TrueBlue Reports 2011 Fourth Quarter Results

TACOMA, Wash.--(BUSINESS WIRE)--TrueBlue, Inc. (NYSE:TBI) today reported revenue for the thirteen-week fourth quarter of 2011 of $350 million, an increase of 12 percent compared to revenue of $312 million for the fourteen-week fourth quarter of 2010. Net income for the fourth quarter was $7.6 million, or $0.19 per diluted share, compared to net income of $4.0 million, or $0.09 per diluted share, for the fourth quarter of 2010.

“Our better-than-expected results were driven by additional demand in the energy industry and a successful holiday season. Our focus remains on our vertical market strategy, which includes our specialized expertise in the industries we serve, and increasing our value to local and national customers.”

“We had solid revenue growth this quarter and achieved operating income growth of more than 90 percent,” said TrueBlue CEO Steve Cooper. “Our better-than-expected results were driven by additional demand in the energy industry and a successful holiday season. Our focus remains on our vertical market strategy, which includes our specialized expertise in the industries we serve, and increasing our value to local and national customers.”

For the first quarter of 2012, TrueBlue estimates revenue in the range of $300 million to $310 million and estimates net income per diluted share of $0.00 to $0.05.

Management will discuss fourth quarter 2011 results on a conference call at 2 p.m. (PT), today, Wednesday, Feb. 8, 2012. The conference call and a copy of the slides for the call can be accessed on TrueBlue’s web site: www.trueblueinc.com

About TrueBlue

TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2011, TrueBlue connected approximately 325,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 175,000 businesses in the services, retail, wholesale, manufacturing, transportation, aviation, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. For more information, visit TrueBlue’s website at www.TrueBlueInc.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 year ended Dec. 31, 2010 and in our most recent Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2011. 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		14 Weeks Ended		52 Weeks Ended		53 Weeks Ended
	December 30,		December 31,		December 30,		December 31,
	2011		2010		2011		2010
Revenue from services	$	350,155	$	311,943	$	1,316,013	$	1,149,367
Cost of services		258,324		230,034		968,967		845,916
Gross profit		91,831		81,909		347,046		303,451
Selling, general and administrative expenses		76,755		71,797		282,828		258,722
Depreciation and amortization		4,395		4,580		16,384		16,468
Income from operations		10,681		5,532		47,834		28,261
Interest and other income, net		693		238		1,490		901
Income before tax expense		11,374		5,770		49,324		29,162
Income tax expense		3,810		1,812		18,533		9,323
Net income	$	7,564	$	3,958	$	30,791	$	19,839
Net income per common share
Basic	$	0.19	$	0.09	$	0.73	$	0.46
Diluted	$	0.19	$	0.09	$	0.73	$	0.46
Weighted average shares outstanding
Basic		39,404		43,308		41,961		43,224
Diluted		39,848		43,738		42,322		43,540
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
					December 30,		December 31,
					2011		2010
Assets
Current assets
Cash and cash equivalents					$	109,311	$	163,153
Accounts receivable, net						153,878		108,692
Other current assets						17,426		21,655
Total current assets						280,615		293,500
Property and equipment, net						56,239		53,958
Restricted cash and investments						130,498		120,067
Other assets, net						93,417		78,941
Total assets					$	560,769	$	546,466
Liabilities and shareholders' equity
Current liabilities					$	112,289	$	85,923
Long-term liabilities						154,901		147,836
Total liabilities						267,190		233,759
Shareholders' equity						293,579		312,707
Total liabilities and shareholders' equity					$	560,769	$	546,466

TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
	52 Weeks Ended			53 Weeks Ended
	December 30,			December 31,
	2011			2010
Cash flows from operating activities
Net income	$	30,791		$	19,839
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		16,384			16,468
Provision for doubtful accounts		6,638			8,158
Stock-based compensation		7,432			7,159
Deferred income taxes		(1,910	)		5,322
Other operating activities		(473	)		(202	)
Changes in operating assets and liabilities
Accounts receivable		(51,824	)		(11,604	)
Income taxes		3,513			(3,338	)
Other assets		(1,244	)		(727	)
Accounts payable and other accrued expenses		5,423			747
Accrued wages and benefits		10,793			2,752
Workers' compensation claims reserve		4,537			(2,195	)
Other liabilities		529			(406	)
Net cash provided by operating activities		30,589			41,973
Cash flows from investing activities
Capital expenditures		(9,707	)		(7,050	)
Change in restricted cash and cash equivalents		68,504			3,945
Purchase of restricted investments		(88,173	)		-
Maturities of restricted investments		9,238			-
Other		(6,800	)		(298	)
Net cash used in investing activities		(26,938	)		(3,403	)
Cash flows from financing activities
Purchases and retirement of common stock		(56,932	)		-
Net proceeds from sale of stock through options and employee benefit plans		1,131			1,054
Common stock repurchases for taxes upon vesting of restricted stock		(1,776	)		(1,568	)
Payments on debt		(302	)		(382	)
Other		664			129
Net cash used in financing activities		(57,215	)		(767	)
Effect of exchange rates on cash		(278	)		973
Net change in cash and cash equivalents		(53,842	)		38,776
CASH AND CASH EQUIVALENTS, beginning of year		163,153			124,377
CASH AND CASH EQUIVALENTS, end of year	$	109,311		$	163,153