Washington
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91-1287341
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(State of Incorporation)
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(IRS Employer ID)
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1015 A Street, Tacoma, Washington
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98402
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
|
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Name of each exchange on which registered
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Common Stock without par value
|
|
The New York Stock Exchange
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Page
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PART I
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||
Item 1.
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||
Item 1A.
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||
Item 1B.
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Item 2.
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||
Item 3.
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||
Item 4.
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||
PART II
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||
Item 5.
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||
Item 6.
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||
Item 7.
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||
Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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||
Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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||
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Item 1.
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BUSINESS
|
•
|
Growing revenue within our existing geographic footprint;
|
•
|
Expanding into new geographic areas; and,
|
•
|
Making strategic acquisitions.
|
•
|
Dedicated vertical market sales leaders with in-depth industry knowledge and expertise in providing temporary staffing services to customers in their respective blue-collar markets and customer groups we serve;
|
•
|
National, regional and local sales and service teams that deliver industry specific solutions specialized to the needs of our customers;
|
•
|
Strong customer relationships and loyalty from the local to national level;
|
•
|
Focused training to build industry expertise and enhanced sales and service capabilities; and,
|
•
|
Investment in new technologies and programs to further expand our ability to recruit and dispatch temporary workers outside our branch network, increase our ability to fill customer orders, and increase efficiencies.
|
•
|
Spartan Staffing plans to expand into adjacent markets and into on-site locations where our customers have significant requirements for temporary skilled labor in the manufacturing and logistics industries. At the end of fiscal 2011, Spartan Staffing operated 56 branches in 14 states and Puerto Rico.
|
•
|
We believe that we are well positioned to serve the construction market as growth begins to return to this industry through our CLP Resources brand. We retained the expertise and customer relationships to service various types of construction and expanded our service offerings to include remote industrial construction projects, industrial plant repair and maintenance projects and emerging renewable energy projects such as solar and wind farms. At the end of fiscal 2011, CLP Resources operated 50 branches in 20 states and Canada.
|
•
|
PlaneTechs has multiple expansion opportunities within aviation and other transportation industries to supply mechanics using our current centralized model which does not require additional office locations.
|
•
|
Centerline Drivers will leverage our network of branch offices for its expansion in providing temporary and dedicated drivers to the transportation and distribution industries. At the end of fiscal 2011, Centerline Drivers operated 15 branches in 10 states.
|
•
|
Provide blue-collar temporary labor services to our customers;
|
•
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Serve customers who have a need for temporary staff to perform blue-collar tasks which do not require a permanent employee;
|
•
|
Build a temporary workforce through recruiting, screening and hiring. Temporary workers are dispatched to customers where they work under the supervision of our customers;
|
•
|
Drive profitability by managing the bill rates to our customers and the pay rates to our workers. Profitable growth requires increased volume and or bill rates which grow faster than pay rates and leveraging our cost structure; and,
|
•
|
Use innovative technology to improve our ability to recruit quality workers, effectively match workers to the needs of
|
•
|
Labor Ready for on-demand general labor;
|
•
|
Spartan Staffing for skilled manufacturing and logistics labor;
|
•
|
CLP Resources for skilled trades for commercial, industrial and energy construction as well as building and plant maintenance;
|
•
|
PlaneTechs for skilled mechanics and technicians to the aviation maintenance, repair and overhaul industry, aerospace manufacturing and assembly industries, and other transportation industries; and,
|
•
|
Centerline Drivers for temporary and dedicated drivers to the transportation and distribution industries.
|
|
2011
|
|
2010
|
|
2009
|
|||||||||||||||
United States (including Puerto Rico)
|
$
|
1,266.3
|
|
|
96.2 %
|
|
|
$
|
1,105.5
|
|
|
96.2 %
|
|
|
$
|
984.5
|
|
|
96.7 %
|
|
International operations (Canada)
|
$
|
49.7
|
|
|
3.8 %
|
|
|
$
|
43.9
|
|
|
3.8 %
|
|
|
$
|
33.9
|
|
|
3.3 %
|
|
Total revenue from services
|
$
|
1,316.0
|
|
|
100.0
|
%
|
|
$
|
1,149.4
|
|
|
100.0
|
%
|
|
$
|
1,018.4
|
|
|
100.0
|
%
|
Item 1A.
|
RISK FACTORS
|
Item 1B.
|
UNRESOLVED STAFF COMMENTS
|
Item 2.
|
PROPERTIES
|
Item 3.
|
LEGAL PROCEEDINGS
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
High
|
|
Low
|
||||
December 30, 2011:
|
|
|
|
||||
Fourth Quarter
|
$
|
14.69
|
|
|
$
|
10.40
|
|
Third Quarter
|
16.43
|
|
|
10.80
|
|
||
Second Quarter
|
17.58
|
|
|
12.84
|
|
||
First Quarter
|
19.25
|
|
|
14.68
|
|
||
December 31, 2010:
|
|
|
|
||||
Fourth Quarter
|
$
|
19.48
|
|
|
$
|
12.96
|
|
Third Quarter
|
14.01
|
|
|
9.97
|
|
||
Second Quarter
|
17.23
|
|
|
11.20
|
|
||
First Quarter
|
17.22
|
|
|
13.03
|
|
Period
|
Total number of
shares purchased (1) |
|
Weighted average price
paid per share (2) |
|
Total number of shares purchased as part of publicly announced plans or programs |
|
Maximum number of shares
(or approximate dollar value) that may yet be purchased under plans or programs at period end (3) |
10/1/11 through 10/28/11
|
398,402
|
|
$11.43
|
|
398,083
|
|
$41.8 million
|
10/29/11 through 11/25/11
|
132,534
|
|
$11.64
|
|
130,401
|
|
$40.3 million
|
11/26/11 through 12/30/11
|
63,484
|
|
$11.88
|
|
59,797
|
|
$39.6 million
|
Total
|
594,420
|
|
$11.52
|
|
588,281
|
|
|
(1)
|
During the thirteen weeks ended December 30, 2011, we purchased 6,139 shares in order to satisfy employee tax withholding obligations upon the vesting of restricted stock. These shares were not acquired pursuant to any publicly announced purchase plans or programs.
|
(2)
|
Weighted average price paid per share does not include any adjustments for commissions.
|
(3)
|
Our Board of Directors authorized a $100 million share repurchase program in April 2007 that was fully utilized in 2011. On July 25, 2011, our Board of Directors approved a new program to repurchase an additional $75 million that does not have an expiration date.
|
Total Return Analysis
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
||||||||||||
TrueBlue, Inc.
|
$
|
100
|
|
|
$
|
79
|
|
|
$
|
52
|
|
|
$
|
81
|
|
|
$
|
98
|
|
|
$
|
76
|
|
Peer Group (1)
|
$
|
100
|
|
|
$
|
71
|
|
|
$
|
47
|
|
|
$
|
72
|
|
|
$
|
86
|
|
|
$
|
60
|
|
S&P Midcap 400 Index
|
$
|
100
|
|
|
$
|
107
|
|
|
$
|
67
|
|
|
$
|
90
|
|
|
$
|
113
|
|
|
$
|
109
|
|
(1)
|
The peer group includes Kelly Services, Inc., Manpower, Inc., Robert Half International, Adecco SA and Randstad.
|
Item 6.
|
SELECTED FINANCIAL DATA
|
|
2011
(52 Weeks) |
|
2010
(53 Weeks) |
|
2009
(52 Weeks) |
|
2008
(52 Weeks) |
|
2007
(52 Weeks) |
||||||||||
Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from services
|
$
|
1,316.0
|
|
|
$
|
1,149.4
|
|
|
$
|
1,018.4
|
|
|
$
|
1,384.3
|
|
|
$
|
1,385.7
|
|
Cost of services
|
969.0
|
|
|
845.9
|
|
|
727.4
|
|
|
971.8
|
|
|
943.6
|
|
|||||
Gross profit
|
347.0
|
|
|
303.5
|
|
|
291.0
|
|
|
412.5
|
|
|
442.1
|
|
|||||
Selling, general and administrative expenses
|
282.8
|
|
|
258.8
|
|
|
262.2
|
|
|
332.1
|
|
|
336.2
|
|
|||||
Goodwill and intangible asset impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
61.0
|
|
|
—
|
|
|||||
Depreciation and amortization
|
16.4
|
|
|
16.5
|
|
|
17.0
|
|
|
16.8
|
|
|
12.2
|
|
|||||
Interest and other income, net
|
1.5
|
|
|
0.9
|
|
|
2.3
|
|
|
5.5
|
|
|
10.9
|
|
|||||
Income before tax expenses
|
49.3
|
|
|
29.1
|
|
|
14.1
|
|
|
8.1
|
|
|
104.6
|
|
|||||
Income tax expense
|
18.5
|
|
|
9.3
|
|
|
5.3
|
|
|
12.3
|
|
|
38.4
|
|
|||||
Net income (loss)
|
$
|
30.8
|
|
|
$
|
19.8
|
|
|
$
|
8.8
|
|
|
$
|
(4.2
|
)
|
|
$
|
66.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per diluted share
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average diluted shares outstanding
|
42.3
|
|
|
43.5
|
|
|
43.0
|
|
|
42.9
|
|
|
46.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
At Fiscal Year End,
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
$
|
168.3
|
|
|
$
|
207.6
|
|
|
$
|
163.2
|
|
|
$
|
147.5
|
|
|
$
|
115.0
|
|
Total assets
|
560.8
|
|
|
546.5
|
|
|
518.1
|
|
|
519.7
|
|
|
545.2
|
|
|||||
Long-term liabilities
|
154.9
|
|
|
147.8
|
|
|
147.9
|
|
|
154.2
|
|
|
146.9
|
|
|||||
Total liabilities
|
$
|
267.2
|
|
|
$
|
233.8
|
|
|
$
|
232.7
|
|
|
$
|
249.5
|
|
|
$
|
261.4
|
|
Branches open at period end
|
712
|
|
|
721
|
|
|
754
|
|
|
850
|
|
|
894
|
|
(1)
|
Our fiscal year ends on the last Friday in December. The 2011 fiscal year ended on December 30, 2011, included 52 weeks. The 2010 fiscal year ended on December 31, 2010, included 53 weeks, with the 53rd week falling in our fourth fiscal quarter. All other prior years presented included 52 weeks.
