Labor Ready Reports Third Quarter Revenue Rose 89% and Earnings Up 119%For the Nine-Month Period, Revenue Climbed 86% and Earnings 168%
TACOMA, Wash., Oct. 20 /PRNewswire/ -- Labor Ready, Inc. (Nasdaq: LBOR),
the nation's leading provider of temporary manual labor, today reported that
sales rose 89% to a record $191.9 million for the third quarter, ended
October 2, 1998, from $101.7 million for the same quarter a year ago. Net
income rose 119% to $8,542,000 from $3,901,000 for the same period of 1997.
Diluted earnings per common share increased 114% to $0.30 from $0.14 for the
same period a year ago.
Revenue for the nine months, ended October 2, 1998, increased 86% to
$428.9 million from $231.0 million for the same period a year ago. Net income
rose 168% to $12,035,000 from $4,486,000 for the same period a year earlier.
Diluted earnings per common share amounted to $0.42, an increase of 163% from
$0.16 for the same period a year ago.
Labor Ready Chairman and CEO Glenn Welstad said, "We are pleased with the
continued demand for Labor Ready's services. Our 89% increase in year over
year sales for the quarter demonstrates that we are seeing no slowing in the
number of jobs or applicants. Growth continues to be strong in every region
of the country, reflecting the name recognition and acceptance that Labor
Ready is achieving around the country."
"We are pleased to make two announcements," Welstad added. "First, later
this month Labor Ready will be listed on the New York Stock Exchange,
realizing one of the Company's long-held ambitions to join the roster of this
prestigious group of companies. Second, we will soon be opening an office in
Manchester, England, the first Labor Ready office outside North America."
Labor Ready is currently operating 485 dispatch offices in 46 states,
Puerto Rico and Canada. Based in Tacoma, Washington, Labor Ready is the
nation's leading provider of temporary workers to the construction, light
industrial and small business markets.
This news release contains forward-looking statements, such as statements
about the demand for temporary employees 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 of Dollars, Except Per Share Amounts)
(Unaudited)
Thirty-Nine Weeks Ended Thirteen Weeks Ended
October 2, September 26, October 2, September 26,
1998 1997 1998 1997
Revenues from
services $428,879 $231,047 $191,851 $101,713
Cost of services 300,750 162,713 134,466 72,544
Gross profit 128,129 68,334 57,385 29,169
Selling, general and
administrative 103,244 57,329 41,420 21,001
Depreciation and
amortization 4,543 3,192 1,440 1,109
Income from operations 20,342 7,813 14,525 7,059
Interest income
(expense), net (58) 460 (170) 183
Income before
taxes on income 20,284 8,273 14,355 7,242
Taxes on income 8,249 3,787 5,813 3,341
Net income $ 12,035 $ 4,486 $ 8,542 $ 3,901
Earnings per common share:
Basic $ .43 $ .16 $ .31 $ .14
Diluted $ .42 $ .16 $ .30 $ .14
Weighted average shares:
Basic 27,769 27,678 27,848 27,594
Diluted 28,736 27,948 28,909 28,096
LABOR READY, INC.
Consolidated Balance Sheets
(In Thousands of Dollars)
(Unaudited)
October 2, December 31,
1998 1997
Assets
Current assets
Cash and cash equivalents $ 25,583 $ 22,117
Accounts receivable 80,384 36,614
Other current assets 12,069 6,886
Total current assets 118,036 65,617
Property and equipment, net 19,351 10,326
Other assets 3,350 4,424
Total assets $140,737 $ 80,367
Liabilities and shareholders' equity
Current liabilities $ 54,229 $ 15,788
Long term liabilities 15,240 6,538
Total liabilities 69,469 22,326
Shareholders' equity 71,268 58,041
Total liabilities and
shareholders' equity $140,737 $80,367
SOURCE Labor Ready, Inc.
CO: Labor Ready, Inc.
ST: Washington
IN: FIN
SU: ERN
10/20/98 22:20 EDT prnewswire.com
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