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TrueBlue revenue rises 7%

July 24, 2014

Industrial staffing firm TrueBlue Inc. (NYSE: TBI) reported second-quarter revenue rose 7.3 percent year over year to $453.2 million. Net income was approximately $16.1 million in the second quarter, up 28.3 percent from $12.5 million in the same quarter last year.

Gross margin at TrueBlue edged down to 26.4 percent from 26.5 percent in the same quarter last year.

Second-quarter results include $2 million of deal/integration costs related to TrueBlue’s $310 million acquisition of Seaton Corp. TrueBlue completed the acquisition on June 30, the first day of its third quarter.

TrueBlue ranks as the fifth-largest industrial staffing firm in the U.S., and Seaton ranks as the 13th-largest, based on 2013 revenue. The combined entity would now be the largest industrial staffing provider in the U.S. based on 2013 results.

TrueBlue’s brands include Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, Centerline Drivers and TrueBlue Energy & Industrial. Through the Seaton acquisition, TrueBlue added PeopleScout, Staff Management | SMX and Australia-based HRX to its service lines. The company expects Seaton’s service lines to add approximately $730 million to $750 million of revenue to the company’s consolidated results over the next four quarters.

Quote
“We are pleased with our growth in the second quarter along with the momentum we have seen in June as seasonal business ramps up,” said CEO Steve Cooper. “Our organic growth continues to be strong, and the acquisitions we made in 2013 are performing to our expectations.”

“We’re particularly excited about our recent acquisition of Seaton, which is off to a great start and getting favorable reactions from our customers,” Cooper said. “We’re looking forward to offering a broader range of outsourcing workforce solutions to all our customers. In addition to the temporary staffing services we’ve traditionally provided, we can now do more for customers through sourcing, screening and onboarding their on-premise temporary workers and permanent employees.”

Revenue

  Q2 2014 ($000s) Q2 2013 ($000s) % growth
Revenue $453,227 $422,310 7.3%

Gross margin

  Q2 2014  Q2 2013 
Gross margin 26.4% 26.5%

Net income

  Q2 2014 ($000s) Q2 2013 ($000s) % growth
Net income $16,082 $12,537 28.3%

Guidance
TrueBlue estimates third-quarter consolidated revenue to range from $634 million to $647 million. TureBlue estimates its staffing solutions group’s revenue to range from $485 million to $495 million. Third-quarter revenue for the outsourcing solutions group — which is comprised of the acquired Seaton brands — is estimated to range from $147 million to $152 million.

Share price and market cap
Shares in TrueBlue fell 4.22 percent in early afternoon trading to $29.50 and TrueBlue has a market cap of approximately $1.17 billion, according to Yahoo!