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): February 9, 2011

TRUEBLUE, 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):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition.	
On February 9, 2011, TrueBlue, Inc. (the “Company”) issued a press release (the “Press Release”) reporting its financial results for the fourth quarter ended December 31, 2010 and revenue and earnings guidance for the first quarter of 2011, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference. Also included in the Press Release is information regarding an analysis of revenue growth/(decline) and an analysis of year-over-year same branch revenue growth.
In accordance with General Instruction B.2. of Form 8-K, the information contained above in this report (including the Press Release) 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 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.	
 
 	(d)	Exhibits	
 
 	99.1	Press Release of the Company dated February 9, 2011.	

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.

 	 	TRUEBLUE, INC.	
	 	(Registrant)	
			
Date: February 9, 2011	 	By:	 	/ S /    D ERREK L. G AFFORD      	
	 		 	Derrek L. Gafford	
	 		 	Chief Financial Officer and Executive Vice President	

Exhibit 99.1
FOR IMMEDIATE RELEASE:
TRUEBLUE REPORTS FOURTH QUARTER RESULTS
TACOMA, WA. – Feb. 9, 2011 —TrueBlue, Inc. (NYSE:TBI) today reported results for the 14-week fourth quarter and 53-week fiscal year ended Dec. 31, 2010. For the quarter, revenue was $312 million, an increase of 19 percent, from $262 million for the 13-week fourth quarter of 2009. Excluding the additional week in the fourth quarter of 2010, revenue growth would have been 14 percent but the impact to net income was immaterial due to the standard operating expenses of that week. Net income for the fourth quarter was $4.0 million or $0.09 per diluted share, an increase of about 85 percent compared to net income of $2.1 million or $.05 per diluted share for the fourth quarter of 2009.
“We generated strong revenue growth in the fourth quarter due to wide-spread demand across most industries and geographic areas,” said TrueBlue CEO Steve Cooper. “We are encouraged with the opportunity to continue expanding our profit margins in 2011.”
Cooper added, “I am extremely proud of our team for delivering outstanding results in 2010. We more than doubled our profits. I am constantly impressed with the caliber of our people at every level of our company and we are committed to investing in their continued development.”
For the first quarter of 2011, TrueBlue estimates revenue in the range of $260 million to $270 million and net (loss)/ income per diluted share for the quarter of ($0.05) to $0.00.
About TrueBlue
TrueBlue, Inc. is a leading provider of blue-collar staffing. In 2010, TrueBlue connected approximately 300,000 people to work through the following brands: Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, and Centerline, and served approximately 175,000 businesses in the services, retail, wholesale, manufacturing, transportation, and construction industries. TrueBlue, Inc. is headquartered in Tacoma, Wash. For more information, visit TrueBlue’s website at www.TrueBlueInc.com .
Forward-looking Statements
This news release contains forward-looking statements that reflect management’s current outlook for future periods, including statements regarding economic trends and future profitability. These forward-looking statements are based upon TrueBlue’s current expectations, and TrueBlue’s actual results may differ materially from those described or contemplated in the forward –looking statements. Factors that may cause TrueBlue’s actual results to differ materially from those contained in the forward-looking statements, include without limitation the following: 1) national and global economic conditions, including the impact of changes in national and global credit markets and other changes on TrueBlue customers; 2) TrueBlue’s ability to continue to attract and retain customers and maintain profit margins in the face of new and existing competition; 3) new laws and regulations that could have a materially adverse effect on TrueBlue’s operations and financial results; 4) significant labor disturbances which could disrupt industries TrueBlue serves; 5) increased costs and collateral requirements in connection with TrueBlue’s insurance obligations, including workers’ compensation insurance; 6) the adequacy of

TrueBlue’s financial reserves; 7) TrueBlue’s continuing ability to comply with financial covenants in its lines of credit and other financing agreements; 8) TrueBlue’s ability to attract and retain competent employees in key positions or to find temporary employees to fulfill the needs of its customers; 9) TrueBlue’s ability to successfully complete and integrate acquisitions that it may make from time to time; and 10) other risks described in TrueBlue’s filings with the Securities and Exchange Commission, including its most recent Form 10-K and Form 10-Q filings.
Contacts
Derrek Gafford, EVP & CFO
253-680-8214
Stacey Burke, VP of Corporate Communications
253-680-8291

																	
TRUEBLUE, INC.	 	
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS	 	
(Unaudited, in thousands, except per share data)	 	
					
