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TrueBlue Reports 2012 Third Quarter Results

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter of 2012 of $379 million, an increase of 2 percent, compared to revenue of $371 million for the third quarter of 2011. Net income for the quarter was $14.3 million or $0.36 per diluted share, compared to net income of $13.9 million or $0.33 per diluted share for the third quarter of 2011.

“TrueBlue achieved revenue and earnings per share growth this quarter, while managing through an increasingly difficult economic environment,” TrueBlue CEO Steve Cooper said. “Demand for labor in manufacturing has declined and growth trends softened across most of the other industries we serve. Our results have also been adversely impacted by the anticipated decline of a large customer project.

“For the fourth quarter, we anticipate the uncertain economic conditions to continue along with further decline from our large customer project.” TrueBlue estimates revenue in the range of $332 million to $342 million and net income per diluted share of $0.11 to $0.16 for the fourth quarter.

“We remain optimistic about our specialized approach to vertical markets and believe our strategies remain on track to deliver long-term growth for our shareholders,” Cooper said.

Management will discuss third quarter 2012 results on a conference call at 2 p.m. (PT) today, Wednesday, Oct. 24. The conference call can be accessed on TrueBlue’s web site:

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2011, TrueBlue connected approximately 325,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 175,000 businesses in the retail, wholesale, manufacturing, transportation, aviation, services, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. For more information, visit TrueBlue’s website at

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 fiscal year ended Dec. 30, 2011 and in our quarterly reports on Form 10-Q subsequently filed. 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.

(Unaudited, in thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
September 28, September 30, September 28, September 30,
2012 2011 2012 2011
Revenue from services $ 379,467 $ 371,379 $ 1,044,915 $ 965,857
Cost of services   274,237   271,528   766,914   710,644
Gross profit 105,230 99,851 278,001 255,213
Selling, general and administrative expenses 77,634 73,235 221,243 206,071
Depreciation and amortization   4,660   4,205   14,156   11,989
Income from operations 22,936 22,411 42,602 37,153
Interest and other income, net   409   323   1,086   798
Income before tax expense 23,345 22,734 43,688 37,951
Income tax expense   8,998   8,821   17,474   14,724
Net income $ 14,347 $ 13,913 $ 26,214 $ 23,227
Net income per common share
Basic $ 0.36 $ 0.33 $ 0.66 $ 0.54
Diluted $ 0.36 $ 0.33 $ 0.66 $ 0.54
Weighted average shares outstanding
Basic 39,516 41,612 39,547 42,813
Diluted 39,858 41,958 39,841 43,176
(Unaudited, in thousands)
September 28, December 30,
2012 2011


Current assets
Cash and cash equivalents $ 119,341 $ 109,311
Accounts receivable, net 183,101 153,878
Other current assets   15,061   17,426
Total current assets 317,503 280,615
Property and equipment, net 57,418 56,239
Restricted cash and investments 132,052 130,498
Other assets, net   91,670   93,417
Total assets $ 598,643 $ 560,769
Liabilities and shareholders' equity
Current liabilities $ 117,550 $ 112,289
Long-term liabilities   156,553   154,901
Total liabilities 274,103 267,190
Shareholders' equity   324,540   293,579
Total liabilities and shareholders' equity $ 598,643 $ 560,769
(Unaudited, in thousands)
39 Weeks Ended
September 28, September 30,
2012 2011
Cash flows from operating activities
Net income $ 26,214 $ 23,227

Adjustments to reconcile net income to net cash from operating activities

Depreciation and amortization 14,156 11,989
Provision for doubtful accounts 4,305 4,424
Stock-based compensation 6,268 5,583
Deferred income taxes 1,191 899
Other operating activities 1,196 (471 )
Changes in operating assets and liabilities
Accounts receivable (33,528 ) (70,116 )
Income taxes 2,206 6,950
Other assets (592 ) 1,720
Accounts payable and other accrued expenses (2,906 ) 19,634
Accrued wages and benefits 8,248 12,033
Workers' compensation claims reserve 5,930 735
Other liabilities   280     (144 )
Net cash provided by operating activities   32,968     16,463  
Cash flows from investing activities
Capital expenditures (13,930 ) (6,251 )
Change in restricted cash and cash equivalents 487 65,104
Purchases of restricted investments (18,153 ) (87,768 )
Maturities of restricted investments 14,418 6,193
Other   (250 )   (6,800 )
Net cash used in investing activities   (17,428 )   (29,522 )
Cash flows from financing activities
Purchases and retirement of common stock (4,386 ) (50,143 )

Net proceeds from stock option exercises and employee stock purchase plans

3,806 874

Common stock repurchases for taxes upon vesting of restricted stock

(2,076 ) (1,692 )
Payments on other liabilities (3,987 ) (302 )
Other   764     674  
Net cash used in financing activities   (5,879 )   (50,589 )
Effect of exchange rates on cash   369     (455 )
Net change in cash and cash equivalents 10,030 (64,103 )
CASH AND CASH EQUIVALENTS, beginning of period   109,311     163,153  
CASH AND CASH EQUIVALENTS, end of period $ 119,341   $ 99,050  

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