|
•
|
In April 2007, we acquired 100% of the common stock of Skilled Services Corporation and in December 2007, we acquired substantially all of the assets of PlaneTechs, LLC;
|
•
|
In February 2008, we acquired substantially all of the assets of TLC Services Group, Inc. and in April 2008, we acquired 100% of the common stock of Personnel Management, Inc.
|
Item 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Overview
|
•
|
Results of Operations
|
•
|
Liquidity and Capital Resources
|
•
|
Contractual Obligations and Commitments
|
•
|
Summary of Critical Accounting Policies
|
•
|
New Accounting Standards
|
|
2011
|
|
2010
|
|
2009
|
||||||
Revenue from services
|
$
|
1,316.0
|
|
|
$
|
1,149.4
|
|
|
$
|
1,018.4
|
|
Total revenue growth (decline) %
|
14.5
|
%
|
|
12.9
|
%
|
|
(26.4
|
)%
|
|||
|
|
|
|
|
|
|
|||||
Gross profit as a % of revenue
|
26.4
|
%
|
|
26.4
|
%
|
|
28.6
|
%
|
|||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses
|
$
|
282.8
|
|
|
$
|
258.7
|
|
|
$
|
262.2
|
|
Selling, general and administrative expenses as a % of revenue
|
21.5
|
%
|
|
22.5
|
%
|
|
25.7
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||
Income from operations
|
$
|
47.8
|
|
|
$
|
28.3
|
|
|
$
|
11.8
|
|
Income from operations as a % of revenue
|
3.6
|
%
|
|
2.5
|
%
|
|
1.2
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
30.8
|
|
|
$
|
19.8
|
|
|
$
|
8.8
|
|
Net income per diluted share
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Revenue from services
|
$
|
1,316.0
|
|
|
$
|
1,149.4
|
|
|
$
|
1,018.4
|
|
Total revenue growth (decline) %
|
14.5
|
%
|
|
12.9
|
%
|
|
(26.4
|
)%
|
|
|
Revenue Growth/(Decline)
|
||||||||||
|
|
2011
|
|
2010
|
|
2009
|
||||||
First quarter revenue from services
|
|
$
|
274.3
|
|
|
$
|
239.8
|
|
|
$
|
224.4
|
|
First quarter revenue growth (decline) %
|
|
14.4 %
|
|
|
6.9 %
|
|
|
(30.7
|
)%
|
|||
|
|
|
|
|
|
|
||||||
Second quarter revenue from services
|
|
$
|
320.2
|
|
|
$
|
284.8
|
|
|
$
|
247.0
|
|
Second quarter revenue growth (decline) %
|
|
12.4 %
|
|
|
15.3 %
|
|
|
(33.4
|
)%
|
|||
|
|
|
|
|
|
|
||||||
Third quarter revenue from services
|
|
$
|
371.4
|
|
|
$
|
312.8
|
|
|
$
|
284.8
|
|
Third quarter revenue growth (decline) %
|
|
18.7 %
|
|
|
9.8 %
|
|
|
(26.6
|
)%
|
|||
|
|
|
|
|
|
|
||||||
Fourth quarter revenue from services
|
|
$
|
350.2
|
|
|
$
|
311.9
|
|
|
$
|
262.2
|
|
Fourth quarter revenue growth (decline) % (1)
|
|
12.2 %
|
|
|
19.0 %
|
|
|
(13.1
|
)%
|
(1)
|
Fiscal 2010 included 53 weeks ended December 31, 2010. The final quarter of fiscal 2010 consisted of 14 weeks. Excluding the 14th week of 2010, revenue grew by 22.1% for the fourth quarter of 2011 as compared to 2010.
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Gross profit
|
|
$
|
347.0
|
|
|
$
|
303.5
|
|
|
$
|
291.0
|
|
Percentage of revenue
|
|
26.4 %
|
|
|
26.4 %
|
|
|
28.6 %
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Selling, general and administrative expenses
|
|
$
|
282.8
|
|
|
$
|
258.7
|
|
|
$
|
262.2
|
|
Percentage of revenue
|
|
21.5 %
|
|
|
22.5 %
|
|
|
25.7 %
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Depreciation and amortization
|
|
$
|
16.4
|
|
|
$
|
16.5
|
|
|
$
|
17.0
|
|
Percentage of revenue
|
|
1.2 %
|
|
|
1.4 %
|
|
|
1.7 %
|
|
•
|
Due to our industry’s sensitivity to economic factors, the inherent difficulty in forecasting the direction and strength of
|
•
|
Our top priority remains to increase revenue through our existing branch network and improve margins. This should produce strong incremental operating margins as we leverage our cost structure across additional organic revenue. We will continue to invest in our sales and customer service programs which we believe will enhance our ability to capitalize on further revenue growth and customer retention.
|
•
|
As the economy grows, we will continue to evaluate opportunities to expand our market presence. All of our multi-location brands have opportunities to expand through new physical locations or by sharing existing locations. Where possible, we plan to expand the presence of our brands by sharing existing locations to achieve cost synergies. We plan to build on our success with centralized recruitment and dispatch of our temporary workers to locations without physical branches and expand our geographic reach. We will also evaluate strategic acquisitions in the blue-collar staffing market that can produce strong returns on investment. Our focus is on acquisitions that can accelerate the building of a national presence for a particular brand or that provide an opportunity to serve a new, but sizable portion of the blue-collar staffing market.
|
•
|
Minimum wage and certain unemployment taxes will increase again in 2012. Our best estimate of this impact, assuming no action on our part, is an increase that would negatively impact gross margin by 0.4% to 0.6% of revenue. We have put in place programs to pass these costs through to our customers. Until the economy fully recovers and state unemployment funds have been replenished and related federal loans have been repaid by certain states, we expect continued increases to our unemployment taxes and our customers could be resistant to price increases to cover these costs.
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Net income
|
|
$
|
30.8
|
|
|
$
|
19.8
|
|
|
$
|
8.8
|
|
Depreciation and amortization
|
|
16.4
|
|
|
16.5
|
|
|
17.0
|
|
|||
Provision for doubtful accounts
|
|
6.6
|
|
|
8.2
|
|
|
14.5
|
|
|||
Stock-based compensation
|
|
7.4
|
|
|
7.2
|
|
|
7.1
|
|
|||
Deferred income taxes
|
|
(1.9
|
)
|
|
5.3
|
|
|
2.8
|
|
|||
Other operating activities
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
1.1
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Accounts receivable
|
|
(51.8
|
)
|
|
(11.6
|
)
|
|
(14.8
|
)
|
|||
Income tax receivable
|
|
3.5
|
|
|
(3.3
|
)
|
|
13.4
|
|
|||
Accounts payable and other accrued expenses
|
|
16.2
|
|
|
3.4
|
|
|
(2.6
|
)
|
|||
Workers’ compensation claims reserve
|
|
4.5
|
|
|
(2.2
|
)
|
|
(14.1
|
)
|
|||
Other assets and liabilities
|
|
(0.6
|
)
|
|
(1.1
|
)
|
|
0.4
|
|
|||
Net cash provided by operating activities
|
|
$
|
30.6
|
|
|
$
|
42.0
|
|
|
$
|
33.6
|
|
•
|
Accounts receivable increased by $51.8 million in 2011. About half of the increase in accounts receivable was due to an increase in days sales outstanding and the rest was due to continued revenue growth. Days sales outstanding were higher primarily due to a higher mix of larger customers with longer payment terms compared with prior periods. The provision for doubtful accounts continued to decline in 2011 and reflects the improving economy and ability of our customers to pay.
|
•
|
Income taxes receivable declined in 2011 due to unanticipated deductions which resulted in over payments of estimated taxes in 2010.
|
•
|
Increases in accounts payable and accrued expenses during 2011 were associated with increased revenue as a result of the economic recovery and corresponding increases to temporary labor payroll expense, as well as increased unemployment tax rates.
|
•
|
Generally, our workers’ compensation reserve for estimated claims increases as temporary labor services increase and decreases as temporary labor services decline. During 2011, our workers’ compensation reserve increased as we increased temporary labor services offset by the timing of payments.
