UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported):  November 16, 2005
 
LABOR READY, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Washington
(State or Other Jurisdiction of Incorporation)

001-14543	 	91-1287341	
(Commission File Number)	 	(IRS Employer Identification No.)	
 	 	 	
1015 A Street, Tacoma, Washington	 	98402	
(Address of Principal Executive Offices)	 	(Zip Code)	
 
(253) 383-9101
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
o                                     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o                                     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o                                     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o                                     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 7.01.                                           Regulation FD Disclosure
 
In connection with a management presentation with analysts and portfolio managers scheduled for November 16, 2005 at 12:00 PM (ET) in New York City, the Company has issued a press release (the “Press Release”), which is attached to this report as Exhibit 99.1.  Also, copies of the slide presentation which will be presented by the Company at the management presentation and generally to members of the financial and investment community from time to time (the “Investor Presentation”), are attached to this report as Exhibit 99.2 and are also available on the Company’s website, www.laborready.com.
 
In accordance with General Instruction B.2. of Form 8-K, the information contained in this report (including the Press Release and Investor Presentation) shall not be deemed “Filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the Press Release or the Investor Presentation be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.  This report will not be deemed a determination or an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.
 
Item 9.01.                                           Financial Statements and Exhibits.
 
(c)                                   Exhibits
 
99.1.                         Press Release of Labor Ready, Inc. dated November 16, 2005
 
99.2                            Investor Presentation

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	LABOR READY, INC.	
 	 	(Registrant)	
 	 	 	
Date: November 16, 2005	By:	/s/ Steven C. Cooper.	 	
 	 	 	
 	 	Steven C. Cooper	
 	 	Chief Financial Officer	
 
2

 
EXHIBIT 99.1
 
FOR IMMEDIATE RELEASE:
 
LABOR READY TO PRESENT COMPANY UPDATE
Reaffirms 2005 Forecasts and Provides 2006 Outlook
 
TACOMA, WA, November 16, 2005 —Labor Ready, Inc. (NYSE: LRW) CEO Joe Sambataro and President and CFO Steve Cooper will review the company’s current strategies and operational trends with analysts and portfolio managers at 12 p.m. (ET), today in New York City. The slides from the presentation will be available on the Labor Ready website (http://www.laborready.com) under Investor Relations.
 
In anticipation of management’s presentation, the company reaffirmed its previously released forecast for the fourth quarter of 2005 and for the year. The company estimates net income per share for the fourth quarter to be between $0.24 and $0.26 with net income per share for the year to be between $1.13 and $1.15. Estimated revenue for the quarter is expected to be between $325 and $330 million with revenue for the year expected to be in the range of $1.225 to $1.230 billion.
 
Labor Ready also announced plans to open 40 branches in 2006 and finish 2005 with approximately 890 branches. The company anticipates opening most of its new locations in the first two quarters of 2006.
 
Management also provided their initial outlook for fiscal year 2006. Net income per share for the year is estimated to be between $1.30 and $1.35. Estimated revenue for the year is expected to be in the range of $1.370 to $1.390 billion. Included in these estimates is the net income per share impact related to “Share-Based Payments,” of $0.06 per share for the year compared to $0.02 per share for share based payments in 2005.
 
The company expects to release its financial results for the fourth quarter ending Dec. 30, 2005 after the market closes on Feb. 1. 2006 and will host a conference call at 8 a.m. (PT) on Feb. 2, 2006. Details for the conference call will be announced separately.
 
About Labor Ready
Labor Ready is an international provider of temporary employees for manual labor, light industrial and skilled construction jobs, operating under the brand names of Labor Ready, Workforce, Spartan Staffing, and CLP Resources. Labor Ready’s customers are primarily small- to mid-sized businesses in the transportation, warehousing, hospitality, landscaping, construction, light manufacturing, retail, wholesale, facilities and sanitation industries. Annually, Labor Ready serves approximately 300,000 customers and puts more than 600,000 people to work through its more than 890 branch locations in the United States, Canada, and the United Kingdom.   For additional information, visit Labor Ready’s website at www.laborready.com.
 