 	  	14 Weeks Ended	 	  	13 Weeks Ended	 	  	53 Weeks Ended	 	  	52 Weeks Ended	 	
 	  	December 31,	 	  	December 25,	 	  	December 31,	 	  	December 25,	 	
 	  	2010	 	  	2009	 	  	2010	 	  	2009	 	
					
Revenue from services	  	$	311,943	  	  	$	262,150	  	  	$	1,149,367	  	  	$	1,018,418	  	
Cost of services	  	 	230,034	  	  	 	189,228	  	  	 	845,916	  	  	 	727,372	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Gross profit	  	 	81,909	  	  	 	72,922	  	  	 	303,451	  	  	 	291,046	  	
Selling, general and administrative expenses	  	 	71,797	  	  	 	65,538	  	  	 	258,722	  	  	 	262,182	  	
Depreciation and amortization	  	 	4,580	  	  	 	4,368	  	  	 	16,468	  	  	 	17,030	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income from operations	  	 	5,532	  	  	 	3,016	  	  	 	28,261	  	  	 	11,834	  	
Interest and other income, net	  	 	238	  	  	 	154	  	  	 	901	  	  	 	2,307	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income before tax expense	  	 	5,770	  	  	 	3,170	  	  	 	29,162	  	  	 	14,141	  	
Income tax expense	  	 	1,812	  	  	 	1,039	  	  	 	9,323	  	  	 	5,344	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	3,958	  	  	$	2,131	  	  	$	19,839	  	  	$	8,797	  	

Net income per common share:	  				  				  				  				
Basic	  	$	0.09	  	  	$	0.05	  	  	$	0.46	  	  	$	0.21	  	
Diluted	  	$	0.09	  	  	$	0.05	  	  	$	0.46	  	  	$	0.20	  	
					
Weighted average shares outstanding:	  				  				  				  				
Basic	  	 	43,308	  	  	 	42,946	  	  	 	43,224	  	  	 	42,842	  	
Diluted	  	 	43,738	  	  	 	43,277	  	  	 	43,540	  	  	 	43,014	  	

									
TRUEBLUE, INC.	 	
SUMMARY CONSOLIDATED BALANCE SHEETS	 	
(Unaudited, in thousands)	 	
			
 	  	December 31,	 	  	December 25,	 	
 	  	2010	 	  	2009	 	
Assets	  				  				
Current assets:	  				  				
Cash and cash equivalents	  	$	163,153	  	  	$	124,377	  	
Accounts receivable, net	  	 	108,692	  	  	 	105,246	  	
Other current assets	  	 	21,655	  	  	 	18,440	  	
	  	 	 	 	  	 	 	 	
Total current assets	  	 	293,500	  	  	 	248,063	  	
Property and equipment, net	  	 	53,958	  	  	 	60,353	  	
Restricted cash	  	 	120,067	  	  	 	124,012	  	
Other assets, net	  	 	78,941	  	  	 	85,701	  	
	  	 	 	 	  	 	 	 	
Total assets	  	$	546,466	  	  	$	518,129	  	

Liabilities and shareholders’ equity	  				  				
Current liabilities	  	$	85,923	  	  	$	84,835	  	
Long-term liabilities	  	 	147,836	  	  	 	147,862	  	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	233,759	  	  	 	232,697	  	
Shareholders’ equity	  	 	312,707	  	  	 	285,432	  	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	546,466	  	  	$	518,129	  	

TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 	  	53 Weeks Ended	 	 	52 Weeks Ended	 	
 	  	December 31,
2010	 	 	December 25,
2009	 	
Cash flows from operating activities:	  				 				
Net income	  	$	19,839	  	 	$	8,797	  	
Adjustments to reconcile net income to net cash:	  				 				
Depreciation and amortization	  	 	16,468	  	 	 	17,030	  	
Provision for doubtful accounts	  	 	8,158	  	 	 	14,545	  	
Stock-based compensation	  	 	7,159	  	 	 	7,066	  	
Deferred income taxes	  	 	5,322	  	 	 	2,772	  	
Other operating activities	  	 	(202	) 	 	 	1,062	  	
Changes in operating assets and liabilities:	  				 				
Accounts receivable	  	 	(11,604	) 	 	 	(14,812	) 	
Income taxes	  	 	(3,338	) 	 	 	13,397	  	
Other assets	  	 	(727	) 	 	 	919	  	
Accounts payable and other accrued expenses	  	 	747	  	 	 	(4,573	) 	
Accrued wages and benefits	  	 	2,752	  	 	 	2,015	  	
Workers’ compensation claims reserve	  	 	(2,195	) 	 	 	(14,091	) 	
Other liabilities	  	 	(406	) 	 	 	(522	) 	
	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	41,973	  	 	 	33,605	  	

