Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TrueBlue, Inc. | d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS FOURTH QUARTER RESULTS
TACOMA, WA. – Feb. 9, 2011—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.
Contacts
Derrek Gafford, EVP & CFO
253-680-8214
Stacey Burke, VP of Corporate Communications
253-680-8291
| 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, 2010 |
December 25, 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, 2010 |
December 25, 2009 |
December 31, 2010 |
December 25, 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 | % |