Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS 2011 FIRST QUARTER RESULTS
TACOMA, WA—TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter of 2011 of $274 million, an increase of 14 percent compared to revenue of $240 million for the first quarter of 2010. Net income for the quarter was $0.8 million or $0.02 per diluted share, compared to a net loss of $2.3 million or $0.05 per diluted share for the first quarter of 2010.
“Our team continues to do an outstanding job in serving the needs of our customers,” said TrueBlue CEO Steve Cooper. “We experienced broad-based demand for our services with double-digit growth across most industries we serve. Businesses are increasingly turning to our blue-collar staffing solutions to increase the efficiency of their workforce.”
For the second quarter of 2011, TrueBlue estimates revenue in the range of $315 million to $325 million and net income per diluted share for the quarter of $0.15 to $0.20.
Management will discuss first quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, April 27. 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 2010, 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, aviation, 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 its 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
(Unaudited, in thousands, except per share data)
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| April 1, 2011 |
March 26, 2010 |
|||||||
| Revenue from services |
$ | 274,300 | $ | 239,851 | ||||
| Cost of services |
204,269 | 178,726 | ||||||
| Gross profit |
70,031 | 61,125 | ||||||
| Selling, general and administrative expenses |
65,159 | 61,214 | ||||||
| Depreciation and amortization |
3,922 | 4,095 | ||||||
| Income (loss) from operations |
950 | (4,184 | ) | |||||
| Interest and other income, net |
308 | 328 | ||||||
| Income (loss) before tax expense (benefit) |
1,258 | (3,856 | ) | |||||
| Income tax expense (benefit) |
492 | (1,597 | ) | |||||
| Net income (loss) |
$ | 766 | $ | (2,259 | ) | |||
| Net income (loss) per common share: |
||||||||
| Basic |
$ | 0.02 | $ | (0.05 | ) | |||
| Diluted |
$ | 0.02 | $ | (0.05 | ) | |||
| Weighted average shares outstanding: |
||||||||
| Basic |
43,460 | 43,083 | ||||||
| Diluted |
43,854 | 43,083 | ||||||
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
| April 1, 2011 |
December 31, 2010 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 152,790 | $ | 163,153 | ||||
| Accounts receivable, net |
120,410 | 108,692 | ||||||
| Other current assets |
22,172 | 21,655 | ||||||
| Total current assets |
295,372 | 293,500 | ||||||
| Property and equipment, net |
52,386 | 53,958 | ||||||
| Restricted cash and investments |
123,808 | 120,067 | ||||||
| Other assets, net |
78,403 | 78,941 | ||||||
| Total assets |
$ | 549,969 | $ | 546,466 | ||||
| Liabilities and shareholders’ equity |
||||||||
| Current liabilities |
$ | 85,869 | $ | 85,923 | ||||
| Long-term liabilities |
148,290 | 147,836 | ||||||
| Total liabilities |
234,159 | 233,759 | ||||||
| Shareholders’ equity |
315,810 | 312,707 | ||||||
| Total liabilities and shareholders’ equity |
$ | 549,969 | $ | 546,466 | ||||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| April 1, 2011 |
March 26, 2010 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income (loss) |
$ | 766 | $ | (2,259 | ) | |||
| Adjustments to reconcile net income (loss) to net cash: |
||||||||
| Depreciation and amortization |
3,922 | 4,095 | ||||||
| Provision for doubtful accounts |
576 | 2,066 | ||||||
| Stock-based compensation |
2,575 | 2,430 | ||||||
| Deferred income taxes |
690 | 1,118 | ||||||
| Other operating activities |
(527 | ) | 23 | |||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
(12,294 | ) | 2,395 | |||||
| Income taxes |
(1,264 | ) | (3,183 | ) | ||||
| Other assets |
458 | 587 | ||||||
| Accounts payable and other accrued expenses |
(2,547 | ) | (1,248 | ) | ||||
| Accrued wages and benefits |
3,695 | (477 | ) | |||||
| Workers’ compensation claims reserve |
(542 | ) | (2,314 | ) | ||||
| Other liabilities |
(103 | ) | 225 | |||||
| Net cash (used in) provided by operating activities |
(4,595 | ) | 3,458 | |||||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
(1,691 | ) | (777 | ) | ||||
| Change in restricted cash and cash equivalents |
(635 | ) | 2,305 | |||||
| Purchase of restricted investments |
(3,106 | ) | ||||||
| Other |
— | 10 | ||||||
| Net cash (used in) provided by investing activities |
(5,432 | ) | 1,538 | |||||
| Cash flows from financing activities: |
||||||||
| Net proceeds from sale of stock through options and employee benefit plans |
424 | 294 | ||||||
| Common stock repurchases for taxes upon vesting of restricted stock |
(1,460 | ) | (1,153 | ) | ||||
| Payments on debt |
(103 | ) | (92 | ) | ||||
| Other |
541 | 77 | ||||||
| Net cash used in financing activities |
(598 | ) | (874 | ) | ||||
| Effect of exchange rates on cash |
262 | 16 | ||||||
| Net change in cash and cash equivalents |
(10,363 | ) | 4,138 | |||||
| CASH AND CASH EQUIVALENTS, beginning of period |
163,153 | 124,377 | ||||||
| CASH AND CASH EQUIVALENTS, end of period |
$ | 152,790 | $ | 128,515 | ||||
TRUEBLUE, INC.
Schedule of Total Revenue Growth (1)
(Unaudited)
| January 2011 |
19 | % | ||
| February 2011 |
12 | % | ||
| March 2011 |
13 | % | ||
| Q-1 2011 |
14 | % | ||
| (1) | Revenue growth is organic; no acquisition activity within the last 12 months |