Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS FIRST QUARTER 2009 RESULTS
TACOMA, WA. — April 22, 2009—TrueBlue, Inc. (NYSE:TBI) today reported a net loss of ($5.3 million) or ($0.12) per diluted share for the quarter ended March 27, 2009, compared to net income of $8.8 million or $0.20 per diluted share for the first quarter of 2008. Revenue for the quarter was $224 million, a decrease of 31 percent compared to the first quarter of 2008. The 31 percent revenue decline consisted of a 5 percent increase from acquisitions completed within the last 12 months offset by a 36 percent decline in organic revenue.
“Our bottom line results were better than expected due to aggressive and well executed cost management throughout the organization,” said TrueBlue CEO Steve Cooper. “Our first priority is to provide exceptional customer service at each of our brands. At the same time, we are scaling costs to match current demand for our services.”
TrueBlue closed 40 branches in the quarter, resulting in 810 branches in operation at the end of the quarter.
For the second quarter of 2009, TrueBlue estimates revenue in the range of $225 million to $235 million and loss per diluted share for the quarter of ($0.02) to ($0.08).
Management will discuss first quarter 2009 results on a conference call at 2 p.m. (PT), today, Wednesday, April 22, 2009. The conference call can be accessed on TrueBlue’s web site: www.TrueBlueInc.com.
About TrueBlue
TrueBlue, Inc. (NYSE: TBI) is the leading provider of blue-collar staffing with revenue of approximately $1.4 billion in 2008. Each year, TrueBlue connects approximately 500,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and TLC. Headquartered in Tacoma, Wash., TrueBlue serves approximately 250,000 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
Forward-looking Statements
This news release contains forward-looking statements, such as statements about the ranges of revenues, gross margins and net income/(loss) 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.
Contacts
Derrek Gafford, EVP & CFO
253-680-8214
Stacey Burke, VP of Corporate Communications
253-680-8291
TrueBlue, Inc.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, except per share data
(Unaudited)
| Thirteen Weeks Ended | |||||||
| March 27, 2009 | March 28, 2008 | ||||||
Revenue from services | $ | 224,414 | $ | 324,016 | |||
Cost of services | 161,743 | 225,661 | |||||
Gross profit | 62,671 | 98,355 | |||||
Selling, general and administrative expenses | 68,311 | 82,484 | |||||
Depreciation and amortization | 4,145 | 3,908 | |||||
(Loss) income from operations | (9,785 | ) | 11,963 | ||||
Interest and other income, net | 1,201 | 1,896 | |||||
(Loss) income before tax (benefit) expense | (8,584 | ) | 13,859 | ||||
Income tax (benefit) expense | (3,281 | ) | 5,058 | ||||
Net (loss) income | $ | (5,303 | ) | $ | 8,801 | ||
Net (loss) income per common share: | |||||||
Basic | $ | (0.12 | ) | $ | 0.20 | ||
Diluted | $ | (0.12 | ) | $ | 0.20 | ||
Weighted average shares outstanding: | |||||||
Basic | 42,682 | 43,362 | |||||
Diluted | 42,682 | 43,494 | |||||
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
| March 27, 2009 (Unaudited) | December 26, 2008 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 103,525 | $ | 108,102 | ||
Accounts receivable, net | 92,887 | 104,979 | ||||
Other current assets | 31,558 | 29,723 | ||||
Total current assets | 227,970 | 242,804 | ||||
Property and equipment, net | 62,535 | 61,542 | ||||
Restricted cash | 123,603 | 120,323 | ||||
Other assets | 95,515 | 95,006 | ||||
Total assets | $ | 509,623 | $ | 519,675 | ||
Liabilities and shareholders’ equity | ||||||
Current liabilities | $ | 89,335 | $ | 95,308 | ||
Long-term liabilities | 153,845 | 154,238 | ||||
Total liabilities | 243,180 | 249,546 | ||||
Shareholders’ equity | 266,443 | 270,129 | ||||
Total liabilities and shareholders’ equity | $ | 509,623 | $ | 519,675 | ||
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Thirteen Weeks Ended | ||||||||
| March 27, 2009 | March 28, 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (5,303 | ) | $ | 8,801 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,145 | 3,908 | ||||||
Provision for doubtful accounts | 1,702 | 2,252 | ||||||
Stock-based compensation | 2,497 | 2,768 | ||||||
Deferred income taxes | (3,777 | ) | 421 | |||||
Other operating activities | 790 | 132 | ||||||
Changes in operating assets and liabilities, exclusive of business acquired: | ||||||||
Accounts receivable | 10,390 | (796 | ) | |||||
Income taxes | 358 | (6,036 | ) | |||||
Other assets | (264 | ) | 1,916 | |||||
Accounts payable and other accrued expenses | (2,474 | ) | (510 | ) | ||||
Accrued wages and benefits | (1,465 | ) | 463 | |||||
Workers’ compensation claims reserve | (2,967 | ) | 602 | |||||
Other liabilities | (52 | ) | (486 | ) | ||||
Net cash provided by operating activities | 3,580 | 13,435 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (4,527 | ) | (5,829 | ) | ||||
Purchases of marketable securities | — | (27,144 | ) | |||||
Maturities of marketable securities | — | 37,055 | ||||||
Acquisition of business, net of cash acquired | — | (5,319 | ) | |||||
Change in restricted cash | (3,280 | ) | 6,199 | |||||
Other | 71 | 45 | ||||||
Net cash (used in) provided by investing activities | (7,736 | ) | 5,007 | |||||
Cash flows from financing activities: | ||||||||
Net proceeds from sale of stock through options and employee benefit plans | 322 | 544 | ||||||
Shares withheld for taxes upon vesting of restricted stock | (591 | ) | (617 | ) | ||||
Payments on debt | (133 | ) | (64 | ) | ||||
Net cash used in financing activities | (402 | ) | (137 | ) | ||||
Effect of exchange rates on cash | (19 | ) | (288 | ) | ||||
Net change in cash and cash equivalents | (4,577 | ) | 18,017 | |||||
CASH AND CASH EQUIVALENTS, beginning of period | 108,102 | 57,008 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 103,525 | $ | 75,025 | ||||