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
TrueBlue Reports 2014 First Quarter Results
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