Cash flows used in investing activities:	  				 				
Capital expenditures	  	 	(7,050	) 	 	 	(13,153	) 	
Change in restricted cash	  	 	3,945	  	 	 	(3,689	) 	
Other	  	 	(298	) 	 	 	94	  	
	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(3,403	) 	 	 	(16,748	) 	

Cash flows used in financing activities:	  				 				
Net proceeds from sale of stock through options and employee benefit plans	  	 	1,054	  	 	 	1,062	  	
Shares withheld for taxes upon vesting of restricted stock	  	 	(1,568	) 	 	 	(880	) 	
Payments on debt	  	 	(382	) 	 	 	(394	) 	
Other	  	 	129	  	 	 	(996	) 	
	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(767	) 	 	 	(1,208	) 	

Effect of exchange rates on cash	  	 	973	  	 	 	626	  	

Net change in cash and cash equivalents	  	 	38,776	  	 	 	16,275	  	
			
CASH AND CASH EQUIVALENTS, beginning of year	  	 	124,377	  	 	 	108,102	  	
	  	 	 	 	 	 	 	 	
CASH AND CASH EQUIVALENTS, end of year	  	$	163,153	  	 	$	124,377	  	

TRUEBLUE, INC.
Analysis of Revenue Growth / (Decline)
(Unaudited)

 	  	14 Weeks Ended	 	 	13 Weeks Ended	 	 	53 Weeks Ended	 	 	52 Weeks Ended	 	
 	  	December 31,
2010	 	 	December 25,
2009	 	 	December 31,
2010	 	 	December 25,
2009	 	
Major Revenue Trends	  				 				 				 				
Organic revenue growth / (decline)	  	 	19.0	% 	 	 	(13.1	%) 	 	 	12.9	% 	 	 	(27.8	%) 	
Acquisitions within last 12 months	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	1.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue growth / (decline)	  	 	19.0	% 	 	 	(13.1	%) 	 	 	12.9	% 	 	 	(26.4	%) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Organic Revenue Trends (1)	  				 				 				 				
Same branch	  	 	15.9	% 	 	 	(6.2	%) 	 	 	13.9	% 	 	 	(21.5	%) 	
Same branch excluding largest customer	  	 	25.4	% 	 	 	(17.0	%) 	 	 	18.9	% 	 	 	(28.3	%) 	
New branches	  	 	0.5	% 	 	 	0.5	% 	 	 	0.9	% 	 	 	0.2	% 	
Consolidated / closed branches (2)	  	 	(2.1	%) 	 	 	(8.9	%) 	 	 	(3.1	%) 	 	 	(7.7	%) 	
53rd week (3)	  	 	5.5	% 	 	 	0	% 	 	 	1.4	% 	 	 	0	% 	
 
(1)	Percentages for organic revenue components do not sum to total organic revenue growth / (decline) as same branch growth is determined off a revenue base of branches open for 12 or more months, whereas other organic revenue growth components are measured off a total revenue base.	
(2)	Represents the impact on revenue trends from closed branches assuming no customer retention. The majority of our closed branches are consolidated with another branch to retain customer relationships. The impact of retained customers is captured in same branch revenue.	
(3)	Represents revenue growth as a result of an additional week in the quarter and year ended December 31, 2010 in comparison with the same period in the prior year.	
TRUEBLUE, INC.
Schedule of Year-Over-Year Same Branch Revenue Growth
(Unaudited)

January 2010	  	 	5	% 	
February 2010	  	 	13	% 	
March 2010	  	 	15	% 	
Q-1 2010	  	 	12	% 	
April 2010	  	 	18	% 	
May 2010	  	 	23	% 	
June 2010	  	 	12	% 	
Q-2 2010	  	 	17	% 	
July 2010	  	 	9	% 	
August 2010	  	 	10	% 	
September 2010	  	 	13	% 	
Q-3 2010	  	 	11	% 	
October 2010	  	 	17	% 	
November 2010	  	 	15	% 	
December 2010	  	 	17	% 	
Q-4 2010	  	 	16	% 	
Fiscal Year 2010	  	 	14	%