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TRUEBLUE INC COM (TBI) filed Quarterly Report for the period ended 2011-09-30.
Trueblue has a market cap of $596.89 million; its shares were traded at around $13.83 with a P/E ratio of 21.61 and P/S ratio of 0.52. Trueblue had an annual average earning growth of 5.6% over the past 10 years.
This is the annual revenues and earnings per share of TBI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TBI.
Highlight of Business Operations:
Net income for the quarter grew to $13.9 million, or $0.33 per diluted share, compared to a net income of $10.2 million, or $0.23 per diluted share, for the third quarter of 2010.SG&A increased from $64.4 million for third quarter in the prior year to $73.2 million in the third quarter of 2011, but declined as a percentage of revenue from 20.6% to 19.7%. The decline in SG&A as a percentage of revenue was the result of leveraging our cost structure across more revenue for the third quarter of 2011 as compared to the same period in 2010. The increase in SG&A dollars between the third quarter of 2011 and the same period a year ago is primarily due to two items. First, our variable expenses increased with the revenue growth of $59 million over the same period a year ago. Second, we invested in sales and recruiting staff to fill open positions, and made market adjustment increases to compensation. Staffing levels have increased from recessionary lows and our turnover has declined. We believe these investments have accelerated our revenue growth trends during the third quarter of 2011 and will positively impact future quarters.
Our effective tax rate on earnings for the thirteen weeks ended September 30, 2011 was 38.8% compared to 37.7% for the same period in 2010. The principal difference between the statutory federal income tax rate of 35% and our effective income tax rate results from state and foreign income taxes, federal tax credits, and certain non-deductible expenses.
Fiscal 2011 will be a 52-week year as compared to fiscal 2010 which was a 53-week year resulting in a 14-week fourth quarter. For the 13-week fourth quarter of 2011, we estimate reported revenue growth of about 9% compared to the 14-week fourth quarter of 2010. On a comparable week basis, this revenue growth would be about 18%. The fourth quarter of 2011 starts one week later than the fourth quarter of 2010 and accordingly does not benefit from a seasonally higher volume week of revenue. This has the effect of reducing our expectation for reported revenue for the fourth quarter of 2011 and our growth rate comparisons by approximately 9%.
Our workers compensation reserves include estimated expenses related to claims above our deductible limits (“excess claims”), and a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. At September 30, 2011, the weighted average rate was 4.9%. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 19.4 years. The discounted workers compensation reserve for excess claims and the corresponding receivable for the insurance on excess claims were $25.9 million and $25.8 million as of September 30, 2011 and December 31, 2010, respectively.
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