8-K

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): January 30, 2008

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):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-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 January 30, 2008, TrueBlue, Inc. (the “Company”) issued a press release (the “Press Release”) reporting its financial results for the fourth quarter ended December 28, 2007 and revenue and earnings guidance for the first quarter of 2008, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference.

Item 7.01.Results of Operations and Financial Condition.

In connection with the scheduled conference call at 2 p.m. (PT), Wednesday, January 30, 2008 to discuss the Company’s financial results for the fourth quarter ended December 28, 2007, management of the Company may discuss or refer to some of the information contained in the attached “2008 Assumptions” document, which is attached to this report as Exhibit 99.2.

In accordance with General Instruction B.2. of Form 8-K, the information contained in this report (including the Press Release and the “2008 Assumptions” document 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 “2008 Assumptions” document 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 January 30, 2008.
99.2.	“2008 Assumptions” document.

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: January 30, 2008	By:		/s/ James E. Defebaugh
			James E. Defebaugh
			Executive Vice President,
			General Counsel and Secretary

2

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE:

TRUEBLUE REPORTS FOURTH QUARTER 2007 RESULTS

TACOMA, WA, January 30, 2008—TrueBlue, Inc. (NYSE:TBI) today reported revenue for the fourth quarter ended Dec. 28, 2007 of $353.6 million, an increase of 4.6 percent from $338.1 million for the fourth quarter of 2006.  For the fourth quarter of 2007, the company generated net income of $14.4 million or $0.33 per diluted share, a decrease from $21.6 million or $0.42 per diluted share for the fourth quarter of 2006.  The fourth quarter of 2006 included an additional $4.2 million of net income from the reinstatement of the Work Opportunity Tax Credit and other tax matters.

“Our focus on revenue growth and disciplined cost containment continues to drive our performance, despite the difficult operating environment,” said TrueBlue CEO Steve Cooper. “During the quarter, we closed 27 branches and made other changes across our operations to adjust for current conditions.”

Revenue for the quarter from branches open 12 months or longer decreased 0.2 percent while revenue from acquisitions provided 5.3 percent of revenue growth over the same period a year ago.  Other items such as branch openings, branch closings, and the impact of currency decreased revenue by 0.5 percent.

“During 2007, we took significant strategic steps toward our goal of becoming the leading provider of blue-collar staffing,” said Cooper. “We returned $150 million of capital to shareholders by purchasing our own stock; we made two acquisitions to fuel future growth; and we renamed our company to clarify our niche approach to branding and growing our company.”

For the first quarter of 2008, TrueBlue estimates revenue in the range of $312 million to $317 million, with net income per diluted share for the quarter in the range of $0.18 to $0.20.

Management will discuss fourth quarter 2007 results on a conference call at 2 p.m. (PT), Wednesday Jan. 30, 2008. The conference call can be accessed on TrueBlue’s web site: www.TrueBlueInc.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 TrueBlue’s financial results and operations in the future. TrueBlue’s actual results are, however, subject to a number of risks, including 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) potential 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 or skilled trade workers to fulfill the needs of our customers; 9) TrueBlue’s ability to successfully complete and integrate acquisitions that it may make from time to time; 10) TrueBlue’s ability to timely execute strategies for acquired companies; and 11) 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.

About TrueBlue

TrueBlue, Inc., headquartered in Tacoma, Wash., is the parent company of Labor Ready, Spartan Staffing, CLP Resources, and PlaneTechs. TrueBlue’s brands provide general labor, light industrial and skilled trades services to small to mid-sized businesses in the construction, warehousing, hospitality, landscaping, transportation, light manufacturing, retail, wholesale, facilities, sanitation, and aviation industries. Annually, the company serves

approximately 300,000 customers and puts more than 600,000 people to work through its nearly 900 branch offices in the United States, Canada, and the United Kingdom.For additional information, visit TrueBlue’s website at www.TrueBlueInc.com

For more information, contact:

Derrek Gafford, CFO

253-680-8214

Stacey Burke, VP of Corporate Communications

253-680-8291

TrueBlue, Inc.

