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TrueBlue Reports 2011 Second Quarter Results

Stocks in this article: TBI

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the second quarter of 2011 of $320 million, an increase of 12 percent, compared to revenue of $285 million for the second quarter of 2010. Net income for the quarter was $8.5 million, or $0.20 per diluted share, compared to net income of $7.9 million, or $0.18 per diluted share, for the second quarter of 2010.

“Operating income grew 30 percent this quarter on continued demand for our services across most of the industry groups we serve,” said TrueBlue CEO Steve Cooper. "We are pleased with our solid performance and expect revenue growth to accelerate in the third quarter.”

From the beginning of the second quarter through July 27, 2011, the company purchased 1.16 million shares of its outstanding common stock for approximately $16 million resulting in approximately $5 million remaining under its existing share purchase program. On July 25, 2011, TrueBlue’s Board of Directors approved a new program to purchase an additional $75 million of its outstanding common stock.

For the third quarter of 2011, TrueBlue estimates revenue in the range of $360 million to $370 million and net income per diluted share for the quarter of $0.27 to $0.32.

Management will discuss second quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, July 27, 2011. 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 document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Examples of such factors can be found in our reports filed with the SEC, including the information under the heading ‘Risk Factors’ in our Annual Report on Form 10-K for the year ended Dec. 31, 2010. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
                 
 
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
July 1, June 25, July 1, June 25,
2011 2010 2011 2010
 
Revenue from services $ 320,179 $ 284,804 $ 594,478 $ 524,655
Cost of services   234,847   208,974   439,115   387,700
Gross profit 85,332 75,830 155,363 136,955
Selling, general and administrative expenses 67,677 61,269 132,837 122,484
Depreciation and amortization   3,862   3,919   7,784   8,014
Income from operations 13,793 10,642 14,742 6,457
Interest and other income, net   166   190   474   518
Income before tax expense 13,959 10,832 15,216 6,975
Income tax expense   5,411   2,911   5,903   1,314
Net income $ 8,548 $ 7,921 $ 9,313 $ 5,661
 
Net income per common share:
Basic $ 0.20 $ 0.18 $ 0.21 $ 0.13
Diluted $ 0.20 $ 0.18 $ 0.21 $ 0.13
 
Weighted average shares outstanding:
Basic 43,367 43,223 43,413 43,160
Diluted 43,674 43,502 43,784 43,439
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
         
 
July 1, December 31,
2011 2010
Assets
Current assets:
Cash and cash equivalents $ 142,019

$

163,153

Accounts receivable, net 143,016

108,692

Other current assets   21,444  

21,655

Total current assets 306,479

293,500

Property and equipment, net 51,192

53,958

Restricted cash and investments 122,781

120,067

Other assets, net   79,927  

78,941

Total assets $ 560,379

$

546,466

 
Liabilities and shareholders' equity
Current liabilities $ 99,154

$

85,923

Long-term liabilities   148,165  

147,836

Total liabilities 247,319

233,759

Shareholders' equity   313,060  

312,707

Total liabilities and shareholders' equity $ 560,379

$

546,466

 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
         
 
26 Weeks Ended 26 Weeks Ended
July 1, June 25,
2011 2010
 
Cash flows from operating activities:
Net income $ 9,313 $ 5,661
Adjustments to reconcile net income to net cash:
Depreciation and amortization 7,784 8,014
Provision for doubtful accounts 2,125 4,328
Stock-based compensation 4,097 3,915
Deferred income taxes 1,991 2,782
Other operating activities (485 ) 63
Changes in operating assets and liabilities:
Accounts receivable (36,449 ) (14,904 )
Income taxes 1,019 (2,450 )
Other assets (1,845 ) 312
Accounts payable and other accrued expenses 8,881 (406 )
Accrued wages and benefits 6,115 5,514
Workers' compensation claims reserve (1,299 ) (2,511 )
Other liabilities   (112 )   167  
Net cash provided by operating activities   1,135     10,485  
 
Cash flows from investing activities:
Capital expenditures (3,678 )

(2,457

)

Change in restricted cash and cash equivalents 70,265

9,548

Purchases of restricted investments

(78,279 )

-

Maturities of restricted investments 5,300

-

Other   (2,800 )   29  
Net cash (used in) provided by investing activities   (9,192 )   7,120  
 
Cash flows from financing activities:
Purchases and retirement of common stock (12,871 )

-

Net proceeds from sale of stock through options and employee benefit plans 616

536

Common stock repurchases for taxes upon vesting of restricted stock (1,611 )

(1,360

)

Payments on debt (206 )

(186

)

Other   691    

61

 
Net cash used in financing activities   (13,381 )   (949 )
 
Effect of exchange rates on cash   304     (106 )
 
Net change in cash and cash equivalents (21,134 ) 16,550
 
CASH AND CASH EQUIVALENTS, beginning of period   163,153     124,377  
CASH AND CASH EQUIVALENTS, end of period $ 142,019   $ 140,927  




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