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TrueBlue Reports 2013 Third Quarter Results

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter of 2013 of $451 million, an increase of 19 percent compared to revenue of $379 million for the third quarter of 2012. Net income for the quarter was $19.0 million or $0.47 per diluted share, compared to net income of $14.3 million or $0.36 per diluted share for the third quarter of 2012. Excluding non-recurring transaction costs associated with acquisitions, net income per diluted share for the third quarter was $0.48. *

“This quarter’s results reflect the successful execution of our growth strategies, which include blending strong organic growth with acquisitions that increase our share of the blue-collar job market,” TrueBlue CEO Steve Cooper said. “In addition to the strong organic revenue growth we have achieved so far this year, the acquisitions we closed in 2013 will add approximately $300 million of go-forward annual revenue.”

TrueBlue completed its acquisition of The Work Connection at the beginning of the fourth quarter. The addition of The Work Connection expands the range and reach of TrueBlue’s light industrial staffing business.

“We are encouraged by the strong demand for our services and believe there are opportunities ahead to pursue additional acquisitions that fit our strategies and enhance our ability to serve our customers,” Cooper added.

TrueBlue estimates revenue in the range of $430 million to $440 million and net income per diluted share of $0.30 to $0.35 for the fourth quarter of 2013.

Management will discuss third quarter 2013 results on a conference call at 2 p.m. Pacific Time (5 p.m. Eastern Time), today, Wednesday, Oct. 23. The conference call can be accessed on TrueBlue’s web site:  www.trueblue.com

* This is a non-GAAP financial measure for which reconciliation is provided along with the financial statements accompanying this release.

About TrueBlue

TrueBlue (NYSE: TBI) is the leading provider of blue-collar staffing and helps over 140,000 businesses be more productive through easy access to dependable temporary labor. TrueBlue provides specialized blue-collar staffing solutions to industries that include construction, manufacturing, transportation, aviation, waste, hospitality, retail, renewable energy and more. Through its Labor Ready, CLP, Spartan Staffing, PlaneTechs, and Centerline service lines, TrueBlue connects approximately 350,000 people to work annually across the U.S., Canada and Puerto Rico. Learn more about TrueBlue at  www.trueblue.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 fiscal year ended Dec. 28, 2012 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.
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
                 
 
13 Weeks Ended 39 Weeks Ended
September 27, September 28, September 27, September 28,
2013 2012 2013 2012
 
Revenue from services $ 451,169 $ 379,467 $ 1,219,977 $ 1,044,915
Cost of services   327,641   274,237   897,937   766,914
Gross profit 123,528 105,230 322,040 278,001
Selling, general and administrative expenses 90,767 77,634 268,538 221,243
Depreciation and amortization   4,771   4,660   15,133   14,156
Income from operations 27,990 22,936 38,369 42,602
Interest and other income, net   416   409   1,167   1,086
Income before tax expense 28,406 23,345 39,536 43,688
Income tax expense   9,454   8,998   9,124   17,474
Net income $ 18,952 $ 14,347 $ 30,412 $ 26,214
 
Net income per common share
Basic $ 0.47 $ 0.36 $ 0.76 $ 0.66
Diluted $ 0.47 $ 0.36 $ 0.75 $ 0.66
 
Weighted average shares outstanding
Basic 40,330 39,516 40,085 39,547
Diluted 40,670 39,858 40,395 39,841
 
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
         
 
September 27, December 28,
2013 2012
Assets
Current assets
Cash and cash equivalents $ 109,544 $ 129,513
Marketable securities 29,342 -
Accounts receivable, net 213,193 167,292

Other current assets
  18,196   20,361
Total current assets 370,275 317,166
Property and equipment, net 55,765 58,171
Restricted cash and investments 138,457 136,259

Other assets, net
  134,016   90,147
Total assets $ 698,513 $ 601,743
 
Liabilities and shareholders' equity
Current liabilities $ 127,373 $ 113,556
Long-term liabilities   194,304   154,513
Total liabilities 321,677 268,069
Shareholders' equity   376,836   333,674
Total liabilities and shareholders' equity $ 698,513 $ 601,743
 
 
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
         
 
39 Weeks Ended
September 27, September 28,
2013 2012
Cash flows from operating activities
Net income $ 30,412 $ 26,214

Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization 15,133 14,156
Provision for doubtful accounts 8,785 4,305
Stock-based compensation 6,428 6,268
Deferred income taxes (1,694 ) 1,191
Other operating activities 1,213 1,196
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable (24,776 ) (33,528 )
Income taxes 6,580 2,206
Other assets (4,703 ) (592 )
Accounts payable and other accrued expenses (6,728 ) (2,906 )
Accrued wages and benefits 11,419 8,248
Workers' compensation claims reserve 2,785 5,930
Other liabilities   423     280  
Net cash provided by operating activities   45,277     32,968  
 
Cash flows from investing activities
Capital expenditures (10,350 ) (13,930 )

Acquisition of businesses, net of cash acquired
(54,872 ) -
Purchases of marketable securities (35,300 ) -
Maturities of marketable securities 205 -
Change in restricted cash and cash equivalents (1,338 ) 487
Purchases of restricted investments (9,175 ) (18,153 )
Maturities of restricted investments 13,337 14,418
Other   -     (250 )
Net cash used in investing activities   (97,493 )   (17,428 )
 
Cash flows from financing activities
Purchases and retirement of common stock - (4,386 )

Net proceeds from stock option exercises and employee stock purchase plans
8,731 3,806

Common stock repurchases for taxes upon vesting of restricted stock
(2,653 ) (2,076 )
Proceeds from note payable 34,000 -

Payments on debt and other liabilities
(8,115 ) (3,987 )
Other   719     764  
Net cash provided by (used in) financing activities   32,682     (5,879 )
 
Effect of exchange rates on cash   (435 )   369  
 
Net change in cash and cash equivalents (19,969 ) 10,030
CASH AND CASH EQUIVALENTS, beginning of period   129,513     109,311  
CASH AND CASH EQUIVALENTS, end of period $ 109,544   $ 119,341  
 
 
TRUEBLUE, INC.
RECONCILATION OF EARNINGS PER SHARE
EXCLUDING NON-RECURRING ACQUISITION COSTS
       
 
13 Weeks Ended
September 27, September 28,
2013 2012
 
 
Diluted earnings per share as reported $ 0.47 $ 0.36

Non-recurring costs associated with acquisitions
$ 0.01   $ -

Diluted earnings per share excluding non-recurring costs associated with acquisitions*
$ 0.48   $ 0.36
 
* This is a non-GAAP financial measure that excludes non-recurring costs associated with acquisitions.

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