Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS FIRST QUARTER 2008 RESULTS
TACOMA, WA, April 16, 2008—TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter ended March 28, 2008 of $324 million, an increase of 12 percent from $290 million for the first quarter of 2007. For the first quarter of 2008, the company generated net income of $8.8 million or $0.20 per diluted share, a decrease in net income of 15 percent from $10.3 million or $0.21 per diluted share for the first quarter of 2007.
The 12 percent increase in revenue this quarter was comprised of 15 percentage points of revenue growth from acquisitions made within the last 12 months offset by a decline of three percentage points in revenue from comparable operations.
“Same branch revenue declined two percent during the first quarter,” said TrueBlue CEO Steve Cooper. “The rate of decline increased during the final weeks of the quarter and into the first two weeks of the second quarter. Our customers continue to face difficult economic conditions and growth in the industrial staffing sector will be a challenge in the short term.”
Cooper added, “Revenue from recently acquired PlaneTechs exceeded our expectations for the quarter. Demand for aviation mechanics has continued to increase and our PlaneTechs employees have done an excellent job filling that demand.”
TrueBlue opened three branches, closed six branches, and acquired 10 branches with the acquisition of TLC, a truck-driver staffing company, resulting in 901 branches in operation at the end of the quarter.
For the second quarter of 2008, TrueBlue estimates revenue in the range of $350 to $355 million with net income per diluted share for the quarter in the range of $0.28 to $0.30.
The second quarter estimates do not include the potential impact of the PMI acquisition which TrueBlue announced earlier today. If the PMI transaction closes at the end of April as anticipated, TrueBlue would expect it to add approximately $20 million in revenue to the second quarter of 2008. Net income per diluted share for the second quarter is expected to remain unchanged due to the amortization of intangible assets and integration costs associated with the PMI transaction.
Management will discuss first quarter 2008 results on a conference call at 2 p.m. (PT), today, Wednesday April 16, 2008. The conference call can be accessed on TrueBlue’s web site: www.TrueBlueInc.com.
This news release contains forward-looking statements, such as statements about the ranges of revenues, gross margins and net income anticipated for future periods, improvements in safety and workers’ compensation claims and costs, strategies for increasing revenue and net income, and other factors that may affect TrueBlue’s financial results and operations in the future. TrueBlue’s actual results are, however, subject to a number of risks, including 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) potential 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 or skilled trade workers to fulfill the needs of our customers; 9) TrueBlue’s ability to successfully complete and integrate acquisitions that it may make from time to time; 10) TrueBlue’s ability to timely execute strategies for acquired companies; and 11) 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.
About TrueBlue
TrueBlue (NYSE: TBI) is the leading provider of blue-collar staffing with sales of nearly $1.4 billion in 2007. Each year, TrueBlue connects approximately 600,000 people to work through the following brands: Labor Ready (general labor), Spartan Staffing (light industrial), and CLP Resources, PlaneTechs and TLC Drivers (skilled trades). Headquartered in Tacoma, Wash., TrueBlue serves more than 300,000 small to mid-sized businesses in the construction, warehousing, hospitality, landscaping, transportation, light manufacturing, retail, wholesale, facilities, sanitation, and aviation industries. For more information, visit TrueBlue’s website at www.TrueBlueInc.com
For more information, contact:
Derrek Gafford, CFO
253-680-8214
Stacey Burke, VP of Corporate Communications
253-680-8291
TrueBlue, Inc.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
In Thousands, except per share data
