TrueBlue Reports 2014 First Quarter Results

  TrueBlue Reports 2014 First Quarter Results  Business Wire  TACOMA, Wash. -- April 22, 2014  TrueBlue, Inc. (NYSE:TBI) today reported revenue for the first quarter of 2014 of $396 million, an increase of 14 percent compared to revenue of $346 million for the first quarter of 2013. Net income for the quarter was $1.7 million or $0.04 per diluted share, compared to a net loss of ($1.1) million or ($0.03) per diluted share for the first quarter of 2013. Adjusted EBITDA* for the first quarter was $7.6 million compared to $2.4 million for the first quarter of 2013. The company expanded adjusted EBITDA margin by 120 basis points.  “I’m pleased to report that TrueBlue is performing well, with 14 percent revenue growth and continued success in our efforts to control costs and operate more efficiently in our markets,” TrueBlue CEO Steve Cooper said, noting that TrueBlue consolidated 20 branches during the first quarter and expects to consolidate another 40 over the remainder of the year.  “The demand for our services is strong and we’ve created good momentum for future earnings,” he said. “We’re using new technology and innovative approaches to better serve our customers. I’m very proud of the way our employees across all our service lines are working together to find the specialized solutions our customers need and get people on the job.”  Cooper added that the company has seen a revenue upturn in April following weather-related disruptions experienced in February and March.  For the second quarter of 2014, TrueBlue estimates revenue in the range of $458 million to $468 million and net income per diluted share for the quarter of $0.33 to $0.38.  Management will discuss first quarter 2014 results on a conference callat 7 a.m. (PT), today, Tuesday, April 22, 2014. 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 130,000 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.TrueBlue connects approximately 375,000 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. 27, 2013. 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 28, 2014   March 29, 2013 Revenue from services                          396,063            346,498 Cost of services                              296,504          259,859    Gross profit                                   99,559             86,639 Selling, general and administrative            91,982             88,432 expenses Depreciation and amortization                 5,161            5,159      Income (loss) from operations                  2,416              (6,952    ) Interest and other income, net                344              477        Income (loss) before tax expense               2,760              (6,475    ) Income tax expense (benefit)                  1,104            (5,399    ) Net income (loss)                           $  1,656        $    (1,076    )                                                               Net income (loss) per common share Basic                                          0.04               (0.03     ) Diluted                                        0.04               (0.03     )                                                               Weighted average shares outstanding Basic                                          40,572             39,784 Diluted                                        40,891             39,784                                                                                                                             TRUEBLUE, INC. SUMMARY CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)                                                                                                           March 28, 2014   December 27, 2013 Assets Current assets: Cash and cash equivalents                   $  128,818       $    122,003 Marketable securities                          31,777             14,745 Accounts receivable, net                       186,084            199,519 Other current assets                          17,343           20,191     Total current assets                           364,022            356,458 Property and equipment, net                    53,317             54,473 Restricted cash and investments                151,381            154,558 Other assets, net                             152,975          153,972    Total assets                                $  721,695      $    719,461                                                                  Liabilities and shareholders' equity Current liabilities                         $  118,686       $    121,409 Long-term liabilities                         206,213          204,692    Total liabilities                              324,899            326,101 Shareholders' equity                          396,796          393,360    Total liabilities and shareholders'         $  721,695      $    719,461    equity                                                                                                                             TRUEBLUE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands)                                                                                                           13 Weeks Ended                                             March 28, 2014   March 29, 2013 Cash flows from operating activities Net income (loss)                           $  1,656         $    (1,076    ) Adjustments to reconcile net income (loss) to net cash from operating activities Depreciation and amortization                  5,161              5,159 Provision for doubtful accounts                3,487              1,652 Stock-based compensation                       2,876              2,880 Deferred income taxes                          (1,433   )         (3,573    ) Other operating activities                     (435     )         180 Changes in operating assets and liabilities, net of acquisition Accounts receivable                            9,949              4,982 Income taxes                                   3,567              (2,136    ) Other assets                                   (331     )         251 Accounts payable and other accrued             (3,307   )         (6,990    ) expenses Accrued wages and benefits                     1,380              4,061 Workers' compensation claims reserve           261                549 Other liabilities                             664              158        Net cash provided by operating activities     23,495           6,097                                                                    Cash flows from investing activities Capital expenditures                           (2,091   )         (3,952    ) Acquisition of business, net of cash           —                  (53,248   ) acquired Purchases of marketable securities             (25,057  )         — Sales and maturities of marketable             9,450              — securities Change in restricted cash and cash             (1,491   )         (4,489    ) equivalents Purchases of restricted investments            —                  (1,365    ) Maturities of restricted investments          4,215            4,128      Net cash used in investing activities         (14,974  )        (58,926   )                                                               Cash flows from financing activities Net proceeds from stock option exercises       602                2,266 and employee stock purchase plans Common stock repurchases for taxes upon        (2,474   )         (2,010    ) vesting of restricted stock Proceeds from note payable                     —                  34,000 Payments on debt and other liabilities         (567     )         (397      ) Other                                         973              479                                                                      Net cash provided by (used in) financing      (1,466   )        34,338     activities                                                               Effect of exchange rates on cash              (240     )        (222      )                                                               Net change in cash and cash equivalents        6,815              (18,713   )                                                               CASH AND CASH EQUIVALENTS, beginning of       122,003          129,513    period CASH AND CASH EQUIVALENTS, end of period    $  128,818      $    110,800                                                                                                                                TRUEBLUE, INC. NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA RECONCILIATION (Unaudited, in thousands)                                                                                                           13 Weeks Ended                                             March 28, 2014   March 29, 2013                                                                                                                             Net income (loss)                           $  1,656         $    (1,076    ) Income tax expense (benefit)                   1,104              (5,399    ) Interest and other income, net                 (344     )         (477      ) Depreciation and amortization                 5,161            5,159      EBITDA*                                     $  7,577         $    (1,793    ) Non-recurring acquisition costs               —                4,160      Adjusted EBITDA*                            $  7,577        $    2,367                                                                      * EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income (loss). Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating performance. EBITDA and Adjusted EBITDA should not be considered a measure of financial performance in isolation or as an alternative to income (loss)from operations in the Consolidated Statements of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies.  Contact:  TrueBlue, Inc. EVP & CFO Derrek Gafford, 253-680-8214 or VP of Corporate Communications Stacey Burke, 253-680-8291