Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS THIRD QUARTER 2009 RESULTS
TACOMA, WA. – Oct. 21, 2009—TrueBlue, Inc. (NYSE:TBI) today reported net income of $8.2 million or $0.19 per diluted share for the quarter ended Sept. 25, 2009, compared to net income of $16.3 million or $0.38 per diluted share for the third quarter of 2008. Revenue for the quarter was $285 million, a decrease of 27 percent compared to the third quarter of 2008.
“Our strict cost management combined with ongoing stabilization in same branch revenue drove our results this quarter,” said TrueBlue CEO Steve Cooper. “Ongoing risk management programs that drove workers compensation expense lower also contributed to our better-than-expected results. Our results demonstrate that, in addition to the strong operating leverage in our business model, we remain focused on executing on every element of the business.”
TrueBlue closed 12 branches, resulting in 764 branches in operation at the end of the quarter.
For the fourth quarter of 2009, TrueBlue estimates revenue in the range of $240 million to $250 million and net income per diluted share for the quarter of to $0.00 to $0.05.
About TrueBlue
TrueBlue, Inc. (NYSE: TBI) is the leading provider of blue-collar staffing with revenue of approximately $1.4 billion in 2008. Last year, TrueBlue connected approximately 500,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and TLC and served approximately 250,000 businesses in the wholesale, services, transportation, manufacturing, retail, and construction industries. TrueBlue is head quartered in Tacoma, Wash. For more information, visit TrueBlue’s website atwww.TrueBlueInc.com
Forward-looking Statements
This news release and the schedule regarding 2009 assumptions contain 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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. The offering of these securities will be made only by means of the prospectus supplement and accompanying prospectus
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 | Thirty-Nine Weeks Ended | |||||||||||
| September 25, 2009 | September 26, 2008 | September 25, 2009 | September 26, 2008 | |||||||||
Revenue from services | $ | 284,843 | $ | 387,914 | $ | 756,268 | $ | 1,082,640 | ||||
Cost of services | 202,220 | 272,736 | 538,144 | 758,564 | ||||||||
Gross profit | 82,623 | 115,178 | 218,124 | 324,076 | ||||||||
Selling, general and administrative expenses | 64,950 | 86,226 | 196,644 | 253,279 | ||||||||
Depreciation and amortization | 4,237 | 3,988 | 12,662 | 11,863 | ||||||||
Income from operations | 13,436 | 24,964 | 8,818 | 58,934 | ||||||||
Interest and other income, net | 240 | 1,049 | 2,153 | 4,569 | ||||||||
Income before tax expense | 13,676 | 26,013 | 10,971 | 63,503 | ||||||||
Income tax expense | 5,437 | 9,678 | 4,305 | 21,639 | ||||||||
Net income | $ | 8,239 | $ | 16,335 | $ | 6,666 | $ | 41,864 | ||||
Net income per common share: | ||||||||||||
Basic | $ | 0.19 | $ | 0.38 | $ | 0.16 | $ | 0.97 | ||||
Diluted | $ | 0.19 | $ | 0.38 | $ | 0.16 | $ | 0.97 | ||||
Weighted average shares outstanding: | ||||||||||||
Basic | 42,906 | 42,460 | 42,808 | 43,005 | ||||||||
Diluted | 43,121 | 42,695 | 42,930 | 43,176 | ||||||||
TrueBlue, Inc.
SUMMARY CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| September 25, 2009 | December 26, 2008 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 95,522 | $ | 108,102 | ||
Accounts receivable, net | 130,515 | 104,979 | ||||
Other current assets | 17,300 | 29,723 | ||||
Total current assets | 243,337 | 242,804 | ||||
Property and equipment, net | 61,322 | 61,542 | ||||
Restricted cash | 126,183 | 120,323 | ||||
Other assets | 88,907 | 95,006 | ||||
Total assets | $ | 519,749 | $ | 519,675 | ||
Liabilities and shareholders’ equity | ||||||
Current liabilities | $ | 83,415 | $ | 95,308 | ||
Long-term liabilities | 154,876 | 154,238 | ||||
Total liabilities | 238,291 | 249,546 | ||||
Shareholders’ equity | 281,458 | 270,129 | ||||
Total liabilities and shareholders’ equity | $ | 519,749 | $ | 519,675 | ||
TrueBlue, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Thirty-Nine Weeks Ended | ||||||||
| September 25, 2009 | September 26, 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 6,666 | $ | 41,864 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 12,662 | 11,863 | ||||||
Provision for doubtful accounts | 7,969 | 6,697 | ||||||
Stock-based compensation | 5,597 | 6,229 | ||||||
Deferred income taxes | 4,081 | (7,102 | ) | |||||
Other operating activities | 1,037 | 530 | ||||||
Changes in operating assets and liabilities, exclusive of business acquired: | ||||||||
Accounts receivable | (33,505 | ) | (11,394 | ) | ||||
Income taxes | 12,917 | (4,350 | ) | |||||
Other assets | (1,095 | ) | — | |||||
Accounts payable and other accrued expenses | (4,225 | ) | (1,663 | ) | ||||
Accrued wages and benefits | 1,803 | (2,654 | ) | |||||
Workers’ compensation claims reserve | (9,094 | ) | 4,106 | |||||
Other liabilities | (152 | ) | (3,216 | ) | ||||
Net cash provided by operating activities | 4,661 | 40,910 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (10,540 | ) | (20,009 | ) | ||||
Purchases of marketable securities | — | (27,158 | ) | |||||
Maturities of marketable securities | — | 38,087 | ||||||
Acquisition of business, net of cash acquired | — | (21,270 | ) | |||||
Change in restricted cash | (5,860 | ) | 4,712 | |||||
Other | 85 | — | ||||||
Net cash used in investing activities | (16,315 | ) | (25,638 | ) | ||||
Cash flows from financing activities: | ||||||||
Purchases and retirement of common stock | — | (15,997 | ) | |||||
Net proceeds from sale of stock through options and employee benefit plans | 838 | 3,173 | ||||||
Shares withheld for taxes upon vesting of restricted stock | (820 | ) | (918 | ) | ||||
Payments on debt | (304 | ) | (193 | ) | ||||
Other | (996 | ) | (229 | ) | ||||
Net cash used in financing activities | (1,282 | ) | (14,164 | ) | ||||
Effect of exchange rates on cash | 356 | (636 | ) | |||||
Net change in cash and cash equivalents | (12,580 | ) | 472 | |||||
CASH AND CASH EQUIVALENTS, beginning of period | 108,102 | 57,008 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 95,522 | $ | 57,480 | ||||