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TrueBlue Reports 2010 First Quarter Results

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:

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

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.

In Thousands, except per share data
Thirteen Weeks Ended
March 26, March 27,
2010 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.

In Thousands
March 26, December 25,
2010 2009
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
In Thousands
Thirteen Weeks Ended
March 26, March 27,
2010 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  
Analysis of Revenue Growth / (Decline)
Thirteen Weeks Ended
March 26, March 27,
2010 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.

Schedule of Year-Over-Year Same Branch Revenue Growth
January 2010 5.2%
February 2010 12.7%
March 2010 15.4%
Q-1 2010 11.5%

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