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Capital expenditures
|
|
$
|
(9.7
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
(13.1
|
)
|
Change in restricted cash and cash equivalents
|
|
68.5
|
|
|
3.9
|
|
|
(3.7
|
)
|
|||
Purchases of restricted investments
|
|
(88.2
|
)
|
|
—
|
|
|
—
|
|
|||
Maturities of restricted investments
|
|
9.3
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
(6.8
|
)
|
|
(0.3
|
)
|
|
0.1
|
|
|||
Net cash used in investing activities
|
|
$
|
(26.9
|
)
|
|
$
|
(3.4
|
)
|
|
$
|
(16.7
|
)
|
•
|
Capital expenditures were primarily due to significant investments made to upgrade our proprietary information systems. We anticipate that total capital expenditures will be approximately $12 million in 2012.
|
•
|
Restricted cash and investments consist primarily of collateral that has been provided or pledged to insurance carriers and state workers' compensation programs. We are required by our insurance carriers to collateralize a portion of our workers' compensation obligation. Prior to March 11, 2011, Chartis held the majority of the restricted cash collateralizing our self-insured workers' compensation policies. As of March 11, 2011, we entered into an agreement with Chartis and the Bank of New York Mellon creating a trust (the "Trust") at the Bank of New York Mellon, which holds the majority of our collateral obligations. Placing the collateral in the Trust allows us to manage the investment of the assets. The majority of those funds have been invested. The change in restricted cash and cash equivalents when combined with purchases of restricted investments net of maturities of restricted investments increased by $10.4 million for 2011 and includes additional restricted cash and investments required as collateral due to growth.
|
•
|
Other includes the purchase of a staffing company and a technology company in 2011. The technology acquired will be integrated with our proprietary front end systems to better attract and retain our temporary workers and serve our customers.
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Purchases and retirement of common stock
|
|
$
|
(56.9
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net proceeds from sale of stock through options and employee benefit plans
|
|
1.1
|
|
|
1.1
|
|
|
1.1
|
|
|||
Common stock repurchases for taxes upon vesting of restricted stock
|
|
(1.8
|
)
|
|
(1.6
|
)
|
|
(0.9
|
)
|
|||
Payments on debt
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|||
Other
|
|
0.7
|
|
|
0.1
|
|
|
(1.0
|
)
|
|||
Net cash used in financing activities
|
|
$
|
(57.2
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(1.2
|
)
|
•
|
Cash used in financing activities was primarily driven by repurchases of 4.5 million shares of our common stock in 2011.
|
•
|
We have Cash and cash equivalents of $109 million as of December 30, 2011.
|
•
|
Our borrowing availability under our credit facility is principally based on accounts receivable and the value of our corporate building. We have $69 million of borrowing available under our credit facility as of December 30, 2011. We believe the credit facility provides adequate borrowing availability.
|
•
|
The majority of our workers’ compensation payments are made from restricted cash versus cash from operations. At December 30, 2011, approximately two-thirds of our workers’ compensation reserve was covered by restricted cash.
|
•
|
On July 22, 2009, we filed a $100 million Shelf Registration Statement with the Securities and Exchange Commission, which allows us to sell various securities in amounts and prices determined at the time of sale. The filing enables us to access capital efficiently and quickly if needed pending current market conditions. No shares have been issued under this registration.
|
Excess Liquidity:
|
Prime Rate Loans:
|
LIBOR Rate Loans:
|
Greater than $40 million
|
0.50%
|
1.50%
|
Equal to or greater than $20 million to equal to or less than $40 million
|
0.75%
|
1.75%
|
Less than $20 million
|
1.00%
|
2.00%
|
|
S&P
|
Moody's
|
Fitch
|
Short-term Rating
|
A-1/SP-1
|
P-1/MIG-1
|
F-1
|
|
|
|
|
Long-term Rating
|
A
|
A2
|
A
|
|
2011
|
|
2010
|
||||
Cash collateral held by insurance carriers
|
$
|
21.3
|
|
|
$
|
108.7
|
|
Cash and cash equivalents held in Trust (1)(2)
|
19.2
|
|
|
—
|
|
||
Investments held in Trust (1)
|
78.0
|
|
|
—
|
|
||
Letters of credit (3)
|
16.7
|
|
|
15.1
|
|
||
Surety bonds (4)
|
16.2
|
|
|
16.8
|
|
||
Total collateral commitments
|
$
|
151.4
|
|
|
$
|
140.6
|
|
(1)
|
During the first quarter of 2011, we entered into an agreement with Chartis and the Bank of New York Mellon creating a trust at the Bank of New York Mellon which holds the majority of our collateral obligations.
|
(2)
|
Included in this amount is $0.8 million of accrued interest at December 30, 2011.
|
(3)
|
We have agreements with certain financial institutions to issue letters of credit on our behalf under the Revolving Credit Facility. We had $5.9 million and $4.1 million of restricted cash collateralizing our letters of credit at December 30, 2011 and December 31, 2010, respectively.
|
(4)
|
Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which is determined by each independent surety carrier, but do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days notice. We had $3.0 million of restricted cash collateralizing our surety bonds at December 31, 2010. During the second quarter of 2011, our obligation to collateralize our surety bonds was released.
|
|
2011
|
|
2010
|
||||
Total workers’ compensation reserve
|
$
|
191.8
|
|
|
$
|
187.3
|
|
Add back discount on reserves (1)
|
18.6
|
|
|
26.4
|
|
||
Less excess claims reserve (2)
|
(27.2
|
)
|
|
(25.5
|
)
|
||
Reimbursable payments to insurance provider (3)
|
2.9
|
|
|
—
|
|
||
Less portion of workers' compensation not requiring collateral
|
(34.7
|
)
|
|
(47.6
|
)
|
||
Total collateral commitments
|
$
|
151.4
|
|
|
$
|
140.6
|
|
(1)
|
Our workers’ compensation reserves are discounted to their estimated net present value while our collateral commitments are based on the gross, undiscounted reserve.
|
(2)
|
Workers’ compensation reserve includes the estimated obligation for claims above our deductible limits. These are the responsibility of the insurance carriers against which there are no collateral requirements.
|
(3)
|
This amount is included in restricted cash and represents a timing difference between claim payments made by our insurance carrier and the reimbursement from cash held in the Trust. When claims are paid by our carrier, the amount is removed from the workers' compensation reserve but not removed from collateral until reimbursed to the carrier.
|
•
|
Changes in medical and time loss (“indemnity”) costs;
|
•
|
Mix changes between medical only and indemnity claims;
|
•
|
Regulatory and legislative developments that have increased benefits and settlement requirements;
|
•
|
Mix changes between the types of work performed;
|
•
|
The impact of safety initiatives implemented; and,
|
•
|
Positive or adverse development of claim reserves.
|
|
2011
|
|
2010
|
|
2009
|
||||||
Beginning balance
|
$
|
187.3
|
|
|
$
|
189.5
|
|
|
$
|
203.6
|
|
Self-insurance reserve expenses related to current year, net (1)
|
52.4
|
|
|
49.4
|
|
|
40.6
|
|
|||
Payments related to current year claims (2)
|
(11.2
|
)
|
|
(11.9
|
)
|
|
(8.2
|
)
|
|||
Payments related to claims from prior years (2)
|
(29.3
|
)
|
|
(27.4
|
)
|
|
(31.8
|
)
|
|||
Changes to prior years’ self-insurance reserve, net (3)
|
(16.9
|
)
|
|
(17.1
|
)
|
|
(23.0
|
)
|
|||
Amortization of prior years’ discount (4)
|
7.9
|
|
|
4.6
|
|
|
7.4
|
|
|||
Net change in excess claims reserve (5)
|
1.6
|
|
|
0.2
|
|
|
0.9
|
|
|||
Ending balance
|
191.8
|
|
|
187.3
|
|
|
189.5
|
|
|||
Less current portion
|
43.5
|
|
|
42.4
|
|
|
44.8
|
|
|||
Long-term portion
|
$
|
148.3
|
|
|
$
|
144.9
|
|
|
$
|
144.7
|
|
(1)
|
Our self-insurance reserves are discounted to their estimated net present value using discount rates based on returns of “risk-free” U.S. Treasury instruments with maturities comparable to the weighted average lives of our workers’ compensation claims. At December 30, 2011, the weighted average rate was 2.7%.