This news release contains forward-looking statements, such as statements about the ranges of revenues, gross margins and net income anticipated for future periods, improvements in safety and workers’ compensation claims and costs, strategies for increasing revenue and net income, and other factors that may affect Labor Ready’s financial results and operations in the future. Labor Ready’s actual results are, however, subject to a number of risks, including without limitation the following:  1) national and global economic conditions; 2) Labor Ready’s ability to continue to attract and retain customers and maintain profit margins in the face of new and existing competition; 3) potential new laws and regulations that could have a materially adverse effect on Labor Ready’s operations and financial results; 4) significant labor disturbances which could disrupt industries Labor Ready serves; 5) increased costs and collateral requirements in connection with Labor Ready’s insurance obligations, including workers’ compensation insurance; 6) adverse safety and risk management experiences; 7) the adequacy of Labor Ready’s financial reserves; 8) Labor Ready’s continuing ability to comply with financial covenants in its lines of credit and other financing agreements; 9) Labor Ready’s ability to attract and retain competent employees in key positions; 10) Labor Ready’s ability to successfully complete and integrate CLP Resources and other acquisitions that it may make

 
from time to time; and 11) other risks described in Labor Ready’s filings with the Securities and Exchange Commission, including its most recent Form 10-K and Form 10-Q filings.
 
For more information, contact:
 
Steve Cooper, President and CFO
253-680-8213
 
Stacey Burke, Director of Corporate Communications
253-680-8291

 
 
Exhibit 99.2

 
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L abor Ready Analyst Day
 
[GRAPHIC]
 
LABOR READY WE PUT PEOPLE TO WORK

 
Sa fe Harbor Statement
 
Cautionary Note about Forward–Looking Statements
 
Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward–looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any forward–looking statements made by us. Forward-looking statements involve a number of risks and uncertainties including, but not limited to, the risks described in the Company’s most recent 10–K and 10–Q filings. All forward-looking statements are qualified by those risk factors.
 
1

 
In troduction to Directors
 
Bob Sullivan
Chairman
 
Keith Grinstein
 
Gates McKibbin
 
Joe Sambataro
 
Bill Steele
 
2

 
Ma nagement Team
 
Joe Sambataro
CEO
 
Steve Cooper
President & CFO
 
Bob Breen
VP, Strategic Planning
 
Chris Burger
Regional VP, Operations
 
Jim Defebaugh
VP & General Counsel
 
Derrek Gafford
VP, Finance
 
Yolanda Hubbard
VP, National Sales & Marketing
 
Wayne Larkin
Regional VP, Operations
 
Gary North
Regional VP, Operations
 
Billie Otto
VP, Chief Information Officer
 
Noel Wheeler
President & CEO, CLP Resources
 
3

 
“W e Put People to Work.”
 
More than 600,000 people employed annually

[LOGO] 

797 BRANCHES	 	The largest supplier of on–demand manual labor with branch locations in the U.S., Canada and the U.K.	
 	 	 	
[LOGO] 

53 BRANCHES	 	One of the largest companies focusing exclusively on skilled trades staffing.	
 	 	 	
[LOGO] 

21 BRANCHES	 	Southeastern supplier of on–demand manual labor with locations in Florida and other Southeastern states.	
 	 	 	
[LOGO] 

18 BRANCHES	 	Supplier of light industrial labor to small– and mid–size businesses with locations in Florida and other Southeastern states.	
 
4

 
In vestment Highlights
 
•                   Market leader in fragmented industry
 
•                   Large and growing market
 
•                   Favorable demographic trends
 
•                   Diverse customer base
 
•                   Scalable and flexible model
 
•                   Significant capacity for operating margin expansion
 
•                   Strong management and controls
 
Labor Ready is realizing significant operating leverage as it benefits from a growing economy and the maturation of its existing branch network.
 
