Attached files
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| EX-99.3 - TRUEBLUE INVESTOR PRESENTATION - TrueBlue, Inc. | a2015q3roadshowpresentat.htm |
| EX-99.2 - TRUEBLUE Q3 2015 EARNINGS RELEASE PRESENTATION - TrueBlue, Inc. | a2015q3earningsresultssl.htm |
| 8-K - TRUEBLUE FORM 8-K - TrueBlue, Inc. | tbi2015q3earningsrelease.htm |
TRUEBLUE REPORTS THIRD QUARTER 2015 RESULTS
TACOMA, WA-Oct. 21, 2015--TrueBlue, Inc. (NYSE:TBI) announced today that revenue for the third quarter of 2015 was $684 million, an increase of 8 percent, compared to revenue of $633 million for the third quarter of 2014. Adjusted net income per share* for the third quarter of 2015 was $0.54, up from $0.53 a year ago, an increase of 2 percent.
“Our team delivered solid organic revenue results this quarter,” said TrueBlue CEO Steve Cooper. “The pace of growth took a significant step up compared to our growth in the first half of the year. We are especially pleased that the improved results came from most geographies and industries including construction. We also saw improvement with small to medium-sized customers and continued strength with national customers.
“The appeal of our specialized service offerings continues to grow in a tightening labor market and we expect another solid quarter of growth as we finish 2015,” Cooper added. “We are excited about the opportunities for increased demand in our services during 2016 and the powerful earnings growth our business can produce.”
For the fourth quarter of 2015, the company estimates revenue in the range of $738 million to $753 million and adjusted net income per share of $0.58 to $0.64.
Management will discuss third quarter 2015 results on a conference call at 2 p.m. PT (5 p.m. ET), today, Wednesday, Oct. 21. The conference call can be accessed on TrueBlue’s website: www.trueblue.com.
*See the financial statements accompanying the release and the company’s website for more information on non-GAAP terms.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions, helping clients improve growth and performance by providing staffing, workforce management, and recruitment process outsourcing solutions. The company’s specialized workforce solutions meet clients’ needs for a reliable, efficient workforce in a wide variety of industries. TrueBlue connects as many as 750,000 people to work each year. Learn more at www.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. 26, 2014. 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.
Contact:
Derrek Gafford, EVP & CFO
253-680-8214
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
September 25, 2015 | September 26, 2014 | September 25, 2015 | September 26, 2014 | ||||||||||||
Revenue from services | $ | 683,918 | $ | 633,365 | $ | 1,884,947 | $ | 1,482,655 | |||||||
Cost of services | 515,051 | 473,766 | 1,434,278 | 1,103,914 | |||||||||||
Gross profit | 168,867 | 159,599 | 450,669 | 378,741 | |||||||||||
Selling, general and administrative expenses | 125,117 | 120,318 | 354,569 | 308,654 | |||||||||||
Depreciation and amortization | 10,498 | 9,719 | 31,415 | 20,126 | |||||||||||
Income from operations | 33,252 | 29,562 | 64,685 | 49,961 | |||||||||||
Interest and other income (expense), net | (366 | ) | (409 | ) | (1,102 | ) | 385 | ||||||||
Income before tax expense | 32,886 | 29,153 | 63,583 | 50,346 | |||||||||||
Income tax expense | 12,796 | 8,243 | 20,504 | 11,696 | |||||||||||
Net income | $ | 20,090 | $ | 20,910 | $ | 43,079 | $ | 38,650 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.51 | $ | 1.05 | $ | 0.95 | |||||||
Diluted | $ | 0.48 | $ | 0.51 | $ | 1.04 | $ | 0.94 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 41,296 | 40,793 | 41,189 | 40,701 | |||||||||||
Diluted | 41,620 | 41,038 | 41,546 | 40,971 | |||||||||||
TRUEBLUE, INC.
