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
call at 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 about TrueBlue 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. 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.
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TRUEBLUE, INC.
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SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited, in thousands, except per share data)
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13 Weeks Ended
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March 28, 2014
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March 29, 2013
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Revenue from services
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396,063
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346,498
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Cost of services
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296,504
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259,859
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Gross profit
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99,559
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|
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86,639
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Selling, general and administrative expenses
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|
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91,982
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88,432
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Depreciation and amortization
|
|
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5,161
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|
|
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5,159
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|
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Income (loss) from operations
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2,416
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(6,952
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)
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Interest and other income, net
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344
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|
477
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Income (loss) before tax expense
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2,760
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(6,475
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)
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Income tax expense (benefit)
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1,104
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(5,399
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)
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Net income (loss)
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$
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1,656
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$
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(1,076
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)
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Net income (loss) per common share
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Basic
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0.04
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(0.03
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)
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Diluted
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0.04
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(0.03
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)
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Weighted average shares outstanding
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Basic
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40,572
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39,784
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Diluted
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40,891
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39,784
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TRUEBLUE, INC.
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SUMMARY CONSOLIDATED BALANCE SHEETS
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(Unaudited, in thousands)
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March 28, 2014
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December 27, 2013
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Assets
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Current assets:
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Cash and cash equivalents
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$
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128,818
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$
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122,003
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Marketable securities
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31,777
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14,745
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Accounts receivable, net
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186,084
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199,519
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Other current assets
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17,343
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20,191
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Total current assets
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364,022
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356,458
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Property and equipment, net
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53,317
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54,473
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Restricted cash and investments
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151,381
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154,558
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Other assets, net
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152,975
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153,972
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Total assets
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$
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721,695
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$
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719,461
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Liabilities and shareholders' equity
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Current liabilities
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$
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118,686
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$
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121,409
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Long-term liabilities
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206,213
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204,692
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Total liabilities
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324,899
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326,101
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Shareholders' equity
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396,796
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393,360
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Total liabilities and shareholders' equity
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$
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721,695
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$
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719,461
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TRUEBLUE, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Unaudited, in thousands)
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13 Weeks Ended
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March 28, 2014
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March 29, 2013
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Cash flows from operating activities
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Net income (loss)
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$
|
1,656
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$
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(1,076
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)
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Adjustments to reconcile net income (loss) to net cash from
operating activities
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Depreciation and amortization
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5,161
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5,159
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Provision for doubtful accounts
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3,487
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1,652
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Stock-based compensation
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2,876
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2,880
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Deferred income taxes
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(1,433
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)
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(3,573
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)
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Other operating activities
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(435
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)
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180
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Changes in operating assets and liabilities, net of acquisition
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Accounts receivable
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9,949
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4,982
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Income taxes
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3,567
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(2,136
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)
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Other assets
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(331
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)
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251
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Accounts payable and other accrued expenses
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(3,307
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)
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(6,990
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)
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Accrued wages and benefits
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1,380
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4,061
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Workers' compensation claims reserve
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261
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549
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Other liabilities
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664
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158
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Net cash provided by operating activities
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23,495
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6,097
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Cash flows from investing activities
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Capital expenditures
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(2,091
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(3,952
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Acquisition of business, net of cash acquired
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—
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(53,248
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)
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Purchases of marketable securities
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(25,057
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)
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—
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Sales and maturities of marketable securities
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9,450
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—
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Change in restricted cash and cash equivalents
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(1,491
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)
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(4,489
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)
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Purchases of restricted investments
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—
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(1,365
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)
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Maturities of restricted investments
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|
4,215
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|
|
4,128
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Net cash used in investing activities
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(14,974
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)
|
|
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(58,926
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)
|
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|
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Cash flows from financing activities
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|
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Net proceeds from stock option exercises and employee stock
purchase plans
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|
602
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|
2,266
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|
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Common stock repurchases for taxes upon vesting of restricted stock
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|
|
(2,474
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)
|
|
|
(2,010
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)
|
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Proceeds from note payable
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|
—
|
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|
|
34,000
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|
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Payments on debt and other liabilities
|
|
|
(567
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)
|
|
|
(397
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)
|
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Other
|
|
|
973
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|
|
|
479
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|
|
|
|
|
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|
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Net cash provided by (used in) financing activities
|
|
|
(1,466
|
)
|
|
|
34,338
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|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
(240
|
)
|
|
|
(222
|
)
|
|
|
|
|
|
|
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Net change in cash and cash equivalents
|
|
|
6,815
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|
|
|
(18,713
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)
|
|
|
|
|
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|
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CASH AND CASH EQUIVALENTS, beginning of period
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|
|
122,003
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|
|
|
129,513
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CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
128,818
|
|
|
$
|
110,800
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|
|
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|
|
|
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|
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|
|
TRUEBLUE, INC.
|
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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.
Copyright Business Wire 2014