5

 
Co nsolidated Revenues
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
6

 
Av erage Sales per Branch
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
7

 
Co nsolidated Net Income %
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
8

 
Di luted Earnings per Share
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
9

 
Re turn On Assets
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
10

 
Re turn On Equity
 
[CHART]

(E) - Based on management guidance issued on Nov. 16, 2005
 
11

 
Gr owth Industry
 
•                   U.S. staffing market: $131 billion industry (a)
 
•                   U.S. industrial staffing: $22 billion (a)
 
•                   Estimated U.S. on–demand labor market: $6–$7 billion (b)
 
On Demand Labor
Market Breakdown
 
[CHART]

(a)  Staffing Industry Analysts, 2006 Projection
(b)  Company research estimates
 
12

 
Di versified Customer Base
 
•                   More than 300,000 customers
•                   Largest customer represents less than 2% of sales
•                   Average yearly sales per customer of $3,900
•                   More than 400 industry classifications
 
Sales by Industry in 2005

Construction & Landscaping	 	39	%	
Manufacturing	 	18	%	
Hospitality, Services & Other	 	18	%	
Transportation	 	10	%	
Wholesale	 	10	%	
Retail	 	6	%	
 
[CHART]
 
13

 
Br anch Office Model
 
•                   Matching customer and worker needs

Branch Office	 	Work Site	 	Branch Office	
•                   Recruit workers	 	•                   Work performed	 	•                   Workers exchange time card for pay	
•                   Screen and test	 	•                   Customer signs time card	 	 	
•                   Assign work	 	 	 	 	
•                   Provide safety equipment and training	 	 	 	 	
 
14

 
St rong Value Proposition
 
•                   Attracting customers with:
•                   Outsource the recruiting, screening and hiring of workers
•                   Eliminate hiring and layoff costs
•                   Access to workers on short notice
•                   Management of labor costs
•                   National scale and multiple locations
•                   100% Satisfaction Guarantee
 
•                   Attracting workers with:
•                   Flexibility
•                   Work Today – Paid Today
•                   Access to full–time employment opportunities
 
15

 
Br anch Expansion
 
•                   Quickly developed branch footprint
 
•                   Acquired 25 branches in 2004; and 50 in 2005
 
•                   Opening approximately 45 new locations in 2006 (5% of base)
 
Number of Branch Offices
 
[CHART]
 
16

 
Te mporary Employee Penetration
 
•                   Temporary employees make up a small but growing share of total employment in the U.S.
 
[CHART]

* Source:  Bureau of Labor Statistics
 
17

 
Co nstruction Employment Growth
 
Construction Employment Growth
(Year over year growth in total permanent employees)
 
39% of Sales
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
18

 
Ma nufacturing Employment Growth
 
Manufacturing Employment Growth
(Year over year growth in total permanent employees)
 
18% of Sales
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
19

 
Tr ansportation Employment Growth
 
Transportation Employment Growth
(Year over year growth in total permanent employees)
 
9% of Sales
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
20

 
Wh olesale Employment Growth
 
Wholesale Trade Employment Growth
(Year over year growth in total permanent employees)
 
9% of Sales
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
21

 
Re tail Employment Growth
 
Retail Employment Growth
(Year over year growth in total permanent employees)
 
6% of Sales
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
22

 
He lp Supply Employment Growth
 
Help Supply Employment Growth
(Year over year growth in total employees)
 
[CHART]
 
Source: Bureau of Labor Statistics. Measured on a trailing 12 month basis. Not seasonally adjusted.
 
