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TrueBlue revenue up 8%, exceeds guidance

October 22, 2015

TrueBlue Inc. (NYSE: TBI), the largest US industrial staffing firm, reported third-quarter revenue rose 8.0% to $683.9 million, exceeding the $658 million to $673 million guidance released with its second-quarter report. Revenue rose 7.9% in staffing services and 10.0% in managed services, which includes recruitment process outsourcing and managed service provider business lines.

Legacy TrueBlue brands, along with new brands from its July 2014 acquisition of Seaton all showed strong growth, President and CEO Steve Cooper said in a conference call with investors. Growth is continuing to hold strong and show further acceleration across all service lines.

(US$ thousands) Q3 2015 Q3 2014 % growth
Revenue from services-Total company $683,918 $633,365 8.0%
Revenue from services-Staffing services $656,619 $608,543 7.9%
Revenue from services-Managed services $27,299 $24,822 10.0%
Gross profit $168,867 $159,599 5.8%
Gross margin percentage 24.7% 25.2%  
Net income $20,090 $20,910 -3.9%

Quote

“Our team delivered solid organic revenue results this quarter,” CEO Steve Cooper said. “The pace of growth took a significant step up compared to our growth in the first half of the year. We are especially pleased that the improved results came from most geographies and industries including construction. We also saw improvement with small to medium-sized customers and continued strength with national customers.”

Guidance

TrueBlue estimates fourth-quarter revenue to be between $738 million and $753 million, up 8% at the midpoint of the range.

Share price and market cap

Shares in TrueBlue rose 22.77% in early afternoon trading today to $27.98. The company has a market cap of approximately $1.17 billion, according to Yahoo!