SEGMENT DATA
(Unaudited, in thousands)
13 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
Revenue from services | |||||||
Staffing Services | $ | 656,619 | $ | 608,543 | |||
Managed Services | 27,299 | 24,822 | |||||
Total Company | $ | 683,918 | $ | 633,365 | |||
EBITDA (1) | |||||||
Staffing Services | $ | 50,290 | $ | 45,698 | |||
Managed Services | 3,175 | 3,723 | |||||
53,465 | 49,421 | ||||||
Corporate unallocated | (9,715 | ) | (7,801 | ) | |||
Adjusted EBITDA (1) | 43,750 | 41,620 | |||||
Non-recurring acquisition and integration costs (2) | — | (2,339 | ) | ||||
43,750 | 39,281 | ||||||
Depreciation and amortization | 10,498 | 9,719 | |||||
Interest expense, net | 366 | 409 | |||||
Income before tax expense | $ | 32,886 | $ | 29,153 | |||
(1) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. 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 measures of financial performance in isolation or as an alternative to Income 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. |
(2) | Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014. |
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
September 25, 2015 | December 26, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 23,232 | $ | 19,666 | |||
Marketable securities | — | 1,500 | |||||
Accounts receivable, net | 362,016 | 359,903 | |||||
Other current assets | 28,546 | 34,738 | |||||
Total current assets | 413,794 | 415,807 | |||||
Property and equipment, net | 55,995 | 61,392 | |||||
Restricted cash and investments | 181,910 | 168,426 | |||||
Other assets, net | 410,213 | 421,046 | |||||
Total assets | $ | 1,061,912 | $ | 1,066,671 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities | $ | 213,242 | $ | 187,230 | |||
Long-term debt, less current portion | 111,689 | 199,383 | |||||
Other long-term liabilities | 219,699 | 210,724 | |||||
Total liabilities | 544,630 | 597,337 | |||||
Shareholders' equity | 517,282 | 469,334 | |||||
Total liabilities and shareholders' equity | $ | 1,061,912 | $ | 1,066,671 | |||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
39 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 43,079 | $ | 38,650 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 31,415 | 20,126 | |||||
Provision for doubtful accounts | 4,483 | 9,619 | |||||
Stock-based compensation | 8,283 | 8,902 | |||||
Deferred income taxes | (6,029 | ) | 6,077 | ||||
Other operating activities | 20 | (148 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (6,597 | ) | (26,391 | ) | |||
Income taxes | 9,673 | (3,179 | ) | ||||
Other assets | (3,685 | ) | (6,510 | ) | |||
Accounts payable and other accrued expenses | 17,453 | (1,687 | ) | ||||
Accrued wages and benefits | 10,315 | 11,373 | |||||
Workers’ compensation claims reserve | 10,024 | 532 | |||||
Other liabilities | 1,883 | 2,539 | |||||
Net cash provided by operating activities | 120,317 | 59,903 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (12,590 | ) | (10,213 | ) | |||
Acquisition of businesses, net of cash acquired | — | (307,972 | ) | ||||
Purchases of marketable securities | — | (25,057 | ) | ||||
Sales and maturities of marketable securities | 1,500 | 43,917 | |||||
Change in restricted cash and cash equivalents | 13,070 | 10,020 | |||||
Purchases of restricted investments | (38,818 | ) | (18,196 | ) | |||
Maturities of restricted investments | 11,047 | 10,588 | |||||
Net cash used in investing activities | (25,791 | ) | (296,913 | ) | |||
Cash flows from financing activities: | |||||||
Net proceeds from stock option exercises and employee stock purchase plans | 1,164 | 1,673 | |||||
Common stock repurchases for taxes upon vesting of restricted stock | (3,725 | ) | (3,021 | ) | |||
Net change in revolving credit facility | (85,994 | ) | 146,994 | ||||
Payments on debt and other liabilities | (1,700 | ) | (1,700 | ) | |||
Other | 1,134 | 1,242 | |||||
Net cash provided by (used in) financing activities | (89,121 | ) | 145,188 | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,839 | ) | (937 | ) | |||
Net change in cash and cash equivalents | 3,566 | (92,759 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period | 19,666 | 122,003 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 23,232 | $ | 29,244 | |||
TRUEBLUE, INC.
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO ADJUSTED NET INCOME PER DILUTED SHARE
(Unaudited, in thousands, except for per share data)
13 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
GAAP net income | $ | 20,090 | $ | 20,910 | |||
Income tax expense | 12,796 | 8,243 | |||||
Interest expense, net | 366 | 409 | |||||
Income from operations | 33,252 | 29,562 | |||||
Depreciation and amortization | 10,498 | 9,719 | |||||
EBITDA (4) | 43,750 | 39,281 | |||||
Non-recurring acquisition and integration costs (1) | — | 2,339 | |||||
Adjusted EBITDA (4) | $ | 43,750 | $ | 41,620 | |||
GAAP net income per diluted share | $ | 0.48 | $ | 0.51 | |||
Non-recurring acquisition and integration costs, net of tax (1) | — | 0.03 | |||||
Amortization of intangible assets of acquired businesses, net of tax (2) | 0.07 | 0.07 | |||||
Adjust income taxes to a marginal rate (3) | (0.01 | ) | (0.08 | ) | |||
Adjusted net income per diluted share (5) | $ | 0.54 | $ | 0.53 | |||
Diluted weighted average shares outstanding | 41,620 | 41,038 | |||||
(1) | Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014. |
(2) | Amortization of intangible assets of acquired businesses. |
(3) | Adjust income taxes to a marginal rate of 40%. |
(4) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. 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 measures of financial performance in isolation or as an alternative to Income 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. |
(5) | Adjusted net income per diluted share is a non-GAAP financial measure which excludes from net income on a per diluted share basis non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions, net of tax, amortization of intangibles of acquired businesses, net of tax and adjusts income taxes to a marginal rate of 40%. Adjusted net income per diluted share is a key measure used by management in evaluating performance and communicating comparable results. Adjusted net income per diluted share should not be considered a measure of financial performance in isolation or as an alternative to net income per diluted share in the Consolidated Statements of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies. |