23

 
Fa vorable Demographic Trends
 
Temporary Employment
expected to be the fifth fastest growing industry over the next decade with nearly 1.8 million new jobs by 2012*
 
Unskilled Jobs
expected to make up 70% of the top 20 fastest growing occupations*
 
Construction
expected to be the only U.S. goods–producing industry with employment growth during the next decade*
 
TEMPORARY EMPLOYMENT
A GROWTH INDUSTRY
 
[CHART]

* Source:  Bureau of Labor Statistics, 2012 Projections
 
24

 
Bu siness Strategies
and
Financial Update

 
Ke y Business Strategies

	Grow same branch revenues and profits	
 	 	
	Expand into new markets	
 	 	
	Diversify services and brands	
 
25

 
Gr ow Same Branch Revenues & Profits
 
•                   Sales
•                   Branches currently at 50% of optimal capacity
•                   Comprehensive sales training launched in 2005
•                   CRM System deployed in 2005
•                   New sales force incentive plan slated for 2006
 
•                   Customer Service
•                   Improved tenure rates of branch teams
•                   Expanded customer call center operations
•                   Expanded services for multi–branch customers
 
•                   Leadership Development
•                   Experienced Sr. Management Team driving strategy
•                   Tenure rates of operations leadership team at all-time high

 
26

 
Re gional Results
 
Excludes acquired locations from Spartan Staffing and CLP Resources
 
[GRAPHIC]

 
27

 
Br anch Profit Potential

 	 	SENSITIVITY ANALYSIS BASED ON	 	
 	 	 	 	 	 	 	 	
Revenue	 	$	1,400,000	 	$	1,600,000	 	$	1,800,000	 	
 	 	 	 	 	 	 	 	
Gross Profit	 	420,000	 	480,000	 	540,000	 	
Gross Profit Margin	 	30.0	%	30.0	%	30.0	%	
 	 	 	 	 	 	 	 	
Branch Expenses	 	216,000	 	230,000	 	244,000	 	
As a % of Revenue	 	15.4	%	14.4	%	13.6	%	
 	 	 	 	 	 	 	 	
Operating Income	 	$	204,000	 	$	250,000	 	$	296,000	 	
Operating Income Margin	 	14.6	%	15.6	%	16.4	%	

 
28

 
Ta rgeted Incremental Profit %

 	 	Percentage of	 	
 	 	Incremental	 	
 	 	Same Branch	 	
 	 	Sales	 	
Revenue	 	100	%	
Gross Profit	 	30	%	
Variable Operating Costs(A)	 	14	%	
Income before Taxes	 	16	%	
Net Income after Taxes	 	10	%	
 
2005(E) Net Income After Taxes Is Expected to be 5.0% as a percentage of revenues.

(A) - Includes management’s estimate of variable branch, region, and corporate costs as a percentage of incremental revenue.
 
(E) - Based on management guidance issued on Nov. 16, 2005

 
29

 
Br anch Maturity Drives Revenue
 
Branch Revenue and Maturity (2002 – 2004 Avg.)
 
[CHART]
 
AVERAGE BRANCH AGE = 6.8 YEARS
 
Excludes acquired locations from Spartan Staffing and CLP Resources.

 
30

 
Op erating Leverage Drives Profits
 
Earnings Per Share Sensitivity Analysis (a)
 
[CHART]

(a) Earnings per share sensitivity analysis based on consistent gross profit margins, management’s estimates of fixed and variable expenses, regional and back office overhead and related assumptions, at varying levels of per office revenues.
 
(E) - Based on management guidance issued on Nov. 16, 2005

 
31

 
Ex pand into New Markets
 
•                   Holding New Branch Openings to 5% of Base
•                   Limits dilution to current earnings
•                   Modest number of new branch openings keeps field management focused on growing our existing branches
•                   Avoids over–investment in the event of economic downturn
•                   Consistent approach to levels of investment for new operations

 
32

 
•                   Resource Allocation:
How We Decide Where to Expand
•                   Market potential and return on investment
•                   Human capital availability and readiness
•                   Speed to breakeven
•                   Track record of successful new branch expansion

 
33

 
Br and Distinctions

[LOGO]	 	[LOGO]	 	[LOGO]	
 	 	 	 	 	
