Tuesday July 28, 7:53 pm Eastern Time
Company Press Release
SOURCE: Labor Ready, Inc.
Labor Ready Reports Second Quarter Revenue Rose 84% and Earnings
Up 143%; Completes 161 Dispatch Office Openings during First Half of
Year
TACOMA, Wash., July 28 /PRNewswire/ -- Labor Ready, Inc. (Nasdaq: LBOR - news), the nation's leading provider of
temporary manual labor, today reported that sales rose 84% to a record $143 million for the second quarter, ended July 3,
1998, from $77.6 million for the same quarter a year ago. Net income rose 143% to $3,349,000 from $1,378,000 for the
same period in 1997. Diluted earnings per common share increased 140% to $0.12 from $0.05 for the same period a year ago.
Revenue for the first half, ended July 3, 1998, increased 84% to $237 million from $129 million for the same period a year ago.
Net income rose 496% to $3,493,000 from $586,000 for the same period a year earlier. Diluted earnings per common share
amounted to $0.12, an increase of 500% from $0.02 for the same period a year ago.
Glenn Welstad, Chairman, President and CEO said, ''We are extremely pleased. Demand for Labor Ready's services
continues to be very strong, as our 84% increase in year over year sales demonstrates. The demand is broad- based, with
strong growth in all regions of the United States; 239 offices now supply workers for second and third shifts.''
The Company reported that average dispatch office sales were 35% higher in the first half of 1998 than the same period a year
ago. This increase is a result of an accelerated opening schedule and more experienced operating management.
During the second quarter, Labor Ready continued to roll out its innovative Cash Dispensing Machines (CDMs), which provide
workers the choice of receiving cash instead of a paycheck at the end of the workday. More than 50% of the Company's
workers chose to receive cash versus a check in the second quarter. The CDM program has generated fees of approximately
$1.1 million so far this year while reducing the bank fees associated with issuing checks.
Labor Ready is currently operating 481 dispatch offices in 46 states and Canada. Based in Tacoma, Washington, Labor Ready
is the nation's leading provider of temporary manual labor to the construction, light industrial and small business markets.
This news release contains forward-looking statements, such as statements about the Company's growth in revenue and
profitability, the demand for temporary labor, and the Company's ability to satisfy market demand. The Company's actual
results are, however, subject to a number of risks, including (1) uncertainties regarding its ability to manage and continue its
rapid growth: (2) economic conditions in its key market areas, and (3) other risks described in the Company's 1997 Form
10-K.
LABOR READY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
Twenty-Six Weeks Ended Thirteen Weeks Ended
July 3, June 30, July 3, June 30,
1998 1997 1998 1997
Revenues from
services $237,028 $129,334 $142,997 $77,620
Cost of services 166,284 90,169 100,588 53,247
Gross profit 70,744 39,165 42,409 24,373
Selling, general and
administrative 61,824 36,328 34,910 20,911
Depreciation
and amortization 3,103 2,083 1,723 1,154
Income from operations 5,817 754 5,776 2,308
Interest income
(expense), net 112 278 (96) 81
Income before taxes
on income 5,929 1,032 5,680 2,389
Taxes on income 2,436 446 2,331 1,011
Net income $3,493 $586 $3,349 $1,378
Earnings per common share:
Basic $.13 $.02 $.12 $.05
Diluted $.12 $.02 $.12 $.05
Weighted average shares:
Basic 27,727 27,721 27,767 27,617
Diluted 28,741 27,847 28,985 27,708
LABOR READY, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
(Unaudited)
July 3, December 31,
1998 1997
Assets
Current assets
Cash and cash equivalents $15,289 $22,117
Accounts receivable 58,066 36,614
Other current assets 8,044 6,886
Total current assets 81,399 65,617
Property and equipment, net 18,733 10,326
Other assets 5,671 4,424
Total assets $105,803 $80,367
Liabilities and
shareholders' equity
Current liabilities $27,256 $15,788
Long term liabilities 16,075 6,538
Total liabilities 43,331 22,326
Shareholders' equity 62,472 58,041
Total liabilities
and shareholders' equity $105,803 $80,367
SOURCE: Labor Ready, Inc. |
