"The stronger than expected revenue growth during Q2 was primarily driven by same-branch revenue growth across most geographies and industries other than construction," TrueBlue President and CEO Steve Cooper said in a conference call with analysts.

"California, Texas and Florida, three large revenue states for us, have all experienced growth this quarter," Cooper said. "Our Northwest operations in Washington, Oregon, Idaho, Montana and Utah were the last to experience the downturn, and seem to be the last to stabilize, and are still struggling to find growth but are most recently showing improvement."

The Tacoma WA-based industrial staffing firm reported same-branch revenue rose 17.1% on an organic basis in the second quarter. Excluding the company's largest customer, The Boeing Co., same-branch revenue rose 23.1%.

Second-quarter gross margin narrowed to 26.6% from 29.5% in the year-ago quarter. Higher workers compensation expense, increased state unemployment taxes, an increase in the mix of light industrial and large customer work, and a price cut offered to Boeing lowered the margin, CFO Derrek Gafford said in a conference call with analysts.

Net income rose 112.4% in the second quarter to $7.9 million.

TrueBlue estimates third-quarter revenue of between $295 million to $305 million, a year-over-year increase of 3.6% to 7.1%.

TrueBlue Inc. (NYSE: TBI)
For the second quarter ended June 25, 2010, compared with the same period in 2009.
Revenue: $284.8 million, +15.3%
Net income: $7.9 million, +112.4%