SUMMARY CONSOLIDATED STATEMENTS OF INCOME

In Thousands, except per share data

	Thirteen Weeks Ended				Fiscal Years Ended
	December 28,		December 29,		December 28,		December 29,
	2007		2006		2007		2006
	(Unaudited)				(Unaudited)
Revenue from services	$	353,616	$	338,148	$	1,385,656	$	1,349,118
Cost of services	241,705		228,035		943,563		915,773
Gross profit	111,911		110,113		442,093		433,345
Selling, general and administrative expenses	87,865		83,158		336,220		318,681
Depreciation and amortization	3,562		2,455		12,223		10,364
Income from operations	20,484		24,500		93,650		104,300
Interest and other income, net	2,729		3,108		10,953		11,873
Income before tax expense	23,213		27,608		104,603		116,173
Income tax expense	8,860		6,046		38,405		39,701
Net income	$	14,353	$	21,562	$	66,198	$	76,472
Net income per common share:
Basic	$	0.33	$	0.42	$	1.45	$	1.46
Diluted	$	0.33	$	0.42	$	1.44	$	1.45
Weighted average shares outstanding:
Basic	43,280		51,026		45,683		52,418
Diluted	43,513		51,327		45,960		52,853

TrueBlue, Inc.

SUMMARY CONSOLIDATED BALANCE SHEETS

In Thousands

	December 28,		December 29,
	2007		2006
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	57,008	$	107,944
Marketable securities	10,954		91,510
Accounts receivable, net	140,027		120,173
Other current assets	21,519		20,131
Total current assets	229,508		339,758
Property and equipment, net	44,909		31,949
Restricted cash	132,497		143,731
Other assets	138,335		76,868
Total assets	$	545,249	$	592,306
Liabilities and shareholders’ equity
Current liabilities	$	114,538	$	101,385
Long-term liabilities	146,884		138,403
Total liabilities	261,422		239,788
Shareholders’ equity	283,827		352,518
Total liabilities and shareholders’ equity	$	545,249	$	592,306

TrueBlue, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

	Fiscal Years Ended
	December 28,			December 29,
	2007			2006
	(Unaudited)
Cash Flows from Operating activities:
Net income	$	66,198		$	76,472
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,223			10,364
Provision for doubtful accounts	9,987			7,215
Stock-based compensation	6,943			6,377
Excess tax benefits from stock-based compensation	(1,451		)	(3,527		)
Deferred income taxes	(8,696		)	(3,169		)
Other operating activities	401			56
Changes in operating assets and liabilities, exclusive of businesses acquired:
Accounts receivable	(10,897		)	(5,429		)
Income taxes	12,359			4,797
Other assets	3,734			(2,677		)
Accounts payable and other accrued expenses	270			(3,068		)
Accrued wages and benefits	(2,541		)	(798		)
Workers’ compensation claims reserve	5,748			21,576
Other current liabilities	4,376			(38		)
Net cash provided by operating activities	98,654			108,151
Cash Flows from Investing activities:
Capital expenditures	(21,040		)	(13,007		)
Purchases of marketable securities	(191,032		)	(88,266		)
Maturities of marketable securities	271,580			90,301
Acquisition of businesses, net of cash acquired	(76,902		)	—
Change in restricted cash and other assets	11,234			8,948
Other	(167		)	214
Net cash used in investing activities	(6,327		)	(1,810		)
Cash Flows from Financing activities:
Purchases and retirement of common stock	(150,310		)	(88,744		)
Net proceeds from sale of stock through options and employee benefit plans	4,715			5,293
Excess tax benefits from stock-based compensation	1,451			3,527
Payments on debt	(909		)	(1,212		)
Net cash used in financing activities	(145,053		)	(81,136		)
Effect of exchange rates on cash	1,790			584
Net change in cash and cash equivalents	(50,936		)	25,789
Cash and cash equivalents, beginning of year	107,944			82,155
Cash and cash equivalents, end of year	$	57,008		$	107,944

EX-99.2

Exhibit 99.2

Safe Harbor Statement 1 TrueBlue™ 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.

2008 Assumptions 2008 Estimate Branches in operation on Jan. 1, 2008 894 New branches 3 Revenue growth from 2007 acquisitions 7% Revenue loss from branches closed in 2007 (2 - 3%) Reduction in SG&A from branch closures $8 M Additional SG&A on incremental same branch revenue 10% Gross Margin 30.5% Depreciation & Amortization $17 M Capital Expenditures $18 M Income Tax Rate 36 – 36.5% Weighted Average Diluted Share Count 44 M 2 TrueBlue™