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TrueBlue revenue down 30.7%, scaling back

April 23, 2009

TrueBlue Inc. (NYSE: TBI) reported Wednesday that first-quarter revenue fell 30.7% year-over-year, and the Tacoma WA-based industrial staffing firm said it's scaling back costs to match demand. TrueBlue reported it closed 40 branches in the first quarter, leaving it with 810. The company also reduced headcount by 20% in the last 12 months, cut executive pay and put in place pay freezes, CFO Derrek Gafford said in a conference call with analysts.

Revenue for the first-quarter totaled $224.4 million compared with $324.0 million in the first quarter of last year. Organic revenue fell 36% year-over-year, but a 5% boost from acquisitions in the last year brought the decline to 31%.

Gross margin narrowed to 27.9% from 30.4% in the year-ago quarter.

TrueBlue posted a first-quarter net loss of $5.3 million compared with net income of $8.8 million in the first quarter of 2007.

It estimated second-quarter revenue of between $225 million to $235 million, down 36.6% to 39.3% year-over-year.

The Tacoma WA-based company's brands include Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs and TLC.

TrueBlue Inc. (NYSE: TBI)
For the first quarter ended March 27, 2009, compared with the same period in the previous year.
Revenue: $224.4 million, -30.7%
Net loss: $5.3 million vs. net income of $8.8 million