|
(2)
|
Payments made against self-insured claims are made over a weighted average period of approximately 4.5 years.
|
(3)
|
Changes in reserve estimates are reflected in the income statement in the period when the changes in estimates are made.
|
(4)
|
Any changes to the estimated weighted average lives and corresponding discount rates for actual payments made are reflected in the income statement in the period when the changes in estimates are made.
|
(5)
|
Changes to the workers' compensation reserve for claims above our self-insured limits (“excess claims”) net of discount to its estimated net present value using the risk-free rates associated with the actuarially determined weighted average lives of our excess claims. At December 30, 2011, the weighted average rate was 4.8%. The excess claim payments are made and the corresponding reimbursements from our insurance carriers are received over a weighted average period of approximately 18.3 years. Two of the workers’ compensation insurance companies with which we formerly did business are in liquidation and have failed to pay a number of excess claims to date. We have recorded a valuation allowance against all of the insurance receivables from the insurance companies in liquidation.
|
|
Payments Due by Period (in millions)
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
2012
|
|
2013
through 2014 |
|
2015
through 2016 |
|
2017
and later |
||||||||||
Operating leases (1)
|
$
|
11.8
|
|
|
$
|
5.1
|
|
|
$
|
5.0
|
|
|
$
|
1.6
|
|
|
$
|
0.1
|
|
Capital leases
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|||||
Purchase obligations (2)
|
5.8
|
|
|
3.0
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|||||
Other obligations (3)
|
12.3
|
|
|
7.8
|
|
|
2.8
|
|
|
—
|
|
|
1.7
|
|
|||||
Total contractual cash obligations
|
$
|
30.1
|
|
|
$
|
16.0
|
|
|
$
|
10.7
|
|
|
$
|
1.6
|
|
|
$
|
1.8
|
|
(1)
|
Excludes all payments related to branch leases cancelable within 90 days
|
(2)
|
Purchase obligations include agreements to purchase goods and services that are enforceable, legally binding and specify all significant terms. Purchase obligations do not include agreements that are cancelable without significant penalty.
|
(3)
|
Includes $1.7 million for liability for unrecognized tax benefits and $10.6 million for future payments related to acquisition.
|
Item 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Consolidated Balance Sheets - December 30, 2011 and December 31, 2010
|
Consolidated Statements of Operations - Fiscal years ended December 30, 2011, December 31, 2010 and December 25, 2009
|
Consolidated Statements of Shareholders’ Equity and Comprehensive Income - Fiscal years ended December 30, 2011, December 31, 2010 and December 25, 2009
|
Consolidated Statements of Cash Flows - Fiscal years ended December 30, 2011, December 31, 2010 and December 25, 2009
|
Notes to Consolidated Financial Statements
|
|
|
December 30, 2011
|
|
December 31, 2010
|
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
109,311
|
|
|
$
|
163,153
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
153,878
|
|
|
108,692
|
|
||
Prepaid expenses, deposits and other current assets
|
|
9,252
|
|
|
9,981
|
|
||
Income tax receivable
|
|
1,874
|
|
|
4,898
|
|
||
Deferred income taxes
|
|
6,300
|
|
|
6,776
|
|
||
Total current assets
|
|
280,615
|
|
|
293,500
|
|
||
Property and equipment, net
|
|
56,239
|
|
|
53,958
|
|
||
Restricted cash and investments
|
|
130,498
|
|
|
120,067
|
|
||
Deferred income taxes
|
|
4,818
|
|
|
2,400
|
|
||
Goodwill
|
|
48,139
|
|
|
36,960
|
|
||
Intangible assets, net
|
|
19,433
|
|
|
20,526
|
|
||
Other assets, net
|
|
21,027
|
|
|
19,055
|
|
||
Total assets
|
|
$
|
560,769
|
|
|
$
|
546,466
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and other accrued expenses
|
|
$
|
25,862
|
|
|
$
|
18,776
|
|
Accrued wages and benefits
|
|
35,271
|
|
|
24,464
|
|
||
Current portion of workers' compensation claims reserve
|
|
43,554
|
|
|
42,379
|
|
||
Other current liabilities
|
|
7,602
|
|
|
304
|
|
||
Total current liabilities
|
|
112,289
|
|
|
85,923
|
|
||
Workers’ compensation claims reserve, less current portion
|
|
148,289
|
|
|
144,927
|
|
||
Other long-term liabilities
|
|
6,612
|
|
|
2,909
|
|
||
Total liabilities
|
|
267,190
|
|
|
233,759
|
|
||
|
|
|
|
|
||||
Commitments and contingencies (Note 7)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, no par value, 100,000 shares authorized; 39,933 and 44,086 shares issued and outstanding
|
|
1
|
|
|
1
|
|
||
Accumulated other comprehensive income
|
|
2,643
|
|
|
2,906
|
|
||
Retained earnings
|
|
290,935
|
|
|
309,800
|
|
||
Total shareholders’ equity
|
|
293,579
|
|
|
312,707
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
560,769
|
|
|
$
|
546,466
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Revenue from services
|
|
$
|
1,316,013
|
|
|
$
|
1,149,367
|
|
|
$
|
1,018,418
|
|
Cost of services
|
|
968,967
|
|
|
845,916
|
|
|
727,372
|
|
|||
Gross profit
|
|
347,046
|
|
|
303,451
|
|
|
291,046
|
|
|||
Selling, general and administrative expenses
|
|
282,828
|
|
|
258,722
|
|
|
262,182
|
|
|||
Depreciation and amortization
|
|
16,384
|
|
|
16,468
|
|
|
17,030
|
|
|||
Income from operations
|
|
47,834
|
|
|
28,261
|
|
|
11,834
|
|
|||
Interest expense
|
|
(1,207
|
)
|
|
(1,515
|
)
|
|
(1,491
|
)
|
|||
Interest and other income
|
|
2,697
|
|
|
2,416
|
|
|
3,798
|
|
|||
Interest and other income, net
|
|
1,490
|
|
|
901
|
|
|
2,307
|
|
|||
Income before tax expense
|
|
49,324
|
|
|
29,162
|
|
|
14,141
|
|
|||
Income tax expense
|
|
18,533
|
|
|
9,323
|
|
|
5,344
|
|
|||
Net income
|
|
$
|
30,791
|
|
|
$
|
19,839
|
|
|
$
|
8,797
|
|
Net income per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.21
|
|
Diluted
|
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
41,961
|
|
|
43,224
|
|
|
42,842
|
|
|||
Diluted
|
|
42,322
|
|
|
43,540
|
|
|
43,014
|
|
|
Common stock
|
|
Retained earnings
|
|
Accumulated other comprehensive income
|
|
Total shareholders' equity
|
|||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|||||||||
Balances, December 26, 2008
|
43,340
|
|
|
$
|
1
|
|
|
$
|
268,136
|
|
|
$
|
1,992
|
|
|
$
|
270,129
|
|
Net income
|
|
|
|
|
8,797
|
|
|
|
|
8,797
|
|
|||||||
Foreign currency translation, net of tax
|
|
|
|
|
|
|
283
|
|
|
283
|
|
|||||||
Total comprehensive Income
|
|
|
|
|
|
|
|
|
9,080
|
|
||||||||
Issuances under equity plans, including tax benefits
|
493
|
|
|
|
|
(843
|
)
|
|
|
|
(843
|
)
|
||||||
Stock-based compensation
|
|
|
|
|
7,066
|
|
|
|
|
7,066
|
|
|||||||
Balances, December 25, 2009
|
43,833
|
|
|
$
|
1
|
|
|
$
|
283,156
|
|
|
$
|
2,275
|
|
|
$
|
285,432
|
|
Net income
|
|
|
|
|
19,839
|
|
|
|
|
19,839
|
|
|||||||
Foreign currency translation, net of tax
|
|
|
|
|
|
|
631
|
|
|
631
|
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
20,470
|
|
||||||||
Issuances under equity plans, including tax benefits
|
253
|
|
|
|
|
(354
|
)
|
|
|
|
(354
|
)
|
||||||
Stock-based compensation
|
|
|
|
|
7,159
|
|
|
|
|
7,159
|
|
|||||||
Balances, December 31, 2010
|
44,086
|
|
|
$
|
1
|
|
|
$
|
309,800
|
|
|
$
|
2,906
|
|
|
$
|
312,707
|
|
Net income
|
|
|
|
|
30,791
|
|
|
|
|
30,791
|
|
|||||||
Foreign currency translation, net of tax
|
|
|
|
|
|
|
(263
|
)
|
|
(263
|
)
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