(Unaudited)
| | Thirteen Weeks Ended | |
| | March 28, | | March 30, | |
| | 2008 | | 2007 | |
| | | | | |
Revenue from services | | $ | 324,016 | | $ | 290,237 | |
Cost of services | | 225,661 | | 197,446 | |
Gross profit | | 98,355 | | 92,791 | |
Selling, general and administrative expenses | | 82,484 | | 77,376 | |
Depreciation and amortization | | 3,908 | | 2,401 | |
Income from operations | | 11,963 | | 13,014 | |
Interest and other income, net | | 1,896 | | 3,282 | |
Income before tax expense | | 13,859 | | 16,296 | |
Income tax expense | | 5,058 | | 5,948 | |
Net income | | $ | 8,801 | | $ | 10,348 | |
| | | | | |
Net income per common share: | | | | | |
Basic | | $ | 0.20 | | $ | 0.21 | |
Diluted | | $ | 0.20 | | $ | 0.21 | |
| | | | | |
Weighted average shares outstanding: | | | | | |
Basic | | 43,362 | | 49,076 | |
Diluted | | 43,494 | | 49,342 | |
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
| | March 28, | | December 28, | |
| | 2008 | | 2007 | |
| | (Unaudited) | | | |
Assets | | | | | |
Current assets | | | | | |
Cash and cash equivalents | | $ | 75,025 | | $ | 57,008 | |
Marketable securities | | 1,025 | | 10,954 | |
Accounts receivable, net | | 138,342 | | 140,027 | |
Other current assets | | 19,995 | | 21,519 | |
Total current assets | | 234,387 | | 229,508 | |
Property and equipment, net | | 48,368 | | 44,909 | |
Restricted cash | | 126,298 | | 132,497 | |
Other assets | | 142,278 | | 138,335 | |
Total assets | | $ | 551,331 | | $ | 545,249 | |
| | | | | |
Liabilities and shareholders’ equity | | | | | |
Current liabilities | | $ | 105,469 | | $ | 114,538 | |
Long-term liabilities | | 149,636 | | 146,884 | |
Total liabilities | | 255,105 | | 261,422 | |
Shareholders’ equity | | 296,226 | | 283,827 | |
Total liabilities and shareholders' equity | | $ | 551,331 | | $ | 545,249 | |
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| | Thirteen Weeks Ended | |
| | March 28, | | March 30, | |
| | 2008 | | 2007 | |
| | | | | |
Cash flows from operating activities: | | | | | |
Net income | | $ | 8,801 | | $ | 10,348 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
Depreciation and amortization | | 3,908 | | 2,401 | |
Provision for doubtful accounts | | 2,252 | | 1,631 | |
Stock-based compensation | | 2,768 | | 2,356 | |
Excess tax benefits from stock-based compensation | | — | | (418 | ) |
Deferred income taxes | | 421 | | 229 | |
Other operating activities | | 132 | | — | |
Changes in operating assets and liabilities, exclusive of business acquired: | | | | | |
Accounts receivable | | (796 | ) | 3,793 | |
Income taxes | | (6,036 | ) | 4,792 | |
Other assets | | 1,916 | | 3,889 | |
Accounts payable and other accrued expenses | | (510 | ) | 5,478 | |
Accrued wages and benefits | | 463 | | (5,179 | ) |
Workers’ compensation claims reserve | | 602 | | (1,588 | ) |
Other liabilities | | (486 | ) | — | |
Net cash provided by operating activities | | 13,435 | | 27,732 | |
| | | | | |
Cash flows from investing activities: | | | | | |
Capital expenditures | | (5,829 | ) | (6,189 | ) |
Purchases of marketable securities | | (27,144 | ) | (102,813 | ) |
Maturities of marketable securities | | 37,055 | | 110,496 | |
Acquisition of business | | (5,319 | ) | — | |
Change in restricted cash | | 6,199 | | (1,891 | ) |
Other | | 45 | | — | |
Net cash provided by (used in) investing activities | | 5,007 | | (397 | ) |
| | | | | |
Cash flows from financing activities: | | | | | |
Purchases and retirement of common stock | | — | | (76,749 | ) |
Net proceeds from sale of stock through options and employee benefit plans | | 544 | | 1,489 | |
Shares withheld for taxes upon vesting of restricted stock | | (617 | ) | (652 | ) |
Excess tax benefits from stock-based compensation | | — | | 418 | |
Payments on debt | | (64 | ) | (188 | ) |
Net cash used in financing activities | | (137 | ) | (75,682 | ) |
| | | | | |
Effect of exchange rates on cash | | (288 | ) | 199 | |
| | | | | |
Net change in cash and cash equivalents | | 18,017 | | (48,148 | ) |
| | | | | |
CASH AND CASH EQUIVALENTS, beginning of period | | 57,008 | | 107,944 | |
CASH AND CASH EQUIVALENTS, end of period | | $ | 75,025 | | $ | 59,796 | |
