Jenna,
Your right on the money with LBOR. Estimates were for a loss of .05 and they reported a profit of .01 Should be an interesting day today.
Labor Ready Reports Record Revenue and Earnings For
First Quarter 1998; Posts Profitable First Quarter While
Opening 104 New Dispatch Offices
PR Newswire - April 28, 1998 18:54
LBOR %FIN %ERN V%PRN P%PRN
TACOMA, Wash., April 28 /PRNewswire/ -- Labor Ready Inc. (Nasdaq: LBOR),
the nation's leading provider of temporary manual labor, today reported record
sales of $94.0 million for the first quarter ended April 3, 1998, an 82%
increase from sales of $51.7 million for the year earlier quarter ended March
31, 1997. Net income rose $938,000 to $145,000 or $0.01 per basic share, from
a loss of $793,000 or ($0.04) per basic share in the first quarter 1997.
Glenn Welstad, Chairman, President and CEO said, "Demand for temporary
manual labor continues to be strong. We successfully opened 104 new offices
in the first quarter of 1998 compared to opening of 56 new offices in the same
period a year ago. Most impressive, however, was that for the first time in
the Company's history, Labor Ready posted a profitable first quarter,
traditionally the slowest period of the year in terms of sales, but the
greatest in terms of incurring expenses to open new offices.
"Much of Labor Ready's success in the first quarter resulted from
increased demand for temporary manual labor and improved operating margins.
Welstad added that gross margins improved from 28.6% to 30.1% because of
increased customer awareness and continued demand for temporary manual labor,
which enabled Labor Ready to discontinue its historical practice of
discounting prices at new offices. Selling, general and administrative costs
as a percentage of sales has declined in the first quarter reflecting the cost
efficiency of its field operations and corporate.
Labor Ready is beginning to realize the success of its cash dispensing
machine program, "To date 360 offices have installed working cash machines
and we expect all offices to be operational by June 30, 1998," said Welstad.
"Also during the first quarter, Labor Ready obtained a new insurance
policy for the next three years that caps rates at 14% lower than 1997 rates
and eliminates Labor Ready's exposure for workers compensation claims beyond
what has already been reserved for the years prior to 1997," said Welstad.
Welstad said that the company is on track to open 167 new offices during
the first six months of 1998 for a total of 483 by June 30, 1998.
Labor Ready is currently operating 430 dispatch offices in 45 states and
Canada. Tacoma, Washington based Labor Ready is the nation's leading provider
of temporary workers to the light industrial, construction and small business
markets.
This release may contain forward-looking statements of information that
involve risk and uncertainties. The Company's actual results could differ
materially from the results identified in any forward-looking statements.
Factors that could cause such a difference include, but are not limited to,
those set forth in Item 7 entitled Management's Discussion and Analysis of
Financial Conditions and results of Operations in the Company's Form 10-K for
the year ended December 31, 1997.
LABOR READY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands of Dollars (Except Per Share Amounts)
Three Months Ended April 3, March 31,
1998 1997
Revenues from services $94,030 $51,714
Cost of services 65,695 36,922
Gross profit 28,335 14,792
Selling, general and
administrative 26,913 15,383
Depreciation and
amortization 1,380 929
Income (loss) from operations 42 (1,520)
Interest income, net 208 162
Income (loss)
before income tax
(provision) benefit 250 (1,358)
Income tax (provision)
benefit (105) 565
Net income (loss) $145 $(793)
Net Income (loss)
per common share:
Basic $0.01 $(0.04)
Diluted $0.01 $(0.04)
Weighted average
shares outstanding:
Basic 18,459 18,549
Diluted 19,001 18,549
LABOR READY, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands of Dollars
(Unaudited)
April 3, December 31,
1998 1997
Assets
Current assets:
Cash and cash equivalents $17,880 $22,117
Accounts receivable 37,150 36,614
Other current assets 9,967 6,886
Total current assets 64,997 65,617
Property and equipment, net 15,671 10,326
Other assets 6,573 4,424
Total assets $87,241 $80,367
Liabilities and
shareholders' equity
Current liabilities 15,326 15,788
Long-term liabilities 13,126 6,538
Total liabilities 28,452 22,326
Shareholders' equity 58,789 58,041
Total liabilities and
shareholders' equity $87,241 $80,367
SOURCE Labor Ready Inc.
/CONTACT: Richard Stern or Jefferey Goldberger of Stern & Co.,
212-888-0044; or Joe Sambataro, Chief Financial Officer of Labor Ready, Inc.,
800-610-8920 ext. 3203/
/Web site: sternco.com
(LBOR) |