ON DEMAND	 	LIGHT INDUSTRIAL	 	SKILLED TRADES	
Short Assignments	 	Longer Assignments	 	Longer Assignments	
All Industries	 	Manufacturing & Warehousing	 	Construction	
$6–$7 per Hour Wage Rate Daily Pay	 	$7–$8 per Hour Wage Rate Weekly Pay	 	$12–$18 per Hour Wage Rate Weekly Pay	
90% of Marketing	 	Marketing Efforts Split 50/50	 	Marketing Efforts Split 50/50	
Focused on Customers	 	Between Customers and Workers	 	Between Customers and Workers	
Small-Medium Customers	 	Small–Medium Customers	 	Small–Medium Customers	

 
34

 
Ne w Branch Economics

 	 	[LOGO]	 	[LOGO]	 	[LOGO]	 	
 	 	 	 	 	 	 	 	
Capital Expenditure Costs	 	$	35,000	 	$	50,000	 	$	70,000	 	
 	 	 	 	 	 	 	 	
Revenue Expectations	 	[CHART]	 	[CHART]	 	[CHART]	 	
(in thousands)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Gross Margins	 	30-32	%	22-24	%	28-30	%	
 	 	 	 	 	 	 	 	
Initial Expense Structure	 	$	12,000 per Mo.	 	$	15,000 per Mo.	 	$	25,000 per Mo.	 	
 	 	 	 	 	 	 	 	
Targeted Breakeven Period	 	12 Months	 	15 Months	 	19 Months	 	
 	 	 	 	 	 	 	 	
Mature Branch Profitability (a)	 	12	%	12	%	12	%	
 	 	 	 	 	 	 	 	
Targeted After-tax Return on Investment	 	35	%	35	%	35	%	

(a)Targeted branch-level profitability as a percentage of revenues in the fourth year of operation. Excludes regional and corporate costs, depreciation, amortization, interest and taxes.

 
35

 
20 06 Labor Ready Expansion Plans
 
•                   20–25 New Labor Ready Locations
 
•                   Disbursed throughout North America
 
•                   No New Locations Planned for UK in 2006
 
[GRAPHIC]

 
36

 
20 06 Spartan Expansion Plans
 
•                   10 New locations in 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         [LOGO]
 
•                   Areas of Expansion Focus:
•                   Adjacent Markets
 
[GRAPHIC]

 
37

 
20 06 CLP Expansion Plans
 
•                   12 New Locations in 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     [LOGO]
 
•                   Areas of Expansion Focus:
•                   Texas and Florida
 
[GRAPHIC]

 
38

 
Di versify Services & Brands
 
•                   Rationale
•                   Common customer base
•                   Leverage recruiting resources
•                   Channel synergies
•                   Opportunity to create a growth platform
•                   Opportunity to leverage management and systems
 
•                   Constraints
•                   Fit and culture
•                   Financial capital / investment return
•                   Human capital
•                   Speed of integration

 
39

 
Si gnificant Growth Opportunities
 
•                   Available Through Diversification
 
Executing a strategy to build the dominant national provider in the fragmented temporary light industrial and skilled trades staffing industries, serving small- and mid-sized companies.
 
TEAMING UP WITH LABOR READY

 	 	Diversification of
service offerings	 	Expansion into
New Markets
where Labor
Ready already
has a presence	 	Cross-selling
Opportunities
with Labor
Ready’s existing
Customers	 	Recruiting
Potential in
Labor Ready’s
800+ Branch
Network and
Screening
600,000 available
workers	
Attractive
Industry	 	 	 	 	 	 	 	 	
 	 	Attractive Industry Dynamics	 	 	 	 	

 
40

 
Ta rgeted Diversification
 
[GRAPHIC]

 
41

 
Sp artan Group Acquisition
 
•                   Acquired April 1, 2004
•                   2003 Revenues of $50 Million
•                   2003 Cash Flow* of $2.3 Million
•                   $9.8 Million Purchase Price
•                   Accretive: Projected 2005 Cash Flow* of $3.9 Million
 
[LOGO]
 
Revenues
 
[CHART]
 
Cash Flow*
 
[CHART]

*Defined as net income before interest, taxes, depreciation and amortization measured over the trailing 12 months ended September 2005. Includes acquired branches only.

