TrueBlue Reports Q4 and Full Year 2012 Results

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue, Inc. (NYS: TBI) today reported revenue for the fourth quarter of 2012 of $345 million, a decrease of two percent compared to revenue of $350 million for the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $7.4 million, or $0.19 per diluted share, compared to net income of $7.6 million, or $0.19 per diluted share, for the fourth quarter of 2011.

Revenue for the full fiscal year of 2012 was $1.39 billion, an increase of six percent compared to $1.32 billion for 2011. Net income for 2012 was $33.6 million, or $0.84 per diluted share, compared to $30.8 million, or $0.73 per diluted share, for the prior year.


"We had steady revenue growth of four percent this quarter, excluding the impact of one large project," said TrueBlue CEO Steve Cooper. "Solid execution across our business, along with an improving construction market, contributed to our results. Our customers value the services we provide and we continued to expand our gross margin this quarter."

Cooper added that TrueBlue also had another year of improved results from its safety practices and that the company is proud of its efforts to ensure that its temporary associates are working safely while providing services customers want.

"We remain optimistic about the outlook for the staffing industry as businesses increasingly look for a flexible workforce to increase productivity and control costs," Cooper said. "We are also excited about the improving trends in construction and the demand it creates in many of the industries we serve."

For the first quarter of 2013, TrueBlue estimates revenue in the range of $335 million to $345 million, and estimates net loss per diluted share of ($0.05) to $0.00. This includes the operations from the purchase of substantially all of the assets of MDT Personnel, the third largest general labor staffing firm in the U.S., which TrueBlue announced today. More information about the transaction is contained in the company's 8-K also filed today.

Management will discuss fourth quarter 2012 results on a conference call at 6 a.m. (PT) today, Wednesday, Feb. 6, 2013. The conference call can be accessed on TrueBlue's web site: www.trueblue.com.

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2012, TrueBlue connected approximately 350,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 140,000 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 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. 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.

 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
                 
 
13 Weeks Ended 52 Weeks Ended
December 28, December 30, December 28, December 30,
2012 2011 2012 2011
 
Revenue from services $ 344,614 $ 350,155 $ 1,389,530 $ 1,316,013
Cost of services   250,231   258,324   1,017,145   968,967
Gross profit 94,383 91,831 372,385 347,046
Selling, general and administrative expenses 79,215 76,755 300,459 282,828
Depreciation and amortization   4,734   4,395   18,890   16,384
Income from operations 10,434 10,681 53,036 47,834
Interest and other income, net   483   693   1,569   1,490
Income before tax expense 10,917 11,374 54,605 49,324
Income tax expense   3,502   3,810   20,976   18,533
Net income $ 7,415 $ 7,564 $ 33,629 $ 30,791
 
Net income per common share
Basic $ 0.19 $ 0.19 $ 0.85 $ 0.73
Diluted $ 0.19 $ 0.19 $ 0.84 $ 0.73
 
Weighted average shares outstanding
Basic 39,549 39,404 39,548 41,961
Diluted 39,929 39,848 39,862 42,322
 
 
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
         
 
December 28, December 30,
2012 2011
Assets
Current assets
Cash and cash equivalents $ 129,513 $ 109,311
Accounts receivable, net 167,292 153,878
Other current assets   20,361   17,426

Total current assets

317,166 280,615
Property and equipment, net 58,171 56,239
Restricted cash and investments 136,259 130,498
Other assets, net   90,147   93,417
Total assets $ 601,743 $ 560,769
 
Liabilities and shareholders' equity
Current liabilities $ 113,556 $ 112,289
Long-term liabilities   154,513   154,901
Total liabilities 268,069 267,190
Shareholders' equity   333,674   293,579
Total liabilities and shareholders' equity $ 601,743 $ 560,769
 
         
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
 
52 Weeks Ended
December 28, December 30,
2012 2011
 
Cash flows from operating activities
Net income $ 33,629 $ 30,791

Adjustments to reconcile net income to net cash from operating activities

Depreciation and amortization 18,890 16,384
Provision for doubtful accounts 6,994 6,638
Stock-based compensation 7,917 7,432
Deferred income taxes 3,091 (1,910 )
Other operating activities 1,946 (473 )
Changes in operating assets and liabilities
Accounts receivable (20,408 ) (51,824 )
Income taxes (3,748 ) 3,513
Other assets (1,214 ) (1,244 )
Accounts payable and other accrued expenses 1,524 5,423
Accrued wages and benefits (182 ) 10,793
Workers' compensation claims reserve 3,746 4,537
Other liabilities   138     529  
Net cash provided by operating activities   52,323     30,589  
 
Cash flows from investing activities
Capital expenditures (17,826 ) (9,707 )
Change in restricted cash and cash equivalents 7,587 68,504
Purchases of restricted investments (33,778 ) (88,173 )
Maturities of restricted investments 18,116 9,238
Other   (250 )   (6,800 )
Net cash used in investing activities   (26,151 )   (26,938 )
 
Cash flows from financing activities
Purchases and retirement of common stock (4,386 ) (56,932 )

Net proceeds from stock option exercises and employee stock purchase plans

4,164 1,131

Common stock repurchases for taxes upon vesting of restricted stock

(2,154 ) (1,776 )
Payments on other liabilities (4,548 ) (302 )
Other   751     664  
Net cash used in financing activities   (6,173 )   (57,215 )
 
Effect of exchange rates on cash   203     (278 )
 
Net change in cash and cash equivalents 20,202 (53,842 )
CASH AND CASH EQUIVALENTS, beginning of period   109,311     163,153  
CASH AND CASH EQUIVALENTS, end of period $ 129,513   $ 109,311  



TrueBlue, Inc.
Derrek Gafford, 253-680-8214
EVP & CFO
or
Stacey Burke, 253-680-8291
VP of Corporate Communications

KEYWORDS:   United States  North America  Washington

INDUSTRY KEYWORDS:

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