30,528
|
|
||||||||
Purchases and retirement of common stock
|
(4,455
|
)
|
|
|
|
(56,932
|
)
|
|
|
|
(56,932
|
)
|
||||||
Issuances under equity plans, including tax benefits
|
302
|
|
|
|
|
(156
|
)
|
|
|
|
(156
|
)
|
||||||
Stock-based compensation
|
|
|
|
|
7,432
|
|
|
|
|
7,432
|
|
|||||||
Balances, December 30, 2011
|
39,933
|
|
|
$
|
1
|
|
|
$
|
290,935
|
|
|
$
|
2,643
|
|
|
$
|
293,579
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
30,791
|
|
|
$
|
19,839
|
|
|
$
|
8,797
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
16,384
|
|
|
16,468
|
|
|
17,030
|
|
|||
Provision for doubtful accounts
|
|
6,638
|
|
|
8,158
|
|
|
14,545
|
|
|||
Stock-based compensation
|
|
7,432
|
|
|
7,159
|
|
|
7,066
|
|
|||
Deferred income taxes
|
|
(1,910
|
)
|
|
5,322
|
|
|
2,772
|
|
|||
Other operating activities
|
|
(473
|
)
|
|
(202
|
)
|
|
1,062
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(51,824
|
)
|
|
(11,604
|
)
|
|
(14,812
|
)
|
|||
Income tax receivable
|
|
3,513
|
|
|
(3,338
|
)
|
|
13,397
|
|
|||
Other assets
|
|
(1,244
|
)
|
|
(727
|
)
|
|
919
|
|
|||
Accounts payable and other accrued expenses
|
|
5,423
|
|
|
747
|
|
|
(4,573
|
)
|
|||
Accrued wages and benefits
|
|
10,793
|
|
|
2,752
|
|
|
2,015
|
|
|||
Workers’ compensation claims reserve
|
|
4,537
|
|
|
(2,195
|
)
|
|
(14,091
|
)
|
|||
Other liabilities
|
|
529
|
|
|
(406
|
)
|
|
(522
|
)
|
|||
Net cash provided by operating activities
|
|
30,589
|
|
|
41,973
|
|
|
33,605
|
|
|||
Cash flows used in investing activities:
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
(9,707
|
)
|
|
(7,050
|
)
|
|
(13,153
|
)
|
|||
Change in restricted cash and cash equivalents
|
|
68,504
|
|
|
3,945
|
|
|
(3,689
|
)
|
|||
Purchases of restricted investments
|
|
(88,173
|
)
|
|
—
|
|
|
—
|
|
|||
Maturities of restricted investments
|
|
9,238
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
(6,800
|
)
|
|
(298
|
)
|
|
94
|
|
|||
Net cash used in investing activities
|
|
(26,938
|
)
|
|
(3,403
|
)
|
|
(16,748
|
)
|
|||
Cash flows used in financing activities:
|
|
|
|
|
|
|
||||||
Purchases and retirement of common stock
|
|
(56,932
|
)
|
|
—
|
|
|
—
|
|
|||
Net proceeds from sale of stock through options and employee benefit plans
|
|
1,131
|
|
|
1,054
|
|
|
1,062
|
|
|||
Common stock repurchases for taxes upon vesting of restricted stock
|
|
(1,776
|
)
|
|
(1,568
|
)
|
|
(880
|
)
|
|||
Payments on debt
|
|
(302
|
)
|
|
(382
|
)
|
|
(394
|
)
|
|||
Other
|
|
664
|
|
|
129
|
|
|
(996
|
)
|
|||
Net cash used in financing activities
|
|
(57,215
|
)
|
|
(767
|
)
|
|
(1,208
|
)
|
|||
Effect of exchange rates on cash
|
|
(278
|
)
|
|
973
|
|
|
626
|
|
|||
Net change in cash and cash equivalents
|
|
(53,842
|
)
|
|
38,776
|
|
|
16,275
|
|
|||
CASH AND CASH EQUIVALENTS, beginning of period
|
|
163,153
|
|
|
124,377
|
|
|
108,102
|
|
|||
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
109,311
|
|
|
$
|
163,153
|
|
|
$
|
124,377
|
|
•
|
They provide blue-collar temporary labor services;
|
•
|
They serve customers who have a need for temporary staff to perform tasks which do not require a permanent employee;
|
•
|
They each build a temporary workforce through recruiting, screening and hiring. Temporary workers are dispatched to customers where they work under the supervision of our customers;
|
•
|
They each drive profitability by managing the bill rates to our customers and the pay rates to our workers. Profitable growth is also driven by leveraging our cost structure across all brands; and
|
•
|
Our long-term financial performance expectations of all our brands are similar as are the underlying financial and economic metrics used to manage those brands.
|
•
|
We maintain the direct contractual relationship with the customer.
|
•
|
We have discretion in selecting and assigning the temporary workers to particular jobs and establishing their billing rate.
|
•
|
We bear the risk and rewards of the transaction including credit risk if the customer fails to pay for services performed.
|
|
December 30, 2011
|
|
December 31, 2010
|
||||
Buildings and land
|
$
|
24.5
|
|
|
$
|
23.5
|
|
Computers and software
|
80.5
|
|
|
71.2
|
|
||
Cash dispensing machines
|
4.5
|
|
|
11.4
|
|
||
Furniture and equipment
|
8.7
|
|
|
8.6
|
|
||
Construction in progress
|
3.6
|
|
|
2.7
|
|
||
|
121.8
|
|
|
117.4
|
|
||
Less accumulated depreciation and amortization
|
(65.6
|
)
|
|
(63.4
|
)
|
||
|
$
|
56.2
|
|
|
$
|
54.0
|
|
|
December 30, 2011
|
|
December 31, 2010
|
||||
Cash collateral held by insurance carriers
|
$
|
21.3
|
|
|
$
|
108.7
|
|
Cash and cash equivalents held in Trust (1)
|
19.2
|
|
|
—
|
|
||
Investments held in Trust
|
78.0
|
|
|
—
|
|
||
Cash collateral backing letters of credit
|
5.9
|
|
|
4.1
|
|
||
Cash collateral backing surety bonds
|
—
|
|
|
3.0
|
|
||
Other (2)
|
6.1
|
|
|
4.3
|
|
||
Total Restricted cash and investments
|
$
|
130.5
|
|
|
$
|
120.1
|
|
(1)
|
Included in this amount is $0.8 million of accrued interest at December 30, 2011.
|
(2)
|
Primarily consists of restricted cash in money market accounts and deferred compensation.
|
|
December 30, 2011
|
||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gain
|
|
Gross Unrealized Loss
|
|
Fair Value
|
||||||||
Municipal securities
|
$
|
42.8
|
|
|
$
|
0.8
|
|
|
$
|
(0.1
|
)
|
|
$
|
43.5
|
|
Corporate bonds
|
16.1
|
|
|
0.2
|
|
|
—
|
|
|
16.3
|
|
||||
Asset backed bonds
|
13.6
|
|
|
0.1
|
|
|
—
|
|
|
13.7
|
|
||||
State government and agency securities
|
4.5
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
||||
United States Treasury securities
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
|
$
|
78.0
|
|
|
$
|
1.1
|
|
|
$
|
(0.1
|
)
|
|
$
|
79.0
|
|
|
December 30, 2011
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
14.1
|
|
|
$
|
14.1
|
|
Due after one year through five years
|
39.7
|
|
|
40.1
|
|
||
Due after five years through ten years
|
24.2
|
|
|
24.8
|
|
||
|
$
|
78.0
|
|
|
$
|
79.0
|
|
•
|
Level 1: Investments valued using quoted market prices in active markets for identical assets or liabilities.
|
•
|
Level 2: Investments valued using other observable market-based inputs or unobservable inputs that are corroborated by market data.
|
•
|
Level 3: Investments with no observable inputs and therefore, are valued using significant management judgment.
|
|
December 30,
2011 |
|
December 31,
2010 |
||||
Goodwill
|
$
|
83.1
|
|
|
$
|
83.1
|
|
Accumulated impairment losses
|
(46.1
|
)
|
|
(46.1
|
)
|
||
Beginning Balance - net
|
37.0
|
|
|
37.0
|
|
||
Goodwill acquired during the year
|
11.2
|
|
|
—
|
|
||
Ending balance - net
|
$
|
48.2
|
|
|
$
|
37.0
|
|
|
December 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Amortizable intangible assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships
|
$
|
19.1
|
|
|
$
|
(8.3
|
)
|
|
$
|
10.8
|
|
|
$
|
18.0
|
|
|
$
|
(6.2
|
)
|
|
$
|
11.8
|
|
Trade name/trademarks
|
3.3
|
|
|
(1.3
|
)
|
|
2.0
|
|
|
3.0
|
|
|
(0.9
|
)
|
|
2.1
|
|
||||||
Non-compete agreements
|
2.5
|
|
|
(1.7
|
)
|
|
0.8
|
|
|
2.1
|
|
|
(1.3
|
)
|
|
0.8
|
|
||||||
|
$
|
24.9
|
|
|
$
|
(11.3
|
)
|
|
$
|
13.6
|
|
|
$
|
23.1
|
|
|
$
|
(8.4
|
)
|
|
$
|
14.7
|
|
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade name/trademarks
|
$
|
5.8
|
|
|
—
|
|
|
$
|
5.8
|
|
|
$
|
5.8
|
|
|
—
|
|
|
$
|
5.8
|
|
(1)
|
Excludes assets that are fully amortized.
