TrueBlue Reports 2013 Second Quarter Results

  TrueBlue Reports 2013 Second Quarter Results

Business Wire

TACOMA, Wash. -- July 24, 2013

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the second quarter of
2013 of $422million, an increase of 19percent compared to revenue of $354
million for the second quarter of 2012. Net income for the quarter was
$12.5million or $0.31per diluted share, compared to net income of $10.3
million or $0.26 per diluted share for the second quarter of 2012.

“We are pleased with the double-digit year-over-year revenue growth we
experienced this quarter,” TrueBlue CEO Steve Cooper said. “Overall, demand
for our specialized blue-collar staffing solutions grew across most industries
and locations.”

TrueBlue acquired MDT Personnel in the first quarter of 2013 and its
integration into the company is now complete, Cooper said.

“Our teams have combined very well and I’m pleased with the way they have
engaged our customers,” he said. “We’ve been successfulinretaining customers
and penetratingmore deeply into the market.”

Cooper added that TrueBlue is optimistic about thecompany’s growth
prospects.“Favorable trends in the staffing industry, along withthe strength
of our organic and acquisition growth strategies,give us confidence that
we’re on track to deliverlong-termshareholder value.With both
theanticipatedrevenue decline in a large project and MDTintegration costs
mostlybehind us, we expectto see higher levels of profit growthduring the
remainder of the year.”

TrueBlueestimates revenue in the range of $450million to $460million and
net income per diluted share of$0.44 to $0.49forthe third quarter of 2013.

Management will discuss second quarter 2013 results on a conference callat 2
p.m. Pacific Standard Time (5 pm. Eastern Standard Time), today, Wednesday,
July 24. The conference call can be accessed on TrueBlue’s web
site:www.trueblue.com

About TrueBlue

TrueBlue (NYSE: TBI) is the leading provider of blue-collar staffing and helps
over 140,000 businesses be more productive through easy access to dependable
temporary labor.TrueBlue provides specialized blue-collar staffing solutions
to industries that include construction, manufacturing, transportation,
aviation, waste, hospitality, retail, renewable energy and more.Through its
Labor Ready, CLP, Spartan Staffing, PlaneTechs, and Centerline service lines,
TrueBlue connects approximately 350,000 people to work annually across the
U.S., Canada and Puerto Rico. Learn more aboutTrueBlue 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 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                      26 Weeks Ended
                           June 28,          June 29,          June 28,            June 29,
                            2013             2012             2013              2012
                                                                                   
Revenue from               $ 422,310         $ 354,261         $ 768,809           $ 665,448
services
Cost of                     310,437          260,725          570,296           492,677
services
Gross profit                 111,873           93,536            198,513             172,771
Selling,
general and                  89,339            71,526            177,771             143,610
administrative
expenses
Depreciation
and                         5,203            4,729            10,362            9,496
amortization
Income from                  17,331            17,281            10,380              19,665
operations
Interest and
other income,               275              412              752               677
net
Income before
tax expense                  17,606            17,693            11,132              20,342
(benefit)
Income tax
expense                     5,069            7,356            (330    )          8,475
(benefit)
Net income                 $ 12,537          $ 10,337          $ 11,462           $ 11,867
                                                                                   
Net income per
common share
Basic                      $ 0.31            $ 0.26            $ 0.29              $ 0.30
Diluted                    $ 0.31            $ 0.26            $ 0.28              $ 0.30
                                                                                   
Weighted
average shares
outstanding
Basic                        40,140            39,701            39,962              39,563
Diluted                      40,421            40,097            40,248              39,993
                                                                                     


TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
                                                     
                                              June 28,            December 28,
                                               2013                 2012
Assets
Current assets
Cash and cash equivalents                     $ 136,004           $   129,513
Accounts receivable, net                        199,315               167,292
Other current assets                           20,884               20,361
Total current assets                            356,203               317,166
Property and equipment, net                     56,314                58,171
Restricted cash and investments                 134,052               136,259
Other assets, net                              129,119              90,147
Total assets                                  $ 675,688           $   601,743
                                                                  
Liabilities and shareholders'
equity
Current liabilities                           $ 127,272           $   113,556
Long-term liabilities                          194,924              154,513
Total liabilities                               322,196               268,069
Shareholders' equity                           353,492              333,674
Total liabilities and                         $ 675,688           $   601,743
shareholders' equity
                                                                      


TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                      
                                             26 Weeks Ended
                                             June 28,              June 29,
                                              2013                2012    
                                                                   
Cash flows from operating
activities
Net income                                   $ 11,462              $ 11,867
Adjustments to reconcile net
income to net cash from
operating activities
Depreciation and amortization                  10,362                9,496
Provision for doubtful                         6,415                 2,022
accounts
Stock-based compensation                       4,594                 4,846
Deferred income taxes                          (2,564  )             (15     )
Other operating activities                     848                   972
Changes in operating assets and
liabilities, net of acquisitions
Accounts receivable                            (8,528  )             (11,938 )
Income taxes                                   (143    )             4,488
Other assets                                   341                   2,084
Accounts payable and other accrued             (7,496  )             (3,173  )
expenses
Accrued wages and benefits                     7,053                 5,949
Workers' compensation claims                   1,583                 882
reserve
Other liabilities                             186                 277     
Net cash provided by                          24,113              27,757  
operating activities
                                                                   
Cash flows from investing
activities
Capital expenditures                           (7,200  )             (9,535  )
Acquisition of businesses, net of cash         (54,873 )             -
acquired
Change in restricted cash and cash             3,709                 9,774
equivalents
Purchases of restricted                        (6,789  )             (18,153 )
investments
Maturities of restricted                       10,871                12,726
investments
Other                                         -                   -       
Net cash used in investing                    (54,282 )            (5,188  )
activities
                                                                   
Cash flows from financing
activities
Purchases and retirement of                    -                     (3,990  )
common stock
Net proceeds from stock option
exercises and employee stock purchase          6,023                 3,142
plans
Common stock repurchases for
taxes upon vesting of                          (2,182  )             (1,996  )
restricted stock
Proceeds from note payable                     34,000                -
Payments on debt                               (1,115  )             (88     )
Other                                         478                 556     
Net cash provided by (used in)                37,204              (2,376  )
financing activities
                                                                   
Effect of exchange rates on                   (544    )            (58     )
cash
                                                                   
Net change in cash and cash                    6,491                 20,135
equivalents
CASH AND CASH EQUIVALENTS, beginning          129,513             109,311 
of period
CASH AND CASH EQUIVALENTS, end of            $ 136,004            $ 129,446 
period

Contact:

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