TrueBlue Reports 2013 Third Quarter Results

  TrueBlue Reports 2013 Third Quarter Results

Business Wire

TACOMA, Wash. -- October 23, 2013

TrueBlue, Inc. (NYSE:TBI) today reported revenue for the third quarter of 2013
of $451 million, an increase of 19 percent compared to revenue of $379 million
for the third quarter of 2012. Net income for the quarter was $19.0 million or
$0.47per diluted share, compared to net income of $14.3 million or $0.36 per
diluted share for the third quarter of 2012. Excluding non-recurring
transaction costs associated with acquisitions, net income per diluted share
for the third quarter was $0.48.^*

“This quarter’s results reflect the successful execution of our growth
strategies, which include blending strong organic growth with acquisitions
that increase our share of the blue-collar job market,” TrueBlue CEO Steve
Cooper said. “In addition to the strong organic revenue growth we have
achieved so far this year, the acquisitions we closed in 2013 will add
approximately $300 million of go-forward annual revenue.”

TrueBlue completed its acquisition of The Work Connection at the beginning of
the fourth quarter. The addition of The Work Connection expands the range and
reach of TrueBlue’s light industrial staffing business.

“We are encouraged by the strong demand for our services and believe there are
opportunities ahead to pursue additional acquisitions that fit our strategies
and enhance our ability to serve our customers,” Cooper added.

TrueBlueestimates revenue in the range of $430million to $440million and
net income per diluted share of$0.30 to $0.35forthe fourth quarter of 2013.

Management will discuss third quarter 2013 results on a conference callat 2
p.m. Pacific Time (5 p.m. Eastern Time), today, Wednesday, Oct. 23. The
conference call can be accessed on TrueBlue’s web site:www.trueblue.com

^* This is a non-GAAP financial measure for which reconciliation is provided
along with the financial statements accompanying this release.

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               39 Weeks Ended
                      September      September     September       September
                      27,            28,           27,             28,
                      2013           2012          2013            2012
                                                                   
Revenue from          $  451,169     $ 379,467     $ 1,219,977     $ 1,044,915
services
Cost of                 327,641      274,237      897,937        766,914
services
Gross profit             123,528       105,230       322,040         278,001
Selling,
general and              90,767        77,634        268,538         221,243
administrative
expenses
Depreciation
and                     4,771        4,660        15,133         14,156
amortization
Income from              27,990        22,936        38,369          42,602
operations
Interest and
other income,           416          409          1,167          1,086
net
Income before            28,406        23,345        39,536          43,688
tax expense
Income tax              9,454        8,998        9,124          17,474
expense
Net income            $  18,952      $ 14,347      $ 30,412        $ 26,214
                                                                   
Net income per
common share
Basic                 $  0.47        $ 0.36        $ 0.76          $ 0.66
Diluted               $  0.47        $ 0.36        $ 0.75          $ 0.66
                                                                   
Weighted
average shares
outstanding
Basic                    40,330        39,516        40,085          39,547
Diluted                  40,670        39,858        40,395          39,841
                                                                   


TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
                                                            
                                                                  
                                                September 27,     December 28,
                                                2013              2012
Assets
Current assets
Cash and cash equivalents                       $   109,544       $   129,513
Marketable securities                               29,342            -
Accounts receivable, net                            213,193           167,292
Other current assets                               18,196           20,361
Total current assets                                370,275           317,166
Property and equipment, net                         55,765            58,171
Restricted cash and investments                     138,457           136,259
Other assets, net                                  134,016          90,147
Total assets                                    $   698,513       $   601,743
                                                                  
Liabilities and shareholders' equity
Current liabilities                             $   127,373       $   113,556
Long-term liabilities                              194,304          154,513
Total liabilities                                   321,677           268,069
Shareholders' equity                               376,836          333,674
Total liabilities and shareholders'             $   698,513       $   601,743
equity
                                                                  


TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                           
                                                                 
                                               39 Weeks Ended
                                               September 27,     September 28,
                                               2013              2012
Cash flows from operating activities
Net income                                     $  30,412         $  26,214
Adjustments to reconcile net income to
net cash from operating activities
Depreciation and amortization                     15,133            14,156
Provision for doubtful accounts                   8,785             4,305
Stock-based compensation                          6,428             6,268
Deferred income taxes                             (1,694   )        1,191
Other operating activities                        1,213             1,196
Changes in operating assets and
liabilities, net of acquisitions
Accounts receivable                               (24,776  )        (33,528  )
Income taxes                                      6,580             2,206
Other assets                                      (4,703   )        (592     )
Accounts payable and other accrued                (6,728   )        (2,906   )
expenses
Accrued wages and benefits                        11,419            8,248
Workers' compensation claims reserve              2,785             5,930
Other liabilities                                423             280      
Net cash provided by operating                   45,277          32,968   
activities
                                                                 
Cash flows from investing activities
Capital expenditures                              (10,350  )        (13,930  )
Acquisition of businesses, net of cash            (54,872  )        -
acquired
Purchases of marketable securities                (35,300  )        -
Maturities of marketable securities               205               -
Change in restricted cash and cash                (1,338   )        487
equivalents
Purchases of restricted investments               (9,175   )        (18,153  )
Maturities of restricted investments              13,337            14,418
Other                                            -               (250     )
Net cash used in investing activities            (97,493  )       (17,428  )
                                                                 
Cash flows from financing activities
Purchases and retirement of common stock          -                 (4,386   )
Net proceeds from stock option exercises          8,731             3,806
and employee stock purchase plans
Common stock repurchases for taxes upon           (2,653   )        (2,076   )
vesting of restricted stock
Proceeds from note payable                        34,000            -
Payments on debt and other liabilities            (8,115   )        (3,987   )
Other                                            719             764      
Net cash provided by (used in) financing         32,682          (5,879   )
activities
                                                                 
Effect of exchange rates on cash                 (435     )       369      
                                                                 
Net change in cash and cash equivalents           (19,969  )        10,030
CASH AND CASH EQUIVALENTS, beginning of          129,513         109,311  
period
CASH AND CASH EQUIVALENTS, end of period       $  109,544       $  119,341  
                                                                 


TRUEBLUE, INC.
RECONCILATION OF EARNINGS PER SHARE
EXCLUDING NON-RECURRING ACQUISITION COSTS
                                                            
                                                                 
                                                 13 Weeks Ended
                                                 September 27,   September 28,
                                                 2013            2012
                                                                 
                                                                 
Diluted earnings per share as reported           $     0.47      $     0.36
Non-recurring costs associated with              $     0.01     $     -
acquisitions
Diluted earnings per share excluding
non-recurring costs associated with              $     0.48     $     0.36
acquisitions*
                                                                 
* This is a non-GAAP financial measure that excludes non-recurring costs
associated with acquisitions.

Contact:

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