TrueBlue Reports 2013 First Quarter Results

  TrueBlue Reports 2013 First Quarter Results

Business Wire

TACOMA, Wash. -- April 24, 2013

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter of 2013
of $346 million, an increase of 11 percent compared to revenue of $311 million
for the first quarter of 2012. Net loss for the quarter was ($1.1 million) or
($0.03) per diluted share, compared to net income of $1.5 million or $0.04 per
diluted share for the first quarter of 2012.

The first quarter of 2013 includes the acquisition of MDT Personnel and
related non-recurring acquisition and integration costs. The integration has
gone well and is on track to be completed in the second quarter of 2013 as
originally planned.

“We are pleased with our revenue growth in the quarter,” said TrueBlue CEO
Steve Cooper. “We saw steady growth in demand for our services across most
industries and locations, and we are especially encouraged by an increase in
construction activity. Our recent growth across a broad mix of business is
building a more sustainable revenue stream to replace the large customer
project that is winding down.”

For the second quarter of 2013, TrueBlue estimates revenue in the range of
$415 million to $425 million and net income per diluted share for the quarter
of $0.22 to $0.27.

“The increased business activity we are seeing in our results indicates
positive signs for the economy this year,” Cooper said. “The current economic
climate allows the company to continue to pursue its organic and acquisition
growth strategies.”

Management will discuss first quarter 2013 results on a conference callat 2
p.m. (PT), today, Wednesday, April 24. 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
business lines: 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. 28,
2012. 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
                                                    March 29,     March 30,
                                                    2013          2012
                                                                  
Revenue from services                               $ 346,498     $  311,187
Cost of services                                     259,859      231,952 
Gross profit                                          86,639         79,235
Selling, general and administrative expenses          88,432         72,082
Depreciation and amortization                        5,159        4,768   
Income (loss) from operations                         (6,952  )      2,385
Interest and other income, net                       477          264     
Income (loss) before tax expense (benefit)            (6,475  )      2,649
Income tax expense (benefit)                         (5,399  )     1,119   
Net income (loss)                                   $ (1,076  )   $  1,530   
                                                                  
Net income (loss) per common share
Basic                                               $ (0.03   )   $  0.04
Diluted                                             $ (0.03   )   $  0.04
                                                                  
Weighted average shares outstanding
Basic                                                 39,784         39,425
Diluted                                               39,784         39,914
                                                                  
                                                                  
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
                                                                  
                                                    March 29,     December 28,
                                                    2013          2012
Assets
Current assets
Cash and cash equivalents                           $ 110,800     $  129,513
Accounts receivable, net                              191,896        167,292
Other current assets                                 23,492       20,361  
Total current assets                                  326,188        317,166
Property and equipment, net                           57,695         58,171
Restricted cash and investments                       144,375        136,259
Other assets, net                                    125,790      90,147  
Total assets                                        $ 654,048    $  601,743 
                                                                  
Liabilities and shareholders' equity
Current liabilities                                 $ 123,941     $  113,556
Long-term liabilities                                194,198      154,513 
Total liabilities                                     318,139        268,069
Shareholders' equity                                 335,909      333,674 
Total liabilities and shareholders' equity          $ 654,048    $  601,743 
                                                                  
                                                                  
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                                  
                                                    13 Weeks Ended
                                                    March 29,     March 30,
                                                    2013          2012
                                                                  
Cash flows from operating activities
Net income (loss)                                   $ (1,076  )   $  1,530
Adjustments to reconcile net income (loss) to net
cash from operating activities
Depreciation and amortization                         5,159          4,768
Provision for doubtful accounts                       1,652          1,049
Stock-based compensation                              2,880          2,902
Deferred income taxes                                 (3,573  )      (1,006  )
Other operating activities                            180            (401    )
Changes in operating assets and liabilities, net
of acquisitions
Accounts receivable                                   4,982          8,441
Income taxes                                          (2,136  )      1,037
Other assets                                          251            1,076
Accounts payable and other accrued expenses           (6,990  )      (2,644  )
Accrued wages and benefits                            4,061          1,513
Workers' compensation claims reserve                  549            (876    )
Other liabilities                                    158          303     
Net cash provided by operating activities            6,097        17,692  
                                                                  
Cash flows from investing activities
Capital expenditures                                  (3,952  )      (3,704  )
Acquisition of business, net of cash acquired         (53,248 )      -
Change in restricted cash and cash equivalents        (4,489  )      3,529
Purchases of restricted investments                   (1,365  )      (7,662  )
Maturities of restricted investments                 4,128       3,907   
Net cash used in investing activities                (58,926 )     (3,930  )
                                                                  
Cash flows from financing activities
Net proceeds from stock option exercises and          2,266          2,894
employee stock purchase plans
Common stock repurchases for taxes upon vesting       (2,010  )      (1,807  )
of restricted stock
Proceeds from long term debt                          34,000         -
Payments on debt                                      (397    )      -
Other                                                479          637     
Net cash provided by financing activities            34,338       1,724   
                                                                  
Effect of exchange rates on cash                     (222    )     208     
                                                                  
Net change in cash and cash equivalents               (18,713 )      15,694
CASH AND CASH EQUIVALENTS, beginning of period       129,513      109,311 
CASH AND CASH EQUIVALENTS, end of period            $ 110,800    $  125,005 


Contact:

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