TrueBlue Reports Q4 and Full Year 2012 Results

  TrueBlue Reports Q4 and Full Year 2012 Results

Business Wire

TACOMA, Wash. -- February 6, 2013

TrueBlue, Inc. (NYSE: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 offourpercent 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,
contributedto 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 theimproving
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 callat 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 atwww.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       December      December        December
                      28,            30,           28,             30,
                      2012           2011          2012            2011
                                                                   
Revenue from          $  344,614     $ 350,155     $ 1,389,530     $ 1,316,013
services
Cost of                 250,231      258,324      1,017,145      968,967
services
Gross profit             94,383        91,831        372,385         347,046
Selling,
general and              79,215        76,755        300,459         282,828
administrative
expenses
Depreciation
and                     4,734        4,395        18,890         16,384
amortization
Income from              10,434        10,681        53,036          47,834
operations
Interest and
other income,           483          693          1,569          1,490
net
Income before            10,917        11,374        54,605          49,324
tax expense
Income tax              3,502        3,810        20,976         18,533
expense
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                  1,524            5,423
expenses
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                  7,587            68,504
equivalents
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            4,164            1,131
and employee stock purchase plans
Common stock repurchases for taxes upon             (2,154  )        (1,776  )
vesting of restricted stock
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            109,311        163,153 
period
CASH AND CASH EQUIVALENTS, end of period         $  129,513      $  109,311 

Contact:

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