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
 
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