 
42

 
CL P Resources Acquisition
 
•                   Acquired May 27, 2005
•                   2004 Revenues of $114 Million
•                   2004 Cash Flow* of $7.5 Million
•                   $46 Million Purchase Price
•                   Accretive: Projected 2005
Cash Flow* of $6.5 Million
 
[LOGO]
 
CLP Resources Sales Growth
 
[CHART]

*Defined as net income before interest, taxes, depreciation and amortization.

 
43

 
Sp eed of Integration
 
Integration Phases
 
1.                Culture
 
2.                Policies and Systems
 
3.                Cross Selling and Employee Referrals

 
44

 
Fi nancial Highlights
 
•                   Improving revenue and profitability
 
•                   Strong gross margins
 
•                   Controlled operating costs
 
•                   Significant operating leverage
 
•                   Strong balance sheet
 
45

 
Lo ng-Term Growth
 
Annual Revenue and Operating Income (in $M)
 
[CHART]

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
46

 
Mo nthly Sales Growth Trends
 
[CHART]
 
47

 
Co nsistent Gross Margin
 
•                   Gross Margin as a Percentage of Revenue
 
[CHART]

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
48

 
Se lling, General & Admin. Costs
 
•                   Trailing four quarters as a percentage of revenue
 
[CHART]

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
49

 
Ne t Income
 
•                   Trailing four quarters as a percentage of revenue
 
[CHART]

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
50

 
20 05(E) Net Income Growth
 
[CHART]

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
51

 
St rong Balance Sheet

 	 	Q3 2005	 	Q4 2004	 	
Cash and investments	 	$	130M	 	$	141M	 	
Current ratio	 	3.0	 	3.2	 	
Restricted cash	 	$	147M	 	$	129M	 	
Workers’ compensation reserve	 	$	168M	 	$	136M	 	
Long term debt	 	$	2M	 	$	73M	 	
Shareholders’ equity	 	$	330M	 	$	202M	 	
 
52

 
Fi nancial Outlook

 	 	2003	 	2004	 	2005(E)	 	2006 Forecast(E)	 	
Revenues	 	$	891	 	$	1044	 	$1,225 - 1,230	 	$1,370 - $1,390	 	
Organic Growth	 	3	%	12	%	9 - 10	%	7 - 9	%	
Acquisition Growth	 	0	%	5	%	8	%	4	%	
Total Revenue Growth	 	3	%	17	%	17 - 18	%	11 - 13	%	
 	 	 	 	 	 	 	 	 	 	
Net Income	 	$	18	 	$	39	 	$59 - $60	 	$71 - $74	 	
Net Income Growth	 	51	%	107	%	54 - 57	%	18 - 23	%	
 	 	 	 	 	 	 	 	 	 	
“Share-based Payments”	 	 	 	 	 	$0.02	 	$0.06	 	
 	 	 	 	 	 	 	 	 	 	
Earnings per Share	 	$	0.41	 	$	0.75	 	$1.13–$1.15	 	$1.30–$1.35	 	

 	Amounts in millions of U.S. dollars, except per share amounts.	

 	(E) - Based on management guidance issued on Nov. 16, 2005	
 
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In vestment Highlights
 
•                   Market leader in fragmented industry
•                   Large and growing market
•                   Favorable demographic trends
•                   Diverse customer base
•                   Scalable and flexible model
•                   Significant capacity for operating margin expansion
•                   Strong management and controls
 
Labor Ready is realizing significant operating leverage as it benefits from
a growing economy and the maturation of its existing branch network.
 
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