|
2012
|
$
|
3.1
|
|
2013
|
2.7
|
|
|
2014
|
2.6
|
|
|
2015
|
2.6
|
|
|
2016
|
2.3
|
|
|
Thereafter
|
0.3
|
|
|
|
$
|
13.6
|
|
•
|
Changes in medical and time loss (“indemnity”) costs;
|
•
|
Mix changes between medical only and indemnity claims;
|
•
|
Regulatory and legislative developments that have increased benefits and settlement requirements;
|
•
|
Mix changes and type of work performed;
|
•
|
The impact of safety initiatives implemented; and,
|
•
|
Positive or adverse development of claim reserves.
|
Excess Liquidity:
|
Prime Rate Loans:
|
LIBOR Rate Loans:
|
Greater than $40 million
|
0.50%
|
1.50%
|
Between $20 million and $40 million
|
0.75%
|
1.75%
|
Less than $20 million
|
1.00%
|
2.00%
|
|
December 30, 2011
|
|
December 31, 2010
|
||||
Cash collateral held by insurance carriers
|
$
|
21.3
|
|
|
$
|
108.7
|
|
Cash and cash equivalents held in Trust (1)(2)
|
19.2
|
|
|
—
|
|
||
Investments held in Trust (1)
|
78.0
|
|
|
—
|
|
||
Letters of credit (3)
|
16.7
|
|
|
15.1
|
|
||
Surety bonds (4)
|
16.2
|
|
|
16.8
|
|
||
Total collateral commitments
|
$
|
151.4
|
|
|
$
|
140.6
|
|
(1)
|
During the first quarter of 2011, we entered into an agreement with Chartis and the Bank of New York Mellon creating a trust at the Bank of New York Mellon which holds the majority of our collateral obligations.
|
(2)
|
Included in this amount is $0.8 million of accrued interest at December 30, 2011.
|
(3)
|
We had $5.9 and $4.1 million of restricted cash collateralizing our letters of credit at December 30, 2011 and December 31, 2010, respectively.
|
(4)
|
We had $3.0 million of restricted cash collateralizing our surety bonds at December 31, 2010. During the second quarter of 2011, our obligation to collateralize our surety bonds was released.
|
2012
|
$
|
5.1
|
|
2013
|
3.2
|
|
|
2014
|
1.8
|
|
|
2015
|
1.1
|
|
|
2016
|
0.5
|
|
|
Thereafter
|
0.1
|
|
|
|
$
|
11.8
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Restricted stock and performance share units expense
|
$
|
6.7
|
|
|
$
|
5.9
|
|
|
$
|
5.6
|
|
Stock option expense
|
0.4
|
|
|
1.0
|
|
|
1.1
|
|
|||
ESPP expense
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
|||
Total stock-based compensation expense in the Consolidated Statements of Operations
|
$
|
7.4
|
|
|
$
|
7.2
|
|
|
$
|
7.1
|
|
|
|
|
|
|
|
||||||
Total related tax benefit recognized
|
$
|
2.8
|
|
|
$
|
2.3
|
|
|
$
|
2.7
|
|
(1)
|
Weighted average market price on grant date.
|
|
2011
|
|
2010
|
|
2009
|
||||||
Expected life (in years)
|
—
|
|
|
3.36
|
|
|
3.35
|
|
|||
Expected volatility
|
—
|
%
|
|
59.6
|
%
|
|
53.0
|
%
|
|||
Risk-free interest rate
|
—
|
%
|
|
1.3
|
%
|
|
1.4
|
%
|
|||
Expected dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Weighted average fair value of options granted during the period
|
$
|
—
|
|
|
$
|
6.24
|
|
|
$
|
3.52
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average
Remaining Contractual Life |
|
Aggregate
Intrinsic Value (millions) |
||||||
Outstanding, December 31, 2010
|
1,119
|
|
|
$
|
15.62
|
|
|
|
|
|
|||
Granted
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|||
Exercised
|
(8
|
)
|
|
$
|
13.20
|
|
|
|
|
|
|||
Expired/Forfeited
|
(1
|
)
|
|
$
|
16.98
|
|
|
|
|
|
|||
Outstanding, December 30, 2011
|
1,110
|
|
|
$
|
15.64
|
|
|
2.4
|
|
|
$
|
1.5
|
|
Exercisable, December 30, 2011
|
812
|
|
|
$
|
18.03
|
|
|
1.8
|
|
|
$
|
0.1
|
|
Options expected to vest, December 30, 2011
|
298
|
|
|
$
|
9.14
|
|
|
4.0
|
|
|
$
|
1.4
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
Federal
|
$
|
16.3
|
|
|
$
|
2.0
|
|
|
$
|
1.2
|
|
State
|
2.9
|
|
|
1.6
|
|
|
1.2
|
|
|||
Foreign
|
0.4
|
|
|
0.4
|
|
|
0.1
|
|
|||
Total current taxes
|
19.6
|
|
|
4.0
|
|
|
2.5
|
|
|||
Deferred taxes:
|
|
|
|
|
|
||||||
Federal
|
(1.3
|
)
|
|
3.9
|
|
|
2.4
|
|
|||
State
|
0.1
|
|
|
1.4
|
|
|
0.4
|
|
|||
Foreign
|
0.1
|
|
|
—
|
|
|
—
|
|
|||
Total deferred taxes
|
(1.1
|
)
|
|
5.3
|
|
|
2.8
|
|
|||
Provision for income taxes
|
$
|
18.5
|
|
|
$
|
9.3
|
|
|
$
|
5.3
|
|
|
2011
|
|
%
|
|
2010
|
|
%
|
|
2009
|
|
%
|
|||||||||
Income tax expense based on statutory rate
|
$
|
17.2
|
|
|
35.0 %
|
|
|
$
|
10.2
|
|
|
35.0 %
|
|
|
$
|
4.9
|
|
|
35.0 %
|
|
Increase (decrease) resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State income taxes, net of federal benefit
|
1.9
|
|
|
3.9 %
|
|
|
1.9
|
|
|
7.0 %
|
|
|
1.3
|
|
|
9.2 %
|
|
|||
Tax credits, net
|
(3.5
|
)
|
|
(7.2
|
)%
|
|
(4.6
|
)
|
|
(16.0
|
)%
|
|
(4.5
|
)
|
|
(31.7
|
)%
|
|||
Nondeductible/nontaxable Items
|
2.9
|
|
|
5.8 %
|
|
|
2.3
|
|
|
8.0 %
|
|
|
3.1
|
|
|
21.6 %
|
|
|||
Other, net
|
—
|
|
|
0.1
|
%
|
|
(0.5
|
)
|
|
(2.0
|
)%
|
|
0.5
|
|
|
3.7 %
|
|
|||
Total taxes on income
|
$
|
18.5
|
|
|
37.6
|
%
|
|
$
|
9.3
|
|
|
32.0 %
|
|
|
$
|
5.3
|
|
|
37.8 %
|
|
|
December 30,
2011 |
|
December 31,
2010 |
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for doubtful accounts
|
$
|
2.4
|
|
|
$
|
2.5
|
|
Workers’ compensation claims reserve
|
9.7
|
|
|
7.3
|
|
||
Accounts payable and other accrued expenses
|
3.5
|
|
|
3.8
|
|
||
Net operating loss carry-forwards
|
0.5
|
|
|
0.7
|
|
||
Accrued wages and benefits
|
4.3
|
|
|
3.0
|
|
||
Deferred compensation
|
1.1
|
|
|
0.4
|
|
||
Other
|
0.8
|
|
|
—
|
|
||
Total
|
22.3
|
|
|
17.7
|
|
||
Valuation allowance for net operating loss carry-forwards
|
(0.5
|
)
|
|
(0.7
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
21.8
|
|
|
$
|
17.0
|
|
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Prepaid expenses, deposits and other current assets
|
$
|
(1.1
|
)
|
|
$
|
(0.8
|
)
|
Depreciation and amortization
|
(8.8
|
)
|
|
(6.4
|
)
|
||
Other
|
(0.8
|
)
|
|
(0.6
|
)
|
||
Total deferred tax liabilities
|
$
|
(10.7
|
)
|
|
$
|
(7.8
|
)
|
Net deferred tax asset, end of year
|
$
|
11.1
|
|
|
$
|
9.2
|
|
Net deferred tax asset, current
|
6.3
|
|
|
6.8
|
|
||
Net deferred tax asset, non-current
|
$
|
4.8
|
|
|
$
|
2.4
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Balance, beginning of fiscal year
|
$
|
1.6
|
|
|
$
|
1.8
|
|
|
$
|
1.9
|
|
Decreases related to settlements
|
—
|
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|||
Increases for tax positions related to the current year
|
0.3
|
|
|
0.2
|
|
|
0.4
|
|
|||
Increases for tax positions related to prior years
|
—
|
|
|
0.1
|
|
|
—
|
|
|||
Decreases for tax positions related to prior years
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Reductions due to lapsed statute of limitations
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|||
Balance, end of fiscal year
