double-digit revenue growth for the second straight quarter this year,” TrueBlue CEO Steve Cooper said. “We are also encouraged by the increased monthly rate of revenue growth we have experienced during the third quarter. Businesses are increasing their use of temporary staffing and we will continue to invest in our sales and customer service initiatives to capitalize on this growth opportunity.”
TrueBlue closed 13 branches, resulting in 726 branches in operation at the end of the quarter.
For the fourth quarter of 2010, TrueBlue estimates revenue in the range of $295 million to $305 million and net income per diluted share for the quarter of $0.07 to $0.12.
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 that reflect management’s current outlook for future periods, including statements regarding economic trends and future profitability. These forward-looking statements are based upon TrueBlue’s current expectations, and TrueBlue’s actual results may differ materially from those described or contemplated in the forward –looking statements. Factors that may cause TrueBlue’s actual results to differ materially from those contained in the forward-looking statements, include 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; and 10) 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 | Thirty-Nine Weeks Ended | |||||||||||||||
| September 24, 2010 |
September 25, 2009 |
September 24, 2010 |
September 25, 2009 |
|||||||||||||
| Revenue from services |
$ | 312,769 | $ | 284,843 | $ | 837,424 | $ | 756,268 | ||||||||
| Cost of services |
228,181 | 202,220 | 615,882 | 538,144 | ||||||||||||
| Gross profit |
84,588 | 82,623 | 221,542 | 218,124 | ||||||||||||
| Selling, general and administrative expenses |
64,442 | 64,950 | 186,926 | 196,644 | ||||||||||||
| Depreciation and amortization |
3,874 | 4,237 | 11,888 | 12,662 | ||||||||||||
| Income from operations |
16,272 | 13,436 | 22,728 | 8,818 | ||||||||||||
| Interest and other income, net |
144 | 240 | 663 | 2,153 | ||||||||||||
| Income before tax expense |
16,416 | 13,676 | 23,391 | 10,971 | ||||||||||||
| Income tax expense |
6,197 | 5,437 | 7,511 | 4,305 | ||||||||||||
| Net income |
$ | 10,219 | $ | 8,239 | $ | 15,880 | $ | 6,666 | ||||||||
| Net income per common share: |
||||||||||||||||
| Basic |
$ | 0.24 | $ | 0.19 | $ | 0.37 | $ | 0.16 | ||||||||
| Diluted |
$ | 0.23 | $ | 0.19 | $ | 0.37 | $ | 0.16 | ||||||||
| Weighted average shares outstanding: |
||||||||||||||||
| Basic |
43,269 | 42,906 | 43,196 | 42,808 | ||||||||||||
| Diluted |
43,509 | 43,121 | 43,456 | 42,930 | ||||||||||||
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| September 24, 2010 |
December 25, 2009 |
|||||||
| Assets | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 138,981 | $ | 124,377 | ||||
| Accounts receivable, net |
133,775 | 105,246 | ||||||
| Other current assets |
13,866 | 18,440 | ||||||
| Total current assets |
286,622 | 248,063 | ||||||
| Property and equipment, net |
55,534 | 60,353 | ||||||
| Restricted cash |
117,654 | 124,012 | ||||||
| Other assets, net |
85,093 | 85,701 | ||||||
| Total assets |
$ | 544,903 | $ | 518,129 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities |
$ | 88,149 | $ | 84,835 | ||||
| Long-term liabilities |
150,521 | 147,862 | ||||||
| Total liabilities |
238,670 | 232,697 | ||||||
| Shareholders’ equity |
306,233 | 285,432 | ||||||
| Total liabilities and shareholders’ equity |
$ | 544,903 | $ | 518,129 | ||||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Thirty-Nine Weeks Ended | ||||||||
| September 24, 2010 |
September 25, 2009 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 15,880 | $ | 6,666 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
11,888 | 12,662 | ||||||
| Provision for doubtful accounts |
5,828 | 11,337 | ||||||
| Stock-based compensation |
5,412 | 5,597 | ||||||
| Deferred income taxes |
1,986 | 4,081 | ||||||
| Other operating activities |
(141 | ) | 1,037 | |||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
(34,357 | ) | (36,873 | ) | ||||
| Income taxes |
1,345 | 12,917 | ||||||
| Other assets |
253 | (1,095 | ) | |||||
| Accounts payable and other accrued expenses |
1,489 | (4,225 | ) | |||||
| Accrued wages and benefits |
4,560 | 1,803 | ||||||
| Workers’ compensation claims reserve |
83 | (9,094 | ) | |||||
| Other liabilities |
123 | (152 | ) | |||||
| Net cash provided by operating activities |
14,349 | 4,661 | ||||||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
(5,256 | ) | (10,540 | ) | ||||
| Change in restricted cash |
6,358 | (5,860 | ) | |||||
| Other |
(297 | ) | 85 | |||||
| Net cash provided by (used in) investing activities |
805 | (16,315 | ) | |||||
| Cash flows from financing activities: |
||||||||
| Net proceeds from sale of stock through options and employee benefit plans |
755 | 838 | ||||||
| Common stock repurchases for taxes upon vesting of restricted stock |
(1,467 | ) | (820 | ) | ||||
| Payments on debt |
(282 | ) | (304 | ) | ||||
| Other |
48 | (996 | ) | |||||
| Net cash used in financing activities |
(946 | ) | (1,282 | ) | ||||
| Effect of exchange rates on cash |
396 | 356 | ||||||
| Net change in cash and cash equivalents |
14,604 | (12,580 | ) | |||||
| CASH AND CASH EQUIVALENTS, beginning of period |
124,377 | 108,102 | ||||||
| CASH AND CASH EQUIVALENTS, end of period |
$ | 138,981 | $ | 95,522 | ||||
TRUEBLUE, INC.
Analysis of Revenue Growth / (Decline)
(Unaudited)
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
| September 24, 2010 |
September 25, 2009 |
September 24, 2010 |
September 25, 2009 |
|||||||||||||
| Major Revenue Trends |
||||||||||||||||
| Organic revenue growth / (decline) |
9.8 | % | (26.6 | %) | 10.7 | % | (31.9 | %) | ||||||||
| Acquisitions within last 12 months |
0.0 | % | 0.0 | % | 0.0 | % | 1.8 | % | ||||||||
| Total revenue growth / (decline) |
9.8 | % | (26.6 | %) | 10.7 | % | (30.1 | %) | ||||||||
| Organic Revenue Trends* |
||||||||||||||||
| Same branch |
11.1 | % | (18.8 | %) | 13.2 | % | (25.8 | %) | ||||||||
| Same branch excluding largest customer** |
22.6 | % | (27.8 | %) | 16.7 | % | (31.5 | %) | ||||||||
| New branches |
1.1 | % | 0.1 | % | 1.1 | % | 0.1 | % | ||||||||
| Closed branches |
(2.2 | %) | (9.1 | %) | (3.4 | %) | (7.4 | %) | ||||||||
| Currency |
0.2 | % | (0.4 | %) | 0.4 | % | (0.5 | %) | ||||||||
| * | 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. |
| ** | Excludes revenue from The Boeing Company and affiliates. |
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 | % | ||
| April 2010 |
18.3 | % | ||
| May 2010 |
22.9 | % | ||
| June 2010 |
11.9 | % | ||
| Q-2 2010 |
17.1 | % | ||
| July 2010 |
9.3 | % | ||
| August 2010 |
10.3 | % | ||
| September 2010 |
13.1 | % | ||
| Q-3 2010 |
11.1 | % |