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TrueBlue Reports Fourth Quarter Results

TrueBlue, Inc. (NYSE:TBI) today reported results for the 14-week fourth quarter and 53-week fiscal year ended Dec. 31, 2010. For the quarter, revenue was $312 million, an increase of 19 percent, from $262 million for the 13-week fourth quarter of 2009. Excluding the additional week in the fourth quarter of 2010, revenue growth would have been 14 percent but the impact to net income was immaterial due to the standard operating expenses of that week. Net income for the fourth quarter was $4.0 million or $0.09 per diluted share, an increase of about 85 percent compared to net income of $2.1 million or $.05 per diluted share for the fourth quarter of 2009.

“We generated strong revenue growth in the fourth quarter due to wide-spread demand across most industries and geographic areas,” said TrueBlue CEO Steve Cooper. “We are encouraged with the opportunity to continue expanding our profit margins in 2011.”

Cooper added, “I am extremely proud of our team for delivering outstanding results in 2010. We more than doubled our profits. I am constantly impressed with the caliber of our people at every level of our company and we are committed to investing in their continued development.”

For the first quarter of 2011, TrueBlue estimates revenue in the range of $260 million to $270 million and net (loss)/ income per diluted share for the quarter of ($0.05) to $0.00.

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, 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.

 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
     
 
 
14 Weeks Ended 13 Weeks Ended   53 Weeks Ended   52 Weeks Ended
December 31, December 25, December 31, December 25,
2010 2009 2010 2009
 
Revenue from services $ 311,943 $ 262,150 $ 1,149,367 $ 1,018,418
Cost of services   230,034   189,228   845,916   727,372
Gross profit 81,909 72,922 303,451 291,046
Selling, general and administrative expenses 71,797 65,538 258,722 262,182
Depreciation and amortization   4,580   4,368   16,468   17,030
Income from operations 5,532 3,016 28,261 11,834
Interest and other income, net   238   154   901   2,307
Income before tax expense 5,770 3,170 29,162 14,141
Income tax expense   1,812   1,039   9,323   5,344
Net income $ 3,958 $ 2,131 $ 19,839 $ 8,797
 
Net income per common share:
Basic $ 0.09 $ 0.05 $ 0.46 $ 0.21
Diluted $ 0.09 $ 0.05 $ 0.46 $ 0.20
 
Weighted average shares outstanding:
Basic 43,308 42,946 43,224 42,842
Diluted 43,738 43,277 43,540 43,014
 
 
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
         
 
 
December 31, December 25,
2010 2009
Assets
Current assets:
Cash and cash equivalents $ 163,153 $ 124,377
Accounts receivable, net 108,692 105,246
Other current assets   21,655   18,440
Total current assets 293,500 248,063
Property and equipment, net 53,958 60,353
Restricted cash 120,067 124,012
Other assets, net   78,941   85,701
Total assets $ 546,466 $ 518,129
 
Liabilities and shareholders' equity
Current liabilities $ 85,923 $ 84,835
Long-term liabilities   147,836   147,862
Total liabilities 233,759 232,697
Shareholders' equity   312,707   285,432
Total liabilities and shareholders' equity $ 546,466 $ 518,129
 
 
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
   
 
53 Weeks Ended   52 Weeks Ended
December 31, December 25,
2010 2009
 
Cash flows from operating activities:
Net income $ 19,839 $ 8,797
Adjustments to reconcile net income to net cash:
Depreciation and amortization 16,468 17,030
Provision for doubtful accounts 8,158 14,545
Stock-based compensation 7,159 7,066
Deferred income taxes 5,322 2,772
Other operating activities (202 ) 1,062
Changes in operating assets and liabilities:
Accounts receivable (11,604 ) (14,812 )
Income taxes (3,338 ) 13,397
Other assets (727 ) 919
Accounts payable and other accrued expenses 747 (4,573 )
Accrued wages and benefits 2,752 2,015
Workers' compensation claims reserve (2,195 ) (14,091 )
Other liabilities   (406 )   (522 )
Net cash provided by operating activities   41,973     33,605  
 
Cash flows used in investing activities:
Capital expenditures (7,050 ) (13,153 )
Change in restricted cash 3,945 (3,689 )
Other   (298 )   94  
Net cash used in investing activities   (3,403 )   (16,748 )
 
Cash flows used in financing activities:
Net proceeds from sale of stock through options and employee benefit plans 1,054 1,062
Shares withheld for taxes upon vesting of restricted stock (1,568 ) (880 )
Payments on debt (382 ) (394 )
Other   129     (996 )
Net cash used in financing activities   (767 )   (1,208 )
 
Effect of exchange rates on cash   973     626  
 
Net change in cash and cash equivalents 38,776 16,275
 
CASH AND CASH EQUIVALENTS, beginning of year   124,377     108,102  
CASH AND CASH EQUIVALENTS, end of year $ 163,153   $ 124,377  
 
 
 
TRUEBLUE, INC.
Analysis of Revenue Growth / (Decline)
(Unaudited)
     
 
14 Weeks Ended 13 Weeks Ended 53 Weeks Ended 52 Weeks Ended
December 31, December 25, December 31, December 25,
2010 2009 2010 2009
Major Revenue Trends
Organic revenue growth / (decline) 19.0 % (13.1 %) 12.9 % (27.8 %)
Acquisitions within last 12 months 0.0 % 0.0 % 0.0 % 1.4 %
Total revenue growth / (decline) 19.0 % (13.1 %) 12.9 % (26.4 %)
 
Organic Revenue Trends (1)
Same branch 15.9 % (6.2 %) 13.9 % (21.5 %)

Same branch excluding largest customer

25.4 % (17.0 %) 18.9 % (28.3 %)
New branches 0.5 % 0.5 % 0.9 % 0.2 %

Consolidated / closed branches (2)

(2.1 %) (8.9 %) (3.1 %) (7.7 %)

53rd week (3)

5.5 % 0 % 1.4 % 0 %
 
 

(1) 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.

(2) Represents the impact on revenue trends from closed branches assuming no customer retention. The majority of our closed branches are consolidated with another branch to retain customer relationships. The impact of retained customers is captured in same branch revenue.

(3) Represents revenue growth as a result of an additional week in the quarter and year ended December 31, 2010 in comparison with the same period in the prior year.

 
 
 
TRUEBLUE, INC.
Schedule of Year-Over-Year Same Branch Revenue Growth
(Unaudited)
   
 
 
 
 
January 2010

5%

February 2010

13%

March 2010

15%

Q-1 2010

12%

April 2010

18%

May 2010

23%

June 2010

12%

Q-2 2010

17%

July 2010

9%

August 2010

10%

September 2010

13%

Q-3 2010

11%

October 2010

17%

November 2010

15%

December 2010

17%

Q-4 2010

16%

Fiscal Year 2010

14%





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