|
$
|
1.7
|
|
|
$
|
1.6
|
|
|
$
|
1.8
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Net income
|
$
|
30.8
|
|
|
$
|
19.8
|
|
|
$
|
8.8
|
|
Weighted average number of common shares used in basic net income per common share
|
42.0
|
|
|
43.2
|
|
|
42.8
|
|
|||
Dilutive effect of outstanding stock options and non-vested restricted stock
|
0.3
|
|
|
0.3
|
|
|
0.2
|
|
|||
Weighted average number of common shares used in diluted net income per common share
|
42.3
|
|
|
43.5
|
|
|
43.0
|
|
|||
|
|
|
|
|
|
||||||
Net income per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.21
|
|
Diluted
|
$
|
0.73
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
Anti-dilutive stock options and other
|
1.0
|
|
|
1.0
|
|
|
1.4
|
|
Dollars in millions
|
2011
|
|
2010
|
|
2009
|
||||||
Cash paid (received) during the year for:
|
|
|
|
|
|
||||||
Interest
|
$
|
0.8
|
|
|
$
|
1.1
|
|
|
$
|
1.1
|
|
Income taxes
|
$
|
16.1
|
|
|
$
|
6.7
|
|
|
$
|
(11.5
|
)
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
2011
|
|
|
|
|
|
|
|
||||||||
Revenue from services
|
$
|
274.3
|
|
|
$
|
320.2
|
|
|
$
|
371.4
|
|
|
$
|
350.2
|
|
Cost of services
|
204.3
|
|
|
234.9
|
|
|
271.6
|
|
|
258.3
|
|
||||
Gross profit
|
70.0
|
|
|
85.3
|
|
|
99.8
|
|
|
91.9
|
|
||||
Selling, general and administrative expenses
|
65.1
|
|
|
67.7
|
|
|
73.2
|
|
|
76.8
|
|
||||
Depreciation and amortization
|
3.9
|
|
|
3.8
|
|
|
4.2
|
|
|
4.4
|
|
||||
Income from operations
|
1.0
|
|
|
13.8
|
|
|
22.4
|
|
|
10.7
|
|
||||
Interest expense
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
||||
Interest and other income
|
0.6
|
|
|
0.6
|
|
|
0.7
|
|
|
0.8
|
|
||||
Interest and other income, net
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
||||
Income before tax expense
|
1.3
|
|
|
14.0
|
|
|
22.7
|
|
|
11.4
|
|
||||
Income tax expense
|
0.5
|
|
|
5.4
|
|
|
8.8
|
|
|
3.8
|
|
||||
Net income
|
$
|
0.8
|
|
|
$
|
8.6
|
|
|
$
|
13.9
|
|
|
$
|
7.6
|
|
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.02
|
|
|
$
|
0.2
|
|
|
$
|
0.33
|
|
|
$
|
0.19
|
|
Diluted
|
$
|
0.02
|
|
|
$
|
0.2
|
|
|
$
|
0.33
|
|
|
$
|
0.19
|
|
2010
|
|
|
|
|
|
|
|
||||||||
Revenue from services
|
$
|
239.8
|
|
|
$
|
284.8
|
|
|
$
|
312.8
|
|
|
$
|
311.9
|
|
Cost of services
|
178.7
|
|
|
209.0
|
|
|
228.2
|
|
|
230.0
|
|
||||
Gross profit
|
61.1
|
|
|
75.8
|
|
|
84.6
|
|
|
81.9
|
|
||||
Selling, general and administrative expenses
|
61.2
|
|
|
61.3
|
|
|
64.4
|
|
|
71.8
|
|
||||
Depreciation and amortization
|
4.1
|
|
|
3.9
|
|
|
3.9
|
|
|
4.6
|
|
||||
Income (loss) from operations
|
(4.2
|
)
|
|
10.6
|
|
|
16.3
|
|
|
5.5
|
|
||||
Interest expense
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
||||
Interest and other income
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
|
0.6
|
|
||||
Interest and other income, net
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
||||
Income (loss) before tax expense (benefit)
|
(3.9
|
)
|
|
10.8
|
|
|
16.4
|
|
|
5.8
|
|
||||
Income tax expense (benefit)
|
(1.6
|
)
|
|
2.9
|
|
|
6.2
|
|
|
1.8
|
|
||||
Net income (loss)
|
$
|
(2.3
|
)
|
|
$
|
7.9
|
|
|
$
|
10.2
|
|
|
$
|
4.0
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.05
|
)
|
|
$
|
0.18
|
|
|
$
|
0.24
|
|
|
$
|
0.09
|
|
Diluted
|
$
|
(0.05
|
)
|
|
$
|
0.18
|
|
|
$
|
0.23
|
|
|
$
|
0.09
|
|
Item 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
Item 9A.
|
CONTROLS AND PROCEDURES
|
Item 9B.
|
OTHER INFORMATION
|
Item 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
Item 11.
|
EXECUTIVE COMPENSATION
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Item 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Item 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
Item 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
|
a)
|
Exhibits and Financial Statement Schedules
|
1.
|
Financial Statements can be found under Item 8 of Part II of this Form 10-K.
|
2.
|
Financial Statement Schedules can be found on Page 57 of this Form 10-K.
|
3.
|
The Exhibit Index is found on Page 58 of this Form 10-K.
|
|
|
TrueBlue, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Steven C. Cooper
|
2/22/2012
|
|
|
|
|
Signature
|
Date
|
|
|
|
|
By: Steven C. Cooper, Director, Chief Executive
Officer and President
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Derrek L. Gafford
|
2/22/2012
|
|
|
|
|
Signature
|
Date
|
|
|
|
|
By: Derrek L. Gafford, Chief Financial Officer and
Executive Vice President
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Norman H. Frey
|
2/22/2012
|
|
|
|
|
Signature
|
Date
|
|
|
|
|
By: Norman H. Frey, Chief Accounting Officer and
Corporate Controller
|
|
|
|
/s/ Steven C. Cooper
|
|
2/22/2012
|
|
|
|
/s/ Joseph P. Sambataro, Jr.
|
|
2/22/2012
|
|
|
Signature
|
|
Date
|
|
|
|
Signature
|
|
Date
|
|
|
Steven C. Cooper, Director, Chief Executive Officer and President
|
|
|
|
|
|
Joseph P. Sambataro, Jr., Chairman of the Board
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Craig Tall
|
|
2/22/2012
|
|
|
|
/s/ Jeffrey B. Sakaguchi
|
|
2/22/2012
|
|
|
Signature
|
|
Date
|
|
|
|
Signature
|
|
Date
|
|
|
Craig Tall, Director
|
|
|
|
|
|
Jeffrey B. Sakaguchi, Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Thomas E. McChesney
|
|
2/22/2012
|
|
|
|
/s/ William W. Steele
|
|
2/22/2012
|
|
|
Signature
|
|
Date
|
|
|
|
Signature
|
|
Date
|
|
|
Thomas E. McChesney, Director
|
|
|
|
|
|
William W. Steele, Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Gates McKibbin
|
|
2/22/2012
|
|
|
|
/s/ Bonnie W. Soodik
|
|
2/22/2012
|
|
|
Signature
|
|
Date
|
|
|
|
Signature
|
|
Date
|
|
|
Gates McKibbin, Director
|
|
|
|
|
|
Bonnie W. Soodik, Director
|
|
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Balance, beginning of the year
|
$
|
6.4
|
|
|
$
|
6.6
|
|
|
$
|
5.4
|
|
Charged to expense
|
6.6
|
|
|
8.2
|
|
|
14.5
|
|
|||
Write-offs
|
(7.2
|
)
|
|
(8.4
|
)
|
|
(13.3
|
)
|
|||
Balance, end of year
|
$
|
5.8
|
|
|
$
|
6.4
|
|
|
$
|
6.6
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Balance, beginning of the year
|
$
|
7.6
|
|
|
$
|
6.8
|
|
|
$
|
6.9
|
|
Charged to expense
|
(0.3
|
)
|
|
0.8
|
|
|
(0.1
|
)
|
|||
Balance, end of year
|
$
|
7.3
|
|
|
$
|
7.6
|
|
|
$
|
6.8
|
|
|
2011
|
|
2010
|
|
2009
|
||||||
Balance, beginning of the year
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
$
|
0.5
|
|
Charged to expense
|
(0.2
|
)
|
|
0.1
|
|
|
0.1
|
|
|||
Balance, end of year
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
Number
|
|
Exhibit Description
|
Form
|
|
File No.
