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TrueBlue revenue beats guidance

April 24, 2015

Industrial staffing provider TrueBlue Inc. (NYSE: TBI) reported first-quarter revenue rose 44.8%, benefitting from its June acquisition of Seaton, one of the largest US staffing firms. However, revenue edged up only 0.4% year over year when excluding Seaton revenue. First-quarter revenue from Seaton totaled $175.8 million.

Revenue exceeded the guidance of $556 million to $570 million the company released with its fourth-quarter report.

(US$ thousands) Q1 2015 Q1 2014 % growth
Revenue from services-Total company $573,315 $396,063 44.8%
Revenue from services-Legacy TrueBlue $397,556 $396,063 0.4%
Revenue from services-Seaton $175,759 - -
Gross profit $129,836 $99,559 30.4%
Gross margin percentage 22.6% 25.1%  
Net income $5,716 $1,656 245.2%

Quote

This was a very good quarter for us, with record first-quarter revenue and net income,” said CEO Steve Cooper. “The recruitment process outsourcing and on-premise management businesses we acquired last summer are continuing to win in the marketplace and deliver impressive results. In addition, strategies we implemented over the past several months have produced adjusted EBITDA growth of 50% from legacy TrueBlue services.”

“Businesses are finding the right mix of contingent and permanent employees to drive their businesses forward with our talent and flexible workforce solutions,” Cooper said. “We can offer more to customers than ever before, and also serve more customers because of the investments we’ve made. It’s a great time to be a leader in delivering talent solutions that improve the performance of our customers.”

Guidance

TrueBlue estimates second-quarter revenue to range from $627 million to $642 million, or revenue growth of about 38% to 42% including the acquisition of Seaton which took place at the end of the second quarter of 2014.

Share price and market cap

Shares in TrueBlue rose 19.35% in early afternoon trading to $4.80. The company has a market cap of approximately $1.24 billion, according to Yahoo!