Daily News

View All News

Seaton acquisition boosts TrueBlue Q3 revenue

October 23, 2014

Third-quarter revenue at industrial staffing provider TrueBlue Inc. (NYSE: TBI) rose 40.4 percent with a boost from its acquisition of Seaton, which operates the Staff Management | SMX, PeopleScout and other brands. TrueBlue closed the deal on the first day of its third quarter.

Third-quarter revenue totaled $484.7 million. Of that, Seaton represented $148.6 million. TrueBlue’s organic third-quarter revenue growth was 2 percent — TrueBlue had also acquired The Work Connection, a Midwest-based staffing firm, in the fourth quarter of last year.

Gross margin narrowed to 25.2 percent from 27.4 percent in the year-ago quarter including the acquisitions of Seaton and The Work Connection.

TrueBlue has consolidated 52 branches year to date, resulting in 708 branches in operation at the end of the quarter.

Quote

“This has been a busy quarter for us, and with the bulk of Seaton integration behind us the fourth quarter remains just as exciting,” said President and CEO Steve Cooper. “Bringing the leadership teams together quickly from the newly acquired businesses with our existing leadership team has jumpstarted the process of offering a broader range of solutions to all our customers. In addition to the temporary staffing services we have traditionally provided, we can now do more for customers through sourcing, screening, and onboarding their on-premise temporary employees and permanent employees. “

Revenue

  Q3 2014 (000s) Q3 2013 (000s) % growth
Revenue $633,365 $451,169 40.4%

Gross margin

  Q3 2014  Q3 2013 
Gross margin 25.2% 27.4%

Net income

  Q3 2014 (000s) Q3 2013 (000s) % growth
Net income $20,910 $18,952 10.3%

Guidance

TrueBlue estimates fourth-quarter revenue to range from $695 million to $705 million, or revenue growth of about 56 percent. The company expects: Seaton revenue of $247 million to $253 million and legacy TrueBlue revenue of $445 million to $455 million. This represents flat organic revenue growth.

Share price and market cap

Shares in TrueBlue fell 12.67 percent in early afternoon trading to $23.15. The company has a market cap of approximately $922.62 million, according to Yahoo!