|
|
Date of
First Filing
|
|
|
|
|
|
|
|
|
3.1
|
|
Amended and Restated Articles of Incorporation
|
8-K
|
|
001-14543
|
|
6/16/2009
|
|
|
|
|
|
|
|
|
3.2
|
|
Amended and Restated Company Bylaws
|
8-K
|
|
001-14543
|
|
9/17/2008
|
|
|
|
|
|
|
|
|
10.1
|
|
1996 Employee Stock Option and Incentive Plan
|
DEF 14A
|
|
000-23828
|
|
7/23/1996
|
|
|
|
|
|
|
|
|
10.2
|
|
2000 Stock Option Plan (Last Amended January 14, 2002)
|
10-K
|
|
001-14543
|
|
3/2/2004
|
|
|
|
|
|
|
|
|
10.3
|
|
Assumption and Novation Agreement among TrueBlue, Inc. and Lumbermen's Mutual Casualty Company, American Motorist Insurance Company, American Protection Insurance Company and American Manufacturers Mutual Insurance Company and National Union Fire Insurance Company of Pittsburgh, PA, dated December 29, 2004
|
10-K
|
|
001-14543
|
|
3/11/2005
|
|
|
|
|
|
|
|
|
10.4
|
|
Indemnification Agreement between TrueBlue, Inc. and National Union Fire Insurance Company of Pittsburgh, PA dated December 29, 2004
|
10-K
|
|
001-14543
|
|
3/11/2005
|
|
|
|
|
|
|
|
|
10.5
|
|
2005 Long Term Equity Incentive Plan
|
8-K
|
|
001-14543
|
|
5/24/2005
|
|
|
|
|
|
|
|
|
10.6
|
|
Executive Employment Agreement between TrueBlue, Inc. and James E. Defebaugh, dated August 3, 2005
|
8-K
|
|
001-14543
|
|
8/9/2005
|
|
|
|
|
|
|
|
|
10.7
|
|
First Amendment to the Executive Employment Agreement between TrueBlue, Inc. and James E. Defebaugh, dated December 31, 2006
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.8
|
|
Executive Employment Agreement and First Amendment to the Executive Employment Agreement between TrueBlue, Inc. and Noel Wheeler, dated December 31, 2006
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.9
|
|
Executive Employment Agreement between TrueBlue, Inc. and Derrek Gafford, dated December 31, 2006
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.10
|
|
Executive Employment Agreement between TrueBlue, Inc. and Wayne Larkin, dated December 31, 2006
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.11
|
|
Form Executive Non-Competition Agreement between TrueBlue, Inc. and Steven Cooper, Jim Defebaugh, Derrek Gafford, Wayne Larkin, and Noel Wheeler
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.12
|
|
Form Executive Indemnification Agreement between TrueBlue, Inc. and Steven Cooper, Jim Defebaugh, Derrek Gafford, Wayne Larkin, and Noel Wheeler
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.13
|
|
Form Executive Change in Control Agreement between TrueBlue, Inc. and Steven Cooper, Jim Defebaugh, Derrek Gafford, Wayne Larkin, and Noel Wheeler
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
Number
|
|
Exhibit Description
|
Form
|
|
File No.
|
|
Date of
First Filing
|
|
|
|
|
|
|
|
|
10.14
|
|
Amended and Restated Executive Employment Agreement between TrueBlue, Inc. and Steven C. Cooper, dated November 16, 2009
|
8-K
|
|
001-14543
|
|
11/19/2009
|
|
|
|
|
|
|
|
|
10.15
|
|
Amended and Restated Non-Competition Agreement between TrueBlue, Inc. and Steven Cooper, dated November 16, 2009
|
8-K
|
|
001-14543
|
|
11/19/2009
|
|
|
|
|
|
|
|
|
10.16
|
|
Equity Retainer And Deferred Compensation Plan For Non- Employee Directors, effective January 1, 2010
|
S-8
|
|
333-164614
|
|
2/1/2010
|
|
|
|
|
|
|
|
|
10.17
|
|
2010 Employee Stock Purchase Plan
|
S-8
|
|
333-167770
|
|
6/25/2010
|
|
|
|
|
|
|
|
|
10.18
|
|
Amended and Restated 2005 Long-Term Equity Incentive Plan
|
S-8
|
|
333-167770
|
|
6/25/2010
|
|
|
|
|
|
|
|
|
10.19*
|
|
Executive Employment Agreement between TrueBlue, Inc. and Kimberly Cannon, dated November 8, 2010
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
10.20
|
|
Form Executive Non-Compete Agreement, Form Executive Indemnification Agreement, and Form Executive Change in Control Agreement between TrueBlue, Inc. and Kimberly Cannon
|
10-Q
|
|
001-14543
|
|
5/4/2007
|
|
|
|
|
|
|
|
|
10.21
|
|
Amended and Restated Credit Agreement between TrueBlue, Inc. and Bank of America and Wells Fargo Capital Finance, dated September 30, 2011
|
8-K
|
|
001-14543
|
|
10/4/2011
|
|
|
|
|
|
|
|
|
10.22*
|
|
TrueBlue, Inc. Nonqualified Deferred Compensation Plan
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
21*
|
|
Subsidiaries of TrueBlue, Inc.
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
23.1*
|
|
Consent of Deloitte & Touche LLP - Independent Registered Public Accounting Firm
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
31.1*
|
|
Certification of Steven C. Cooper, Chief Executive Officer of TrueBlue, Inc., Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
31.2*
|
|
Certification of Derrek L. Gafford, Chief Financial Officer of TrueBlue, Inc., Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
32.1*
|
|
Certification of Steven C. Cooper, Chief Executive Officer of TrueBlue, Inc. and Derrek L. Gafford, Chief Financial Officer of TrueBlue, Inc., Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
101**
|
|
The following financial information from our Annual Report on Form 10-K for the fiscal year ended December 30, 2011, filed with the SEC on February 22, 2012, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) the Notes to Condensed Consolidated Financial Statements (tagged as blocks of text)
|
—
|
|
—
|
|
—
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
I.
|
COMPENSATION AND POSITION.
|
II.
|
TERMS AND CONDITIONS.
|
III.
|
CONFIDENTIAL INFORMATION.
|
IV.
|
ASSIGNMENT OF INVENTIONS.
|
V.
|
COMPLIANCE WITH LAWS AND TRUEBLUE'S CODE OF CONDUCT AND CORPORATE GOVERNANCE GUIDELINES.
|
VI.
|
MISCELLANEOUS.
|
TRUEBLUE, INC.
|
|
EXECUTIVE
|
|
By:
|
/s/ James Defebaugh
|
|
/s/ Kimberly A. Cannon
|
Name:
|
James Defebaugh
|
|
By signing this Agreement, I accept and acknowledge that I will abide by the terms and conditions of this Agreement. I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by Company, nor shall it interfere in any way with my right or Company's right to terminate my employment at any time, with or without cause.
|
Title:
|
EVP, General Counsel
|
|
|
|
|
|
|
|
|
|
TRUEBLUE, Inc.
|
|
|
|
|
|
|
|
Date Signed:
|
|
,2010
|
|
By:
|
|
|
|
|
|
Its:
|
|
CORPORATE NAME
|
|
Incorporated in
State/Country of:
|
CLP Holdings Corp
|
|
Nevada
|
CLP Resources, Inc.
|
|
Delaware
|
Labor Ready Northwest, Inc.
|
|
Washington
|
Labor Ready Southwest, Inc.
|
|
Washington
|
Labor Ready Central, Inc.
|
|
Washington
|
Labor Ready Midwest, Inc.
|
|
Washington
|
Labor Ready Mid-Atlantic, Inc.
|
|
Washington
|
Labor Ready Northeast, Inc.
|
|
Washington
|
Labor Ready Southeast, Inc.
|
|
Washington
|
Labour Ready Temporary Services, Ltd.
|
|
Canada
|
Spartan Staffing Puerto Rico, LLC
|
|
Puerto Rico
|
Labor Ready Holdings, Inc.
|
|
Nevada
|
PlaneTechs, LLC
|
|
Nevada
|
Spartan Staffing, LLC
|
|
Nevada
|
TrueBlue Enterprises, Inc.
|
|
Nevada
|
Centerline Drivers, LLC
|
|
Nevada
|
Worker’s Assurance of Hawaii, Inc.
|
|
Hawaii
|
/s/ Deloitte & Touche LLP
|
|
Seattle, Washington
|
February 22, 2012
|
1.
|
I have reviewed this Annual Report on Form 10-K of TrueBlue, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Steven C. Cooper
|
Steven C. Cooper
|
Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this Annual Report on Form 10-K of TrueBlue, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Derrek L. Gafford
|
Derrek L. Gafford
|
Chief Financial Officer
|
(Principal Financial Officer)
|
(1)
|
The Annual Report of the Company on Form 10-K, for the fiscal period ended December 30, 2011 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
/s/ Steven C. Cooper
|
|
/s/ Derrek L. Gafford
|
Steven C. Cooper
|
|
Derrek L. Gafford
|
Chief Executive Officer
|
|
Chief Financial Officer
|
(Principal Executive Officer)
|
|
(Principal Financial Officer)
|