Fourth-quarter revenue fell 13.1% on a year-over-year basis at TrueBlue Inc. (NYSE: TBI), but it reported year-over-year growth in same-branch revenue returned in December.

The Tacoma WA-based industrial staffing firm reported fourth-quarter revenue of $262.2 million compared with $301.6 million in the same period last year.

"The fourth-quarter revenue was about $20 million better than what we had anticipated when the quarter began," CEO Steve Cooper said in a conference call with analysts. "This was driven by two primary factors. First, the demand in manufacturing, wholesale, and retail end markets remained strong throughout the quarter with additional momentum in December. And second, the one large customer project we had reported throughout this year continued stronger through the holidays than we had anticipated."

Same-branch revenue rose by 5.1% in December. It had fallen by 6.6% in November and by 30.2% in January 2009. The company closed 16 branches in the fourth quarter.

Cooper said TrueBlue continued to see declines in markets outside of manufacturing. Construction, in particular, continued to struggle.

Fourth-quarter gross margin narrowed to 27.8% from 29.3% in the year-ago quarter. CFO Derrek Gafford said increases in unemployment taxes will cut into first-quarter gross margin by 100 basis points.

TrueBlue posted fourth-quarter net income of $2.1 million compared with a net loss of $46.0 million in the fourth quarter of 2008. The year-ago quarter included a goodwill and intangible asset impairment charge of $61 million.

Full-year revenue fell 26.4% on a year-over-year basis to $1.02 billion, and full-year gross margin narrowed to 28.6% from 29.8%.

TrueBlue posted full-year net income of $8.8 million compared with a net loss of $4.2 million in 2008.

The company shrunk its headcount to 2,500 today from 4,000 two years ago, according to the conference call with analysts.

TrueBlue estimates first-quarter revenue of between $230 million and $240 million, a year-over-year increase of 2.5% to 7.0%.

TrueBlue Inc. (NYSE: TBI)
For the fourth quarter ended Dec. 25, 2009, compared with the same period in the previous year.
Revenue: $262.2 million, -13.1%
Net income: $2.1 million vs. net loss of $46.0 million

For the full year ended Dec. 25, 2009, compared with the previous year.
Revenue: $1.02 billion, -26.4%
Net income: $8.8 million vs. net loss of $4.2 million